-
Effect Of Published Financial Statement On Shareholder Investment Decision
CHAPTER ONE -- [Total Page(s) 5]
Page 5 of 5
-
-
-
1.9 DEFINITION OF TERMS
DIVIDEND:
Is the distribution of part of the earnings of a company to its
shareholders. The dividend is normally expressed as an amount per share
on the par value of the share.
DILUTION OF EARNINGS: This is when
additional shares of stock are sold without an immediate increase in
income. This result is a decline in earnings per share until earning can
be generated from funds raised.
EARNING PER SHARE: Is the amount of
profit after tax and preference dividend (but before taking accounting
of extra-ordinary income and expenses attributable to each ordinary
share in issue and ranking for dividend during the period.
FINANCIAL INFORMATION: This is any information dealing with the operation of company and how the fund acquired.
EFFICIENCY:
This refers to achievement of organization goals within minimum waste
of resources that is best possible use of resources.
FINANCIAL
STATEMENT: This is a periodic financial reports accounts and other
related documents that highlights the financial position of an
enterprise as well as the financial profitability.
INVESTMENT: This
is the commitment and utilization of funds and other scare resources in a
project with the expectation, that the utilization will generate
return.
ORDINARY SHARES: These are the common stock of a company which is to be issued out for sale to individual public.
PROFITABILITY:
Profitability refers to the relationship between profit and the
resources employed in earning it. Its resultant effect is usually
expressed as a percentage.
CHAPTER ONE -- [Total Page(s) 5]
Page 5 of 5
-
