Stock market glossary
What is a P/E ratio, when does a stop-loss trigger, what is a value trap? Explained in plain words, without jargon.
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- P/B ratio (price-to-book)Market value compared with the equity shown on the balance sheet.
- P/E ratio (price-to-earnings)How many years of profit you pay for a share: price divided by earnings per share.
- P/S ratio (price-to-sales)Market value compared with annual revenue.
- Payout ratioWhat share of profit is paid out as dividends.
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Not investment advice. Investing carries risk up to total loss.