This text is a basic explanation of how shares work and of the main elements that affect them.
A share offers the investor the possibility to be owner of some part of a company. Through it, the investor can participate in the company´s decisions by voting in the Annual General Meeting and he also has benefits or losses according to the results of the company.
The assets of a company are all those elements that are able to be converted into cash.
Shares have a nominal value, which sum represents the issued shared capital of the company. Some companies issue a different kind of shares named with the suffix "A". These shares do not give the investor the possibility to take part in the company meetings in order to maintain firm´s control in the original owners´ hands. They are not well considered by powerful investors and are getting old-fashioned.
The dividend of a company is the part of the profit paid to the shareholders for each share. The most common way companies distribute its earnings is paying a dividend to shareholders, keeping part for internal growth and saving some of it in order to be able to keep paying dividends in periods when profits are falling. The cover of a dividend is the number of times that a company is able to pay its net dividend.
The P/E Ratio measures the number of years of earnings per share at the actual share price needed to pay for the share.
Finally, the author explains that the yield is another way to measure how the company is performing expressed in a percentage of the actual share price.

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