shares 4672

A company gives a investor a share which needs to be declared once or twice a year, as well as a stake in the company’s assets and property and a vote which is proportional to how much is the investor’s holding.

The assets of a company is the cash, properties and stocks of raw materials and work-in-hand owned by the company taking aside its liabilities which can be borrowings or payments to creditors.

At the beginning most shares had a nominal value which gives the asset value of a company. When a share is sold at a market, the value shows the worth of the assets and their proficiency to make money. It’s equity or stock are other ways of appointing a share, which it’s total issued sum is the issued share capital of a company.

In determined companies there are shares designated by the suffix “A” which have most of the benefits of other shares and that are non-voted. At first these kinds of shares had the aim of giving the founding family the control of the company.

In a company the dividend is the part that is destined to pay the shareholders and its common being part of its profits. Other part has the objective of making the company bigger and also to maintain dividends in lean years, this is called the remainder.
The cover of the dividend is the number of times that a company have paid its net dividend.
The Financial Times discovered that the cover for the dividend of Great Universal Stores was 1.9, which is the percentage of the price yield.

The price to earnings (P/E) shows the number of years of earnings per share(that is the division between the earnings with the number of shares at that moment)at the current share price that would be needed to pay for the share. To repay the share price out of dividends it’s necessary for many years to go by because not all of the earnings are paid as a dividend. But opposite of that we have that dividends and earnings could increase their value each year so the repayment time of the share price would be reduced and makes the dividends only profits.
The Financial Times shows us another information, which is that the Great Universal P/E is 13,7.

To conclude, a yield is an important indicator which is expressed as a percentage of the present share price. This data, in each country, is usually lower than the interest despite the fact of risk that exists in accepting a higher return that the one in “safe investments”. The lower return is directly proportional to the growth potential of dividend payouts and these are commonly not seen on “safe investments”.

Mark = 7

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License