It should be clear that when you invest in a company, you need to know how much money it makes.
But here's the rub: There are several "earnings" figures that a public company reports to its investors. So which one should you look at?
When you look at a company's earnings reports (also known as 10Q and 10K Securities and Exchange Commission filings), they can be a tad confusing. You'll see net income, basic earnings per share and diluted earnings per share—three different measures of profit. See original story here.