Martguerita P/E Ratio: Formula, Meaning, and Examples The P/E ratio, or price-to-earnings ratio, is a measure of a company’s stock price relative to its earnings. Here’s what you need to know about the P/E ratio, including its formula, meaning, and examples. What is a negative PE? A negative PE occurs when the earnings per share for … Read more
A direct quote is a foreign exchange rate quoted as the domestic currency per unit of the foreign currency. In other words, it expresses how much of the foreign currency is needed to buy one unit of the domestic currency. For example, if the direct quote for the EUR/USD currency pair is 1.25, it means … Read more
Allocational efficiency occurs when an economy’s resources are optimally allocated to produce the desired level of output. In other words, allocational efficiency occurs when an economy is able to produce the maximum amount of output possible given the available resources. Allocational efficiency is an important concept in economics because it helps to ensure that an … Read more
