shares_0011

In the text “what are shares?” it is stated that a share of a company gives you the right to a dividend, part of the property and a vote in the annual general meeting.
Secondly, the author explains that the assets of the company are all the properties that have value. In addition, shares have a nominal value, which represents the asset value of the company. This value may change depending in how the company is going, the shares of a company are called equity or stock.
The dividend of a company is the proportion or the profits that is paid to its shareholders, while the rest of the profits are invested for internal growth of the company. The cover of the dividend is how many times a company could have paid the net dividend.
The value of the earnings per share are calculated by dividing the earnings by the total number of shares and the P/E ratio means how many years have to pass to get back the money invested.
To end up, the yield measures a company`s performance, yields are usually lower than the interest of local bonds or other investments, but the lower return reflects the growth potential of dividend payouts.

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