Earning Potential

Dictionary Says

Definition of 'Earning Potential'

The possible upside of the earnings that could be generated for each share outstanding of a particular stock. Earning potential reflects the largest possible profit that a corporation can make. It is often passed on to investors in the form of dividends. Greater earning potential drives up the price of a stock.

Investopedia Says

Investopedia explains 'Earning Potential'

Although earning potential can cause a stock's price to rise, it will not necessarily translate into higher current dividends. A company that comes out with an innovative new product may have higher earning potential in the future, but the projected revenue may not translate into actual profit for some time.

Search results for

'Earning Potential'

  • The College Degrees You Should Have Gotten - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0711/The-College-Degrees-You-Should-Have-Gotten.aspx
    ... Accounting, though not in the top-ten for earning potential, is the top in-demand
    degree in the job market, according to a recent study from the National ...
  • Investing 101: The Concept Of Compounding | Investopedia

    http://www.investopedia.com/university/beginner/beginner2.asp
    ... Just like investing maximizes your earning potential, compounding maximizes the
    earning potential of your investments - but remember, because time and ...
  • Starting A Small Business: Choosing Your Business | Investopedia

    http://www.investopedia.com/university/small-business/choosing-your-business.asp
    ... We'll talk more about developing a business budget in a later section, but for now
    it's enough to say that you need to weigh the earning potential of any ...
  • How To Make $1 Million In Finance

    http://www.investopedia.com/articles/financialcareers/08/make-million.asp
    ... and Evaluating Executive Compensation.) Investment Banking Earning Potential Directors,
    principals, partners and managing directors at the bulge-bracket ...
  • How To Insure Your Most Important Asset - Yourself

    http://www.investopedia.com/articles/insurance/11/insure-your-greatest-asset.asp
    ... However, no matter what stage you're in, the most important asset you have
    is yourself: your human capital and your earning potential. ...
  • Indexed Universal Life: Cash, Flexibility And Safety

    http://www.investopedia.com/articles/insurance/09/indexed-universal-life-insurance.asp
    IULs boast the security of fixed universal life policies and the
    interest-earning potential of variable policies. ...
  • Is maximizing stock price the same thing as maximizing profit?

    http://www.investopedia.com/ask/answers/06/stockpriceandearnings.asp
    ... economics of the industry. All of these factors influence the earning potential
    of the firm. Good management will produce earnings ...
  • 8 High Paying Jobs That Require 2-Year Degrees - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0811/8-High-Paying-Jobs-That-Require-2-Year-Degrees.aspx
    ... the four-year degree or if you decide that two years is all you're willing to invest,
    those that go to college often have greater earning potential than those ...
  • Good Debt Vs. Bad Debt

    http://www.investopedia.com/articles/pf/12/good-debt-bad-debt.asp
    ... synonymous with success. In general, the more education an individual has,
    the greater the person's earning potential. Education also ...
  • Investing 101: What Is Investing? | Investopedia

    http://www.investopedia.com/university/beginner/beginner1.asp
    ... Quite simply, making your money work for you maximizes your earning potential whether
    or not you receive a raise, decide to work overtime or look for a higher ...

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