Investment & trading encyclopedia

Understand investment products, market mechanics, indicators and research terminology. Each entry includes an explanation, example, cautions and related learning.

80 explained termsView all courses

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Stocks & valuationBeginner

Earnings Per Share (EPS)

Earnings per share is the portion of a company's net profit that belongs to each ordinary share. It converts total profit into a per-share figure so that results can be compared with the share price and across periods.

Stocks & valuationBeginner

Equity

Equity is the residual ownership value of a business or asset after liabilities are subtracted. In markets, the word is also used for the asset class of company shares, as in equity markets or equity funds.