SHARES_1303

SHARES

What are shares:

Shares are a representation of the assets of a company, which give the holder profitability.
The owners of the shares are those which form the Council Administration. And their role in it is conditional on the shares that each one.
Assets:

The assets is that we own (property, cash) or we use to produce goods (raw materials), the less money we owe to our creditors.

Nominal share value:

We must first distinguish the nominal value, representing the assets of the company. But the shares fall in the stock market and its price varies.

Moreover there are shares that do not have the right to vote, are designated “A”. these shares give more profits than other.
This actions were created to allow control of a company for the founding family, but now the major investors do not buy this type of share, in fact the holders of the shares are usually reward by a function in the company.

The dividend and its cover:

Dividends are a portion of profits that is paid to shareholders.
The other part is used within the company, investing in it and keeping the other hand as reserves.
Cover: number of times that we must add the dividends to have the profit.

Price yield:

The cover of the dividend of Great Universal was 1.9.

P\E Ratio:

How many years of earnings per share at the current share price would be required to pay a fee.

The yield:

The yield shows the rate of income from a security as a percentage of each market price. Normally the interest it is higher than the yield.
Most of the times the acceptance of a risk higher entitles higher returns.
Not all earnings are distributed to non-distributed profits to increase over time.

Mark = 4

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