Underlying Profit

Filed Under » ,
Dictionary Says

Definition of 'Underlying Profit'

A term used to describe the actual reflection of a company's profit. The underlying profit is not the required accounting profit that is recorded on financial statements and documents mandatory to follow preset rules and regulations. This number is calculated by the company to show what they believe to be an accurate reading of the company's profit position and may exclude one time charges or infrequent events.
Investopedia Says

Investopedia explains 'Underlying Profit'

The calculation is different for every company in that they begin with the accounting profit, and make adjustments as they see fit. In recent years, it has been argued that there should be some kind of guideline in place so that the reporting of underlying profits can be compared between companies.
Search results for

'Underlying Profit'

  • Profit On Any Price Change With Long Straddles

    http://www.investopedia.com/articles/optioninvestor/09/long-straddle-options-trading.asp
    ... Technical Analysis Entering into a long straddle allows a trader to profit if the
    underlying security rises or declines in price by a certain minimum amount. ...

  • Iron Condors: Wing It To Maximum Profit

    http://www.investopedia.com/articles/optioninvestor/09/iron-condors-wing-to-profit.asp
    ... The iron condor is known as a neutral strategy because the trader can profit
    when the underlying goes up, down or trades sideways. ...

  • Get A Strong Hold On Profit With Strangles

    http://www.investopedia.com/articles/optioninvestor/08/strangle-strategy.asp
    ... the risk that there may not be enough fundamental change to the underlying asset
    to ... is the exact type of limited volatility needed in order for them to profit. ...

  • Options On Futures: A World Of Potential Profit

    http://www.investopedia.com/articles/optioninvestor/02/061302.asp
    ... If, for instance, the underlying Jun S&P futures were to rise 10 more points (provided
    there is no change in time-value ... (For more, read How to Profit from Time ...

  • Arbitrage Squeezes Profit From Market Inefficiency

    http://www.investopedia.com/articles/trading/07/statistical-arbitrage.asp
    ... The trader will then realize a profit on the trade when the underlying security's
    realized volatility moves closer to his or her forecast than it is to the ...

  • Setting Profit Traps With Butterfly Spreads

    http://www.investopedia.com/articles/optioninvestor/09/profit-out-of-the-money-butterfly.asp
    ... If an OTM butterfly is entered using an out-of-the-money call, then the underlying
    stock must move higher in order for the trade to show a profit. ...

  • Options Risk Graphs: Visualizing Profit Potential

    http://www.investopedia.com/articles/optioninvestor/05/012605.asp
    ... just covered. The vertical axis is profit/loss, while the horizontal axis
    shows prices of the underlying stock. You simply need ...

  • Profit By Understanding Fundamental Trends

    http://www.investopedia.com/articles/basics/11/fundamental-trends-investing.asp
    Profit By Understanding Fundamental Trends. ... They show shifts in underlying views,
    technologies and knowledge and will move the markets more slowly yet more ...

  • Profit From Forex With Currency ETFs

    http://www.investopedia.com/articles/mutualfund/07/currency-etfs.asp
    ... an ETF, if the foreign currency has appreciated against the dollar, you will earn
    a profit. On the other hand, if the ETF's currency or underlying index has ...

  • Profit From Mortgage Debt With MBS

    http://www.investopedia.com/articles/06/mortgagebackedsecurities.asp
    ... Profit From Mortgage Debt With MBS. Tweet. Posted ... balance. Plus, they'll get
    any principal prepayments from the underlying mortgages. ...

Related Articles

Partner Links