Shares3110

STOCKS AND SHARES

This page is a summary of a book written to make shares and stocks and it talks about other terms that can be more available to families.
In the text below,the author wants to explain what a share represent and the importance shares and stocks have in the financial world.
A share represents a unit of ownership in a mutual fund,corporation or limited partnership.It allows him to vote in the annual general meeting.
An asset is an item that has economic value and it is owned by an individual or corporation and can be converted to cash.
The Nominal share value is the value of the share when it was first issued by the company.
There also exist some non-voting shares which take part in the benefits of the company.However,the holder can not vote in the corporation‘s decisions.
The dividend is the rate of the benefits that it is paid to the shareholders. The coverage rate of the dividend is calculated by looking the number of times the dividend for the year could have been paid out of the year’s earnings.
Finally we have the yield,that it is the performance of a stock.They reflect the potencial growth of its dividends and they are usually lower and safer than benefits given by other investments.

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