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Earnings Per Share Definition
Tuesday, October 16, 10:50 AM ET

Earnings per share, or EPS, refers to the amount of profit allocated to each outstanding share of stock. It is often calculated using a weighted average number of shares over the reporting period as the number of shares outstanding varies.

EPS is calcuated by subtracting the dividends on preferred stock from net income, then dividing by the number of shares.

For MarketNewsVideo.com, I'm Kristin Bianco.

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