Shares5352

The website http://www.howtobooks.co.uk/family/stock-shares/ is about “what are shares” and other questions related to it.

In the first paragraph the text explains that a share is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings. A share gives you the possibility to participate at its annual general meeting (AGM).

The text continues with the Assets, which are a resource with economic value that a corporation owns such as cash, properties or stock of raw materials. The nominal share value represented the asset value of the company. But, when the shares were once sold at a market the price could be more, or even less depending on the potential of the company or their ability to make money. The sum of all shares is also known as equity or stock. Otherwise there are non-voting shares which the holder has no vote in the company’s strategy. Because of that, are unpopular, trade at a lower price and are disappearing.

The dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. Rarely a company distributes all of its profits as a dividend, so the remainder is retained to fund internal growth of the company. The cover of the dividend is the number of times that a company could have paid its net dividend.

The page follows with P/E Ratio, which measures how many years of earnings per share at the current share price would be needed to pay for the share. It is calculated as current share price compared to its earnings per share (eps).
The text concludes with the yield which is the income return on an investment expressed as a net percentage of the company’s current share price. It can be different according to the country and are usually lower than the interest in local bonds. Generally the more risk you take the higher return you have, however lower returns from shares is not usually seen as safe investments.

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