Basic Earnings Per Share

Basic Earnings Per Share - A basic earnings per share is the amount earned on each share of common stock. Earnings are just another word for net income and it operates no differently then when an individual does his/her income taxes, and has to arrive at his net income. Because in the accounting world, companies do income statements to measure gains and losses, the net income on the company's income statement is the very last line, also called net profit and/or net loss.