All about 'shares' and 'shareholding'

01:04 Mins Read

Beginning at the basics is always a good idea. So, let’s get started by discussing two fundamental concepts – shares and shareholding.

Transcript

All about 'shares' and 'shareholding' What are the shares of a company? Every company has some financial capital. This capital essentially refers to the funds the company raises to carry on its business. A share is the smallest unit into which this capital is divided. Then, what does shareholding mean? Simply put, shareholding is the act of holding a share in a company. Each person who holds a share in the company is known as a shareholder. Shareholders can be companies and individuals like you. Before you invest in the shares of a company You need to first understand its industry and its business. That’s just what we’ll explore in the upcoming lessons. Continue with Smart Money to learn more.