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  getting started.
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Economics
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Advanced Investing Topics
  -This section covers topics
   like futures and options

Profit Margin - Definition
Below, you'll find a definition of this investing term...

Definition: The percent of sales that result in profits.  They can either be talked about in "gross margins" or "net margins."

TeenAnalyst Advice: This would be the percentage of profits a company receives for their revenues.  For example, if I sold candy for $1.00 and it cost me $0.20 to make that candy, I would have $0.80 of profit.  My profit margin would be 80%.

A gross margin refers to sales minus cost of goods sold.

A net margin refers to sales minus cost of goods sold minus expenses.

 

Related Sections on Our Website

Investing - Learn more about investing basics and strategies.

Stocks - Learn about investing in the stock market.

 

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