FINANCIAL RATIO:- A financial ratio (or accounting ratio) is a relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting, there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization. Financial ratios may be used by managers within a firm, by current and potential shareholders (owners) of a firm, and by a firm's creditors. Security analysts use financial ratios to compare the strengths and weaknesses in various companies.[1] If shares in a company are traded in a financial market, the market price of the shares is used in certain financial ratios.
FOR MORE INFO:- http://en.wikipedia.org/wiki/Financial_ratio
How do we derive the total return of investments?:-
LINK IS:- http://beginnersinvest.about.com/od/investing101/a/aa081504.htm
risk disclosure for Hedge Funds?
Privately offered investment vehicles commonly called hedge funds (“Hedge Funds,” which include fund of funds) are unregistered private investment funds or pools that invest and trade in many different markets, strategies and instruments (including securities, non-securities and derivatives) and are NOT subject to the same regulatory requirements as mutual funds, including mutual fund requirements to provide certain periodic and standardized pricing and valuation information to investors. FOR MORE INFO:- http://www.axiomcapital.com/?page_id=53
VALUATION MODELS: The cost of equity is the cost to the company of providing equity holders with the return they require on their investment.
The primary financial objective is to maximize the return to equity shareholders. This return is as the future dividend yield and capital growth.
FOR MORE INFO:- http://www.globusz.com/ebooks/Valuation/00000012.htm
IFRS:- International Financial Reporting Standards (IFRS) is a set of accounting standards developed by an independent, not-for-profit organization called the International Accounting Standards Board (IASB). FOR MORE INFO: http://searchsecurity.techtarget.co.uk/definition/IFRS-International-Financial-Reporting-Standards
What are the 3 levels of securities? FOR MORE INFO:- http://en.wikipedia.org/wiki/FIPS_140-2
Potentially Diluted EPS?
Remember that earnings per share is calculated by dividing the company's profit by the number of shares outstanding. Warrants, stock options, convertible preferred shares, etc. all serve to increasing the number of shares outstanding. As a shareholder, this is a bad thing. If the denominator in the equation (shares outstanding) is larger, the earnings per share is reduced (the same profit figure is used in the numerator).
This is a conservative metric because it indicates somewhat of a worst-case scenario. On one hand, everyone holding options, warrants, convertible preferred shares, etc. is unlikely to convert their shares all at once. At the same time, if things go well, there is a good chance that all options and convertibles will be converted into common stock. A big difference in a company's EPS and diluted EPS can indicate high potential dilution for the company's shares, an attribute almost unanimously ostracized by analysts and investors alike.
difference between Basic EPS and Valued EPS?
FOR MORE INFO:- http://beginnersinvest.about.com/od/incomestatementanalysis/a/basic-eps-diluted-eps.htm
Fair Value 115? MORE INFO:- http://www.casact.org/pubs/fairvalue/115.pdf
What is the Actual Fair Value in Share Market? REPLY:- Stock market fair value is used in two ways. The first is the price difference between the stock market futures value and the individual stocks that make up the index. This difference is referred to as premium. The second use is in fundamental analysis where investors attempt to value a stock in future years using different valuations and then compare that value to the current price of a stock.