What Is An Equity Share?

  Author: Puneesh Garg

If you want to start investing in stocks, you need to begin by knowing about an equity share. The good news is that you have reached the right place to being your journey in stock market investing.

Share of company ownership To start a business, money, commonly called capital, is required by entrepreneurs and promoters. In case of companies, the capital is divided into shares. Thus, equity shares represent a fractional or part ownership of the company.

Shareholders When one buys shares of a company in a stock market, the person becomes a part owner of the company. The holders of such shares commonly called shareholders are members of the company, have voting rights and are entitled to profits that company makes.

How much control one can have on the company’s day to day working depends upon the number of shares one holds in a company.  For example Reliance Industries has 324 crore shares. Thus, owning thousand or even one lakh shares of Reliance Industries cannot make a person have a say in the management.