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Financial terms starting with "B"

1. back to back plumbing

2. buy to close

3. Basic business strategies

4. bond beam

5. balloon framing

6. bond resolution

7. bench stone

8. blind valley

9. Bargain hunter

10. Bullion coins

11. building storm drain

12. Bucket shop

13. Basic Dwelling

14. bidding war

15. broader market

16. Business Birth

17. business software & services industry ETF

18. builder's risk coverage forms

19. business continuity management (BCM)

20. bargain hunting

21. baby roman brick

22. Bear Raid

23. Blackletter Law

24. best demonstrated available technology (BDAT)

25. bulk transfer

26. breaker panel

27. Bombay Stock Exchange (BSE)

28. buyer's remorse

29. bubble

30. Broker

31. Barrister

32. Biomass Fuel

33. Banks - BIS

34. border

35. Balance Sheet Eurostat

36. Biotechnology, Single Definition

37. Bank Run

38. bundle

39. Basic Price OECD

40. Bid–ask Spread

41. Border Workers

42. Biweekly Mortgage

43. buck the trend

44. Balanced Score Card - BSC

45. Bull CD

46. Broker Booth Support System

47. binder bar

48. Bankruptcy Petition Preparer

49. bank insurance

50. bevel square

51. Big Three

52. bond

53. Book profit

54. bargain sale to a charitable organization

55. Bottomline growth

56. Basket credit default swap

57. basin wrench

58. bancassurer

59. books of final entry

60. Build-up Approach

61. before and after method

62. Bond counsel

63. BGN

64. BitStamp

65. BMI

66. Build-up Method

67. Bankruptcy view

68. brownstone

69. BRN

70. Brown Coal

71. Best And Final Offer

72. Bottom-up equity management style

73. Back Charge

74. board

75. Brady bond

76. bearing wall

77. Buy-side Traders

78. Brokered market

79. Breadwinner

80. blow

81. beauty contest

82. bearish divergence

83. burst basket

84. bank identifier codes

85. balancing charge

86. Bank discount basis

87. blue top

88. Border Price

89. BEARS

90. Brussels Stock Exchange

91. Backup Line of Credit

92. box size

93. borrowed servant rule

94. board and batten

95. bio-sequence listings

96. Bypass trust

97. Business Process Automation

98. business life insurance

99. Bursa Malaysia

100. broom finish

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Featured term of the day

Definition / Meaning of

Price-to-earnings Ratio (P/E)

Categories: Finance,

The price-to-earnings ratio (P/E) is the relationship between a company's earnings and its share price, and is calculated by dividing the current price per share by the earnings per share.A stock's P/E, also known as its multiple, gives you a sense of what you are paying for a stock in relation to its earning power. For example, a stock with a P/E of 30 is trading at a price 30 times higher than its earnings, while one with a P/E of 15 is trading at 15 times its earnings. If earnings falter, there is usually a sell-off, which drives the price down. But if the company is successful, the share price and the P/E can climb even higher. Similarly, a low p/e can be the sign of an undervalued company whose price hasn't caught up with its earnings potential. Or, conversely, a clue that the market considers the company a poor investment risk.Stocks with higher P/Es are typical of companies that are expected to grow rapidly in value. They're often more volatile than stocks with lower P/Es because it can be more difficult for the company's earnings to satisfy investor expectations.The P/E can be calculated two ways. A trailing p/e, the figure reported in newspaper stock tables, uses earnings for the last four quarters. A forward p/e generally uses earnings for the past two quarters and an analyst's projection for the coming two.

Most popular terms

1. Cash Balance Pension Plans
2. Custodial Account
3. Statute Of Limitations
4. Family Exclusion
5. Quarter
6. Sublimit
7. IRA Rollover
8. Highest And Best Use
9. Stable Value Fund
10. Stockholm Syndrome

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