Dividends are the part of a company's earnings directly distributed to its shareholders. Their distribution and quantity is decided by the board of directors and approved by the assembly of the shareholders and they can be issued as cash payments (the most common case), additional shares or other types of assets. Dividends can be structured as to be distributed as a periodical ongoing cash flow … Continue reading What is a dividend?
The intrinsic value of a share is the actual and correct value of a stock, based on the fundamentals of its issuing company. Besides the fundamentals of the firm, which are the numerical values written in its financial statements, the intrinsic value includes in its calculation also other aspects of the business, both tangible (for example, … Continue reading What is the intrinsic value of a share?
A share (or stock) is a security that gives the buyer part of the ownership of the issuing company. Moreover, a the owner of a share can also have the right to claim a part of the earning gained by the enterprise, which might be distributed among shareholders as dividends. There are two types of shares: common and preferred. The first ones usually allow … Continue reading What is a share?