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Earnings per share (EPS)

When it comes to humans, there are certain indicators that can communicate who among us are exceptionally wealthy. Lamborghinis, Burberry coats, and mansions, for example. When it comes to discerning a company's profitability, however, earnings per share (EPS) is one of the key indicators we can look to. To calculate EPS, the company subtracts the dividends they have paid for preferred stock from their net income, and then divide the figure by the average number of outstanding shares (which is always in flux) ...

Equities

"Equities" is a needless complication when you can use the word "shares". Fortunately, most people do say shares, or stocks. The equity refers to your ownership. If you've bought a few shares in Facebook, you actually own a very small amount of it, even if Mark Zuckerburg doesn't call you for advice ...