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The website is www.howtobooks.co.uk/family/stock-shares/ .the information of this website corresponds to a book called: “investing in stock and share” written by Dr John White. In this web site you can find a lot of information about the shares and their uses. 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 properties like lands or buildings and stock of raw materials. The nominal share value is represented as 25p, although it can variate, which represented the asset value of the company. The 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 equity or stock.

There are different types of shares. one them is a share denominate with the suffix “A”; These shares normally enjoy most of the benefits of other shares, but these allow to the family founder of the company to be able to maintain the control on their company. However, these non-voting shares are unpopular with major investors.The dividend of the company is the proportion from its paid earnings to the shareholders, the owners of the company. in almost cases in the companies all their earnings are not distributed, they keep a part of these dividends for the lean years

We should highlight the relation price-earnings. . When the earnings are divided by the number of shares, we get the “earnings per share”. The P/E ratio measures how many years of earnings per share at the current share price would be needed to pay for the share; as we have said before Not all of the earnings are paid as dividend, so further years will be needed to repay the share price out of dividends, however, it is hoped that the earnings and dividends will rise each year, reducing the repayment time of the share price, from that moment all the dividends will be earnings. The stock does not have to be held forever, it can be sold in the stock market.

To end up, another important 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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