Shares_1111

A share is a unit of account for various financial instruments including stocks (ordinary or preferencial), and investments. A share gives to the investor a stake in the company's assets and property and a vote but always proportional to the shares they had bought.Shares have a nominal value and they are sold at a market value that represented the assets and the ability to make money. In adittion there are some non-voting shares designated by the letter “A”,where the holder has no vote in the company. These kind of shares are not very popular because they are used by the founding family to retained all the company´s control.About its dividends is the proportion of its profits paid to the shareholders, normally a company will pay only part of its profits(or earnings) as a dividend. The earnings can be divided by the number of shares in existence called "earnings per share"(eps) an by the "price to earnings" (P/E) which tells how many years of earnings per share at the share price would be needed to pay for it. Although, another important measure is the yield(expressed in percentage)which in each country are lower than the interest obtained by investment in local bonds, or in a building society. In general if you take more risk, you will have higher return than from a safe investment, so the lower return from shares reflects the growth potential of dividend payouts.

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