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What is retaining earning?

Updated: 9/19/2023
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13y ago

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If you mean retained earnings, that is the total amount the company earns after taxes and dividends to stock holders. Oftentimes, this money is reinvested into the company. It is hardly ever just put away to keep because of the possibility to earn interest on it or investing it in a bigger factory or something like that.

Retaining earning simply means that you keep what you earn. After expenses and costs of your company and dividends and interests and taxes.

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