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A share in a company can give the investor a part of dividends, the participation in the company's assets and a vote in the annual general meeting.
The assets are the properties like fittings or buildings, cash-in-hand and the stock obtain from work in hand and row materials less creditor’s liabilities.
The shares (also known as equity or stock) have a nominal value (25 p), which was the asset value. The shares were sold at a market value which represented the share’s value and the capacity to produce money.
The issued share capital of the company is total of the nominal sum of all the issued shares.
There are shares known as ‘A’ which are non voting shares. Its characteristic is to enable the company and retained it by founding family and the holder hasn’t vote in the different strategies. It’s occurs an increased allocation of stock for the holders belonging to original voting stock.
The dividend of the company is defined as the proportion of the profits paid to the shareholders. The company only will pay a part of profits as dividend and the rest is intended for the internal growth of the company.
The cover of the dividend is the times that the company could have paid its net dividend (the cover for the dividend of Great Universal was 1.9).
Earnings are the company’s profits. Earnings per share is obtained when the earnings
are divided by the number of shares in existence and the price to earnings ratio measures how many time is necessary to pay for the price of the share.
But not all earnings are paid as dividend so it’s supposed that earnings and dividends will increase trying to reduce time of redemption of the share price and, subsequently, all dividends will be pure.
The yield is other measure of a company and is expressed as a percentage of the current share price. The average yield in USA is 2.8 per cent.
In the different countries the yield I lower than the interest. The lower return from shares reflects the growth potential of dividend payouts.

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