Skip to main content

Posts

Showing posts from 2015

IMPORTANT TERMS ON INVESTMENT

Definition of some basic terms as used in investment in shares;  Dividends Per share The dividend per share of a company basically refers to the total dividend the company pays divided by the total shares it has outstanding. It is similar to the earnings per share except that as against earnings, dividends is the numerator. Dividend per share is also a very important terminology as it tells an investor how much of the company’s dividend he is receiving on a per share basis. The dividend you get per share should also be compared with dividends the company declares in the past and what its peers have declared as well. This helps you determine if you are getting a good value on your return. Price Earning Ratio  The Price Earnings Ratio (P.E ratio) represents the price of a share relative to its earnings per share . To calculate the Price Earnings ratio, you will have to divide the share price of a stock by its earnings per share. The result you get determines how much y