What are shares?

A share gives the investor a stake in its dividends,in the company´s assets and a vote,proportional for the investment.

The assets

The assets are everything of value owned by a business.The company´s assets include its cash,personal property and capital and work-in-hand,less its liabilities.

Nominal Share Value

Some shares have a nominal value.This nominal value was in its origins the value of the assets of the company.The sum of all the issued shares is the issued share capital.
There are also some non-voting shares;they are called with the suffix "A".But these shares are not too much used with major investors.One characteristic of these non-voting shares is that they let retain the capital in the hands of the founding family.

The Dividend ans its Cover

The dividend is the proportion of the annual profits of the company,paid to the shareholders.The rest is retained to ensure its growth.

P/E Ratio

The P/E (price to earnings) ratio measures how many years of earnings per share at the current share price are required to pay for the share.
Obviously,not all the profits are paid as dividends because it is expected that the earnings and dividends will increase each year.

The yield

The yield,which is an important measure of a company´s performance,is a net percentage of the current share price.The average yield is different in each country.The interest is often higher than the yields so it could be better to obtain them by investment in local bonds.

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