STRUCTURED LEARNING FOR YOUR NEXT STEP

Earnings per share explained.

A profit measure allocated across a defined share count. Basic and diluted figures can differ. Changes in earnings and changes in share count can both affect the result.

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Earnings per share

A profit measure allocated across a defined share count. Basic and diluted figures can differ. Changes in earnings and changes in share count can both affect the result.

Example: A fictional $10 million of earnings divided by 5 million shares is $2 per share.

Watch for: Assuming a higher per-share figure must result from higher total profit.

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