What does it mean to have a percentage investment in a company?

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I’ve been watching old episodes of shark tank/dragons den. I know that: ludicrous amount of money for <10% = laughable deal, but I don’t know what it means to have a percentage in the company. My understanding is it’s how much of a say you have in the company? Not even sure that’s right.

In: Economics

8 Answers

Anonymous 0 Comments

It’s partly how much say you have, yes. “control” is the word I’d use. But more importantly it is the amount of proceeds you are entitled to. For instance, If the company is sold and you own 10% of the company, you get 10% of the price of the sale. (broadly speaking, someone that knows more about business might find nuances with that explanation)

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