If you have shares in a company, they can, at their own discretion, make dividend payments to you. These can be annual or sometimes 6 monthly.</p> Dividends are paid out of the profits that company has made in the period. So there are two ways that you can make money out of shares - firstly, by being paid dividends, and secondly by an increase n the capital value of the share. Clearly the two are interlinked as shares which pay good dividends will rise in price.</p> That is way you will find the price of a share is higher just before the dividend payment date than it is just after payment has been made (ex-dividend shares)</p>
currently doing about that in A-level Business Studies - pretty damn boring to be fair. Comapany's sell shares to raise revenue for expansion or whatever. if its a public limited company (plc), then shares go on the stock exchange for anyone to buy, if its a private limited company (ltd) then shares are sold to family and freiends. Basically you buy some shares, then you own a certain % of that business. Shareholders are rewarded with payments called dividends which are payed to you at the end of the year. These dividends usually reflect the amount of profit the business has made. Since buying shares means you own a part of the business, some random can take full control of your business (e.g. Malcolm Glazer) if they buy enough (near 50%) of the shares. Thats why share prices go up when a takeover is likely.
RE: Cheers.. google, ive been told. Theyre bringing out this email service and its set to be massive.
So a company like Tescos will have say 100000 shares and a million notes profit id get a quid per share?
Outdoor Patio Heaters They ran out of them in Ireland when the pubs went no-smoking. Same will happen here next year, all the pubs will be after them.
no, its just that if a business makes more profit they can generally pay out more in dividends because they can afford to.
