Buying Company Shares
Shares represent a percentage of the company. Buying shares in a company enables you to buy the company outright or to purchase a percentage of the company.
The number of shares a company has will depend on how many shares were registered with Company House when forming the company. Some companies for example will only be owned with one share. This would be worth 100% of the company. Whereas others may have more, with many owners each owning a different percentage of the company.
You are able to buy or have shares gifted to you by an existing shareholder. Equally, the company can create new shares. However, if the company creates new shares this will reduce the percentage that the existing shareholders own. As the total number of shares must always equal 100%. Similar to a pizza, the more people that share the pizza, the smaller each slice has to be.
Buying shares in a company enables you to receive a relative proportion of the company’s overall profits.

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