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Originally Posted by Catwoman
Is there a limit? When you've given away over 50% is it still your company?
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This is where corporate structure comes into play. The principals can choose how a company will be structured - which ranges from the entire company being owned by shareholders to just a small portion (I should know if the SEC has a % public ownership requirement, but I don't). Obviously if a CEO or President owns a large chunk of a company, he has more control over matters on which shareholders must vote (in general, each share of stock, or piece of paper, gives you a right to vote).
This determines some of the long-term risk of a company. If you are aware that a CEO has made poor choices in the past and controls 40% of his company, you may decide not to invest because there's a chance he'll screw it up again.
Conversely, a large investment by the principals is likely to be a long, long, long-term investment, so there is a chance the remaining shares will trade at a premium since there are fewer available to buy/sell. If all shares are available on the market, something like a poor profit report could trigger a massive sell-off and make your pieces of paper worth as much as the paper with which you wipe your arse.
To answer your question, no, there is no limit. But existing shareholders and company directors must approve an increase in the amount of stock a company places in the open market. If ABC Co. issues more stock, obviously there is the risk that the company's value will be diluted (more shares = smaller bit of ownership). On the other hand, most companies have stock buyback programs, where they will repurchase shares from shareholders in an effort to boost the value of outstanding shares. It's a delicate balance.
Edit: to follow on UT's post, yes, corporations are stand-alone entities and owned by no one in particular. The amount of stock you or other people hold determines your level of ownership. A common thing you'll see is an investment fund trying to buy up a ton of shares so they might become a majority shareholder - which gives the fund power to sway company affairs in its favor.
Carl Icahn, who bankrupted TWA, is a well-known "corporate raider" on Wall St. His investment groups go after 10-50% stakes in companies and rally for changes they think are necessary - and the threat is legitimate because they own a boatload of the company.