How to calculate the indirect shareholding ratio

Mondo Finance Updated on 2024-01-19

Indirect shareholding ratio refers to the ratio of the number of shares held by investors in a company through indirect means to the total share capital of the company. Under normal circumstances, investors can indirectly hold shares of listed companies by purchasing the controlling shareholders of listed companies, or by purchasing financial products such as ** and trusts.

The method of calculating the indirect shareholding ratio can vary depending on the specific situation, but in general, it can be calculated by following these steps:

1.Determine the number of shares held by the investor. This step needs to be determined based on factors such as the amount of money the investor buys, and how it is purchased. For example, if an investor buys 1,000 shares of a listed company** at $10 per share**, then the number of shares held by the investor is 1,000 shares.

2.Determine the total share capital of the company. This step can be determined by querying the company's annual report, announcements, and other relevant information.

3.Divide the number of shares held by the investor by the total share capital of the company to obtain the proportion of the investor's indirect shareholding. For example, if the number of shares held by the investor is 1,000 shares and the total share capital of the company is 10,000 shares, then the investor's indirect shareholding ratio is 10%.

It should be noted that the calculation method of indirect shareholding ratio may vary depending on the specific situation, and the above method is for reference only. In addition, investors also need to consider other factors when making investment decisions, such as investment risks, investment returns, and so on.

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