Earnings without considering certain expenses such as inventory write downs, severance pay, depreciation and amortization charges, or just about anything else the company feels like excluding to make its earnings look better. Also known as core earnings, ongoing earnings, earnings excluding special items, or operating earnings.
Archives
Special Trading Session
A session during which trading in a listed security is limited to the execution of transactions at a single price.
Revenue
The total amount of funds generated by a business.
Sector Funds
mutual funds specializing in a particular industry sector such as computers, or health care.
Profit
What is left over for the owners of a business after all expenses have been deducted from revenues. Gross profit is the profit before corporate income taxes. Net profit is the final profit of the business after taxes have been paid.
Price to Earnings Ratio (p/e)
Latest share price divided by 12-month earnings per share (eps). Also a measure of the market’s enthusiasm for a company.
Speculator
Someone prepared to accept calculated risks in the marketplace for attractive potential returns.
Reverse Stock Split
This is where a company reduces the number of outstanding shares by decreasing the number of available shares and combining their value into the fewer shares. This has the effect of increasing the stock’s par value. This is often used by companies whose stock is about to be delisted from an exchange because of its low price.
Securities
Transferable certificates of ownership of investment products such as notes, bonds, stocks, futures contracts and options.
Profit Margin
Bottom line (after tax) earnings divided by sales.