Shares4863

A share of a company gives the investor: a proporcionate part of the company and a right to vote in its AGM.

The company's assets consist of tangible goods, raw materials and work by hand which are submitted to creditors’ liabilty or payments.

Earlier the nominal value of the shares representing the value of the assets of a company. The market value represented the value of assets and the capacity to earn easily money.

The total of the nominal sum is the capital of the company. Shares also may be referred to as equity or stock.
There are other shares, also named A shares, which do not enable shareholders to vote in the AGM. The creation of these shares are due to the company should remain in the hands of the founding family. The original owners of the actions are rewarded with additional
shares

The dividend of the company is the portion of the profits paid to shareholders. This does not benefit the shareholders in case if they do not reserve an amount for difficult situations that can happen in the company. The net dividend is the dividend cover, the number of times the dividen has been paid.

The cover for the dividend of Great Universal was 1.9. This was discovered by Financial Times.

The revenue of the company are called earnings. If we divide the profits between the existing shares, the result is earnings per share. The ratio measures how many years of earnings per share need to be paid the share. Little by little, the profits can be paid in differents ways. Shares can also be sold at a market price.

Performance is another way to appreciate the situation of the company. This is mesured by the percentage net. Yields are often lower than the interests.

This homework is from Jose Diaz Rato. He told me if I can send his homework to you by my wiki because his wiki doesn't works.

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This article is taken from the book “Socks & Shares” written by Dr John White.

Shares: It is a title that provides to its holder the proportional part that he has in the capital of a company. It confers its bearer political rights ( the right to vote at general assemblies of the company )and economic rights (to receive dividends ).

Assets: Any item that a person or company owns. The assets include real and tangible things such as intellectual property, land, buildings, machinery, equipment, receivables, furniture and other property and financial assets: cash, securities, granted loans, etc.

Nominal Value: It is the value of the share at the moment of its issue. The nominal value remains the same no mater the results of the company. Its value could be increased against reserves or reduced against losses. Under certain circumstances (networth of the company goes below 50% of the issued capital) it is mandatory to reduce the nominal value according to Spanish law.

Dividend: Is the profit delivered to each shareholder of a company for each share. Dividends can be paid once the company´s results are positive and covered the reserve. Dividends can also be paid against reserves.

Price to Earnings Ratio: It measures the relationship between the share price to its earnings per share. It is considered one of the most important systems to value a company because comparing two similar companies P/E shows us which has a better value.

Yield: It is the profitability of any asset invested. High yield bonds are those who have big interests. Real estate yields are in Spain around 3% . In periods of crisis, as we are now, yields are low, and , on the contrary, in expansion periods yields are higher.

Mark = 4 (This is not a summary of the text, but a series of dictionary definitions)

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