This document defines various business and financial terms grouped under headings such as accounts, markets, contracts, profits and more. It provides definitions for common jargon used in accounting, finance and business management. Key terms defined include accounts payable, accounts receivable, blue chip companies, bull and bear markets, bonds, dividends, EBITDA, futures contracts, hedging, insolvency, IPOs, mergers and acquisitions, margins and more.
The document defines various business and finance terms including:
- Accounts payable and accounts receivable, which refer to amounts owed to and by a company shown on its balance sheet
- Amortization, which is the reduction of a liability like a loan over time through regular payments
- Derivatives, which are financial instruments derived from an underlying asset that can be traded, like options and futures contracts
- Dividends, which are discretionary payouts to shareholders from a company's after-tax earnings
- EBITDA, which measures profitability before certain expenses to show core business earnings
This document defines stock market terms from A to B. It provides definitions for terms like advanced companies, agent, Alberta Securities Commission, all-or-none order, American-style options, annual report, anonymous trading, arbitrage, ask or offer, assets, assignment, at-the-money, averages and indices, and averaging down.
In today’s digital era, on average, people have the attention span of a goldfish: that’s why it’s important to get to the point, correctly and succinctly. Take a look at our financial glossary for a vocabulary boost.
The document defines several financial terms through short descriptions. It provides definitions for terms like "bulge bracket", "asked price", "basket", "analyst", "short call option", and "affordability index". The definitions range from 1-3 sentences each and concisely explain the key meaning or use of each term.
1. Common stock represents ownership in a corporation and a claim on its assets and earnings. There are different types including common, preferred, and classes A and B.
2. Owners of common stock are also known as shareholders or equity owners. They may receive dividends as determined by the board of directors and can benefit from capital gains.
3. Fundamental analysis and technical analysis are two main approaches used to evaluate common stocks and make investment decisions.
The document provides information on investing in common stocks, including:
- Common stock represents partial ownership in a corporation and stockholders share in its profits through dividends or stock price appreciation.
- Investors can make money through capital gains if the stock price increases or through dividends paid by the company.
- Factors like a company's financial performance, industry trends, and economic conditions influence its stock price.
This document provides definitions for over 50 terms related to stocks, the stock market, and financial analysis. Some key terms defined include American Depository Receipts, which allow foreign stocks to trade in the US market, arbitrage which is the practice of exploiting price differences in the same security trading on different exchanges, and cash flow which refers to a company's net income plus non-cash expenses like depreciation. Additional terms defined include preferred stock, price-earnings ratios, technical analysis, warrants, and puts and calls which are options contracts.
This document provides definitions for various financial terms beginning with A through E. Some key terms defined include:
- Accretion/Dilution Analysis - Determines the impact of an M&A or capital markets transaction on a company's projected EPS.
- Agent - The bank responsible for administering a project's financing.
- Analyst - Entry level position in an investment bank, typically filled by graduates for 2-3 years until promotion to Associate.
- Arranger - A bank responsible for originating and syndicating a loan transaction, often having a senior role and largest share.
- Asset Class Breakdown - Percentage of holdings in different investment types like stocks, bonds, etc.
The document defines various business and finance terms including:
- Accounts payable and accounts receivable, which refer to amounts owed to and by a company shown on its balance sheet
- Amortization, which is the reduction of a liability like a loan over time through regular payments
- Derivatives, which are financial instruments derived from an underlying asset that can be traded, like options and futures contracts
- Dividends, which are discretionary payouts to shareholders from a company's after-tax earnings
- EBITDA, which measures profitability before certain expenses to show core business earnings
This document defines stock market terms from A to B. It provides definitions for terms like advanced companies, agent, Alberta Securities Commission, all-or-none order, American-style options, annual report, anonymous trading, arbitrage, ask or offer, assets, assignment, at-the-money, averages and indices, and averaging down.
In today’s digital era, on average, people have the attention span of a goldfish: that’s why it’s important to get to the point, correctly and succinctly. Take a look at our financial glossary for a vocabulary boost.
The document defines several financial terms through short descriptions. It provides definitions for terms like "bulge bracket", "asked price", "basket", "analyst", "short call option", and "affordability index". The definitions range from 1-3 sentences each and concisely explain the key meaning or use of each term.
1. Common stock represents ownership in a corporation and a claim on its assets and earnings. There are different types including common, preferred, and classes A and B.
2. Owners of common stock are also known as shareholders or equity owners. They may receive dividends as determined by the board of directors and can benefit from capital gains.
3. Fundamental analysis and technical analysis are two main approaches used to evaluate common stocks and make investment decisions.
The document provides information on investing in common stocks, including:
- Common stock represents partial ownership in a corporation and stockholders share in its profits through dividends or stock price appreciation.
- Investors can make money through capital gains if the stock price increases or through dividends paid by the company.
- Factors like a company's financial performance, industry trends, and economic conditions influence its stock price.
This document provides definitions for over 50 terms related to stocks, the stock market, and financial analysis. Some key terms defined include American Depository Receipts, which allow foreign stocks to trade in the US market, arbitrage which is the practice of exploiting price differences in the same security trading on different exchanges, and cash flow which refers to a company's net income plus non-cash expenses like depreciation. Additional terms defined include preferred stock, price-earnings ratios, technical analysis, warrants, and puts and calls which are options contracts.
This document provides definitions for various financial terms beginning with A through E. Some key terms defined include:
- Accretion/Dilution Analysis - Determines the impact of an M&A or capital markets transaction on a company's projected EPS.
- Agent - The bank responsible for administering a project's financing.
- Analyst - Entry level position in an investment bank, typically filled by graduates for 2-3 years until promotion to Associate.
- Arranger - A bank responsible for originating and syndicating a loan transaction, often having a senior role and largest share.
- Asset Class Breakdown - Percentage of holdings in different investment types like stocks, bonds, etc.
There are many ways a company can go public on the equities markets. Learn the difference between a traditional IPO and APO (alternative public offering) from Charms Investments.
The document discusses listing a company on the AIM (Alternative Investment Market) of the London Stock Exchange. It outlines the pros and cons of listing on AIM compared to the NASDAQ, including less regulatory requirements but also more uncertainty. Key factors in assessing company suitability include the management team, business model, and ability to raise a minimum of $10 million. Professional advisors play an important role in the listing process, including a Nominated Advisor to guide the company and a broker to market the shares.
This document provides information about Confluence Investment Advisors, a fee-only advisory firm that constructs low-cost ETF portfolios for individual investors. Key points:
- Confluence charges significantly lower fees than a typical advisor, saving clients thousands per year.
- The firm's founder, Paul Fraker, has decades of experience in finance and investment management.
- Confluence takes a passive approach, constructing globally diversified ETF portfolios tailored to each client's goals, risk tolerance, and tax situation. ETFs provide broad exposure at very low costs.
- By using low-fee ETFs and charging only for portfolio management, Confluence aims to maximize investors' returns over time
This presentation was created by Babasab Patil, and all copyright belongs to him. Please visit his website at: http://sites.google.com/site/babambafinance/
Julius Csurgo Creative Capital VenturesJulius Csurgo
Creative Capital Ventures seeks to bring private companies public through reverse mergers, which allow companies to go public at a lower cost and faster timeline than an IPO. A reverse merger involves a private company merging with a public shell company. The private company becomes public, with its shares trading on the OTC market. After going public through a reverse merger, companies can raise capital through common stock PIPEs or structured deals involving convertible preferred stock or debt. Well-known companies like Texas Instruments and Berkshire Hathaway have utilized reverse mergers to go public.
The document provides an overview of basic investing topics including stocks, mutual funds, DRIPs, and common investing terms. It defines what stocks are, how buying shares entitles the owner to potential price appreciation and dividend payouts. It also explains mutual funds and DRIPs as ways to invest without picking individual stocks. Finally, it includes definitions for several important investing terms.
The document discusses various topics related to the stock market including the financial system, primary and secondary markets, SEBI, types of investors and investments, trading, exchanges, and analysis techniques. It defines key terms and describes the roles of important entities like brokers, depositories, and exchanges.
The document provides an overview of equity investments and security markets. It discusses various topics including types of capital markets, structure of securities exchanges, types of orders and margin transactions. It also summarizes key concepts related to stock market indices, market efficiency, security valuation techniques, industry and company analysis factors that affect stock valuation. The document is aimed to educate readers on fundamentals of equity investments and security analysis.
This document provides an overview of financial literacy topics including investment basics, why one should invest, investment options, and securities market concepts. The key points covered are:
- The importance of saving and investing savings for future goals like retirement. Starting early and investing regularly are emphasized.
- Common long-term investment options like Public Provident Fund, Post Office Savings, company fixed deposits are outlined.
- Securities markets are explained as places where buyers and sellers trade securities like shares, bonds, and derivatives. Regulators are needed to ensure orderly functioning of these important markets.
The document discusses equity investments and the capital markets. It provides an overview of different types of investments including stocks, bonds, and mutual funds. It also outlines the key steps in planning an investment strategy, including setting objectives, selecting asset types and ratios, portfolio management, and analysis. Factors to consider when selecting investments are discussed such as returns, risk, liquidity, and taxes.
- The document discusses working capital management concepts including cash, inventory, accounts receivable, and accounts payable management. It provides definitions of key terms and analyzes the working capital ratios and policies of a company called SKI.
- The document contains a cash budget for SKI that shows expected cash inflows and outflows for two months. It indicates SKI is holding excess cash that could be invested more productively.
- The analysis finds that SKI has higher inventory levels and longer accounts receivable collection periods than industry averages, suggesting it could improve working capital management in these areas.
Stocks and bonds are two separate ways for a company to raise money in order to fund and expand their company’s operations. While issuing stocks a company is selling a piece of their company in exchange for money. Whenever a company issues a bond, it is issuing debt with an agreement to pay interest for the use of the money.
Mr. A started a gaming business with investments from friends. They later converted it into a private company and saw further success. To fund expansion, the company approached regulators to launch an IPO and list on the stock exchange, allowing public investment through share purchases. This marks the company's transition to a public listed company, with regular disclosure of financial details and shared decision making with shareholders. The story demonstrates the process of a business obtaining capital through an IPO to list on the stock exchange and become publicly traded.
Series 6 exam prep ryan kussman volleyballRyanKussman
The document discusses several topics related to investments including:
1) Variable annuities may not provide adequate liquidity for seniors due to contingent deferred sales charges for several years.
2) Investments made with after-tax dollars in a non-qualified investment grow tax-deferred and earnings are taxed at distribution using an exclusion ratio.
3) Transfers within the same fund family may incur taxes on any gains or losses.
The document discusses several key topics related to corporate finance including:
- The scope of corporate finance which includes capital investment decisions, dividend decisions, and short-term financial management.
- The principles of corporate finance including investing funds to maximize returns, choosing an optimal debt-equity ratio, and maintaining a balance between cash flow and required funds.
- The role of financial markets in corporate finance by allowing companies to raise funds through issuing stocks and bonds and providing secondary markets for trading securities.
The document provides an overview of the procedures involved in an initial public offering (IPO) and follow-on public offering (FPO). It discusses that an IPO is when a private company first offers shares to the public, transforming into a public company to raise expansion capital. A FPO is a subsequent public offering by an already publicly traded company, which can dilute existing shareholders or allow some to decrease their ownership stakes. The roles of intermediaries like book runners, bankers, and underwriters in pricing and managing the offerings are also outlined.
Business valuation fundamentals & the maximization of entity valueAzran Financial APC
In the complex world of business valuation, understanding the valuations process can be of key importance to receiving the highest and best value for your company.
Through a basic understanding of the principles of business valuation (both public and private, closely held) one can learn to navigate the process that touches everything from transactions to taxation.
This document provides definitions and explanations of key concepts in finance and investment. It covers topics such as total return, risk-free rate, risk premium, forms of market efficiency, types of mutual funds, dividend discount models, portfolio theory, bond yields and durations, sources of risk, and the capital asset pricing model. The document is organized into multiple chapters that progressively build financial literacy from basic to more advanced concepts.
The document discusses how to choose investments for your portfolio. It provides information on various asset classes including stocks, bonds, cash/cash equivalents, and mutual funds. Stocks include common and preferred shares that can provide capital appreciation or dividend income. Bonds are debt instruments issued by governments and corporations that offer interest payments. Cash equivalents like money market funds provide stability. Mutual funds allow investors to invest in a basket of various securities, with index funds passively tracking market indexes at lower costs than actively managed funds. The document stresses considering your risk tolerance, investment objectives, and costs when selecting investments.
There are many ways a company can go public on the equities markets. Learn the difference between a traditional IPO and APO (alternative public offering) from Charms Investments.
The document discusses listing a company on the AIM (Alternative Investment Market) of the London Stock Exchange. It outlines the pros and cons of listing on AIM compared to the NASDAQ, including less regulatory requirements but also more uncertainty. Key factors in assessing company suitability include the management team, business model, and ability to raise a minimum of $10 million. Professional advisors play an important role in the listing process, including a Nominated Advisor to guide the company and a broker to market the shares.
This document provides information about Confluence Investment Advisors, a fee-only advisory firm that constructs low-cost ETF portfolios for individual investors. Key points:
- Confluence charges significantly lower fees than a typical advisor, saving clients thousands per year.
- The firm's founder, Paul Fraker, has decades of experience in finance and investment management.
- Confluence takes a passive approach, constructing globally diversified ETF portfolios tailored to each client's goals, risk tolerance, and tax situation. ETFs provide broad exposure at very low costs.
- By using low-fee ETFs and charging only for portfolio management, Confluence aims to maximize investors' returns over time
This presentation was created by Babasab Patil, and all copyright belongs to him. Please visit his website at: http://sites.google.com/site/babambafinance/
Julius Csurgo Creative Capital VenturesJulius Csurgo
Creative Capital Ventures seeks to bring private companies public through reverse mergers, which allow companies to go public at a lower cost and faster timeline than an IPO. A reverse merger involves a private company merging with a public shell company. The private company becomes public, with its shares trading on the OTC market. After going public through a reverse merger, companies can raise capital through common stock PIPEs or structured deals involving convertible preferred stock or debt. Well-known companies like Texas Instruments and Berkshire Hathaway have utilized reverse mergers to go public.
The document provides an overview of basic investing topics including stocks, mutual funds, DRIPs, and common investing terms. It defines what stocks are, how buying shares entitles the owner to potential price appreciation and dividend payouts. It also explains mutual funds and DRIPs as ways to invest without picking individual stocks. Finally, it includes definitions for several important investing terms.
The document discusses various topics related to the stock market including the financial system, primary and secondary markets, SEBI, types of investors and investments, trading, exchanges, and analysis techniques. It defines key terms and describes the roles of important entities like brokers, depositories, and exchanges.
The document provides an overview of equity investments and security markets. It discusses various topics including types of capital markets, structure of securities exchanges, types of orders and margin transactions. It also summarizes key concepts related to stock market indices, market efficiency, security valuation techniques, industry and company analysis factors that affect stock valuation. The document is aimed to educate readers on fundamentals of equity investments and security analysis.
This document provides an overview of financial literacy topics including investment basics, why one should invest, investment options, and securities market concepts. The key points covered are:
- The importance of saving and investing savings for future goals like retirement. Starting early and investing regularly are emphasized.
- Common long-term investment options like Public Provident Fund, Post Office Savings, company fixed deposits are outlined.
- Securities markets are explained as places where buyers and sellers trade securities like shares, bonds, and derivatives. Regulators are needed to ensure orderly functioning of these important markets.
The document discusses equity investments and the capital markets. It provides an overview of different types of investments including stocks, bonds, and mutual funds. It also outlines the key steps in planning an investment strategy, including setting objectives, selecting asset types and ratios, portfolio management, and analysis. Factors to consider when selecting investments are discussed such as returns, risk, liquidity, and taxes.
- The document discusses working capital management concepts including cash, inventory, accounts receivable, and accounts payable management. It provides definitions of key terms and analyzes the working capital ratios and policies of a company called SKI.
- The document contains a cash budget for SKI that shows expected cash inflows and outflows for two months. It indicates SKI is holding excess cash that could be invested more productively.
- The analysis finds that SKI has higher inventory levels and longer accounts receivable collection periods than industry averages, suggesting it could improve working capital management in these areas.
Stocks and bonds are two separate ways for a company to raise money in order to fund and expand their company’s operations. While issuing stocks a company is selling a piece of their company in exchange for money. Whenever a company issues a bond, it is issuing debt with an agreement to pay interest for the use of the money.
Mr. A started a gaming business with investments from friends. They later converted it into a private company and saw further success. To fund expansion, the company approached regulators to launch an IPO and list on the stock exchange, allowing public investment through share purchases. This marks the company's transition to a public listed company, with regular disclosure of financial details and shared decision making with shareholders. The story demonstrates the process of a business obtaining capital through an IPO to list on the stock exchange and become publicly traded.
Series 6 exam prep ryan kussman volleyballRyanKussman
The document discusses several topics related to investments including:
1) Variable annuities may not provide adequate liquidity for seniors due to contingent deferred sales charges for several years.
2) Investments made with after-tax dollars in a non-qualified investment grow tax-deferred and earnings are taxed at distribution using an exclusion ratio.
3) Transfers within the same fund family may incur taxes on any gains or losses.
The document discusses several key topics related to corporate finance including:
- The scope of corporate finance which includes capital investment decisions, dividend decisions, and short-term financial management.
- The principles of corporate finance including investing funds to maximize returns, choosing an optimal debt-equity ratio, and maintaining a balance between cash flow and required funds.
- The role of financial markets in corporate finance by allowing companies to raise funds through issuing stocks and bonds and providing secondary markets for trading securities.
The document provides an overview of the procedures involved in an initial public offering (IPO) and follow-on public offering (FPO). It discusses that an IPO is when a private company first offers shares to the public, transforming into a public company to raise expansion capital. A FPO is a subsequent public offering by an already publicly traded company, which can dilute existing shareholders or allow some to decrease their ownership stakes. The roles of intermediaries like book runners, bankers, and underwriters in pricing and managing the offerings are also outlined.
Business valuation fundamentals & the maximization of entity valueAzran Financial APC
In the complex world of business valuation, understanding the valuations process can be of key importance to receiving the highest and best value for your company.
Through a basic understanding of the principles of business valuation (both public and private, closely held) one can learn to navigate the process that touches everything from transactions to taxation.
This document provides definitions and explanations of key concepts in finance and investment. It covers topics such as total return, risk-free rate, risk premium, forms of market efficiency, types of mutual funds, dividend discount models, portfolio theory, bond yields and durations, sources of risk, and the capital asset pricing model. The document is organized into multiple chapters that progressively build financial literacy from basic to more advanced concepts.
The document discusses how to choose investments for your portfolio. It provides information on various asset classes including stocks, bonds, cash/cash equivalents, and mutual funds. Stocks include common and preferred shares that can provide capital appreciation or dividend income. Bonds are debt instruments issued by governments and corporations that offer interest payments. Cash equivalents like money market funds provide stability. Mutual funds allow investors to invest in a basket of various securities, with index funds passively tracking market indexes at lower costs than actively managed funds. The document stresses considering your risk tolerance, investment objectives, and costs when selecting investments.
Stocks represent shares of ownership in a company, while bonds are loans made to companies or governments. Stockholders own a stake in the company and may receive dividends, while bondholders are lenders who receive interest payments. There are various types of stocks, including common and preferred stocks, as well as growth stocks and value stocks, which can be categorized by size, sector, region, and growth potential. Bond types include government bonds, municipal bonds, corporate bonds, and zero-coupon bonds which are issued by governments, local authorities, corporations, and accrue interest over time respectively. External economic factors like interest rates and money supply can also impact stock and bond prices.
An Intro to the Financial Services IndustryEric Tachibana
The Financial Service Industry is one of the most attractive industries to target if you are a consultant. However, when selling into, or delivering for, Financial Services Institutions (FSIs), it is useful to have some understanding of how FSI business models work, and the unique requirements that drive their IT strategies.This deck is a living document that hopes to act as a primer for consultants who need to support FSI clients, but who may not have prior experience in the sector.
Long term financing provides capital for periods over one year through equity like stock issuances or debt. It is used to finance fixed assets, permanent working capital needs, expansions, and large construction projects. Common stock represents ownership in a company and allows for transfer of shares. While stocks provide growth potential, the original investment is at risk and returns depend on company performance. Key financial terms for common stock include authorized shares, issued shares, par value, additional paid-in capital, retained earnings, and capital surplus which represent amounts paid beyond par value.
The document discusses several topics related to finance and investing, including:
1) It provides an overview of recent developments in the Indian stock market and new financial products approved by SEBI.
2) It discusses securitization and how it allows the conversion of existing or future cash flows into marketable securities.
3) It defines what a hedge fund is and how they charge various fees including management and incentive fees.
The document discusses several topics related to finance and banking including:
1) SEBI approved new derivatives products in India to attract more domestic investors. BSE and NSE indices rose and the dollar and gold prices were stable.
2) Securitization is the process of converting existing assets or future cash flows into marketable securities like bonds. This allows companies to raise funds.
3) Hedge funds charge management and incentive fees and seek returns with low correlation to stocks and bonds. They have more flexible regulations than mutual funds.
The document provides guidance on important factors to consider when screening and selecting mutual funds. Key things to look at include the fund's strategy, risks, expenses, past performance, management, and tax efficiency. It is also important to consider the fund's ratings from third party sources and to select funds with lower fees and risks appropriate for the investor's tolerance. Understanding the fund's prospectus and other documents is also fundamental before investing.
Common stock represents partial ownership in a corporation. There are two main types: common stock which usually entitles the owner to vote, and preferred stock which generally does not have voting rights but has a higher claim on assets and earnings. Common stock owners are also known as shareholders or equity owners. A board of directors is elected to establish policies and make decisions on major company issues. Companies may pay dividends to shareholders from a portion of earnings.
A share represents partial ownership in a company. When a company issues new shares and sells them to investors to raise capital, this occurs in the primary market. Investors can then buy and sell existing shares in the secondary market. The document discusses what a share is, shareholder rights and benefits, factors to consider when choosing shares to buy, and the functions of the primary and secondary markets.
1) The document provides an overview of key finance concepts related to equity, debt, and accounting. It defines terms like authorized shares, issued shares, outstanding shares, treasury stock, senior debt, subordinate debt, investment grade bonds, and retained earnings.
2) It explains how a company's revenue is distributed between debt holders and equity shareholders. Interest payments go to debt holders, taxes are paid, and any remaining earnings belong to equity shareholders.
3) The key components of shareholders' equity that must be reported on the balance sheet are paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income.
This document provides an overview of investing in stocks, including:
1) It defines different types of securities like stocks, bonds, mutual funds, and outlines factors to consider when beginning to invest in stocks like a company's financials.
2) It explains why corporations issue common stock and why investors purchase common stock, focusing on potential dividends and stock appreciation.
3) It covers strategies for buying, selling, and classifying different types of stocks and factors that influence investment decisions like financial metrics and analysis theories.
A share, also called a stock, represents partial ownership in a company. It entitles the holder to a portion of the company's profits and voting rights. The price of a share fluctuates based on market forces and investor perceptions of the company's performance and prospects. Owning shares provides an opportunity to earn returns through dividends paid by the company and capital gains from price appreciation if the shares are sold for more than their purchase price.
Beta is a measure of the volatility of a fund compared to its benchmark. A beta close to 1 means the fund's performance closely matches the benchmark. A beta greater than 1 indicates greater volatility than the benchmark, while a beta less than 1 indicates lower volatility.
This document provides an overview of various investment instruments, focusing on equities, bonds, and money market instruments. It defines equities as securities representing a claim on the earnings and assets of a corporation. Equity returns come from dividends and capital appreciation. While equity offers high return potential, it also carries high risk since investors' capital is last in line to be paid out. Bonds are defined as debt securities where the issuer promises to repay the principal and pay interest to bondholders. Bonds generally have lower risk than equities but also lower expected returns. Features of bonds include maturity date, coupon rate, and credit quality, which determines risk.
This document provides an overview of different types of stocks and strategies for investing in stocks. It discusses:
- Different categories of stocks including growth stocks, blue-chip stocks, income stocks, cyclical stocks, defensive stocks, value stocks, and speculative stocks.
- Key factors to evaluate when choosing stocks including earnings per share, price-earnings ratio, dividend yield, and book value per share. The document recommends focusing on stocks that meet most of these value criteria.
- Long-term investment strategies like dollar-cost averaging, reinvesting dividends, and avoiding common investor mistakes.
So in summary, the document outlines different stock types, key metrics to evaluate stocks, and long-term
1. The document discusses different types of investments and the accounting methods used for each. It covers trading securities, available-for-sale securities, held-to-maturity securities, and equity method investments.
2. For available-for-sale securities, changes in fair value are recorded in other comprehensive income rather than net income. Held-to-maturity investments use the amortized cost approach.
3. The equity method is used when an investor has significant influence over an investee, usually through 20-50% ownership. It addresses accounting for investments in bonds and consolidating subsidiaries.
This document introduces derivatives and their role in managing risk. It discusses forwards, futures, and options contracts and introduces the basic concepts needed to analyze these instruments. It also discusses the major traders involved in these markets and some key terms like long/short positions and bid-ask spreads.
The document provides definitions and explanations of various financial terms:
1) Dematerialization is the move from physical stock certificates to electronic record keeping, while rematerialization is a compiler optimization that recomputes values instead of loading them from memory.
2) Venture capital refers to money available for investment in innovative or high-risk enterprises, especially in high technology.
3) An institutional investor is a large non-bank entity like a pension fund or hedge fund that qualifies for lower trading commissions due to the size of its transactions.
4) Insider trading is the illegal buying or selling of securities based on non-public information.
This document provides definitions for various financial terms beginning with A through E. Some key terms defined include:
- Accretion/Dilution Analysis - Determines the impact of an M&A or capital markets transaction on a company's projected EPS.
- Agent - The bank responsible for administering a project's financing.
- Analyst - Entry level position in an investment bank, typically filled by graduates for 2-3 years until promotion to Associate.
- Arranger - A bank responsible for originating and syndicating a loan transaction, often having a senior role and largest share.
- Asset Class Breakdown - Percentage of holdings in different investment types like stocks, bonds, etc.
This document provides guidelines for using abbreviations, acronyms, and initials in writing. It states that sentences should not begin with lowercase abbreviations or unfamiliar acronyms. Common abbreviations like etc., e.g., and i.e. may be used in parentheses. When writing initials, use a period after each with a single space between. For unfamiliar acronyms, an expanded form is required on first use. The plural of acronyms does not take an apostrophe.
Commonly used acronyms, symbols, abbreviations,Kylie Sarmiento
The document provides guidance on using abbreviations, acronyms, and other symbols in research writing. It advises that terms should be spelled out the first time used and then the abbreviation can be used going forward. Abbreviations should be used sparingly in the text for clarity, and common abbreviations like etc. should only be used in parentheses. Countries, states and other locations should be spelled out in the text. The document also provides examples of common abbreviations used in citations and references.
1. A descriptive essay must have one clear dominant impression that guides the selection of details. This impression is stated in the thesis sentence.
2. Descriptive essays can be either objective or subjective in tone and include concrete sensory details to help readers visualize what is being described.
3. Specific, consistent details that engage the five senses are important to fully involve readers and communicate the dominant impression.
This document provides a quiz with 10 sentences containing gerund phrases. Students are instructed to underline the gerund phrase once and encircle the gerund in each sentence to identify the gerunds and gerund phrases. The sentences provide examples of gerunds used as subjects, objects, and in prepositional phrases.
The Commission on Higher Education (CHED) was established on May 18, 1994 through the Higher Education Act of 1994 to oversee tertiary education in the Philippines. CHED works with DepEd and TESDA to govern the country's three levels of education and pursues better quality of life through education. It implements projects, formulates policies, sets standards, monitors performance, and identifies centers of excellence for higher learning institutions.
This document provides guidelines for integrating open educational resources (OER) into higher education. It contains 3 sections: an introduction outlining the purpose and rationale of OER; guidelines for various higher education stakeholders including governments, institutions, academic staff, students, and quality assurance bodies; and references. The introduction discusses the challenges facing higher education and how OER can help address issues of access, costs and quality. It emphasizes that OER have transformative potential if institutions invest in developing, adapting and using quality materials. The guidelines section provides specific, action-oriented suggestions for each stakeholder group to promote greater use and sharing of OER.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...Donc Test
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting, 8th Canadian Edition by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Ebook Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Pdf Solution Manual For Financial Accounting 8th Canadian Edition Pdf Download Stuvia Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Financial Accounting 8th Canadian Edition Ebook Download Stuvia Financial Accounting 8th Canadian Edition Pdf Financial Accounting 8th Canadian Edition Pdf Download Stuvia
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
2. GROUP 1
Accounts Payable
Accounts Receivable
Amortization
Blue Chip
Bull Market
Bear Market
Bond
GROUP 2
Derivatives
Dividend
EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization)
Index Fund
Futures Contracts
Goodwill
Hedging
3. GROUP 3
Inflation:
Insiders:
Insider Trading:
Insolvent:
IPO: Initial Public Offering
IRR: Internal Rate of Return.
Joint Venture:
Junk Bond:
4. GROUP 4
Liquidity:
Liquidation Preference:
Liquidated:
Margin:
Mortgage:
OTC (Over the Counter):
Outsourcing:
GROUP 5
Oversubscription:
Paid-up Capital (PUC):
Quorum:
Stagflation:
Underwriter:
Warrant:
Zero Coupon:
Yield:
5. Accounts Payable: Indebtedness of a company to
its suppliers for goods or services purchased that
have been purchased and which must be paid for
within one year (more typically paid within 30-90
days). This shows as a current liability on the
company's balance sheet.
Accounts Receivable: Amounts owed to a company
by its customers for goods or services supplied to
those customers which must be paid for within one
year (more typically collected within 30-90 days).
This shows as a current asset on the company's
balance sheet.
6. Amortization: This refers to the reduction in a
liability over time, e.g. "amortizing" a loan by
regular monthly payments against that loan.
Blue Chip: This refers to companies with large
market capitalizations ($1B+). It has nothing to do
with "chips" of any kind. Many people use it simply
to refer to top tier, large cap, firms.
Bull Market: This is the term used to refer to a
strong, healthy stock market. Prices and share
volumes are increasing in a Bull Market. The
opposite to this is a Bear Market. It has nothing to
do with "Bull" or "BS", although that may be what
causes some stocks to increase unreasonably.
7. Bear Market: This is the term used to refer to a weak,
sluggish stock market. Prices and share volumes are
decreasing in a Bear Market. The opposite to this is a
Bull Market.
Bond - A bond is a debt obligation (often in the form of a
negotiable "note") by a borrower - typically a government.
For example, the Government of Canada may issue a 10
year bond, paying interest at 6%, in denominations of
$100. Corporations sometimes issue bonds, too. These
are much riskier than bonds backed by government
guarantees and are often referred to as "Junk Bonds"
and bear much higher rates of interest. Bonds often
trade in the market. When prices drop, it means that the
effective interest rate is higher - e.g. if a $100 bond
paying $6 per year interest, trades at $95, the effective
interest rate is 6/95 percent.
8. Derivatives are financial instruments which can be traded
(e.g. options, warrants, rights, futures contracts, options on
futures, etc.) on various markets. They are called
derivatives because they are "derived" from some real,
underlying item of value (such as a company share or other
real, tangible commodity). A derivative is a tradable
"contract", created by exchanges and dealers. A warrant or
option is the simplest form of derivative. The most common
usage relates to the trading of commodity futures and
options on futures - where pre-defined contracts relating to
a right to buy or sell and underlying commodity or security
are traded as opposed to the actual commodity or security
itself. They are risky because they are time-fused and can
expire worthless. Yet, the rewards are enormous and they
are used primarily as HEDGING instruments.
9. Dividend: This is an arbitrary payment that
companies make to their shareholders based
on the Company's after-tax earnings.
Companies, such as tech companies, often pay
no dividends because they re-invest their profits
back into the company to fuel further growth.
Generally only profitable and cash-rich
companies pay dividends. Dividend payouts are
approved by a company's Board of Directors
and are declared on a per-share basis (e.g.
Company X has declared a dividend of $0.08
per share). In some countries (e.g. Canada),
dividends may be taxed at a lower rate than
ordinary income.
10. EBITDA (Earnings before Interest, Taxes, Depreciation
and Amortization): This measure of profitability is
being increasingly used to try to show a company's
performance by not counting those items which
might be seen as being beyond management's direct
control, e.g. taxes and interest. The idea is to show
earnings generated from the operations of the
company (i.e. its real business) without the "excess
baggage" imposed by the excluded items. It is also a
better measure of cash flow from operations since
Depreciation and Amortization are non-cash items.
No, it does not mean "Earnings Before I Tricked the
Damn Auditor!", which in recent times might not be
so far from the truth!
11. Index Fund: or Exchange Traded Index Fund (ETIF) -
these are like mutual funds that mirror the composition
of an Index. e.g. a very popular one is called the
Nasdaq100 (ticker symbol QQQ) ETIF in which you can
effectively buy and sell the underlying Index on a stock
exchange (look it up!).
Futures Contracts: A financial contract entitling, in
principle, its holder to buy or sell a given commodity at a
given price for a certain period of time. Such contracts
are entered into between buyers and sellers in a market
and are a zero sum game. They are simply a "paper"
game used primarily for hedging (avoiding risk) purposes.
For example, Canadian currency futures contracts could
be used to lock in a foreign ($US) profit pending
collection of that receivable. Futures contracts must
always be closed out (i.e. unwound). There is always an
equal number of long (bought) contracts and short (sold)
contracts.
12. Goodwill - This is a balance sheet item found under
assets. It is the "intangible" value of an asset (for
example, a business that is acquired, intellectual
property, etc). For example, a patent may be acquired for
$1million but has no intrinsic hard value. In this case, it
may show up as goodwill on the balance sheet. A
prudent company will avoid showing too much goodwill
by writing down the value of such items. Investors take
note - goodwill may make a balance sheet look much
rosier than it really is.
Hedging: The use of financial instruments such as
futures contracts to mitigate risk in a commodity market.
E.g. if a company expects to receive a large payment in
US$ 6 months in the future, it can buy C$ contracts in
the futures market to offset a potential decrease in C$
value when the US$ are received and converted into C$.
13. Inflation: This is the amount (in %) by which a
basket of goods increases in price in one year.
One statistical measure of this is the consumer
price index (CPI). Too high a rate of inflation
(>2%) can lead to economic instability and
generally results in a government raising
interest rates in an attempt to keep inflation
down.
Insiders: Those people who are directors or
senior officers or individuals who hold more
than a 10% voting interest in the company. If
these people buy or sell shares (publicly or
privately) in their company, they are doing what
is referred to as Insider Trading.
14. Insider Trading: Insider trading is the trading (buying or
selling) of shares in a company by an insider - i.e. a
senior manager, director, or person who owns more than
10% of the shares of a company. Insider trading is not
illegal. But, if insiders trade on material privileged
information - before it becomes known to the general
public - that is a problem! This is perfectly legal except
when trading takes place using privileged information
which has not yet been released to the public. We often
hear of insiders selling stock if they know that a weak
earnings report is about to be issued. All insiders must
report their trading regularly to the appropriate securities
commission. This information is available on-line to the
public. If you are about to invest in a company, you might
want to find out if insiders are buying or selling. It may
give you an indication of their own confidence level in the
company.
15. Insolvent: When a business cannot meet its financial
obligations (ie pay its bills and debts), it is said to be insolvent.
IPO: Initial Public Offering (IPO) is a company's offering of
newly issued shares from treasury to the general public. It is
generally the first time that a company does so - making the
transition from being a closed-door privately operated
company (CCPC - Canadian Controlled Private Corp) to being a
publicly traded, highly visible, entity. When doing an IPO, an
underwriter, i.e. a stockbroker firm, handles the distribution of
shares to the public. Effectively, the brokerage firm subscribes
(underwrites) for the shares and then sells them to its clients
(investors). After the IPO, the shares will then trade on a stock
exchange. It is sometime referred to as "going public".
Entrepreneurs and VCs (Venture, or "vulture" Capitalists)
sometimes call it "cashing in". Up until a company is public
(i.e. anyone can buy or sell its shares), it is private and
operates away from the limelight. Companies often go public
to raise huge amounts of money or to give investors liquidity.
16. IRR: Acronymn for Internal Rate of Return. This is the
annualized rate of return (in percent) of an investment
using compound interest rate calculations. These are built
in to many time-value-of-money programs, including the
financial functions in popular spreadsheets such as 1-2-3
and Excel as well as many calculators and on-line web-
based calculators. The IRR is calculated at the point when
the net present value of cash outflows (the cost of the
investment) and cash inflows (returns on the investment)
equal zero. This is very useful when one has a number of
future cash flows on which an interest rate needs to be
calculated.
Joint Venture: A business enterprise, usually a corporation,
that is formed between two other companies.
Junk Bond: A high risk bond, usually issued by a company
with a low credit rating (usually BB or lower). It is also
known (more favorably) as a high-yield bond.
17. Liquidity: If a security, such as a stock, does not trade
actively, as measured by its trading volume, it means that
investors have an illiquid market, i.e. it is difficult to buy
or sell stock without a major impact on price. For small
cap, and especially micro-cap stocks, liquidity is a very
important requirement. It helps ensure an orderly,
efficient, and fair market.
Liquidation Preference: Sometimes, usually by virtue of
an agreement, certain shareholders will receive
preferential treatment if a company is liquidated.
Investors may insist on this so that if a company fails,
they are paid out first before any other shareholders
receive any payouts.
Liquidated: A company may be liquidated or dissolved by
selling all of its assets and then using the cash to meet
any obligations to creditors. Any remaining cash will then
go to the shareholders of the company.
18. M&A: Merger and Acquisition. Refers to the
buying an selling of businesses by merging
them with an existing one or simply having one
firm acquiring another firm.
Margin: This is the portion of total revenue that
results in a profit, usually but not always,
expressed as a percentage (see also Profit
Margin and Gross Margin). Used by itself, it may
be ambiguous (unless used in context). It is
better to refer to a gross, net, or net after-tax
margin. In another context, margin refers to the
process of borrowing money against securities
held in a brokerage account. For example, on
blue chip stocks, a stockbroker may allow a
client to buy shares on margin, by putting up
only a percentage of the price of the stock.
19. Mortgage: This is a loan secured by an asset
such as real estate. When you "mortgage the
farm", you are borrowing by using the farm
as security and in the event that the loan is
not repaid, the lender has the right to sell
the property in order to recover the loan.
20. NASDAQ100: The is an index of 100 technology stocks
that trade on the Nasdaq Stock Exchange.
Net Profit: This is the amount of net profit, before taking
into account corporate income taxes, that a company
shows on its "bottom line".
OTC (Over the Counter): Stocks which do not trade on a
recognized stock exchange, trade in one of several so-
called over-the-counter markets. It is a somewhat less
formal, more risky way to trade stocks. There are no
"listing" rules. OTC markets can be highly manipulated.
But, they do serve a purpose - i.e. allowing investors to
trade and get liquidity. In the USA, the common OTC
market is called the OTC-BB (BB=bulletin board, see
http://www.otcbb.com), and in Canada it is called the
CDN. Note the OTC-BB market has nothing to do with the
NASDAQ market, although many people incorrectly make
that association. The OTC markets are usually on-line
electronic markets which investment dealers (brokers)
can access for purposes of posting buy or sell orders.
21. Outsourcing: This refers to a company buying
services from another firm. For example, if
company X is outsourcing its e-commerce services,
it means that it is relying on another company to
do this job rather than doing it internally with its
own employees and resources. Many companies,
like IBM, outsource much of their production to
Taiwanese firms.
Oversubscription: An oversubscription of shares on
an IPO means that there was much more demand
than supply of shares on an initial offering.
22. Paid-up Capital (PUC): Conceptually, this refers to the
total amount of investment capital actually received
by a company for each (and all) classes of shares.
Tax definitions for PUC vary depending on
jurisdiction and this may be an important factor
when determining taxes on stock dispositions
(especially in private companies). PUC applies to the
company while ACB (adjusted cost base) applies to
the investor. If they are different, tax issues may
arise (i.e. see a tax expert).
Quorum: This is the minimum number of people which
can attend a meeting (such as a Board Meeting) in
order for the meeting to be official and for business
to be properly conducted. For example, a Board of 5
persons may specify that a quorum for a meeting is
3 persons. Hence, if only 2 people show up, the
meeting would not continue.
23. Stagflation: A recently coined term that combines the
economic effects of "inflation", i.e. escalating prices,
and "stagnation", i.e. stagnant, or no economic growth
in terms of GDP. Prices as measured by the consumer
price index (CPI) may be increasing while the economy
is not expanding. When an economy is not growing
(stagnant), but prices are increasing, this is not a
healthy situation for a country. This occurred in the
1970s when oil prices increased and the economy was
slowing down.
Underwriter: When doing an IPO, an underwriter, i.e. a
stockbroker firm, handles the distribution of shares to
the public. Effectively, the brokerage firm subscribes
(underwrites) for the shares and then sells them to its
clients (investors).
24. Valuation: The worth placed on a business. It can be
determined in a number of ways. Theoretically, it is
what a business is worth in the marketplace to an
arms-length buyer. Valuations can be determined from
a discounted cash flow analysis, comparative market
study, industry multiples or rules of thumb, market
capitalizations, and liquidation value, to name a few
approaches.
Variable Cost: This is a cost of producing the product
which a company sells. It would include such items as
materials and labor that go directly into producing the
shipped item. Another term for this is direct cost. These
costs are usually shown directly under revenues on an
income statement as the first costs associated with
producing the revenues that are recorded.
25. Warrant: Warrants are, in principle, like stock options.
They give the holder the right to buy shares at a given
price for a specified period of time. Warrants are
usually issued by a company as an additional financing
bonus. For example, investors buying shares at $5.00,
may be given a warrant (or half a warrant) to buy a
share at $5.00 (or slightly) higher for a year or two. If
the stock performs, then investors get a double
benefit.
Zero Coupon: Sometimes called strip bonds, these are
government bonds in which some or all of the interest
"coupons" have been detached. The bond principal and
any remaining coupons trade separately from the strip
of detached coupons, both at substantial discounts
from par.
26. Yield: A measure of the return on an investment
expressed as a percentage. A stock yield is calculated
by dividing the annual dividend by the current market
price of the stock. E.g., a stock selling at $100 with an
annual dividend of $10.00 per share has a yield of
10% (assuming a redemption price of $100). For
Bonds, the Yield calculation is a little more
complicated because you have to take into account
the discounted value of the redemption amount at
maturity. So, if a $100 Bond is purchased at $90, with
a coupon of 10% (amount paid on the $100 face
value), the yield is calculated by taking into account
the $10 annual payment and the $10 gain at maturity.
28. QUIZ
Identification:
1. ___________ is a measure of the return on an investment
expressed as a percentage.
2. ___________ is the amount (in %) by which a basket of
goods increases in price in one year.
3. ___________ is a balance sheet item found under assets.
4. ___________is an arbitrary payment that companies make
to their shareholders based on the Company's after-tax
earnings.
5. __________ is the term used to refer to a strong, healthy
stock market.
Give the meaning of the following Acronyms:
6. IRR -
7. ETIF -
8. EBITDA -