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Corporate Finance

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  Corporate Finance is about how companies make decisions about what projects to pursue and how to value those projects. Ratio Analysis Ratio Analysis is taking two numbers from financial statements and dividing one by the other. What we are doing is taking two pieces of accounting data, put one over the other, and this forms a ratio. We are taking two pieces of data and forming a performance metric. Ratios are usually presented as a percentage or a number depending on whether the usual case is bigger or less than one. Time value of money Time is money, literally. If there is a prospect of receiving a certain sum then the sooner you receive it the more it is worth. Interest rates describe this relationship between present value and future value. Discounting Cash Flows A company is essentially an entity that generates cash flows each year into the future. The trick is estimating those future cash flows and how much they might grow or shrink and what the risks are to rea...

40 Key Stock Trading Terms – For Beginners

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1. Buy – Means to take a position or to buy shares in a company. 2. Sell – Getting rid of the shares that you purchased, either because you’ve achieved you want to cut your losses. 3. Bid – Your bid is what you’re willing to pay for a stock. 4. Ask – Ask, on the other hand, is what people selling stocks are looking to get for their shares. 5. Bid-Ask spread – The bid-ask spread is the difference between what people have to spend and what people want to get. The spread must be resolved before the transaction can take place. 6. Bull Market – A bull market is a market condition that means stock prices are expected to rise. 7. Bear Market – A bear market is one in which investors expect stock prices to fall. This is where short sellers shine. 8. Limit Order – A limit order provides instruction to only execute at or under a purchase price or at or above a sale price. Always use limit orders, not market orders. 9. Market Order - A market order provides instruction to execute, as quic...

Corporate Finance

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  What is Corporate Finance? - Business involves decisions which have financial consequences and any decision that involves the use of money is said to be a corporate finance decision. - Corporate finance is one of the most important part of the finance domain as whether the organization is big or small they raise and deploy capital in order to survive and grow. - These are the various roles that corporate finance plays, which are very interesting and challenging, one of the main roles is that of being a finance adviser. - This can comprise helping to manage investments or even suggesting a mergers and acquisitions (M&A) strategy.   Corporate Finance Principles Investment Principle: This principle revolves around the simple concept that businesses have resources which need to be allocated in the most efficient way. Financing Principle: The job here for the corporate financier is to make sure that the business has right amount of capital and the right mix ...

Mina Mar Group / Miro Zecevic Helping OTC Listed Companies To Overcome Corona Crisis

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Mina Mar Group / Miro Zecevic Helping OTC Listed Companies To Overcome Corona Crisis   Mina Mar Group with the bridge finance assists pubcos to get current with their reporting obligations be it full SEC reporting or OTC alternative reporting. LANTANA, FLORIDA, UNITED STATES, April 3, 2020 / EINPresswire.com / -- Mina Mar Group , CEO Miro Zecevic said “we are pleased to announce the launch of the financing “bridge finance option” project for all OTC Markets listed companies effected by the Coronavirus crisis”. Mina Mar Group (MMG) in the bridge finance option assists publicly listed companies to get current with their reporting obligations be it full SEC reporting or OTC alternative reporting. MMG will finance OTC companies in order to pay their service providers and other regulatory obligations. This cash injection will help issuers to get over the hump. MMG, in turn, will take preferred shares (which typically do not trade and serve as the control block of...

What are the benefits of being Foreign Private Issuer?

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What are the benefits of being Foreign Private Issuer? Many foreign companies wish to have access to capital market an become publicly traded company in the United States. The reason is that being part of the largest and most liquid capital market bring many benefits including prestige, visibility, ability to attract and retain top talents, etc. To become a part of capital market in the United States and experience all the benefits that it carries, foreign company may undergo reorganization of corporate governance and operations. Foreign issuer in federal securities law is defined as foreign government, foreign national or corporation incorporated by any foreign country. Any foreign issuer (except foreign government) can be considered foreign private issuer except if more than 50% of the issuers outstanding voting securities are held by residents of United States and if any of the following applies: majority of issuer’s executives and directors are residents of United States, mo...

What are pros and cons of going public?

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What are pros and cons of going public? Many companies will consider going public as a next step in their development. While going public offer number of benefits to a business it can be tricky if you haven't carefully weighted advantages and disadvantages before you started process of going public. Going public is probably the most crucial decision for a company because it will not only affect your financing but also other aspects of your business. Companies that want to go public mostly engage in initial public offering (IPO) process but there are other alternatives for company to go public and trade their share on exchange  e.g. reverse takeover. Going public offers many benefits to the company but there are also some drawbacks so company's management has to take into consideration many factor before making decision to go public. Pros of going public: There are many reasons why companies go public ant their reasons vary just like the benefits and challenges th...

What you need to know about preferred stock?

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What you need to know about preferred stock? Preferred stock, also know as preferred or preference shares is one of the main types of stock besides common shares. It is considered that preferred stock is a hybrid security that combines properties of debt (fixed dividends) and equity (potential to raise in price). They are distinct from common shares because they don't have voting rights but have higher claim on company's assets and earnings. Terms of preferred stock are described in issuing document; they can be issued under any set of terms that is compliant to laws and regulations. Preference in dividends is what distinguish preferred from common stock. Board of directors makes decision whether or not company will pay dividends to its shareholders. Dividends are specified as percentage of the par value or as a fixed amount. Common shareholders can receive dividends only if preferred shareholders are already paid in full if board decides to pay them dividend...