Learning about shares: Minding your P's and E's

Dan Dividend responds: This is one of the questions I'm asked most often. It's not surprising, as P/E ratios get bandied about among seasoned investors in many a dinner-table discussion. P/E is an important sharemarket measure that new investors should understand, too. It's recorded in the far-righthand column of the sharemarket table.

Basically, the P/E ratio shows the relationship b...