|
That's what he goes by !!! |
|
|
| Ivan |
Larry's become a real stock-market junkie. He's always checking
share prices on the internet. |
| Joe |
Yes, he's always talking about which companies are on the way up,
and which ones are on the way down. |
| Ivan |
The most important thing he reckons is the price-earnings ratio of
their shares. That's what he goes by
in deciding whether to buy or sell. |
| Joe |
What's that and why does he think it's so important ? |
| Ivan |
It's the market price of the share divided by the earnings per
share. If its P/E ratio is high, that probably means a company is
expected to grow. |
| Joe |
My grandmother has done quite well out of the stock market and I've
never heard her talk about the P/E ratio. She just buys shares of
companies whose names she likes. |
