What is Shareholding Pattern

Shareholding Pattern is the word which you hear many times if you are one of those who actively trade and invest in stock market. However not many people know what exactly does shareholding pattern means, well shareholding pattern is used in the context of companies equity. It shows how much amount of shares is hold by specific set of investors. In equity markets there are many types of investors like retail, high net worth individuals, promoters, foreign institutional investors and so on.

In simple words shareholding pattern shows the number of shares which are held by various category of investors. Companies equity comprises 100 percent out of this certain percentage is hold by promoters and rest by outside parties like retail, FII and so on. Shareholding pattern shows exact percentage and amount of shares hold by various people in the market and therefore it can be of great help because before investing into any stock you would like to see whether promoter and big players are increasing or decreasing their stake in the company and therefore it helps in better investment decisions.

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