Shares and Shareholdings

This is the vital area. Whoever owns over 50 percent of the shares legally controls the firm. However, decisive control can be affected (depending on how the remaining shares are allotted) from a much smaller holding. Releasing shares is the most economic way to bring investment revenue into the company.

A share is part ownership of a company. The company can issue any number of shares when it is created. They don't have to be purchased on day one. Shares that are purchased are called issued and the remainder unissued stock. Shares have a nominal price (initial price set against them), which the founders of the firm will dictate; this is called the par price.

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