shares_5427

This is a text about shares taken from the website "http://www.howtobooks.co.uk/family/stock-shares/".
When an investor buys a share in a company it entitles him to its annual dividends assets,property and sometimes vote. It’s worth mentioning that a company’s assets consist of its possesions, both material and cash minusi ts liabilities like loans and debts.
Other aspects of shares we need to know about are the followings.
Firstly,nominal share value which originally meant the asset value of the company, has now taken on a new significance by including the companies ablities to generate earnings.The total of all the issued shares is known as the issued share capital.
Then, types of shares: voting and non voting. Voting shares give the holder the right to vote at the company’s AGM whiles non voting shares which are now getting out-moded, unpopular and of lower price give the holder non voting rights at all.
After, the dividend: this is the proportion of the companies profits paid to its shareholders.
The P/E (price to earnings) ratio: measures the number of years needed to pay for a share with the earnings per share at the current price. Although more years may be needed to pay for a share this way because not all earnings are paid as dividend in spite the possibility for further rise in earnings and dividends.
Finally, the yield: this is another important way to measure a company’s performance and it tends to be lower than the interest paid on investments made in any given countries local bonds.

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