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Market Terminology

Portfolio

A collection of securities owned by an investor.

Price / Earnings Ratio

The P/E ratio is a measure of the level of confidence investors have in a company. Generally, the higher the figure, the higher the confidence. It is calculated by dividing the current price by the last published earnings per share - where earnings per share is net profit divided by the number of ordinary shares.

Public Limited Company – Plc.

A company whose shares may be purchased by the public and whose share capital is not less than the statutory minimum. Not all Plcs are listed companies.