A share of the company forms the basis of.....................

Ownership interest

The correct answer is option 1- Ownership interest.

The share is a fractional part of the share capital and forms the basis of ownership interest in a company. 

Shares, refer to the units into which the total share capital of a company is divided. Thus, a share is a fractional part of the share capital and forms the basis of ownership interest in a company. The persons who contribute money through shares are called shareholders. The amount of authorised capital, together with the number of shares in which it is divided, is stated in the Memorandum of Association but the classes of shares in which the company’s capital is to be divided, along with their respective rights and obligations, are prescribed by the Articles of Association of the company.