What Is Accelerated Earnings?
An important stock market for dummies rule that all investors learn deals with accelerated earnings. There is nothing better for a company to raise their stock price than accelerated earnings. Why? It means people are buying their products or services. It means that the company is growing quickly. It means that their stock price will continue to rise. And therefore, if you are in these companies, it means that you’ll gain a lot of profits. Accelerated earnings is a simple concept to understanding. It’s when a company’s earnings is growing more than the previous year. So if a company makes $1 the first year, $2 the second, $5 the third, $11 the fourth; that would be accelerated growth.