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Pardon the Jargon: Terms you need to know

Get Started Investing

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The Difference Between Income Statement and Balance Sheet

A low ratio means that you're getting more earnings for the price, essentially. And then the higher the ratio, it means you're getting less Earnings per Share. Income statement and balance sheet are both important financial statements used to measure or get insight into a company's performance. If I wanted to find out how profitable a company was, which one would I look at?

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