This text briefly explains several aspects of a company such as assets, shares, price to earning ratio, dividends, and yield, which can be used to measure the company’s performance.

A share not only gives the investor the opportunity of receiving a dividend, but also the chance of having a stake in the company’s assets, and the privilege of having a say at the Annual General Meeting.

The assets of a company are calculated by subtracting the liabilities of the company from the property, cash, and the company’s stock of raw materials.
The text proceeds by analyzing the nominal shares value. The shares that were once defined as 25p represented the asset value of the company. The other types of shares, defined with the suffix A, gave the investor more benefits, but without the chance of voting. These shares were created to concentrate the power in only a few investors, the founders of the company.

Thirdly, the text goes on to analyze the dividend. The dividend is part of the profits that is distributed amongst the investors. The rest of the profits are kept either to continue growing as a company, or as provisions, for what might happen to the company in the future. The cover is the number of times the company could have paid for its net dividend.

To find out how many years of earning per share are needed to pay for the current share at the current price of the share, you divide the earnings by the number of shares. This is called the price to earnings ratio. The company expects the share to rise each year, so that each year the payment measured in years is reduced.

Lastly, the yield, measured in net percentage of the current share price, is usually lower than the interest due to the safety in their investment. As the return for the shares decrease the dividends paid to the investors increase.

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