What is Earnings Per Share (EPS)? | SIE, SERIES7, SERIES65 Exam Prep

Earnings Per Share (EPS) is a company's net profit divided by the number of outstanding common shares, calculated as (Net Income - Preferred Dividends) / Weighted Average Common Shares Outstanding. It is a key metric for evaluating profitability and stock valuation. 📚 Learn more about Earnings Per Share (EPS) and other key terms for your SIE, SERIES7, SERIES65 exam at Open Exam Prep. 🎯 This term appears on: SIE, SERIES7, SERIES65 🔗 Full glossary: https://www.open-exam-prep.com/glossary 🔗 Earnings Per Share (EPS) definition: https://www.open-exam-prep.com/glossary/earnings-per-share 💡 Exam Tip: EPS = (Net Income - Preferred Dividends) / Weighted Avg Shares. Stock buybacks INCREASE EPS. Used to calculate P/E ratio. Diluted EPS includes convertible securities. --- #securities #examprep #financeexam #sie #series7 #series65