For example, trading securities in fixed income markets typically incurs much higher transaction
costs than equity markets.
Not exact matches
«Whereas 80 % of beer companies» consumers are male, cider is gender - neutral, opening up a
market in which beer players have struggled,» a 2011 Nomura
Equity Research report explained — while also pointing out that a typical case of cider ($ 35)
costs more
than craft beer ($ 33) or imported beer ($ 29).
Their
cost of capital is a function partly of low interest rates and part of the implicit share price is a function of the fact that investors have looked at
equities for dividends rather
than bonds for yield because the bond
market is so expensive.
This fabulous return comes at a significant
cost: the
market value of
equities declines by an average of 14 % in any one year, and seven times since WWII has declined by more
than 20 %; the average of these larger declines is 30 % or so, and the largest was 57 % in 2009.
Due to accounting conventions on treatment of certain
costs, the
market value of
equity is typically higher
than the book value of a company, producing a P / B ratio above 1.
The real
cost of an executive option to the company (rather
than to its stockholders) equals the present value of the probability that option program will reduce the company's future access to capital
markets, especially
equity markets.
This is because book values of assets (and hence
equity) are usually lower
than their
market value (e.g. due to historical
cost convention and impairment losses) whereas the book value of debt remains relatively close to its
market value (e.g. interest on bank loan is usually adjusted periodically in line with prevailing
market interest rates).
The only concern would be (possibly) higher
equity transactions
costs and certainly larger fixed - income buy - sell spreads, due to smaller and less liquid
markets other
than Germany.
The fund selects companies with solid earnings that can sustain higher dividends, match rises in the
cost of living, and which are likely to be less volatile
than the wider
equity market.
are expressing perplexity over the
market for bonds, which is institutional and driven by accounting and regulatory concerns (ALM, pension funding regs, risk charges on surplus for holding
equities, marking investment grade bonds at amortized
cost rather
than to
market, etc.).
«Bascom was able to access mezzanine and preferred
equity capital available in today's
market and obtain financing on The Breakers Resort by adding a parcel of developable land as collateral, resulting in a blended
cost of capital of less
than 5 percent and a combined debt yield of 6.25 percent,» said Erland in a statement.