What is the P/E Ratio? P/E stands for Price-to-Earnings . Imagine you are buying a small coffee shop. The owner says the price is ₹10 Lakhs. You ask, "How much profit did it make last year?" They say, "₹1 Lakh." You are paying 10 times the annual profit to own the business. Your P/E Ratio is 10 . In the stock market, the P/E ratio tells you exactly how many Rupees you are paying for every ₹1 of profit  the company makes. A P/E of 20 means you are paying ₹20 for ₹1 of profit.

The "Top Line" vs. The "Bottom Line" When you look at a company's financial results (the Income Statement ), there are two numbers everyone talks about: Revenue (The Top Line):  This is the total amount of money a company collected from selling its products or services. If a pizza shop sells 1,000 pizzas at ₹500 each, their Revenue is ₹5,00,000. Net Profit (The Bottom Line):  This is what is left after  the company pays for flour, cheese, rent, staff salaries, electricity, an

The Savings Bank Account (The Fuel) This is the account you already have. It’s where your salary comes in and where your "ready-to-invest" cash sits. Role:  It acts as the source of funds. When you want to buy a stock, the money travels from here to the market. The Trading Account (The Shopping Cart) Think of the Trading Account  as your interface with the Stock Exchange. It’s the "Buy" and "Sell" buttons on your mobile app or website. Role:  It’s where you place your orders.