What Is a Meritocracy

question 78

Essay

What is a meritocracy?

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Definitions:

Shares

Units of ownership interest in a corporation or financial asset, giving holders a portion of the company's profits and decision-making power.

PE Ratio

A valuation metric for stocks, calculated by dividing the current market price of a stock by its earnings per share.

Earnings Per Share

A financial metric that divides a company's profit by the outstanding shares of its common stock.

Convertible Preferred Stock

Equity securities that offer the owner the right to convert into a specified number of the company's common stock, often at a pre-determined time.