The text from the page provides readers some concepts related to shares, witch is extracted from the book “investing in stocks and shares” written by Dr. John White. This concepts measure a company’s performance.
Firstly explains that a share (or stock or equity) gives the investor a share of its company dividend and also the right to vote in the Annual General Meeting (AGM). A person owning shares is called a shareholder.
Secondly, assets are constitute by the available cash the company has, property (land, buildings) , raw materials and the work to be realized, less its liabilities to creditors in the form of borrowing or payments.
On the other hand the vast majority of shares have a nominal value witch represent the asset value of the company. For example a 25p nominal share might have been sold for one pound, this reflect the future company’s profit. There are non-voting shares were holders has no vote in the company’s strategy. The principal objective of this shares is to allow founding families the control of the company such as the voting stock, nevertheless this shares are trade at a very low price and is wish by few investor.
Moving on the dividend of a company is the part of it profit given to shareholders, but only pays a part of it because the rest is use to internal growth of the company. The cover of the dividend is the number of times a company could have paid its net dividend without saving a part of the money.
The price to earning ratio represents how many years of earning per share would be needed to pay a share. The earning per share is calculated dividing earnings (company’s profit) by the number of shares in existence.
Finally the yield is represented as a net percentage of the share price. In each country yields are lower than the interest obtained for example by investment in local bonds. A lower return in shares reflects growth of dividend payouts.

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