Know these startup terms 

Investors play a big role in startups. Don't be caught unaware when these words are thrown at you. 

Published: 06th December 2018 03:49 AM  |   Last Updated: 06th December 2018 03:49 AM   |  A+A-

By Express News Service

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.

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