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what is market capitalization what is price to earrings whatbis price to book ration

what is market capitalization
what is price to earrings
whatbis price to book ration
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Answer #1

Capital Market

Capital Market is the financial market place where long term debt and equity backed securires are bought and sold. Security Exchanges are the exmples for capital market.

Price to Earnings Ratio

Price to earning ratio is the ratio between Market price of the security and Earning Per Share (EPS)

P/E Ratio = Market Price / EPS

Price to Book Ratio

Price to Book Ratio is the ratio between Price of the underlying asset and its book value in the company records.

P/B Ratio = Market Price / Book Value that Asset

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