Term: AVERAGE

The mean of a set of numbers. Averages are used extensively in the share market for the determination of market indexes and economic data. The moving average in its various forms (simple, exponential, time series, triangular, variable rate etc.) is the application of an averaging technique to share price (and other) data to reduce the “noise” in the chart and reveal the underlying trends. Average annualised returns are calculated for investments over their period. Per share data, like earnings per share (EPS) and headline earnings per share (HEPS), are calculated using the average number of shares in issue during the accounting period (as opposed to the “fully diluted” figures using year-end issued shares).

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