The article speaks about shares and the different effects and features of them in the business atmosphere. Firstly, the text shows a description of what shares are; one of the fractional parts into which the capital stock of a company or a corporation is divided. With these parts investors acquire the right to vote.

An asset is everything with value that is owned by a company. It consists of the difference between cash-in-hand, property and raw materials and liabilities. The article explains too, that the nominal share value is the asset value that companies have in the market. The capital of the company is formed by the total amount of the nominal value of shares. There is a special kind of share and it is explained throughout the text. They are the non-voting shares, which are often called the "A". Shareholders of these shares are not able to vote at the company.

Furthermore, the text continues talking about dividends. They are the profits paid out to investors in proportion to their shareholding. There’s always a remaining part that is used to cover the internal growth of the company.

The profits of a company are known as earnings. The P/E ratio (price to earnings) is used to measure the price paid for a share in relation to the net profit earned by the company per share in a year.

Finally, another essential element in the measure of the performance is the yield. It’s always expressed in percentage net (after income tax). In each different country yields are normally lower than the interest that could be obtained investing in local bonds.

Mark = 6

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License