The website www.howtobooks.co.uk/family/stock-shares give us important explanations about some important economics concepts.
A share in a company give primarily to the investor the opportunity to participate in the dividends of the company. It also allows participating in the assets of the company and vote at the annual reunion.
Each share has a nominal value but are usually sold at market value, the assets themselves and their ability to generate revenue for the company. The total number of shares issued is what we know as the capital of the company. There are different types of shares; Is well known the one that is signalize with the term "A" do not vote and make decisions on the progress of the company, but they can get other benefits. Sometimes you have some problems with such actions as shareholders with voting rights are rewarded.
The proportion of profits paid to investors is known as the dividend. The company may distribute it but never take all because is common saving for possible future problems.
The P / E (price to earnings) ratio measures how many years of earnings per share at the current share price would be required to pay the fee.
For the last another important measure of the ongoing of the company is the yield. It expresses the general share price after income tax.
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