1. P/E ratios
Investors finance the company's operations by supplying it with money " their money! ... Investors do this by purchasing "shares- which are simply units of capital. ... The so-called P/E ratio therefore is a basic indicator of the investors "value-for-money."" ... A savings account is also a form of investing. ... They may not have significant earnings yet, but investors are willing to pay a high price for the stock because they expect the company to grow. ...
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- Grade Level: High School