This is an extract taken from a book named "investing on stock & shares" written by Dr John White.
This extract is published in a web which is addressed to families who want to know in general about shares,then they have the opportunity to buy the original book.
There´s differents meanings of shares, a share in its dividend which is declared once or twice a year.Also a stake in the company´s assets and property and vote,proportional to the size of the investor´s holding, in the company´s business at its annual general meeting(AGM).
Then,there´s some terms related with shares, which are explain with precision, like assets that´s everything of value owned by a business that can be used to produce goods, pay liabilities,and so on.
There´s also the concept of nominal share value which represented the asset value of a company, the total sum of all the issued shares is the issued share capital of the company also known as its equity or stock.
Next it´s the dividend and its cover,a proportion of the annual profits of a limited company, paid to shareholders,often it´s paid only a part of the revenue of the company.The cover is the number of times that a company could have paid its net dividend which is measured by a price yield in percentage.
Another way to known the company´s profit is using a ratio (eps),"earnings per share",paid as dividend.
And the last concept used to find company´s earnings is its yield expressed in a net percentage of the current share price.

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