An Accountant's Opinion is a statement signed by an independent Certified Public Accountant that describes the scope of the examination of an organization's books and records. It provides important assurance to lenders or investors.
The Alternative Investment Market (AIM) is a sub-market of the London Stock Exchange that gives smaller companies the opportunity to raise capital and gain visibility among investors.
Procedures and techniques employed to perform an analysis of a situation or event. For example, an investor, in deciding whether to commit funds to a company, would engage in financial statement analysis by looking at trends in the accounts over the years (e.g., sales) and financial ratios.
Capital calls are requests for additional money required of investors to fund a deficit. A corporate stockholder has no legal obligation to meet a capital call.
The Common Stock Ratio is a financial metric that represents the percentage of a company's total capitalization that is comprised of common stock. This ratio is significant as it reflects the degree of financial leverage and stability of the company from both creditor and investor perspectives.
Comparables, often abbreviated as COMPS, are an essential element in real estate appraisal and valuation processes. They refer to the comparability of properties with similar characteristics, used primarily to determine the market value of a subject property.
Completion risk refers to the inherent risk within project financing schemes that the project might not be completed on time, within budget, or to the required specifications. This type of risk is a critical concern for investors and stakeholders in large-scale projects.
Small businesses designed for the purpose of achieving high growth and rapid profit increases, often leveraging innovative products and strategies alongside investor capital.
Industry structure analysis involves evaluating the opportunities and threats presented to a firm by the prevailing environment. It helps appraise the attractiveness of the industry to investors or new entrants and devise competitive strategies. Porter’s Five Forces framework is the standard tool for this analysis.
Large-cap stocks, also known as big-cap stocks, are shares of companies with a large market capitalization, typically $5 billion or more.
A Massachusetts Trust is a business trust that confers limited liability on the holders of trust certificates, also known as a common law trust. This is a voluntary association of investors who transfer contributed cash or other property to trustees with legal authority to manage the business.
Pass-through securities represent a financial instrument where income generated from a pool of underlying assets, such as loans or mortgages, is passed on to investors through intermediaries.
A public offering refers to the process where securities are offered for sale to the general public, typically through a stock exchange. This mechanism allows companies to raise equity capital from a broad investor base.
Measures of the bullish or bearish mood of investors. Many technical analysts look at these indicators as contrary indicators; that is, when most investors are bullish, the market is about to drop, and when most are bearish, the market is about to rise.
A short-term note issuance facility (SNIF) is a financing arrangement through which an institution can issue short-term notes to investors. This facility provides liquidity and flexibility for the issuing entity to meet its short-term funding needs.
The stock market is a complex network of exchanges and investors engaged in buying, selling, and issuance of shares from publicly held companies, facilitating capital growth and wealth building.
A track record is a businessman’s reputation for producing results on a timely and economical basis. A strong track record can significantly influence the ability to secure financing and attract investors for new projects, ensuring successful and timely project completion.
The Trickle Down Theory is an economic concept suggesting that policies benefiting the wealthy and businesses can ultimately benefit lower-income individuals through increased economic activity.
An unsecured debenture is a type of debt instrument that is not backed by any specific collateral, relying instead on the creditworthiness and reputation of the issuer.
