# 💜 Nutrition Facts (Stocks)

By [Let Them Eat Cake](https://paragraph.com/@ltecake) · 2022-06-20

---

**Price to Earnings / Price per Pound** A comparison of the cost of a share to the earnings per share. A measure of “bang for your buck”. A food like caviar has a very high P/E, because you pay a lot and get a little.

**Earnings per Share / Serving Size** A comparison of the earnings of a company to the number of shares issued. Whenever you see a price, it’s important to consider the serving size as well to understand the overall value of what you are buying.

**Beta / Comparative Performance** When paper towels announce they are “5x more absorbant than the leading brand” consumers can benchmark the product against competitors. Financial products use a benchmarks as well, called Beta, which indicates outperforming the market if >1 and underperforming if <1. Beta reflects the frequency of price changes versus competitors. If a products price moves in perfect unison with the market, it’s Beta would be 1.

**Alpha / X Factor** Some foods have an X factor - an unexplainable quality that makes them better than the rest. In finance, this is Alpha. Alpha is determined after accounting for a product’s Beta, separating it’s unique performance from it’s relationship to the overall market. Seeking Alpha, a financial literacy website, was named after this key performance indicator.

**Issuer / Ingredients** The substance of your product. It could be a single ingredient item, or an amalgamation.

Health Labels

*   Environmental Friendly / Non GMO
    
*   Socially Responsible / Organic
    
*   Corporate Governance Best Practices / Gluten Free
    

Warning Labels

*   Unregistered Security / Not FDA Approved
    
*   Currency Risk / Contains Caffeine
    
*   Political Risk / Processed in a Facility that Contains Nuts
    
*   Inflation Risk / Bag may expand at altitude

---

*Originally published on [Let Them Eat Cake](https://paragraph.com/@ltecake/nutrition-facts-stocks)*