dividends and shares

That such dividends and shares?

Dividends - this is the company's profit that is paid to shareholders of the company. If the company is rapidly growing, evolving and makes a profit, then the holders of the shares are divided between them, looking at someone how much percent of the shares, so many percent of the profits and give each of them ...
It is also possible to sell the shares or, conversely, to buy. When prices are falling, the owners want to buy them, but when they start to grow - to sell, extracting from it. But for that you need experience and you need to be able to predict the future course of events.
What are dividends and shares?
If your company where you have the stock at a profit, then part of this profit is divided between the shareholders and the other part is sent to its development. How much money will go to the development of the company, and how much money will be paid to shareholders, the shareholders decided at the annual meeting of shareholders.
If the company has brought a loss, in general can refuse to pay out dividends. Just shareholders may decide, even if the company has earned a lot of money, all the profits to send to its further development and expansion: this option was not ruled out.
In general, dividends are usually paid once a year, and the amount of the payment is determined at the annual meeting of shareholders.
It is also necessary to remember that dividends do not get them in time of possession, and shall be paid only to holders of a given date, which is called the day of record.
It was then called the list of shareholders, who are currently entitled to receive dividends. In short, to get their due dividends, you need to have the shares on the date of record.
You probably know that the investor receives a share of the profits in two ways:
1. When a stock is rising, and he sells them at a higher price.
2. And when it pays dividends.
In the Russian stock market was formed recently, but in the west it has arisen for a long time and they have a lot of experience, as well, and the payment of dividends. Therefore, in the west of joint-stock companies are divided into two groups:
- Companies that are growing, and most of the money goes to development, and dividends are not paid or if they are small. But shares in such companies are usually very expensive due to the rapid growth of the company.
- And the second, "cash cows" - here pay almost all of the profit to shareholders, but the company is in one place and not be able to develop, and therefore the shares of such companies are not growing. It is not the fact that the company still lasts a long time.
If you want to buy shares of any particular firm or company, you first read it: how it develops, what could be the income that makes everything else ...



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