What do earnings per share and return on equity mean in the stock market?

The abbreviation of Share actually refers to earnings per share. Earnings per share, also known as after-tax dividend income and earnings per share, refers to the proportion of after-tax profits to the total share capital, that is, the corporate net profit that ordinary shareholders can enjoy per share or the corporate net loss that they have to bear per share. Earnings per share is usually used to reflect the operating results of enterprises, measure the profitability and investment risk of common shares, and is one of the important financial indicators for investors and other information users to evaluate the profitability of enterprises, predict the growth potential of enterprises, and then make relevant economic decisions.

Return on net assets is the rate of return of common shareholders.

The abbreviation of equity is actually the return on equity, which is also called shareholder's return on equity, return on equity, return on equity and return on equity. Refers to the percentage of net profit and average shareholders' equity, which is the percentage rate obtained by dividing the company's after-tax profit by its net assets. This indicator reflects the return level of shareholders' equity and is used to measure the efficiency of the company's use of its own capital. The higher the ROE index, the higher the return on investment. This indicator reflects the ability of self-owned capital to obtain net income.

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The stock market is the place where issued stocks are transferred, traded and circulated, including exchange market and OTC market. Because it is based on the distribution market, it is also called the secondary market. The structure and trading activities of the stock market are more complicated than the issuance market (primary market), and its role and influence are also greater.

The stock market originated from 1602 when the Dutch bought and sold the shares of the Dutch East India Company on the Amster River Bridge. The formal stock market first appeared in the United States. The stock market is a place where speculators and investors are active, and it is a thermometer of economic and financial activities of a country or region. Bad phenomena in the stock market, such as short selling of goods, will lead to various hazards such as the stock market crash. The only constant thing about the stock market is that it keeps changing. There are two trading markets in Chinese mainland: Shanghai Stock Exchange and Shenzhen Stock Exchange.