Simple English definitions for legal terms
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Earnings yield is a way to measure how much money you can make from an investment. It's calculated by dividing the earnings per share of a security by its market price. The higher the ratio, the better the investment yield. It's like asking how much money you can make from a certain amount of money you put in. It's important to know the earnings yield before investing your money.
Definition: Earnings yield is the ratio of a company's earnings per share to its market price per share, expressed as a percentage. It is a measure of the return on investment for a stock.
Examples:
These examples illustrate how earnings yield is calculated by dividing a company's earnings per share by its market price per share. The resulting percentage can be used to compare the return on investment for different stocks.