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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