Main Street and Hedging
If a “Main Street” investor wants to hedge against an unanticipated event, there are some options, including a synthetic hedge portfolio.
Accounting / Finance / Investing
Hedging Strategies for Uncertain Times
It is important to understand the nature of alternative investment strategies and their risks before considering any action.
Special Purpose Entities
Special Purpose Entities (SPEs) have a useful role in business financing, but there must be transparency, and all parties must understand the risks.
Recognize the True Cost of Compensation
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.
Predicting Bankruptcy in the WorldCom Age
Knowing how to determine the credit-worthiness of your customers may help save your business.
Build Value in a Small Business
Small business owners can become “superior venture thinkers” by redirecting the focus of business finance to maximizing shareholder wealth.
Consider the Pros and Cons of Expensing Stock Options
The popular position of “expensing stock options” may not be a panacea to corporate governance.
Who’s Driving American Firms?
Corporate boards of directors need to be very proactive and diligent in order to protect shareholder interests, the larger economy . . . and themselves.
Using Asset Allocation Strategies to Recover from a Bear Hug
Investors must carefully consider their investment time horizons and other factors when allocating assets.
Does Market Efficiency Trump Behavioral Bias in Finance Decisions?
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
Is Price Everything?
New disclosure rules will help investors determine whether they are getting the “best execution” of their trades, given their criteria.
Has the Dow Really Escaped the Bear?
Investors must exercise caution when relying on the Dow Jones Industrial Average (DJIA) as a barometer of the equity markets.
Dot.Gone
As new ventures propel markets up and down, diversification and respect for cash flows still distinguish winners from losers.
Building Wealth
Consider tax implications when planning for retirement.
Managing Earnings … or Cooking the Books?
Some managers are distorting the economic reality of their firm’s performance through “accounting hocus-pocus,” so analyze financial reports carefully!