Shares6666

Shares are the parts in wich the capital of a company is divided, wich are usually declared once or twice a year. It allows the holder a stake in the company's assets (wich include cash, properties and a stock of raw materials and work-in-hand, excluding liabilities) and a vote in the Annual General Meeting (AGM).

The vast majority of shares have a nominal value (25p usually), wich represents the asset value of the company. Shares can be sold at a lower or higher price depending on the company's situation. The issued capital of a company is compound of the nominal sum of the issued shares. Some synonims of a company's shares are equity or stock. There are also some non voting shares wich dont allow you to vote but on the other hand your other benefits remain the same. However, these are not very popular.

The proportion of a company's profits that are payed to their shareholders are known as dividends. Not all the profits are payed as dividends, but to fund the company's internal growth. The cover of a dividend is the number of times a company is able to pay it's dividends.

By the P/E (price to earnings) ratio a company can know how many years of earning will pay for the price of the share. It is hoped the earnings and dividends will rise every year so the number of years needed will be reduced.

A yield is the performance of a stock. It is expressed as a percentage and is usually under the local interest rate. The reason for this is that stock buyer's acceptance of risk entitles to have a benefit that save investments.

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