| Warren Buffett (Kebir Blue) | Tuesday, October 21, 2008 - 10:28 pm 
How do you lower the price to earnings so that investment funds will buy the shares of a corporation. I need to raise capital for the enterprise but my shares wont sell. What can i do? |
| Berand (Little Upsilon) | Thursday, October 23, 2008 - 03:11 am
I'm very new here, but I've found that you have to improve the profitablity of the corp, (i.e. Raise the E), so that the P/E will be lower. Then you are more likely to get the option to sell shares to the public.
Of course, any more experienced player can chime in with a better answer. |
| Treasurer (White Giant) | Saturday, October 25, 2008 - 07:36 pm
Yes, more profits/sales will make the P/E ratio drop. P/E stands for Price to Earnings ratio. It is calculated by dividing the share price by last years earnings per share. Once the P/E gets below 75 the Investment funds will start putting in orders for your shares. Make sure you have 100% hiring at all times and a favorable tax rate. That helps as well. |
