"shares_1789"

The following text, extracted of the site: http://www.howtobooks.co.uk/family/stock-shares/, talks about:
The share, as an economic title that gives to the investor a dividend declared once or twice a year. This title gives, also, stake in the assets of the company, property and vote according to the quantity of shares of the investor.
The nominal value of shares is determined by the market, and the sum of it will also determine the stock value of the company. There also non-voting shares which are gradually disappearing because they are very unpopular with major investors, this is so because the purpose of this shares, which were emitted with a lower price, was to retain the control of the company to their original founders.
The dividend that the company gives to their stockholders supposed only a percentage of the profits of the financial year, the rest of the profits are retained for the economic and financial growth of the company. The number of times that the company has paid the net dividend is the cover the dividend.
The P/E (price to earnings) Ratio shows us how many years of earnings per share, at the current share price, would be needed to pay for the share. We must include that not all the earnings are paid as dividends, so further years will be needed to repay the share price out of dividends. But so on, it’s hoped that the earnings of the company will rise each year, so there will be a point were the dividend will pass to be pure profit.
Another important economic measure for the company’s performance is the yield, which is expressed as a net percentage of the current share price. The yield is usually lower than the interest; this supposed that acceptance of risk entitles the person who takes risk a higher return than from a 'safe' investment. Finally, the lower return of shares reflects the potential growth of dividend payments.

Mark = 5

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