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:
“In all conversation between two persons, tacit reference is made, as to a third party, to a common nature. That third party or common nature is not social; it is impersonal; is God.”
—Ralph Waldo Emerson (1803–1882)
“Anyone who knows a strange fact shares in its singularity.”
—Jean Genet (1910–1986)