please can anyone help me to find answere of following ques?
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 June 2011
How do we compute Share Market?
What is the Actual Fair Value in Share Market?
What is the prime difference between Level 1,Level 2 ,Level 3 Securities?
What is Fair Value 115?
What is the difference between Statement of operations and OCU statements?
What are Analyzed gain and losses in OCI statements?
What is Fair Value 160?
What Is the difference between Basic EPS and Valued EPS?
What is Potentially Diluted EPS?
What is IFRS 7?
What are the 3 levels of securities?
What do you know about valuation models?
Tell me any risk disclosure for Hedge Funds?
How do we derive the total return of investments?
What are the financial Ratios?
What is expense ratios?
What is the Actual Fair Value in Share Market?
What is the prime difference between Level 1,Level 2 ,Level 3 Securities?
What is Fair Value 115?
What is the difference between Statement of operations and OCU statements?
What are Analyzed gain and losses in OCI statements?
What is Fair Value 160?
What Is the difference between Basic EPS and Valued EPS?
What is Potentially Diluted EPS?
What is IFRS 7?
What are the 3 levels of securities?
What do you know about valuation models?
Tell me any risk disclosure for Hedge Funds?
How do we derive the total return of investments?
What are the financial Ratios?
What is expense ratios?
11 June 2011
How do we compute Share Market?
REPLY:- To survive and thrive, any business needs information about how it is operating in comparison to its competitors. It is not enough to just know what your own sales are from year to year. A decrease in your sales could simply be a function of a decrease in the entire market for your product or service. Alternatively, a decrease in sales compared with your competitors could mean that serious trouble is brewing. Calculating your market share allows you to determine where you stand in your industry. You should calculate your market share on a regular basis as part of your ongoing internal reporting, at least annually, but preferably more often.
FOR MORE INFORMATION LINK IS :-
http://www.ehow.com/how_2365166_calculate-market-share.html
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.
Stock Market and Futures Market Fair Value
Stock market indexes such as the S&P 500 index can be traded three ways. Investors can buy for cash the 500 stocks of the index, they can buy for cash an exchange traded fund which holds all the 500 stocks in the exact weighted proportion, or they can buy a futures contract that represents the price action of the 500 stocks. With each trade of each of the described instruments there will be price discrepancies. The measurement that equalizes the difference between the futures, the ETF, and the 500 stocks is called the fair market value.
Fair Market Values are Constantly Changing
Fair market value is constantly changing. When the exchange closes for the day the futures markets will trade before the next trading day's opening. If a trader believes the market will rise, he will buy futures increasing the premium between the futures and last close on the exchange. Just before the opening of the exchange, traders determine the premium or amount that the futures market implies that the physical (the 500 stocks) market must rise as a group in order to equalize the amount that the futures has risen. It takes massive computing capacity with extensive algorithms to compute such prices on an ongoing, near instantaneous basis.
Fair Market Values Can Also Trade at a Discount
If stock prices are falling, so will futures. In this case, it is said that futures are trading at a discount to fair value. If stock prices are unchanged on the day, futures and ETFs will usually trade at a slight premium to the 500 stocks themselves because of the effect of commissions and the leverage available in the futures market.
The Alternative Use of Fair Value
Fundamental stock analysis is the use of balance-sheet data to determine the value of stocks. Cheap stocks are stocks that have assets that are undervalued or are worth much more than the value on their balance sheets. Expensive stocks are stocks that may have a high price and little earnings power to go along with it. In both cases, the real stock price is compared to an analyst's value. It is the analyst value that is called the fair market value. The buy or sell decision is made by comparing the current stock quote to that of the analyst's fair market value.
Fair Market Value in Accounting
Fair market value in accounting refers to the difference in the value of a company's assets and liabilities in comparison to the price on the balance sheet. For example, railroad land purchased 100 years ago with track and buildings are slowly devalued each year to account for wear and tear. Even if the land and buildings decline in value the property is reduced or depreciated. Over time, large discrepancies may occur forcing the company to separate the accounting value of property against the real market or fair market value.
What Is Stock Market Fair Value? |
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.
2.What Is Stock Market Fair Value?
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.
Read more: What Is Stock Market Fair Value? 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.
Read more: What Is Stock Market Fair Value?
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.
FOR MORE INFO:-
http://www.ehow.com/about_5232422_stock-market-fair-value_.html
3.What is the prime difference between Level 1,Level 2 ,Level 3 Securities?
REPLY:
Level 1, 2, and 3 assets are ways of classifying a company's assets based on the degree of certainty around the assets' underlying value. Level one assets can be valued with certainty because they are liquid and have clear market prices. At the other end of the spectrum, Level 3 assets are illiquid and estimating their value requires inputs that are unobservable and reflect management assumptions.
FOR MORE INFORMATION :-
http://www.wikinvest.com/wiki/Level_1,_Level_2,_Level_3_Assets
4.What is Fair Value 115?
Accounting for Certain Investments in Debt and Equity Securities This statement addresses the accounting and reporting for investments in equity securities that have readily determinable fair values and for all investments in debt securities. Those investments are to be classified in three categories and accounted for as follows:
• Debt securities that the enterprise has the positive intent and ability to hold to maturity are classified as "held-to-maturity" securities and reported at amortized cost less impairment.
• Debt and equity securities that are bought and held principally for the purpose of selling them in the near term are classified as "trading" securities and reported at fair value, with unrealized gains and losses included in earnings.
• Debt and equity securities not classified as either held-to-maturity securities or trading securities are classified as "available-for-sale" securities and reported at fair value, with unrealized gains and losses excluded from earnings and reported in a separate component of shareholders' equity (Other Comprehensive Income).
FOR MORE INFO:-
http://en.wikipedia.org/wiki/Mark-to-market_accounting
5.What is the difference between Statement of operations and OCU statements?
FOR MORE INFO:-
http://www.investopedia.com/articles/04/033104.asp#axzz1OwajrBdm
6.What are Analyzed gain and losses in OCI statements?
http://www.towerswatson.com/assets/pdf/1734/client-advisory_IASB-IAS19.pdf
7.What is Fair Value 160?
REPLY : The Fair Value Option for Financial Assets and Financial Liabilities,” which permits an entity to measure certain financial assets and financial liabilities at fair value. The objective of SFAS No. 159 is to improve financial reporting by allowing entities to mitigate volatility in reported earnings caused by the measurement of related assets and liabilities using different attributes, without having to apply complex hedge accounting provisions. Under SFAS No. 159, entities that elect the fair value option (by instrument) will report unrealized gains and losses in earnings at each subsequent reporting date. The fair value option election is irrevocable, unless a new election date occurs. SFAS No. 159 establishes presentation and disclosure requirements to help financial statement users understand the effect of the entity’s election on its earnings, but does not eliminate disclosure requirements of other accounting standards. Assets and liabilities that are measured at fair value must be displayed on the face of the balance sheet. This statement is effective beginning January 1, 2008 and we do not expect the adoption to have a material impact on our financial position or results of operations.
8.What Is the difference between Basic EPS and Valued EPS?
REPLY : When you analyze a company, you have to do it on two levels, the “whole company” and the “per share”. If you decide ABC, Inc. is worth $5 billion as a whole, you should be able to break it down by simply dividing the $5 billion price tag by the number of shares outstanding. Unfortunately, it isn’t always that simple.
Think of each business you analyze as a cherry pie and each share of stock as a piece of that pie. All of the company’s assets, liabilities, and profits are represented by the pie as a whole. ABC’s pie is worth $5 billion. If the baker (management) slices the pie into 5 pieces, each piece would be worth $1 billion ($5 billion pie divided into 5 pieces = $1 billion per slice). Obviously, any intelligent connoisseur of pastries would want to keep the baker from making too many slices so his or her piece was as big as possible. Likewise, an ambitious investor hungry for returns is going to want to keep the company from increasing the number of shares outstanding. Every new share management issues decreases the investor’s “piece” of the assets and profits a tiny bit. Over time, this can make a huge difference in how much the investor gets to eat (in this case, take out in the form of cash
REPLY:- To survive and thrive, any business needs information about how it is operating in comparison to its competitors. It is not enough to just know what your own sales are from year to year. A decrease in your sales could simply be a function of a decrease in the entire market for your product or service. Alternatively, a decrease in sales compared with your competitors could mean that serious trouble is brewing. Calculating your market share allows you to determine where you stand in your industry. You should calculate your market share on a regular basis as part of your ongoing internal reporting, at least annually, but preferably more often.
FOR MORE INFORMATION LINK IS :-
http://www.ehow.com/how_2365166_calculate-market-share.html
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.
Stock Market and Futures Market Fair Value
Stock market indexes such as the S&P 500 index can be traded three ways. Investors can buy for cash the 500 stocks of the index, they can buy for cash an exchange traded fund which holds all the 500 stocks in the exact weighted proportion, or they can buy a futures contract that represents the price action of the 500 stocks. With each trade of each of the described instruments there will be price discrepancies. The measurement that equalizes the difference between the futures, the ETF, and the 500 stocks is called the fair market value.
Fair Market Values are Constantly Changing
Fair market value is constantly changing. When the exchange closes for the day the futures markets will trade before the next trading day's opening. If a trader believes the market will rise, he will buy futures increasing the premium between the futures and last close on the exchange. Just before the opening of the exchange, traders determine the premium or amount that the futures market implies that the physical (the 500 stocks) market must rise as a group in order to equalize the amount that the futures has risen. It takes massive computing capacity with extensive algorithms to compute such prices on an ongoing, near instantaneous basis.
Fair Market Values Can Also Trade at a Discount
If stock prices are falling, so will futures. In this case, it is said that futures are trading at a discount to fair value. If stock prices are unchanged on the day, futures and ETFs will usually trade at a slight premium to the 500 stocks themselves because of the effect of commissions and the leverage available in the futures market.
The Alternative Use of Fair Value
Fundamental stock analysis is the use of balance-sheet data to determine the value of stocks. Cheap stocks are stocks that have assets that are undervalued or are worth much more than the value on their balance sheets. Expensive stocks are stocks that may have a high price and little earnings power to go along with it. In both cases, the real stock price is compared to an analyst's value. It is the analyst value that is called the fair market value. The buy or sell decision is made by comparing the current stock quote to that of the analyst's fair market value.
Fair Market Value in Accounting
Fair market value in accounting refers to the difference in the value of a company's assets and liabilities in comparison to the price on the balance sheet. For example, railroad land purchased 100 years ago with track and buildings are slowly devalued each year to account for wear and tear. Even if the land and buildings decline in value the property is reduced or depreciated. Over time, large discrepancies may occur forcing the company to separate the accounting value of property against the real market or fair market value.
What Is Stock Market Fair Value? |
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.
2.What Is Stock Market Fair Value?
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.
Read more: What Is Stock Market Fair Value? 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.
Read more: What Is Stock Market Fair Value?
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.
FOR MORE INFO:-
http://www.ehow.com/about_5232422_stock-market-fair-value_.html
3.What is the prime difference between Level 1,Level 2 ,Level 3 Securities?
REPLY:
Level 1, 2, and 3 assets are ways of classifying a company's assets based on the degree of certainty around the assets' underlying value. Level one assets can be valued with certainty because they are liquid and have clear market prices. At the other end of the spectrum, Level 3 assets are illiquid and estimating their value requires inputs that are unobservable and reflect management assumptions.
FOR MORE INFORMATION :-
http://www.wikinvest.com/wiki/Level_1,_Level_2,_Level_3_Assets
4.What is Fair Value 115?
Accounting for Certain Investments in Debt and Equity Securities This statement addresses the accounting and reporting for investments in equity securities that have readily determinable fair values and for all investments in debt securities. Those investments are to be classified in three categories and accounted for as follows:
• Debt securities that the enterprise has the positive intent and ability to hold to maturity are classified as "held-to-maturity" securities and reported at amortized cost less impairment.
• Debt and equity securities that are bought and held principally for the purpose of selling them in the near term are classified as "trading" securities and reported at fair value, with unrealized gains and losses included in earnings.
• Debt and equity securities not classified as either held-to-maturity securities or trading securities are classified as "available-for-sale" securities and reported at fair value, with unrealized gains and losses excluded from earnings and reported in a separate component of shareholders' equity (Other Comprehensive Income).
FOR MORE INFO:-
http://en.wikipedia.org/wiki/Mark-to-market_accounting
5.What is the difference between Statement of operations and OCU statements?
FOR MORE INFO:-
http://www.investopedia.com/articles/04/033104.asp#axzz1OwajrBdm
6.What are Analyzed gain and losses in OCI statements?
http://www.towerswatson.com/assets/pdf/1734/client-advisory_IASB-IAS19.pdf
7.What is Fair Value 160?
REPLY : The Fair Value Option for Financial Assets and Financial Liabilities,” which permits an entity to measure certain financial assets and financial liabilities at fair value. The objective of SFAS No. 159 is to improve financial reporting by allowing entities to mitigate volatility in reported earnings caused by the measurement of related assets and liabilities using different attributes, without having to apply complex hedge accounting provisions. Under SFAS No. 159, entities that elect the fair value option (by instrument) will report unrealized gains and losses in earnings at each subsequent reporting date. The fair value option election is irrevocable, unless a new election date occurs. SFAS No. 159 establishes presentation and disclosure requirements to help financial statement users understand the effect of the entity’s election on its earnings, but does not eliminate disclosure requirements of other accounting standards. Assets and liabilities that are measured at fair value must be displayed on the face of the balance sheet. This statement is effective beginning January 1, 2008 and we do not expect the adoption to have a material impact on our financial position or results of operations.
8.What Is the difference between Basic EPS and Valued EPS?
REPLY : When you analyze a company, you have to do it on two levels, the “whole company” and the “per share”. If you decide ABC, Inc. is worth $5 billion as a whole, you should be able to break it down by simply dividing the $5 billion price tag by the number of shares outstanding. Unfortunately, it isn’t always that simple.
Think of each business you analyze as a cherry pie and each share of stock as a piece of that pie. All of the company’s assets, liabilities, and profits are represented by the pie as a whole. ABC’s pie is worth $5 billion. If the baker (management) slices the pie into 5 pieces, each piece would be worth $1 billion ($5 billion pie divided into 5 pieces = $1 billion per slice). Obviously, any intelligent connoisseur of pastries would want to keep the baker from making too many slices so his or her piece was as big as possible. Likewise, an ambitious investor hungry for returns is going to want to keep the company from increasing the number of shares outstanding. Every new share management issues decreases the investor’s “piece” of the assets and profits a tiny bit. Over time, this can make a huge difference in how much the investor gets to eat (in this case, take out in the form of cash
11 June 2011
CONTINUED REPLY:
9.What is Potentially Diluted EPS?
Reply :
A performance metric used to gauge the quality of a company's earnings per share (EPS) if all convertible securities were exercised. Convertible securities refers to all outstanding convertible preferred shares, convertible debentures, stock options (primarily employee based) and warrants. Unless the company has no additional potential shares outstanding (a relatively rare circumstance) the diluted EPS will always be lower than the simple EPS.
10.What is IFRS 7?
reply:
http://www.iasb.org/NR/rdonlyres/8177F9A2-EB2F-45A3-BBF3-3DE7DCB13E1A/0/IFRS7.pdf
11.What are the 3 levels of securities?
reply : Level 1, 2, and 3 assets are ways of classifying a company's assets based on the degree of certainty around the assets' underlying value. Level one assets can be valued with certainty because they are liquid and have clear market prices. At the other end of the spectrum, Level 3 assets are illiquid and estimating their value requires inputs that are unobservable and reflect management assumptions.
12.What are the 3 levels of securities?
reply:
link is : http://www.wikinvest.com/wiki/Level_1,_Level_2,_Level_3_Assets
13.What do you know about valuation models?
reply :
Valuation of financial assets is done using one or more of these types of models:
1. Absolute value models that determine the present value of an asset's expected future cash flows. These kinds of models take two general forms: multi-period models such as discounted cash flow models or single-period models such as the Gordon model. These models rely on mathematics rather than price observation.
2. Relative value models determine value based on the observation of market prices of similar assets.
3. Option pricing models are used for certain types of financial assets (e.g., warrants, put options, call options, employee stock options, investments with embedded options such as a callable bond) and are a complex present value model. The most common option pricing models are the Black-Scholes-Merton models and lattice models.
Common terms for the value of an asset or liability are fair market value, fair value, and intrinsic value. The meanings of these terms differ. For instance, when an analyst believes a stock's intrinsic value is greater (less) than its market price, an analyst makes a "buy" ("sell") recommendation. Moreover, an asset's intrinsic value may be subject to personal opinion and vary among analysts.
for more info: http://en.wikipedia.org/wiki/Valuation_%28finance%29
14.How do we derive the total return of investments?
reply:
link is : http://beginnersinvest.about.com/od/investing101/a/aa081504.htm
15.What are the financial Ratios?
reply : Financial ratios are useful indicators of a firm's performance and financial situation. Most ratios can be calculated from information provided by the financial statements. Financial ratios can be used to analyze trends and to compare the firm's financials to those of other firms. In some cases, ratio analysis can predict future bankruptcy.
Financial ratios can be classified according to the information they provide. The following types of ratios frequently are used:
* Liquidity ratios
* Asset turnover ratios
* Financial leverage ratios
* Profitability ratios
* Dividend policy ratios
16.What is expense ratios?
reply : A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual calculation, where a fund's operating expenses are divided by the average dollar value of its assets under management. Operating expenses are taken out of a fund's assets and lower the return to a fund's investors.
Also known as "management expense ratio" (MER).
9.What is Potentially Diluted EPS?
Reply :
A performance metric used to gauge the quality of a company's earnings per share (EPS) if all convertible securities were exercised. Convertible securities refers to all outstanding convertible preferred shares, convertible debentures, stock options (primarily employee based) and warrants. Unless the company has no additional potential shares outstanding (a relatively rare circumstance) the diluted EPS will always be lower than the simple EPS.
10.What is IFRS 7?
reply:
http://www.iasb.org/NR/rdonlyres/8177F9A2-EB2F-45A3-BBF3-3DE7DCB13E1A/0/IFRS7.pdf
11.What are the 3 levels of securities?
reply : Level 1, 2, and 3 assets are ways of classifying a company's assets based on the degree of certainty around the assets' underlying value. Level one assets can be valued with certainty because they are liquid and have clear market prices. At the other end of the spectrum, Level 3 assets are illiquid and estimating their value requires inputs that are unobservable and reflect management assumptions.
12.What are the 3 levels of securities?
reply:
link is : http://www.wikinvest.com/wiki/Level_1,_Level_2,_Level_3_Assets
13.What do you know about valuation models?
reply :
Valuation of financial assets is done using one or more of these types of models:
1. Absolute value models that determine the present value of an asset's expected future cash flows. These kinds of models take two general forms: multi-period models such as discounted cash flow models or single-period models such as the Gordon model. These models rely on mathematics rather than price observation.
2. Relative value models determine value based on the observation of market prices of similar assets.
3. Option pricing models are used for certain types of financial assets (e.g., warrants, put options, call options, employee stock options, investments with embedded options such as a callable bond) and are a complex present value model. The most common option pricing models are the Black-Scholes-Merton models and lattice models.
Common terms for the value of an asset or liability are fair market value, fair value, and intrinsic value. The meanings of these terms differ. For instance, when an analyst believes a stock's intrinsic value is greater (less) than its market price, an analyst makes a "buy" ("sell") recommendation. Moreover, an asset's intrinsic value may be subject to personal opinion and vary among analysts.
for more info: http://en.wikipedia.org/wiki/Valuation_%28finance%29
14.How do we derive the total return of investments?
reply:
link is : http://beginnersinvest.about.com/od/investing101/a/aa081504.htm
15.What are the financial Ratios?
reply : Financial ratios are useful indicators of a firm's performance and financial situation. Most ratios can be calculated from information provided by the financial statements. Financial ratios can be used to analyze trends and to compare the firm's financials to those of other firms. In some cases, ratio analysis can predict future bankruptcy.
Financial ratios can be classified according to the information they provide. The following types of ratios frequently are used:
* Liquidity ratios
* Asset turnover ratios
* Financial leverage ratios
* Profitability ratios
* Dividend policy ratios
16.What is expense ratios?
reply : A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual calculation, where a fund's operating expenses are divided by the average dollar value of its assets under management. Operating expenses are taken out of a fund's assets and lower the return to a fund's investors.
Also known as "management expense ratio" (MER).
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