fate of a fully public owned company

#1
What happens to the price of a share after the major shareholder divests his complete stake in to the market?(Assume the company is performing well) Not the immediate effect, what happens after price stabilizes?
As far as I know appointment of directors will be an issue as there is no "owning party".How these things affect the company?
Thank You
 

rajeabc

Well-Known Member
#3
What happens to the price of a share after the major shareholder divests his complete stake in to the market?(Assume the company is performing well) Not the immediate effect, what happens after price stabilizes?
As far as I know appointment of directors will be an issue as there is no "owning party".How these things affect the company?
Thank You
Some one will have majority of stakes so that fellow will have control . If you are assuming that every investor will have equal number of shares then voting could a method to decide controlling power.
 

praveen taneja

Well-Known Member
#4
What happens to the price of a share after the major shareholder divests his complete stake in to the market?(Assume the company is performing well) Not the immediate effect, what happens after price stabilizes?
As far as I know appointment of directors will be an issue as there is no "owning party".How these things affect the company?
Thank You
That happen many Time as in the case of teledata informatics:mad:
promotor make rate at 80-85 and then sold there share and change the dirt in three shares:mad:
teledata informatics cmp 4.65
teledata tech solutions 1.85
teledata marine solutions yet to list I am too holding these stocks with many innocent investors after more then a year or so:mad:
80Rs now 7Rs so better invest in fundamentally strong companies