Shares2305

Here we have a web page where it explains almost everything about shares: http://www.howtobooks.co.uk/family/stock-shares/
In this page firstly the autor talks about what are shares. When you have a share, you have the opportunity to receive a dividend (which is declared once or twice a year) or taking part in the AGM of the company where you have voting power. Also you would have a stake in the company´s assets.
About the assets, the autor explains that covers cash in hand, stock of raw materials or property like lands or buildings.
Shares have a nominal value which is normally 25p. The nominal sum of all issued shares is the issued share capital of the company.
Non-voting shares are called ´A´ shares. The idea of these shares emerges from allowing the control of the company to the founding family which control the voting stock.
The dividend is the portion of the profits paid to shareholders. The company offers only a fraction of the benefits so the rest is the capital for future growth and the stock if the company goes in the wrong way. The money paid to shareholders depends on the number of shares each shareholder has. For that we will need the earnings per share (eps).
The PE ratio (price to earnings) tell us the number of years would be needed to buy a share in the current ratio of earnings per share.
The yield is an important measure of how the company is working. In general, yields in each country are lower than the interest earned on investments on local bonds. Is usually expressed after tax income as percentage net.

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