InvestorQ : Is it true that by buying shares I become a part owner of the company
Jignesh Gupta made post

Is it true that by buying shares I become a part owner of the company

Answer
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3 years ago
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That is absolutely true! Buying shares of companies imply that the investor owns a part of that company, thereby allowing him to enjoy the profit that the company makes. The part of the company owned is equivalent to the percentage of shares that he has purchased. As a partial owner of the company, he will be kept informed about company news and updates. This is different from buying bonds or debentures of the company. When you buy bonds or debentures you are a creditor who has given a loan to the company. The company will repay your loan along with interest. But your wealth does not grow with the company. That is where shares are very different. In fact, the logic is quite simple.
If the share capital of a company is Rs.100 crore and you have an investment of Rs.1 lakh in the IPO then you own 0.01% of the share capital of the company and you are the proportionate owner of the company. As a company owner, you can earn dividends and you can also vote on the board AGMs every year.
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