Common Shares are representing equity ownership in a corporation, providing voting rights, and entitling the holder to a share of the company's success through dividends and/or capital appreciation.
In the old days when we traded shares, we will receive a share certificate but with the advancement of IT, it has been eliminated. This is the example of Share Certificate:
The minimum of shares we need to invest is 1 lot that is 100 shares.
Most of the time people think that the more we have is the better and actually
“It is not how much of shares u own and is actually how much % of the company u own”
Calculation:
If u have RM 2000 to invest
Company A: (Share Price=RM 2.00 Volume=20Million)
U can get 1000Shares=10lots
By taking the market capitalization (Share Price X Volume) = RM 2.00 X 20Million = RM 40Million
Amount invested/ Market capitalization = 2000/40M =0.005%
Company B: (Share Price=RM 20.00 Volume=1Million)
U can get 100Shares=1lot
By taking the market capitalization (Share Price X Volume) = RM 20.00 X 1Million = RM 20Million
Amount invested/ Market capitalization = 2000/20M =0.0110%
The % u has in company B is higher although the lots u have is lesser.
Remember that having common shares means that u are one of the company’s owner and it is determine by the percentage u r having.
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