income
Definition 1
For corporations, revenues minus cost of sales, operating expenses, and taxes, over a given period of time. Income is the reason corporations exist, and are often the single most important determinant of a stock's price. Income is important to investors because they give an indication of the company's expected futuredividends and its potential for growth and capital appreciation. That does not necessarily mean that low or negative earnings always indicate a bad stock; for example, many young companies report negative income as they attempt to grow quickly enough to capture a new market, at which point they'll be even more profitable than they otherwise might have been. also called earnings.
Definition 2
For individuals, money earned through employment and investments.
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Related Terms
active income, before-tax income, capitalization of income, discretionary income, disposable income, earned income, fixed income, gross income, investment income, net income, operating income, ordinary income, other income, passive income, personal income, premium income, real income, unearned income, income distribution
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