Small Cap Stocks : A Bad Reputation As Being Speculative

investors and invest the money. The Fund is mainly a corporation where sole business is to collect and invest money or fund. You combine the pool by buying shares in the fund. Then the money is invested by a team of professionals who research bond, stock and other assets and then place the money as good they can earn the returns. There are several kinds of mutual fund. Funds can also be open ended and close ended funds. Open ended schemes sell their shares to those who are willing to buy.

difference in a specific company’s value may be due to a multitude of reasons. For example, a large and technologically highly advanced foreign company wishes to buy a well-known national company in order to gain entry into the local market, using the reputation of the local brand. In this case, the foreign buyer will only value the brand but not the plant, machinery, etc. as it has more advanced assets of its own. However, the seller will give a very high value to its material resources, as they are able

The cap rate is determined by capital investment supply & demand in the asset market and is based on 3 major factors: 1. Opportunity cost of capital => increase demand, increase in the price investors are willing to pay for the property, this results in a decrease of the cap rate. 2. Growth expectations 3. Risk Asset market investors are seeking future cash flows – financial

- The southeast quadrant links the rate of construction to the total stock of built space available in the usage market. The line relates the average rate of space construction per year to the total stock of space that can be indefinitely maintained in the market. On average over the long run, a certain amount of new construction per year is necessary just to maintain a given stock of space available in the market. The 4Q picture depicts a long-run steady-state equilibrium

Chapter 2 - Literature Review 2.1 Introduction This chapter discusses the theoretical framework of the study and is divided into four main sections. The first section describes the recent financial crisis or global economic recession. Section two reviews any similarities between the recent crisis and previous crises. Section three explores the measures taken by governments to prevent a reoccurrence of a financial crisis Section four discusses FDI and mergers and acquisitions. 2.2 Financial Crisis/Global

1. INTRODUCTION Initial Public Offering (IPO), also sometimes simply referred to as a "Public Issue" is the first sale of stock by a private company to the public. Public issues are done by both small as well as large companies seeking capital to expand business. It is also sometimes done by large privately-owned companies looking to become publicly traded. When an already listed company makes either a fresh issue of securities to the public or an offer for sale to the public, through an offer

Cataloging-in-Publication Data: Dorsey, Pat. The little book that builds wealth : Morningstar’s knockout formula for finding great investments / Patrick Dorsey. p. cm.—(Little book big profits series) Includes index. ISBN 978-0-470-22651-3 (cloth) 1. Investments. 2. Stocks. 3. Investment analysis. I. Morningstar, Inc. II. Title. HG4521.D6463 2008 332.6—dc22 2007045591 Printed in the United States of America. 10 ffirs.indd vi 9 8 7

Scott, Financial Accounting Theory, 6th Edition Instructor’s Manual Chapter 2 Suggested Solutions to Questions and Problems 1. P.V. Ltd. Income Statement for Year 2 Accretion of discount (10% × 286.36) $28.64 P.V. Ltd. Balance Sheet As at Time 2 Financial Asset Cash Shareholders’ Equity $315.00 Opening balance Net income $286.36 28.64 Capital Asset Present value 0.00 $315.00 $315.00 Note that cash includes interest at 10% on opening cash balance of $150

imbalance in the distribution of resources, and it is virtually impossible for courts/legislatures to make important decisions that do not make someone worse off ▪ Kaldor-Hicks Efficiency: (Business law model) *Increases aggregate well-being* Fairness model • An act/rule is efficient (leads to overall improvement in social welfare) if at least one party would gain from it after all those who suffered a loss as a result of the transaction or policy were fully compensated

Ensuring robustness of financial models and the effectiveness of all systems used to calculate market risk. Liquidity risk is the potential inability to meet the bank’s liabilities as they become due and are managed through caps on the net asset calculations in the various time buckets. Interest rate risk is the risk where changes in market interest rates might adversely affect a bank’s financial condition. A long term impact of changing interest rate is on banks net worth