Stock

Not surprisingly, they claim that overall the data supports the presence of more nonrandom behavior in the daily trades of only a few of the stocks on both exchanges (NYSE and TSE). In other words, the result of their analysis confirms that amongst a few of the stocks, there was a slight improvement in the efficiency of the trade transactions. However, further to their analysis they point out that existence of a high level of random behavior amongst the…

after she lied to investigators about why she sold her share of ImClone stock right before the stock price plunged. First we have to know what exactly is insider trading. Insider trading refers to “the illegal practice of a shareholder in a public company who buys and or sells stocks in that…

facing a lot of restrictions. One problem with S corporations is that they can only have 100 stockholders. In addition, the limited number of stockholders, there are also restrictions on who can own stock in the company. Another drawback to this type of corporation is that all of the outstanding stock has to be the same class. In light of all of these restriction it might be difficult to get all of the stockholders to agree on becoming an S corporation. 2. If Project Repeat had been a…

motivating factor behind this fraud was the business tactic of WorldCom's CEO, Bernie Ebbers. During1990s, Ebbers was only focused on achieving an extraordinary growth through acquisitions. By using the stock of WorldCom he was going to pay for the acquisitions. To achieve this buying extravaganza, the stock had to repeatedly increase in value. In 1998, WorldCom acquired MCI Communications, a company which was more than 2.5 times the profits of WorldCom. Ebbers' acquisition strategy mainly came…

The only shareholders for Waffle House are the associates and employees of the company. Waffle House stock is not open to the public and most stock is purchased by employees or given to employees based on promotion. The company website says that Waffle House stock has increased in the past 60 years and the generation of stock is solely based on the performance of restaurants. According to privco.com, Waffle House has a 4% Annual Revenue growth rate per year. The company also has a 4.3% Employee…

by §301(c), a distribution from an S-Corp is first treated as a return of stock basis or out of the S-Corp’s Accumulated Adjustment Account which both ultimately receives tax-free treatment. As provided by §1367(a)(1), income earned by an S-Corp increases the shareholders' basis in the corporation's stock, and a distribution from those earnings is treated as a tax-free reduction of the shareholders’ previously increased stock basis under §1368. Due to this advantageous treatment provided to…

GORDON GROWTH MODEL INTRODUCTION The Gordon Growth Model also known as the Dividend Discount Model includes a methodology for computing the intrinsic value of stocks. It equates present value of the stock to the future value of dividends. FORMULA & EXPLANATION There are two basic forms of this model namely: • Stable Model Value of stock = D1 / (k-g) Whereby D1 = Expected dividend per share for the next year k = Required rate of return (can be estimated using the CAPM or Dividend Growth…

In the book The Ascent of Money by Niall Ferguson, Ferguson goes back in time to emphasize that money and the history of finance is the central dogma of human history. As I began the book I was instantly intrigued how Ferguson chose various verbs to name money instead of using the most common one. As I continued the text I realized that it was confusing due to its lack of organization in the timeline of history. None the less he has a solid case in his book about the world of finance, he…

(2011) stated that the early theoretical articulations of the Efficient Market Hypothesis (EMH) focused on arguments that future changes in security prices should be unpredictable. This proposition of the random walk hypothesis was supported by French stock broker Jules Regnault (1863), who proposed that the…

does indeed lead to positive effects in stock prices. CSR disclosure has the ability to lead to greater stock returns for shareholders and mitigate or reduce the effect of severe economic downturns like we saw in 2008 and 2009. This means that the greater information that companies during this period gave out, the less fear their shareholders and other stakeholders had and thus they saw smaller negative gains and some even received positive increases in stock value. Relevance of…