Summary: What are shares?

A share gives to the investor a proportional part of the company and with it gives to this person a vote in the annual general meeting.

The assets
A company’s assets includes monetary liquidity,properties such as lands or building and row materials and semi-finished products.

Nominal Share Value
Shares represent the assets and the company’s ability to make money.
They are sold in a market value, maybe sold for one pound and reaching 25 pounds with time, meaning this way the earning of the company.
Some companies have a non –voting shares, this shares don’t give to their owner the power to vote in the AGM, they are designated with the suffix “A” having all the benefits of a normal share, excluding the vote.
They born with the idea to mantein the power of the company only for the family that founded it, but actually they’re very unpopular.

The Dividend and Its Cover
The dividend is that part of the profits of the company that it’s given to the shares ownes. What remain left is used by the company to cover its costs.
The cover of the dividend is the number of times that a company could pay the dividend to the share holders.

P/E Ratio
This means price to earnings ration, being earnings the profits of a company. It says to the company in how many year of earning it would be possible to pay the share at the current share price.
This is because not all of the earnings are paid as dividend. The stock can be sold at the market price, of course.

The Yeld
It a way to measure the company evolution. It’ s a net percentage of the current share price and it’s different in each country.
Are usually lower than the interest, because this last one use to be more safe, so more risk means more profits.

Mark = 6

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