Glossary entry

español term or phrase:

una entidad de valoración y no de dividendo

inglés translation:

capital growth rather than income/earnings entity

Added to glossary by Nick Harding
Aug 27, 2015 11:41
8 yrs ago
español term

una entidad de valoración y no de dividendo

español al inglés Negocios/Finanzas Finanzas (general) Banking
From a text on banking, that's all I know at the moment.

Discussion

philgoddard Aug 28, 2015:
Nick Harding Are you no longer following this discussion? Manuel asked for the context, so unless you've been given only one sentence to translate, you must have some.
Manuel Baselga López Aug 27, 2015:
I am inclined to believe that the value of the company or entity is subjective (for instance, for its goodwill, reputation, or market potential) instead of being calculated as a multiple of the annual earnings distributed to shareholders. However, more context information would be required to be sure. Could you provide the whole sentence or paragraph where it appears?

Proposed translations

+1
1 hora
Selected

capital growth rather than income/earnings entity

.

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Note added at 1 hr (2015-08-27 13:20:11 GMT)
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Investment funds fall under two broad definitions - income and growth. An income fund provides investors with earnings from the dividends of the companies into which the fund manager puts money. A growth fund looks to grow the original sum invested as much as possible, or sometimes by a set amount.
http://www.theguardian.com/money/2007/jan/24/fundsbondstrust...
Peer comment(s):

agree philgoddard : Yes, as your reference shows, you don't really need to say "capital".
8 minutos
no you don't. capital is superfluous
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4 KudoZ points awarded for this answer. Comment: "Given the context this is the best answer thanks very much."
10 minutos

accumulation vs. distribution entity/share/stock/security

Suggestion.
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+1
1 hora

a capitalization maximizing entity with no dividend distribution

In plain English, the entity in question is a company that allows its shareholders to earn income through capital gains and not dividend distribution.

A shareholder can pocket money by selling his/her appreciating shares. The share appreciation is the result of the issuer maximizing its issued shares on the market.

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Note added at 1 hr (2015-08-27 13:39:41 GMT)
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http://www.investopedia.com/ask/answers/135.asp

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Note added at 2 hrs (2015-08-27 14:21:28 GMT)
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The mechanism whereby capitalization is maximized is called share buyback:

http://wiki.fool.com/Does_a_Stock_Buyback_Affect_the_Price?

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Note added at 2 hrs (2015-08-27 14:25:14 GMT)
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CEOs are interested in capitalization maximization because their public companies give them stock options to align their incentives with their company's goal of creating value for shareholders

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Note added at 2 hrs (2015-08-27 14:26:49 GMT)
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http://www.usatoday.com/story/money/2015/04/18/stock-options...
Peer comment(s):

neutral philgoddard : We don't have the context, but it doesn't necessarily mean "no dividends". It could just be a company that doesn't pay big dividends.
2 horas
Entidad no de dividendo = entitad que no paga dividendo
agree Manuel Baselga López : Your interpretation is correct. Investors get money from the stock value, not from the dividend distributed.
1 día 2 horas
Gracias, Manuel!
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1 día 4 horas

growth stock

Shares in a company whose earnings are expected to grow at an above-average rate relative to the market. Also known as a "glamor stock". A growth stock usually does not pay a dividend, as the company would prefer to reinvest retained earnings in capital projects. Most technology companies are growth stocks.

Investors would earn income by selling their shares in the entity, not by pocketing dividends. Many startups fit into this pattern: in high-potential but low-earning businesses (i.e., Whatsapp, Uber, and the like), when the business is sold to a bigger company, its initial shareholders get a lot of money from the stock value of their shares, not from the actual earnings of the company distributed as dividend.

The share buyback is another mechanism to maximise the stock value, and get extra income from selling shares.

Peer comment(s):

neutral Francois Boye : The issue above goes beyond 'a' stock
1 día 10 horas
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