A small company has 20,000 shares. Anastasia owns 400 of these shares. The company decides to split its shares. What is Anastasia's ownership percentage after the split? A. 20% B. 2% C. 4% D. 1%

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Right now she owns 2% of the shares. With the split, ALL shares will split (ie if its 2 for 1 split, Anastasia will have 800 out of total 40,000), therefore the percentage ownership will remain constant at 2% even though the number of shares she owns has increased.

Holding in percentage terms shall remain constant in case of bonuses and splits. However, in case, the company decides to abstain a particular segment of the shareholders (sometimes promoters themselves) to benefit from such events, the percentage of holding may change accordingly. In case of rights issue also, some shareholders may not apply for these benefits and accordingly, the ratio may change and so as the holding in percentage terms.

b

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