Suppose a company is worth ₹10 crore and it has issued 10,00,000 shares. Each share then represents ₹100 of company value. That is the entire idea behind a share: a company's ownership divided into equal units.
Value per share = Company value ÷ Number of shares
Own 50,000 of those shares and you own 5% of the company — regardless of what the share price later does. Ownership is about proportion; price is about the value of that proportion.
Proportion, not price
- If the company doubles in value, your 5% is still 5% — but it is now worth twice as much.
- If the company issues many new shares, your 5% falls unless you buy more.
- Owning shares makes you a part-owner, with a claim on the company's profits.
Company Ownership Simulator
Change the company's value, the total number of shares, and how many you own. Watch what happens to your slice.
100
1 Cr
0.1 Cr
Your ownershipOther shareholders
Your ownership
10%
Theoretical value of your stake
₹10 Cr
Company value × your ownership %
Implied price per share
₹100
Company value ÷ total shares
A share is a fraction of a business
With 1 crore shares, each share is 100% of the company. Increase the total shares without changing the company's value and each share represents a smaller slice — this is what happens during dilution.
Ownership is about proportion, not price. Owning 5% of a company is the same 5% whether the company is worth ₹100 crore or ₹1,000 crore — what changes is the value of that slice.
Try this
Move the sliders and notice the 'implied price per share'. Then change only the number of shares while leaving the company value alone, and watch how each share represents a smaller slice.