What does equity participation mean?

Equity participation refers to holding a certain number of shares in a listed company. Holding company refers to a company that controls a company by holding a certain number of shares. Holding companies are divided into pure holding companies and mixed holding companies according to their holding methods. Pure holding companies do not directly engage in production and operation business, but only carry out capital operation by holding shares of other companies. In addition to capital operation through holding, hybrid holding companies also engage in some production and business operations.

First, various economic components in the primary stage of socialism have diversified the participation forms of joint-stock companies in China at present.

1. Forms of enterprise and social participation. It includes: (1) All enterprises raise funds to buy shares and form a powerful joint-stock company; (2) Related enterprises share in each other and form a close economic alliance; (3) The society shares in the enterprise.

2. Employee's investment and shareholding form. Including: (1) wholly invested by employees, such as some private enterprises, which belong to socialist collective ownership in the form of shares; (2) enterprise issuance, that is, state shares are the main shares and employee shares are the deputy shares, which belong to the same ownership system with socialist public ownership as the main body. It can promote employees to consciously care about enterprise management and actively participate in enterprise democratic management.

3. The form of employees' labor participation.

4. Form of Sino-foreign joint venture. It has the nature of state capitalism in the primary stage of socialism and belongs to the category of socialism.

Some of the above-mentioned equity participation forms exist in a joint-stock company alone, while others exist in a joint-stock company at the same time, which reflects the diversification and flexibility of joint-stock companies in the primary stage of socialism in financing and management.

Second, what does it mean to hold?

Holding refers to owning a majority stake in the invested enterprise, in which the majority stake can refer to an absolute majority (greater than or equal to 50%) or a relative majority (the shareholding ratio may be less than 50%, but it is still the party holding the most shares among all shareholders); However, equity participation only means investment in the invested enterprise, without highlighting the equity ratio and whether it has control or actual influence.