KOCHI: Investors play a big role in startups. Don't be caught unaware when these words are thrown at you.
Price-Earnings ratio is how much investors are paying as compared to a company’s earning power. It's a valuation unit.
Time horizon is the amount of time that an investor stays invested in an asset or security. Market capitalisation refers to the market value of a company. It’s calculated by multiplying the number of a company’s shares by the price per share.
Alpha is a measurement of how an investment has performed and whether it has reached its return target.
Beta is a measurement of the volatility of an investment in a wider market - a test run.