Shares 0126

The text talks about what is a share, and profitability that investors obtain through those shares.

A share gives you:
1) A stake in assets and property. The assets of the company are: cash-in-hand, property and the company´s stock, less its liabilitys.
2) A vote: usually a share gives you the right to vote, although there are some non-voting shares. This type of shares are almost equal than the others, but the holders has no vote in the company; the idea of that was that the founding family could retain the control of the company.
3) Profitability.
-price´s revaluation: the share´s price are related with P/E ratio (earnings divided by the number of shares; we obtain “earning per share”)
-the dividend: proportion of the earnings paid to owners. The company only pay a part of its earnings, and the rest of them are retained to finance internal growth of the company.
The yields (that are a percentage of the share price) in each country are usually lower than the interest which could be more safety obtained by investment in local bonds.

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