How can the investor make profitable its investment into shares?
The profitability of the shares is obtained in different ways:
- By the dividends: the company accords to distribute among all the partners, part of the profit obtained. The total amounts of these dividends vary according to the results obtained.
- As said before, the Company may obtain profits but decide not to distribute dividends. It will all depend of its internal politics. The determination as how to distribute the dividends is a decision that must be taken by the general board of shareholders of each company: they will fix the amount and date in which this payment will take place.
- The distribution of dividends requires the fulfillment of certain legal requisites.
- By the selling: the profits obtained when selling the shares in case they have its value increased (difference between the price at which is bought and the price at which is sold).
- As is the former case, neither can they prefixed the profits they will obtain, it might be positive (if sold at a higher price than when bought) or negative (if sold at an inferior price).
- For the increasing of the capital and for the emission of convertible debentures: with the selling of the rights of subscription. If the rights to the subscription of new securities are rejected, you will obtain a total amount of money that is considered as a source you possess, the loan of shares, etc.
The shares have different values:
- Nominal: It appears printed on the physical security or is noted in the account. The number of shares issued by the company to obtain the nominal value divides the share capital.
- Of stock exchange market: that the markets quotation reaches in a determined moment. It appears as a result of the offer and the demand and in its stability intervenes different factors such as: the dividend politics of the company, the opportunities for investment, the expected yields, the expectations from the company, the existing information about its assets, the economic evolution of the country in which the company operates, etc.
- Of liquidity: it is calculated in the case of liquidation of the company. It is what you obtain when dividing the company assets (the money obtained after selling all the assets and paying all the debts) by the number of shares in circulation.
- Real: what the shares are really worth. You add the company’s assets, the immobilized material, etc. and you divide it by the number of shares.
- Accounting or in sites: is obtained by dividing the accounting assets of the company by the available number of shares in circulation. It very much differs from that of the real value due that on the balance they usually under value a great quantity of securities.
- Future: according to the information and to the expectations of the investor, what he thinks the value of the shares will reach.
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