Special Purpose Entities (SPEs) have a useful role in business financing, but there must be transparency, and all parties must understand the risks.
Accounting / Finance / Investing
Compensation options are a cost to the firm and need to be expensed if financial statements are to reflect the true value of the firm.
Knowing how to determine the credit-worthiness of your customers may help save your business.
Small business owners can become “superior venture thinkers” by redirecting the focus of business finance to maximizing shareholder wealth.
The popular position of “expensing stock options” may not be a panacea to corporate governance.
Corporate boards of directors need to be very proactive and diligent in order to protect shareholder interests, the larger economy . . . and themselves.
Investors must carefully consider their investment time horizons and other factors when allocating assets.
Once upon a time, two economists were walking together when one of them saw something that caught his attention. “Look,” he exclaimed, “here’s a great research topic!” “Nonsense,” the other one said, “If it were, someone would have written a paper on it by now.” For a long time this attitude governed the view of … Continued
New disclosure rules will help investors determine whether they are getting the “best execution” of their trades, given their criteria.
Investors must exercise caution when relying on the Dow Jones Industrial Average (DJIA) as a barometer of the equity markets.
As new ventures propel markets up and down, diversification and respect for cash flows still distinguish winners from losers.
Some managers are distorting the economic reality of their firm’s performance through “accounting hocus-pocus,” so analyze financial reports carefully!
Despite proposed pooling of interests accounting rule, firms are urged to pursue mergers that make economic sense.