The text is extracted from a book created to families who need some kind of help in financial assets. It talks about some concepts that are known as importants for investing.

The author starts by defining share's activity, which are represented by a person who has in property assets of a company which makes him be able to vote in the annual general meeting. He also receives a dividend from this assets, which are defined as a company's cash-in-hand, the property and the company's stock of raw materials and work-in-hand, less its liabilities.

It also refers to the nominal share value, which represents the original asset value of the company.There are some different kinds of shares, some usually designed with the suffix A, are shares that enjoy the benefits of others shares except of the right to vote in the company’s strategy, because of this are sold at a lower price and are less popular than the voting stock.

In addition, the dividend of the business is the part of profit that is paid to stockholders, but companies only give a part of the profit as a dividend, the rest is used to finance internal growth of the company and to maintain dividends if the business is in decline. The cover of the dividend is the number of times that a company has paid its net dividend.

The P/E Ratio represents how many years of earning per share at the current share price would be necessary to pay for the share, but not all the profits are paid as dividend so companies hope dividends will grow up each year to reduce the repayment time of the share price.

Finally, Dr. White states that the yield represents the current share price as a net percentage. The yield in each country could be different (lower) than the interest obtained from local bonds, due to the risk taken in contrast of a safe investment.

Mark = 5

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