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EPS is the portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability.
EPS is calculated as
(Net Income - Dividend given to preferred share holders)/Average No. of outstanding shares
The EPS is helpful in comparing one company to another, assuming they are in the same industry, but it doesn't tell you whether it's a good stock to buy or what the market thinks of it.
But, ideally speaking, the EPS is a good indicator of the company's performance and in most cases where the company has a solid EPS over a considerable period of time, we can consider investing in that company.
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∙ 14y ago
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What is it called when investors buy part ownership in a company in return for a share of future profits?
Buying stock (shares)
Why were joint stock companies important to capitalism?
They allowed investors to take fewer risks.
Why is the stock market important to capitalism?
Desire of wealth is spirit of capitalism which is a driving force behind stock market volatility and economic growth. Investors for want of wealth and status trade heavily in stock market.
In which case do investors buy stock in expectations of higher profits?
In a bull market, investors buy stock in expectation of higher profits.
What is in effect when investors purchase stock?
supply and demand
Which if these is true about a joint stock company?
Investors share in benefits and costs (apex) .. (: . you cheater ;p
How is a stock price calculated at end of market day?
The most important factor for calculated stock price is earning per share, which indicates how profitable a company is.
What is a group of investors who share in profits and losses?
joint stock company
Meaning of stock market and share market?
Both stock market and share market refers to the same.It is a market where investors gather to buy/sell shares.
Which best describes a joint-stock company?
a company owned by investors who share the profits
Which company run by a group of investors who share the company's profits and losses?
joint-stock company
What is the price-earning?
If you mean the price-earnings ratio. It is the price per share of a common stock divided by the annual earnings of the stock.
Which answer choice below best describes who owned the money and property in a joint-stock company?
share investors
Definition of paid up capital stock?
Paid up capital stock is that share capital for which investors or shareholders has made full payment to acquire them.
What is it called when investors buy part ownership in a company in return for a share of future profits?
Buying stock (shares)
Why do stock prices fall?
one reasons is the way the investors speculate share prices. then the marketforces. if the economy is booming te share price go down.
Why were joint stock companies important to capitalism?
They allowed investors to take fewer risks.
