Thousands of investors have told us they are confused by the investment jargon that is used by financial advisors. We also know some terms, that investors don't understand, are used by advisors as sales ploys. They establish themselves as experts when they define a term you may not understand.
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Definition of 'Earnings Potential'
The implied upside of the earnings that a person or company might be able to earn over a course of time.. Greater earning potential makes a person or a company have more future value and it could drive up the price of its stock. It is often passed on to investors in the form of dividends.