Shares7777

Shares:

A shares dividend is declared, for the investor, once or twice a year. The number of shares measure the proportion of the investors holding which is seen in the anual general meeting (AMG).
The company’s assets include property like land or buildings and stock of raw materials. The nominal share value is typically represented as 25p, although it can variate. Shares were once sold in the market value, it was an easy way to make money, selling a 25p nominal share for one pound. All the issued shares together make the capital of the company. Shares can be also known as aquity or stock.

Shares can also be non-voting, it is seen in some companies normaly desgned by the suffix “A”. Were holders have no vote in the company’s strategy. They were originally made to unable the control of the company, to be retained in the hands of the founding family. however this shares are not popular nowadays.

Company's profits are known as earnings. When the earnings are divided by the number of shares, we get the 'earnings per share'. The price to earnings ratio measures how many years of earnings per share would be needed to pay for the share. A P/E of 10 means that ten years of earnings will pay for the price of the share.

Not all of the earnings are paid as dividend. It is hoped that the earnings and dividends will rise each year. The stock does not have to be held forever, it can be sold in the stock market.
Another measure is its yield. The yield is as a net percentage ,after income tax of the current share price. The yields in each country are usually lower than the interest which could be more safely obtained by investment in local Bonds.

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