shares_3103

In this text, the author wants to explain what a share is, how it works and why shares and stocks are important in the financial world. An ordinary company rejoins all his property and funds in what is call, the company assets. The value of this asset is represented by the nominal value of the shares, but this don´t have to be the price of market, and a share with a nominal value of 25 cents can be sold for 1 euro. The possession of shares gives the investors the right to receive dividend. Most of the shares, but not all, also gives right to take part in the management of the company. Like I said before, one or two times per year, the companies distribute dividends to the shareholders as a prize or remuneration, depending on the profits of the exercise.
Finally, the text mentions the Price Earning Ratio and the yield. P/E ratio is deduced when the incomes are divided between the stock of shares, and measures all the years of earnings per share needed to cover the investment. The yield is used to analyze the company´s performance too, and is a net percentage of the current share price.

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