Gig Economy
The Gig Economy is an economic model where labour market flexibility and temporary work commitments are commonplace. The business base of companies in the Gig Economy tends to work on a margin, with less fixed assets. Over the past couple of years there has been a boom in companies operating in the Gig Economy, growing […]
Goodwill
When an acquisition occurs, the difference between the Net Assets or Book Value and the Purchase Price Paid is the Goodwill. Goodwill is considered to have infinite economic value. The value of the Goodwill on the Balance Sheet is expressed in the economic value of the Intangible Assets, assets that cannot be touched. The concept […]
Growth Stock
A Growth Stock is the Stock of a company that is experiencing higher than average growth in Sales, Operating Profits and depending on the stage in development Net Earnings. A Stock becoming a Growth Stock, is it more to do with Sector influences or company-specific factors? Well, probably a combination of both, being in the […]
Hard Landing
A Hard Landing describes an Economy which had been enjoying sound growth, then suffers a harsh decline. The decline in the economy could be due to the measures taken to temper the economy being too severe. The term Hard Landing is a term used to describe an economy, quickly moving from growth to a pronounced […]
Incorporation
Incorporation is the legal process when a Company is created, and thus has its own legal identity. The Company can then act under its own name, own Assets, and assume Liabilities. Incorporation is a legal term defining the creation of a Company, officially bringing it into existence and enabling it to act as a Legal […]
Hedge Funds
Collectively, Hedge Funds are an eclectic group of Investment Funds, typically incorporating both Long and Short positions. They invest in a range of securities across a gamut of investment and trading strategies. Hedge Funds come under Alternative Investments and cover many different strategies across a range of securities. Typically, the Manager of a Hedge Fund […]
Financial Markets
The Financial Markets provides buyers and sellers with the means to trade a wide range of financial instruments. For a Financial Market to be successful, this must be done in a transparent, secure and efficient process. A Financial Market refers to a market exchange where securities are traded. The Financial Markets have evolved. They can […]
Fundamental Analysis
The Fundamental Analysis of a Stock involves several aspects. An understanding of the Financial Statements, determining a valuation and the assessment of external factors impacting the Company. In performing a Fundamental Analysis on a Company, the goal is to determine a “Market Value” for the quoted Shares, which could be above or below the current […]
Global Industry Classification Standard (GICS)
GICS is a system to classify listed companies across four hierarchies from Sector down to Sub-Industries, referring to the business profile. GICS assists in stock valuations both in and across industries. Divided into four levels the Global Industry Classification Standard (GICS) assigns listed companies a Sector and Industry classification. The classification starts at the Sector […]
Greek Options
The Greek Letters are used to measure the sensibility of a Stock Option’s price to various parameters. The parameters include, Stock Price, Volatility, Time to Expiration and Interest Rates. To explain the sensibilities in the value of Stock Option Contracts, the various Greek letters Delta, Gamma, Vega, Theta and Rho are used. The objective is […]
