Shares 3336

The website is dedicated to economic books.The text is extracted from the book “Investing in Stocks & Shares”, related with shares,dividends,trading,etc

Shares are part of a company available to shareholders. When a person buys a share becomes part of the company receiving the dividends that the company distributes throughout the year and entitles you to make decisions at the annual general meeting in accordance with their participation in the company.

The company's assets include all tangible and intangible assets held by the company (buildings, constructions, computers, software ,…) also cash flow, less the financial contribution received from entities

Nominal share value
When a company issues shares, the value of assets divided by the total number of shares gives the nominal value of the action. Originally the shares contained only the nominal value but this value was subsequently increase for a value-added depending on the benefits that are expected to get the business. The sum of the nominal value of all shares issued by the company is the capital of the company.
Shares can be of two types: the voting shares or shares without voting rights. The shares entitled to vote are those that allow their owners to make decisions in the shareholders meeting which takes place each year in addition to obtaining a dividend greater than the non-voting shares.

The dividend and its cover
The dividend is a share of the profits generated by the company and which is distributed to shareholders. Not all profit is distributed to shareholders as there is a party that is to grow the business, buying new properties, improve technology, … can also be stored as reserves.

P / E Ratio
The P / E ratio is the ratio between the dividends paid by the company and the share price. It is the result of dividing the dividend by the share price, the result is the number of times you should pay this dividend to cover the price paid for the action. The lower the better outcome for shareholders and to recover the payment made before but this is not always like this because some companies need money to finance their development and not share dividends.

The yield
Another way to measure the performance of a company is through the yield, this is measured in percentage. Performance is usually lower than an investment in local bonds, as the author says, yields are safer invest in local bonds reason why they are lower than the interests. The average U.S. is 2.8 per cent net while in Japan is much lower. The return from shares is what reflects the company's power in order to pay dividends and to grow in the market, which is not usually done with small and "safe" investments.

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