Essays on Issuer

Rationale for the stock selection

Since the shares of preferred stocks have dividends that must be paid out before bonuses to the common shareholders, they are the class of ownership in a corporation. Thereby, possessing high claims on the company's assets, common stock, and earnings. It does not carry voting rights. Additionally, the preferred shares more rights as compared to the ordinary shares. Therefore, the rationale for selecting this stock rely on the ability of companies to retain the issue options of buying the common shares at an exercise price with a reasonable discount from the prices of the preferred securities. The accounting and ...

Introduction to Convertible Bonds

Convertible bonds consist of the bonds that are easily converted into the stocks. These convertible bonds are issued by the company and like any other normal bonds it has maturity date and face value. The convertible bondholder has all the rights of converting the bond into the predetermined share numbers of the respective company in an identified period. The factors influencing the bondholder converting or not depend on the stock interest rates and prices.

Contract conditions and Payoffs

The convertible bonds market conditions are not standardized and hence making it differ depending on every contract case. The maturity date being one of the ...

Finance is a vast area of discussion that requires one's dedication and interest to understand it better. Under finance, there are major issues like corporate financial policy which has a lot to be studied. The corporate fiscal policy is defined as an innovative corporate finance course that mainly touches on equity and debt management, for example, the descriptions of types of debt and equity, distribution policy and security issuance, for instance, the design of capital structure and securities that controls information problems. The sub-topics in securities and financial policy can be discussed in details as below.

Debt and equity management.

Debt and equity ...

Short – Term Investing

Introduction A treasury bill or a T-Bill is a short-term maturing promissory note, usually lasting for three months to one year. Nyawata (2012) asserts that the federal or national governments are the ones that issue T-Bills as their primary instruments of regulating the supply of money within the national economy, as well as raising funds for various government projects through open market operations. The central banks of the respective countries are the ones responsible for issuing and paying on T-Bills. According to Thau (2000) T-bills do not have any form of explicit interest, but they sell at a discount ...

Corruption poses a profound economic and legal threat for international corporations that are engaging in business globally, especially in transitioning and developing countries. The US Securities and Exchange Commission and the United States Department of Justice is at the forefront in the fight against bribery (Dean, et al., 2012).According to Oslen (2015), the establishment of the two organizations has seen an increase in the number of investigations and the prosecution of persons and corporations that engage in corruption. The Foreign Corruption Practices Act was established in 1977 to help in addressing the rampant corruption and bribery by American-based ...

Question 1(a)

According to section 2 (a) (1) of the Securities Act 1933, a security includes a note, stock, investment contract, certificate of interest or participation in any profit- sharing agreement, collateral trust certificate, any interest or instrument commonly known as "security", or any certificate of interest in participation in, and so on. Section 5 of the Securities Act provides for the mandatory registration of a "security" and a registration statement in effect, failure to which, it would be unlawful for any person or individual to offer the security for sale to the public. The case of Securities Exchange Commission v ...

[Finance] [Why debt security yields vary] There are numerous circumstances that influence the earnings on debt securities and make them alter. The most important of them are:

Variances in term to maturity.

The factor of liquidity. An impact of taxation. Credit risk impacts the earnings on debt securities in the next way: the higher is the credit risk, the higher are yields accordingly. It is essential to take into account that credit rating organizations charge with a certain amount of fee for estimating credit risk. Moreover, the accuracy and oversight of such rating agencies are also to be considered as an important factor. How ...

Option 1

Part 1 The company selected for the assignment is Teledyne Technologies. Chart below shows the information regarding the company: The audit report of Teledyne Technologies Inc. for the year ended January 3, 2016 carried an unqualified opinion. The report stated that the consolidated statement of income, comprehensive income, cash flows, and stockholder’s equity for the year then ended presented fairly, in all material respects, the financial position of the company and were in conformity with Generally Accepted Accounting Principles of United States of America. The company’s internal control for the year ended January 3, 2016 were also ...

(Institution Name)

Abstract

The article “Migrant Domestic Workers in Lebanon: An unjust system, how should individuals act?” by Siba Harb is in the context of Lebanon and highlights about the exploitation of the domestic workers who work for Lebanese families. There are 200,000 people who are currently employed by Lebanese families; these people belong to the poor countries like the Philippines and Sri Lanka, and they are able to stay in Lebanon on a work visa. These people are mistreated by the recruitment agents in their home countries, and once they are in Lebanon, they are again mistreated in ...

What position should Jason Sterling take on European sovereign debt? Why? What are the advantages/disadvantages of using credit default swaps to profit from this crisis? What are the potential risks? Are there any lessons for Jason that can be gleaned from previous crises? The aim of Jason Sterling is to assess novel information so that he has the ability to trade on prior to the trading close for the week period. This was because the growing debt crisis in the sovereignty of the Europe would be the hot topic or the primary notion that the leaders and representatives from ...

Arguments in favour of presenting redeemable preferred stock as a liability

According to SFAS 150, a mandatorily redeemable preferred stock should be reported as liabilities in the statement of financial position. This is unlike other types of preferred stock that are reported as equity in the stockholders’ equity section of the balance sheet. There are several arguments for the presentation of preferred stock as equity. Below is a discussion of why redeemable preferred stock should be presented as equity in the balance sheet. Firstly, the definition of redeemable preferred stock shows that it is more of equity than debt. It is defined as preferred stock that allows the issuer to ...

A bond can be defined as a contractual promise to repay a principal sum of money together with the interest, also known as coupons, at given maturity dates. Bonds are debt instruments that are issued for a period usually more than a year with the intention of raising capital. When investors purchase bonds, they became creditors of the issuer. The fair value of a bond is determined by the present value of cash flows that are to be generated from the bond in future at a given discount rate. Hence, the price of a bond is calculated using the present value formula at a specified discount rate. ...