shares

Question 1

what are shares?

Answer 1

essentially, a piece of the company

Question 2

how do shares work?

Answer 2

shares are usually sold on the share market (for PLCs) and represent a percentage of ownership of the company - the bigger the percentage, the more money you invest, the more you own. for instance, say you charge a pound for every share, and in total £100,000 is invested, there are 100,000 shares. 1000 shares would be 1%

Question 3

how does voting work with shares?

Answer 3

the bigger the percentage of shares you have, the more important your vote is in the decision. 51% of shares is the majority needed to rule. it’s not about how many people have shares, its about how many shares the people have.

Question 4

how does a hostile take over work with shares?

Answer 4

when somebody buys over 51% of the shares within the company, they automatically have ruling over the decisions of the business, hence, a takeover