Monday, November 5, 2012

WSJ: Earnings Per Share, Explained

By SIMON CONSTABLE

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.

Photo by Alexander Mils on Unsplash

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