Ownership concentration

Ownership concentration refers to the degree to which a company’s shares are held by a small number of shareholders rather than a large number of individuals. When ownership is concentrated, a few investors or entities control a significant portion of the company's stock, which can influence decision-making and company direction. High ownership concentration can lead to stronger control over corporate policies but may also reduce the diversity of opinions and reduce the voices of smaller shareholders. Conversely, low concentration indicates broader ownership, often promoting greater shareholder participation in company governance.