Articles on Stock markets
News, Research and Analysis
What are Earnings per Share (EPS)?
EPS is derived by taking the net income of a company and dividing it by the share price. That gives an individual investor an idea of how much growth was captured by their shares.
Earnings per share is one of the main articles that is announced by the quarterly reports given by companies to their investors. Earnings per share does not mean that each share has appreciated a certain amount, but if the quarterly reports in earnings seasons stir up demand for the shares based on solid fundamentals at a company, it can result in a higher price per share.
Instead, it is a calculation that takes the total net income of a company for a quarter or a year and divides it by the number of outstanding shares. What you’re left with is a notional amount of profit that shareholders have participated in, since shareholders are part-owners of a company.
Some of that growth may already have been priced into the shares by the market based on sentiment or some reports or intelligence that came out before the actual earnings report of the company. Companies announce their quarterly earnings per share with Earnings Calls and press releases. They also must file a publicly-accessible report with their numbers to the SEC every quarter and year.
If earnings per share increases over time, it is called earnings growth.
What if the Matching Contribution for My 401(k) is in Company Stock?
Employer contributions in the form of company stock can pose some liquidity issues, but it can also be a nice benefit
What are the Contribution Deadlines for My Keogh Plan?
Generally the deadline for contributions is the tax filing deadline, with extensions
What is the Difference Between a Thrift Savings Plan and Other Retirement Plans?
The main difference is that the TSP is only for Federal employees. A Thrift Savings Plan is essentially a 401(k)
What is a Home Office Expense?
What is Form 706 GS (D): Generation Skipping Transfer Tax Return for Distributions?
Form 706 is the Estate Tax return, and it has a section concerning Generation-Skipping Transfers. 706 GS (d) specifically
How to use the Broadening Top (Bullish) Pattern in trading
The Broadening Top pattern forms when a stock price progressively makes higher highs and lower lows following two trends
What Else Should I Know About Stocks?
There are plenty of things that you should know about stocks. Feel free to pursue this collection of useful articles
What is Foreign Investment Funds (FIF) tax?
New Zealand and Australia have a tax for offshore investments that fall into the definition of Foreign Investment Funds
What is a Market Order?
A market order is an order to execute a trade (buy or sell) immediately at whatever the current market price
How many financial advisors do I need?
It’s good to have the opinion of advisors who are knowledgeable in various areas of your planning and portfolio, but...