I heard that dhiru bhai ambani made a master move by making his company public?? What actually does this mean? If it means that his company was owened by public now, then how did he got profit from that? please explain
9 months ago
July 10, 2012
11,392 (Level 6)
Best Answer - Chosen by Voters
An equity share is an incremental portion of ownership in a company's assets and the accompanying entitlement to any profits derived successfully from revenue.Investors generally buy and sell the equity shares of large companies whose stock is traded publicly on a stock exchange through broking firm like Karvy broking Ltd.
Reliance Industries went public through its initial public offering (IPO) in October 1977, when it issued 2.8 million equity shares of Rs 10 each.The share price of Reliance kept climbing. Now Cost of an equity share is near Rs.811/-.
Edited 9 months ago
Other Answers (3)
March 22, 2012
337 (Level 2)
it means that his company became a public company.where people can buy and sell reliance shares.it doesn't mean that public hold controlling stake in reliance.i think still mukesh ambani and anil hold controlling stake in there companies.
before go public reliance is PVT Ltd company.when a company go public they can do it in two ways.
1 they can issue new shares to public.then issued share quantity goes up, company get the money.
2 company main share holders can sell down there stake.if u own 100% of company you can sell 10% or 15% stake to company and make it public.then share holder get money.not the company.
when reliance went public in second way then dhiru bhai ambani could have make money.
9 months ago
April 04, 2012
101 (Level 1)
Equity shares are those shares which are ordinary in the course of company's business. Ordinary shares in the equity capital of a business entitle the holders to all distributed profits after the holders of debentures and preference shares have been paid. This means that the company issues equity shares for a fair price and these shares represent ownership in the company for anyone who purchases the shares.
A stock or any other security representing an ownership interest. On a company's balance sheet, the amount of the funds contributed by the owners or the stockholders plus the retained earnings. Also referred to as "shareholders' equity".