Final Answer:
The basic earnings per share ratio helps determine the amount of profit a company earned for each share of outstanding Stock. Thus, the correct answer is option c) Stock.
Step-by-step explanation:
The basic earnings per share ratio helps determine the amount of profit a company earned for each share of outstanding stock. This ratio is a key financial metric that provides insight into a company's profitability on a per-share basis.
Earnings per share (EPS) is calculated by dividing the net income available to common shareholders by the average number of outstanding shares during a specific period. The result represents the portion of a company's profit attributable to each outstanding share of common stock. Investors often use EPS to assess a company's financial performance and compare it with other companies in the same industry.
Choosing the correct term is crucial for a comprehensive understanding of the ratio. In this context, the term "stock" refers to the shares of ownership in a company that are traded on the stock market. Therefore, the correct answer is (c) Stock.