Shares3107

SHARES:

The proposed article talks about shares. A share in the company gives it's owner the right to vote at the annual general meeting (AGM) and recieve a dividend once or twice a year. Shares have a nominal value which represents it's value when they were first put on sale, it represents an equalpart of the company's capital. The nominal value is typically represented by 25p but this can change. These shares could have been bought at a higher price value, this reflects the earning potential of the company. There are also some other type of shares called non-voting, these shares have the same benefits as others but the holder has no vote and they are normally identified by the suffix "A". Assets are everything a company owns that may be changed into cash. They are used by the companyto face up to pay it's debts.

The dividend is the fraction of the benefits paid to it's owners, the shareholders. Usually a company will pay a part of it's profits as dividend. The company profits are known as earnings and when these earnings are divided by the number of shares we get the 'earnings per share'. The P/E ratio measures how much earnings per share at it's current price should be needed to pay the share. A P/E of 5 menas that you must wait 5 years to recover the value of the share. The yield is expressed as a percentage of the share price. The yields are generally different in each country and they are usually lower than the local interest rate.

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