Common Shares
Common shares will often pay out a portion of the earnings as dividends. The dividend yield is the total dollars (Yen, etc.) paid in a year divided by the spot price of the shares. Most web sites and reports are updated with the expected future year's payments, not the past year's.
The price/earnings ratio quoted for common shares is the reciprocal of what is called the earnings yield. EarningsPerShare / SharePrice.
Read more about this topic: Yield (finance)
Famous quotes containing the words common and/or shares:
“The common faults of American language are an ambition of effect, a want of simplicity, and a turgid abuse of terms.”
—James Fenimore Cooper (1789–1851)
“If a dog doesn’t put you first where are you both? In what relation? A dog needs God. It lives by your glances, your wishes. It even shares your humour. This happens about the fifth year. If it doesn’t happen you are only keeping an animal.”
—Enid Bagnold (1889–1981)