Style analysis is a technique used by investors to identify the style or “type” of a particular security, fund, or portfolio. The goal of style analysis is to help investors choose investments that are aligned with their investment objectives and risk tolerance. There are many different ways to conduct style analysis, but the most common … Read more
Capital flows refer to the movement of capital, or money, into and out of a country. A capital inflow is when money flows into a country, while a capital outflow is when money flows out of a country. There are many reasons why capital flows can occur. For example, foreign investors may buy assets in … Read more
A liquidity event is a situation in which an asset is converted into cash. It can also refer to the sale of a security, such as a stock or bond, in order to raise cash. A liquidity event can also be used to describe a situation in which a company is bought or sold. In … Read more
Proration is an accounting term that refers to the allocation of a financial asset or liability over time according to its schedule of payments. For example, if a company pays its employees on the first of every month, but one employee quits on the 15th of the month, the company would prorate that employee’s salary … Read more
Shareholder value is the value of a company as perceived by its shareholders. It is determined by the market value of the company’s shares. Shareholder value can be increased by improving the company’s profitability, increasing its share price, or paying dividends to shareholders. There are a number of ways to increase shareholder value. One is … Read more
The term “medium term” is most commonly used to describe the length of time over which an investment is expected to generate a return. For example, a medium-term investment might be expected to generate a return over a period of five to seven years. Medium-term investments are typically less risky than long-term investments, but more … Read more
A bonus issue is a free distribution of additional shares to existing shareholders. This is usually done when a company has a large amount of spare cash that it wants to return to shareholders without increasing the number of shares outstanding. For example, if a company has 100 million shares outstanding and wants to return … Read more
Joint-Stock Company: What It Is and Its History Who started joint-stock companies? The first joint-stock company was the Dutch East India Company, founded in 1602. The company was formed to raise money to fund a trading expedition to the East Indies. Shares in the company were sold to investors, who became shareholders. The shareholders were … Read more
A subscription agreement is a contract in which a person or entity agrees to purchase shares or securities in a company at a set price. The agreement may also stipulate that the investor will not sell the shares for a certain period of time. Subscription agreements are often used by startups and early-stage companies in … Read more
SEC Form F-1 is a filing with the Securities and Exchange Commission (SEC) that must be made by companies that wish to issue securities in the United States. The form must be filed before any securities can be offered or sold in the US. The form contains detailed information about the company’s business, financial condition, … Read more
