A company is the economic unit in charge of the production of goods and services. All the companies have a few measures of functioning between them;
Firstly, the text spoke about the assets. The asset is the part of the balance that gathers the debit balances of the accounts, representing in monetary units, which the company possesses. It is constituted by all the goods and rights that there has the entity (cash, properties, equipments, titles value). It is shaped by the Current Assets and the not current Assets. Secondly, we can see the nominal share value. It represents the value of assets of the business. Often it has a nominal value of 25p sells in price that will allow us to know the future earnings that the company can realize.
There are some shares without right to vote that they do not allow the holder to vote in the strategy of the business. Nowadays these shares are unpopular. Thirdly, the author explains the meaning of a dividend. The dividend is the part of the profits given to the shareholders. The rest of the earnings is for the growth inside the own company. The cover of the dividend is the times that the company might to have paid his net dividend.Fourthly, the text mentions an important concept P/E Ratio. It allows us to know the earnings and the income of the company. In addition, ultimately there is an example where we can observe that in Big Universal the Proportion P/E is 13.7 years. Finally, the author explains the meaning of yield. The yield is another important measure inside the company. It expresses across a net percentage.
This measure is different in every country for example the production in USA is 3, 6 % whereas in Japan it is of 1, 0 % .the different production in every country normally is low that the interest rate.
Mark = 5