Shares1107

first of all i think we should talk about the website: www.howtobooks.co.uk: this is a web site that tries to make easier to families the understanding of some specific economic "words". In the website we can find some definitions:
Share: a share is a right to receive a proportion of profits in the form of dividends the company will give to the investors once or twice a year, and allow the owner to vote at the annual general meeting (AGM) according to that same proportion, the more stocks the more votes.
Assets: the assets are every good the company owns, less its liabilities. Assets are what the company uses to confront and pay its debts.
Nominal share value: it represents the original value of the stock when it first went out to sale. is the market value of a share by the time it goes out for the first tim. It represents an equal part of the company’s capital. They usually value 25p but this can change however.
dividend: is the proportion of the earnings of the company that is decided to be distributed among the shareholders; the remainder is retained to fund internal growth of the company. Also dividends can be saved for years with fewer profits
yield: is the performance of a stock, usually under the local interest rate. it’s different in every country and it changes depending the risk taken on the investment.

Mark = 5

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