shares_3000

The text is a part of the book Investing in Shares & Stocks, written by Dr. John White give us an introduction of shares.
Shares (stocks) in a company gives the investor once or twice a year dividends and also the right to participate in the Annual General Meeting (AGM).
Assets are composed by the cash that the company has, the property, raw materials, the actual work taking away the liabilities to creditors in the form of borrowings or payments.

A company is divided in shares which represent the original value of it, so once shares are all sold they can make money. The text give us the example of a company whose shares are valued in 25p and they sell them for one pound reflecting their profits. The share capital is all the amount of shares that a company owns. In several companies exist non-voting shares which don´t permit shareholders the right to vote but they can also have profits.

The dividends of a company are the proportional part of profits that corresponds with each share. Dividends are usually give only when the company has profits.The cover of the dividend is the number of times a company can pay its net dividend without saving a part of the money.

The company's profits are known as earnings and the earning per share is the division of all the profits. Shares or stocks can be sold whenever the sareholder wants at a market price in the stock exchange.

The yield is a percentage of the current share price.

Mark = 6

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