Circulating equity concentration
factor.formula
Number of shares held by the top three shareholders
Outstanding share capital
Equity Concentration
This factor measures ownership concentration by calculating the proportion of shares held by the top three shareholders to the total outstanding shares.
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The number of shares held by the top three shareholders. This value reflects the total number of shares controlled by the top three shareholders in the company's outstanding shares. The data comes from the company's shareholder register or publicly disclosed shareholder information.
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The company's outstanding share capital. Refers to the number of shares that can be freely traded on the secondary market, excluding restricted shares, etc. This data is usually obtained from company announcements or trading systems.
factor.explanation
The concentration of circulating shares is an important indicator to measure the company's equity structure. It reflects the distribution of the company's circulating shares, that is, how many shares are held by minority shareholders. This indicator can help investors evaluate the company's control structure, potential agency risks, and the stability of the company. A higher concentration of shares may mean that the company's decision-making efficiency is higher, but it may also increase the risk of the company being manipulated by major shareholders. A lower concentration of shares may make corporate governance more decentralized, but it may also lead to lower decision-making efficiency. Investors should consider this indicator together with other financial indicators to fully evaluate the company's investment value.