EARNINGS PER SHARE

Earning per share, commonly known as EPS in online stock trades' world. Earning per share is the annual earning for an individual share over it actual investment which is made at the initial stage of that share in online stock trades.

In United States of America, a special board is constituted in online stock trades which is responsible for reporting about the operation carry on in the companies registered in online stock trades’ this constitution named as Financial Accounting Standards Board (FASB). This board required annual income statement of each company in order to calculate its earning per share over all the highlighted categories of that statement which is the key factor for evaluating company’s progress in online stock trades. This kind of calculation gives a clear idea of operation of the company which is in progress as well as information about those operations which are discontinued now in online stock trades. This progress report is made for reporting exact information about the reputation of company product and its income over those products in online stock trades.

Earning per share, commonly known as EPS in online stock trades’ world. Earning per share is the annual earning for an individual share over it actual investment which is made at the initial stage of that share in online stock trades.
In United States of America, a special board is constituted in online stock trades which is responsible for reporting about the operation carry on in the companies registered in online stock trades’ this constitution named as Financial Accounting Standards Board (FASB). This board required annual income statement of each company in order to calculate its earning per share over all the highlighted categories of that statement which is the key factor for evaluating company’s progress in online stock trades. This kind of calculation gives a clear idea of operation of the company which is in progress as well as information about those operations which are discontinued now in online stock trades. This progress report is made for reporting exact information about the reputation of company product and its income over those products in online stock trades.

Earning per share calculation:

Earning per share formula does not contain any preferred dividend of the company for any mentioned category of progressing operations and company’s net income in online stock trades. The reason behind this is the calculation based upon preferred dividend gets complicated when factors of progressing operation and annual income are used in online stock trades so these dividends are kept out side while calculating earning per share in online stock trades. Basic formula of EPS is stated below:

Basic Formula:

Earning Per Share =                        Profit                      .
                                  Weighted average common shares

Net Income Formula:

Earning Per Share =                      Net Income                    .
                                    Weighted average common shares

Continuing Operations Formula:

Earning Per Share =     Income For Continuing Operations   .
                                     Weighted average common shares