Question

A company is divided into 50,000 shares. An investor purchases 1,000 shares. What percent of the company does the investor own?

Answer 1

Answer:

Step-by-step explanation:

percentage is per 100.

If we have to find x as percentage of y then

formula for percentage is given by = x/y*100

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Given

total no. of shares = 50,000

Share bought by investor = 1,000

Percentage of share bought by investor

= Share bought by investor/total no. of shares *100

= (1000/50000)*100 = 2%.

It means that if  there are 100 shares for company then investor owns 2 shares of the company. This makes the qualitative analysis easy.

2% percent of the company does the investor own.