Shareholder issues

Question 1

Who are shareholders?

Answer 1

Owners of limited company who invest capital and in return for decision making power and share of companies profit.

Question 2

what is ordinary share capital?

Answer 2

• money raised through selling shares.

1. shareholders are paid a dividend
2. dividend is proportion of the profits earn by company which is split and paid out to shareholders.
3. dividends are fixed amount per share- more shares a indivual holds the larger the pay out.
4. however dividend payments are not always guaranteed as loans must always be paid first and company may choose to reinvest in their business.

controlling stake - when one investor owns 51% shares.

Question 3

what is market capitalisation?

how do you work it out?

Answer 3

total value of all the ordinary shares issued by company

• number of issues shares x current share price