What might increased shareholding by a majority shareholder result in for other shareholders?

Increased shareholding by a majority shareholder often results in enhanced influence over company decisions. When a shareholder holds a significant portion of the company’s shares, they typically acquire greater voting power and control over important corporate matters, such as the election of board members, corporate policies, and major transactions. This increased influence can shape the company's strategic direction and operational decisions, ultimately affecting all shareholders.

For other shareholders, this means that the majority shareholder's preferences and priorities will likely dominate the decision-making process. While this could lead to streamlined decision-making, it may also result in the marginalization of minority shareholders' interests, which might not always align with those of the majority shareholder.

The option discussing a decrease in overall company value could occur under certain circumstances but is not a guaranteed outcome of increased shareholding. Similarly, while increased shareholding might lead to increased financial stability for a business or better profit-sharing ratios, these outcomes are more contingent on how the majority shareholder chooses to manage the company rather than a direct consequence of their increased ownership. Thus, the influence gained by a majority shareholder is the most immediate and clear effect of their increased shareholding.