Glossary: Earnings

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Earnings



Earnings - A corporation's Earnings are determined by taking revenues less cost of sales, operating expenses, and taxes for a specified time period. A major cause of the so called "dot com bust" is that, in a race to do an IPO, many venture capital funded Internet companies focused primarily on increasing revenues with seemingly little thought given to how and when they would generate earnings, if ever.


Disclaimer: The foregoing is intended to provide general information and may not be suitable in specific instances. The glossary information is not intended to be exhaustive, but rather to illustrate typical considerations. The material is provided with the understanding that it is not legal, accounting, tax or any other professional advice.
 


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