Shares_2212

A share gives basically some rights to investors like the right to receive a dividend or a vote at its AGM.
Assets include cash, furniture or stocks of different materials, less company’s liabilities.
Most stocks have a nominal value, determined by market, which represent the value of the company. There are also non-voting stocks usually called by the suffix “A”. These types of equity were created to protect the founding family of the company, and have the same benefits, less the right to vote, but they aren’t popular as the first ones.
The dividend is the part of the earnings that a company pays to stock’s owners. The other part of the profits which isn’t given to shareholders will serve as a store for the company. The cover is the number of times that a company could have paid its net dividend.
“Earnings per share” are obtained by the quotient of profits and the number of stocks. The P/E measures how many years of earnings per share are needed to pay the shares.
The yield is expressed as a net percentage of the current share price. The yields are lower than local equivalents interest of a building society, because of the risk, which is lower than in a “safe” investment.

Mark = 5

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