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Definition: The percent of sales that result in profits. They can either be talked about in "gross margins", "operating margins", or "net margins."
StockJargon Advice: The differences in the three types of margins mentioned above are as follows:
Gross margins: this is what is left over after you've paid for what you sold. So if you buy a $30 pair of shoes from a shoemaker and sell them for $50, your gross margin is $20. This is also commonly referred to as the "markup"
Operating margin: this is what is left over after you've also paid for operating expenses, such as salaries and marketing.
Net margin: this is what's left over after you've paid for everything else (such as taxes and interest).
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