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Shares: A shareholder receives a dividend, he can vote and he has a stake in the property proportional to the size of the investor's holding.

Assets: The assets in a company are all of raw materials, property, cash-in-hand, work-in-hand… less all its liabilities.

Nominal Share Value: The nominal share value represents a proportional part of the company´s assets. There are also in a company non-voting shares, in this case shareholders can´t participate in company´s decision, the principal reason is that founding family conserve company´s control.

The dividend and its cover: It’s the part of profits a company distribute to shareholders. The rest of the profits remain in the company just in case its necessary in other time. The cover is the number of times that a company can pay dividends with its profits. For example if dividends are half of profits the dividend is said to be covered two times.

P/E Ratio: To measure this ratio it´s necessary to know the EPS (earnings per share), because it measures how many years are necessary to cover the price of the share. Not all earnings are paid as dividend, against this, however, it is hoped that earnings and, because of that, dividends rise every year.

The Yield: It measures after income taxes. It´s different in every country. In general company´s yield are lower than interests you can receive in other investment.

Mark = 5

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