Share holding is related with the stock market business. As we all know that the stock markets are doing some good business in the recent times. Investors are investing in the stocks to get back some good amount of money as return. They are getting the return but how much they are going to get back, depends on their share holding in the company.
Share holding is nothing but the percentage of share that an individual, a company or the government holds in a particular company or corporation. The share holding is solely based on the ratio of the contribution in the capital amount of the company. If it is a private company then the owners of the company use to keep the largest amount of the shares with them and the rest are distributed among the others.
These shares are purchased by the individuals, other interested companies, by the corporations or investment companies.
The distribution of shares is a vital job and it needs very experienced campaigners because the share of ownership of the particular company is related to the factor. The value of the shares should be equal and a proper ratio between the reserved and offered share should be maintained while offering the share in the market with the purpose of generating funds.
Every company follows their own pattern and policies of share holding.
The share holders of the company receives a certain part of the company’s profit according to their share in the company. At the same time, the company losses are also shared among the holders. These share holders are generally entitled to cast their vote in the company elections.
Example of share holding plan and policy:
According to the official reports published on 30th June,2007 of the Axis Bank Ltd, it can be seen that the bank has divided the shares among the holders very wisely. The Indian promoters hold 121350119 shares or about 42.93 % holding in the bank. The non promoter holding is of 44.80% or 126637403 shares. The other investors hold 6.69% or 18908010 shares and the general public holds 15754247 shares or 5.57% holding in the company.
Last Updated on : 26th June 2013