SHARES 6661

The text extracted of the site: www.howtobooks.co.uk/family/stock-shares/ tell us about the company in general and shares in particular.
Shares enable the investor to participate in the dividend from the company, this is to obtain a benefit proportional to their action.There are some types of shares, called non-voting shares, in which the holder has no vote in the company’s strategy. Also,it should be stressed that not all of the dividend is distributed to shareholders, because a part of it is used as a reserve for the company. When the earnings are divided by the number of shares in existence, we have the “earnings per share”, this is the P/E Ratio, but not all of the earnings are paid as dividend. Another characteristic is that the dividend gives the investor the ability to participate in assets of the company and a vote at the annual general meeting (AGM).
Moreover, shares have a nominal value and a market value. The firs of these, shows us the assets value of the company and the second one, represents both, the value of the assets of the company and its ability to obtain profit.
Finally, talk us about the yield as a percentage net ( after income tax) which is generally lower than interest.

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