The text is a book's summary “Investing in stocks & shares” written by Dr. John White. The text explains the economical concept of the shares at the companies and function and rights that they confer to his holders.

At the beginning, a share gives the possibility of receiving dividends to the holder; also you suppose a proportional part of the company assets, voting in the decisions taken in the company AGM (Annual General Meeting).

The company assets are their properties (machinery, buildings, land…) also the company's stock of raw materials, capital and labor or work, less liabilities. Another important concept is the Nominal Share Value normally 25p but it can have an increase or a decrease. Nominal Share Value represent the the total issued share capital of the company. We have another type of share without right to vote designated by the suffix “A”. These shares give bigger benefits to their holder but eliminate vote in the company decisions, they are unpopular actions and using in family enterprises to preserve the company property between his founders.

The company dividend is the part of the benefits paid to his owners, the company will give only to a part of her profits her shareholders the rest destines the company progress or it bewares for lean years (Example: GUS dividend’s cover at January 2003 was 1.9).

The P/E ratio, which is also referred to as an earnings multiple, is a measure of a company's shares price in relation to its earnings. P/E 10 implies that we required 10 years earnings to cover the price of the share. There P/E ratios defined as: Price per share / Annual Earnings per Share.

Finally, the yield express as a net percentage of the current share quotation, change the percentage depending of the country, 3.6 per cent in the UK, 2.8 per cent in the USA, 1.0 per cent in Japan…

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