This extract from the book investing in stock&shares explains briefly some concepts related with shares.
A share in a company gives the investor, a share in its dividend which is declared once or twice a year, it takes part of a vote proportional to the size of the investor's holding at its annual general meeting (AGM). The assets include its cash-in-hand, land, buildings and the company’s stocks less its liabilities in the form of borrowers. Another concept is Nominal Share Value, the typical value of the share is 25p more or less, which represent the asset value of the company. A 25p nominal share may be sold before for one pound reflecting the earnings of the company. Shares are also known as equities or stocks. The sum of the total share might be the issued share of the capital of the company.
We can differentiate the non-voting shares which are called with the suffix “A”, these includes most of the benefits of other shares. These shares are un-popular with “biggest” investors which would like to take part of the decisions in the company. The shareholders of the voting stock are usually rewarded by an increased allocation of stock.

The Dividends of an enterprise is the proportion of its profits paid to its owners. It also can be serve as a store of 'fat' with which to maintain dividends in past years, when the profit is falling. On one day in January 2003, the price and dividend for Great Universal Stores (GUS) was: Price Yield- Great Universal 571 3.9 .The cover for the dividend of Great Universal was 1.9. This was discovered from the appropriate entries in the Financial Times. The company’s profits are also known as earnings. The P/E is the price to earnings ratio that measures how many shares per share at the current share price are needed to repaid the price of the share .A P/E of 5 means that five years of earnings will pay for the price of the share. On the other hand is hope that the earnings will rise each year reducing the payment time. We can discover from the Financial Times that the P/E ratio is: Great Universal P/E = 13.7 .
To conclude the last concept is the yield. It is usually expressed as a percentage of the share price. The average yield in each country may be different from the others, usually lower than their respective interest rate. Despite that, the lower return reflects the potential growth of dividend payouts.

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