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Simple English definitions for legal terms

earnings-price ratio

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A quick definition of earnings-price ratio:

The earnings-price ratio is a way to measure how much profit a company is making compared to its stock price. It is calculated by dividing a company's earnings per share by its stock price. The higher the ratio, the better the investment yield. It is also called the earnings yield.

A more thorough explanation:

The earnings-price ratio is a financial term that shows the earnings per share of a security divided by its market price. In simpler terms, it is the profit a company makes for every dollar invested in it. The higher the ratio, the better the investment yield.

  • Coupon Yield: The annual interest paid on a security (especially a bond) divided by the security's par value.
  • Current Yield: The annual interest paid on a security (especially a bond) divided by the security's current market price.
  • Discount Yield: The yield on a security sold at a discount.
  • Earnings Yield: The earnings per share of a security divided by its market price.
  • Net Yield: The profit or loss on an investment after deducting all appropriate costs and loss reserves.

Let's say a company has earnings per share of $5 and its stock is trading at $50 per share. The earnings-price ratio would be 0.1 or 10%. This means that for every dollar invested in the company, the investor would earn 10 cents in profit.

Another example would be a bond with a par value of $1000 and a coupon rate of 5%. The coupon yield would be $50 per year ($1000 x 0.05).

These examples illustrate how the different types of yield are calculated and how they can be used to evaluate the profitability of an investment.

earnings per share | earnings report

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Quillinit
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wasp i just looked at your cycle and did you like pee in the shoes of admissions officers?
the retroactive withdrawls really hurt me
made them question my ability to stick through law school
withdrawals in undergrad?
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Quillinit
11:57
ah you filed retro W's from classes in UG?
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Quillinit
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^^^^^ would love to get into Cornell lmao
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11:59
or anywhere!
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@letsseehowitgoesnow: you okay?
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@ KnowledgeableRitzyWasp did u withdraw frm all your classes for two years or just a few? i have 2 W's
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