Net income per share of common stock

Net Income per Share

In a given fiscal year, a publicly-traded company's profit divided by the number of shares outstanding. This is considered the single most important aspect in determining a share's price and value, because the calculation of earnings per share shows the amount of money to which a shareholder would be entitled in the event of the company's liquidation. In general, earnings per share apply only to common shares. It is calculated thusly:

Earnings per share = (net income - preferred dividends) / average shares outstanding.

References in periodicals archive ?

The holding company for Brunswick Bank & Trust (bank), Brunswick Bancorp (OTCBB:BRBW), on Friday reported its first quarter 2011 net income per share of common stock was USD152,943, or USD0.05 basic earnings per share.