Shares_1001

This article is extracted from the webpage http://www.howtobooks.co.uk/family/stock-shares/, and it talks about shares, explaining what are they, and how they work by explaning what is an asset, a dividend or a yield.

Shares are parts of the company that are given to the investor who buy it and then he adquire a vote in the AGMs depending on the cuantity of the assets he/she has buy.
An asset contains propertys, company stocks and cash in hand but course, minus its liabilities. The nominal value of the shares usually represents the asset value of the company and it used to be 25p, and the issued share capital of the company is composed by all the issued shares. There are different types of shares, and the ones that are noun as "A", are particulary special because the propietary of those share has not any vote in the AGMs and they has an increased allocation of the stock of the shares. The reason why those shares are like this is because for example in every familiar company who wants to make their own strategie, they don´t want any other imposition of the investors. That´s the reason why this shares do not have too much aceptation.

The dividends are the part of the benefits thar are given to the shareholders as a paid for buying their shares. But, obviously not all the profits are given to the investors because the company need some money to continue working and also, an other part to cover in bad times or if the company dont have good times, or if there is a crisis, etc. The cover of the dividend is how many times the company have paid its net dividends.

The earnings are the benefits that the company has.The P/E (price to earnings) ratio show how many years of earnings per share at the current share price would be needed to pay for the share. The relation P/E ratio is Great Universal P/E = 13.7. Remain that not all the erans are paid in concept of dividends.

The yield is also very important and is a net percentage of the current share price. Is different depending on the country. It´s logical to remain the famous sentence: " no risk, no glory" because with shares is the same, and a share with risk, if its works, the yield will be much more than if is a very safe investment. In the UK, the yield is around 3.6 per cent net. In other countries the average yield could be less like in the USA, which is 2.8 per cent or in Japan, 1.0 per cent.

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