shares_0602

Summary about: what are shares? the assets, nominal share value, the dividend and its cover, P/E ratio, the yield.

The text talks us about some different economic concepts.
First, we can remember reading this text that a share is a stake in the company´s assets, which produces the corresponding dividends. And so, a shave gives a vote, proportional to the size of the investor´s holding, in the annual general meeting.
Then, talking us about an important part in a company: the assets that comprise all type immobilized in a company; for example buildings, land or stock of materials. However, we can´t include in this group any type of liabilities as payments to creditors.
About nominal share value talking us that represents the originally asset value of the company. Usually, a normal share has a nominal of 25p. If the share was sold more expensive than the nominal, the holder would obtain profits. They explain us that exist non-voting shares designed with suffix ¨A¨ , which are unpopular to the most part of investors, but enable that the company was controlled by the founding family.
The next concept is the dividend and its cover. In this case the profits are divided in parts, on one hand the dividends are a proportion of its profits paid to its shareholders, and the remainder is a fund internal growth.
We know that the term profit is synonymous of earning. If we divide the earnings by the number of shares, we will obtain the earnings per share. The P/E (price to earnings) is a ratio that measures how many years of earning per share are necessary to pay the share at current prices.
Finally, we will talk about the yield that is an important net percentage, which measure the company´s performance. There are some different indicators to measure the level of the yield.

Mark = 5

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License