First of all, point out that the content of this website is related with all components of shares.

Shares are the part in which the capital of a company is divided. A share dividend is declared once or twice a year for the investor. A share also permits the investor to vote at the Annual General Meeting (AGM).

Shares do also give an amount of assets, these are all tangible or intangible goods which are the property of the company.

Nominal share value (typically 25p) represents the assets value of a company. Shares were once sold in the market value, it was a way to make money, selling a 25p nominal share for one pound. The issued share capital of the company is the total of the nominal sum of all the issued shares.
On the other hand, there are non-voting shares (designated by the suffix “A”). These shares, which are unpopular with the major investors, have most of the benefits of the rest of the shares but the holder of these non-voting shares doesn’t have any vote in the company’s strategy.

The dividend is part of profits that the company has which are paid by it. The rest of the profits’ part is used 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.

Earnings are the company’s profits. The ‘earnings per share’ are the quotient between the earnings and the number of shares in existence. The P/E (price to earnings) ratio measures how many years of earnings per share would be needed to pay for the share.

The Yield is a measure to see how the company’s are working, it’s different in every country and it changes depending the risk taken on the investment.

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