Investor Corner/The asset classes

2.1 Equity Concepts

What owning a share actually means, how to read the ratios and metrics used to value a company, and the different styles, from blue-chip to momentum, that shape how equity funds are built. A share is a small, tradeable claim on a real business, and the ratios covered here, P/E, P/B, ROE, beta, are the tools used to judge whether that claim is priced fairly. They come up constantly once you move into evaluating funds or building a portfolio, so it is worth being comfortable with them early.

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