What are Shares?
The text, which it’s a fragment from John White’s book “Investing in stocks & shares”, consists of a description of shares and its ways of measure their profitability, using sometimes examples from real life, such as information from “The Times”, to ameliorate the exposition.
To provide a further analysis of the nature of the stock, it describes some ways to value it's rentability and quality depending on whether they include the right to vote, the company’s dividends, or even how much time would it take to pay the stock value with the dividends.
Finally, not only the author informs about the methods to quantify the value of stocks, like the “Yield” or the “P/E Ratio” but also supports its description with some examples, like Great Universal’s dividend’s cover or the different Yield percentage in different countries like UK USA or Japan.
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