Shares8888

A share makes the investor owner of the company proportionally of the size of his holding, it also gives him the right to vote and to take part in the company´s business at its annual general meeting; and most importantly a share gives him a dividend once or twice a year.

The assets of a company include its cash-in-hand, property (land, vehicles, facilities and fittings) and the company´s stock of raw materials except the credits and bonds that the company must pay to creditors.

The nominal value is the result of dividing the capital of a company and the number of shares. Most shares have a nominal value, which originally depended on the asset value of the company. It had a market price, but that price usually moves depending on the results of the company. There are some shares designed by suffix “A” which have more possibilities to give more profits but the holder has no decision power in the company's strategy.

The dividend of a company is the percentage of its profits that the company decides to distribute among the shareholders. 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.

The objective of the P/E Ratio (price to earnings) is to know in how many years the share will be paid at the current share price.

The yield is the performance of a stock, usually under the local interest rate. That is because stock buyers expect a risk which would make them obtain bigger capital gains than other safer investments with higher interest.

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