In the context of stock trading, the term "policyholder" does not refer to an individual who holds an insurance policy. Instead, it is used to describe a specific type of shareholder in a mutual insurance company.

A mutual insurance company is a type of insurance company that is owned by its policyholders. This means that when you purchase an insurance policy from a mutual company, you are essentially becoming a part-owner of the company. As a policyholder, you have certain rights and responsibilities, such as the right to vote on company matters and the responsibility to pay your premiums on time.

In contrast, a stock insurance company is owned by shareholders who are not necessarily policyholders. Stockholders in a stock insurance company invest in the company with the hope of making a profit. They are not entitled to vote on company matters, but they do receive dividends if the company is profitable.

So, why is the term "policyholder" used to describe shareholders in a mutual insurance company? The reason is that mutual insurance companies are essentially cooperatives. They are owned and operated by their policyholders for the benefit of their policyholders. As such, policyholders are considered to be the ultimate stakeholders in the company.