Answer
The percent of ownership can be determined by the share of stock. Percent of ownership can be calculated by dividing the number of a share acquired by the person to the total number of share issued.
Work Step by Step
Shares are issued to raise the funds, investor purchase stock and get the percentage of ownership. Any investor who owns some percentage of the shares of the company is called a shareholder of the company.
It can be understood by an example where an investor has 40,000 shares of the company out of the total number of the share 1,000,000. It means he is the owner of 4 percent of the company.
