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Shareholding for Dummies

noun

pronunciation: 'ʃɛr,hoʊldɪŋ

What does Shareholding really mean?

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Hey there! So, let's talk about the word "shareholding". I know it might sound like a complex term, but I promise I'll do my best to break it down for you in a way that makes sense.

Okay, imagine you and your friends decide to start a lemonade stand together. Now, in order to make it a fair business, you and your friends each put in some money to buy all the ingredients and supplies needed to make the lemonade. The money that each of you put in is called your "investment".

Now, let's say you put in more money than your friends. This means you have a bigger "share" of the lemonade stand business. In other words, you "own" more of it.

That ownership is what we call "shareholding". It's like having a piece of the pie, or in this case, a piece of the lemonade stand.

So, in simpler words, shareholding refers to the amount of ownership someone has in a business or company. The more shares or ownership you have, the bigger your say in making decisions about the business and the more profits you can potentially earn.

But remember, it's not just about the money you put in. Sometimes people can acquire shares of a company by buying them from other people, even if they didn't initially invest in it. This is like buying a piece of the lemonade stand from someone who already owns it.

So, to summarize, shareholding is about how much ownership or control someone has in a business or company. It can come from investing your own money or buying shares from someone else. The more shares you have, the bigger your part in the decision-making and potential profits.

I hope that makes sense! If you have any more questions or need further clarification, feel free to ask.

Revised and Fact checked by Michael Garcia on 2023-10-30 02:24:39

Shareholding In a sentece

Learn how to use Shareholding inside a sentece

  • When you buy a part of a company by purchasing its shares, you become a shareholding of that company.
  • If you and your friends decide to start a lemonade stand together, each of you can have a shareholding in the business.
  • When a group of people invest in a football club by buying its shares, they become shareholdings of the club.
  • If you own a small portion of a big supermarket chain by having some of its shares, you are a shareholding of the company.
  • A school may have several shareholdings, which are people or organizations that have invested money in the school in exchange for shares.

Shareholding Hypernyms

Words that are more generic than the original word.