Sentences with phrase «risk equities of companies»

Medium Risk — Growth (M / GRW) Lower to average risk equities of companies with sound financials, consistent earnings growth, the potential for long - term price appreciation, a potential dividend yield, and / or share repurchase program.

High Risk — Speculation (H / SPEC) High risk equities of companies with a short or unprofitable operating history, limited or less predictable revenues, very high risk associated with success, significant financial or legal issues, or a substantial risk / loss of principal.

High Risk — Income (H / INC) Medium to higher risk equities of companies that are structured with a focus on providing a meaningful dividend but may face less predictable earnings (or losses), more leveraged balance sheets, rapidly changing market dynamics, financial and competitive issues, higher price volatility (beta), and potential risk of principal.

Not exact matches

Convertible bonds are securities that pay interest, but give the bondholders the right to convert them to equity shares; they're basically a way to bet on the growth potential of a company without taking the risk of buying common shares.

Constituent companies are chosen based on their score on two sets of measures: a quantitative assessment consisting of their return on equity, balance sheet accruals ratio and financial leverage ratio; and a qualitative score derived from management's responses to a survey about such topics as corporate governance, risk and crisis management, customer relationships and tax strategies.

Hefner still owned an estimated 36.7 % of the surviving company, now called Playboy Enterprises International, according to Delaware state court documents, «so that he can continue bearing the risks and rewards of equity ownership,» the merger agreement says.

In some cases, a banker gets interested, but he or she expresses anxieties about perceived risks; a credit - line commitment might be offered, contingent upon the company's being able to carry out some type of equity offering simultaneously.

A equity investment in a high risk seed or early stage company does not align with the longer term nature of the assets of a registered savings plan.

Risk associated with equity investing include stock values which may fluctuate in response to the activities of individual companies and general market and economic conditions.

Given the absence of a public trading market of our common stock, and in accordance with the American Institute of Certified Public Accountants Accounting and Valuation Guide, Valuation of Privately - Held Company Equity Securities Issued as Compensation, our board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of fair value of our common stock, including independent third - party valuations of our common stock; the prices at which we sold shares of our convertible preferred stock to outside investors in arms - length transactions; the rights, preferences, and privileges of our convertible preferred stock relative to those of our common stock; our operating results, financial position, and capital resources; current business conditions and projections; the lack of marketability of our common stock; the hiring of key personnel and the experience of our management; the introduction of new products; our stage of development and material risks related to our business; the fact that the option grants involve illiquid securities in a private company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic oCompany Equity Securities Issued as Compensation, our board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of fair value of our common stock, including independent third - party valuations of our common stock; the prices at which we sold shares of our convertible preferred stock to outside investors in arms - length transactions; the rights, preferences, and privileges of our convertible preferred stock relative to those of our common stock; our operating results, financial position, and capital resources; current business conditions and projections; the lack of marketability of our common stock; the hiring of key personnel and the experience of our management; the introduction of new products; our stage of development and material risks related to our business; the fact that the option grants involve illiquid securities in a private company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic ocompany; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic ocompany given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic outlook.

In their April 2018 paper entitled «Market Risk Premium and Risk - free Rate Used for 59 Countries in 2018: A Survey», Pablo Fernandez, Vitaly Pershin and Isabel Acin summarize results of a March 2018 email survey of international finance / economic professors, analysts and company managers «about the Risk Free Rate and the Market Risk Premium (MRP) used to calculate the required return to equity in different countries.»

But with long - term bonds and non-cyclical equity sectors trading at historically extreme valuations while cyclical sectors trade at valuations below their long - term average, we think that risk aversion is creating numerous investment opportunities for investors willing to build a portfolio of more economically sensitive companies.

However, one type of company strategy does its best to bypass this risk and fund multiple projects without having to constantly raise capital through equity.

Chapter 15 — Implications for Companies advises companies on adjusting their decision - making to an era of international projects and a lower equity riskCompanies advises companies on adjusting their decision - making to an era of international projects and a lower equity riskcompanies on adjusting their decision - making to an era of international projects and a lower equity risk premium.

Based on analysis of more than 90 private equity funds, the IFC observed that the risks associated with minority stakes in companies could be managed effectively.

Potential risks and uncertainties include the availability of acceptable bank debt financing; the availability of acceptable additional equity investors; delays or interruptions in construction of power plants; the timely availability of required permits and authorizations for projects from governmental entities and third parties; changes in applicable regulatory requirements and incentives for production of solar power; and other risks described in the company's filings with the Securities and Exchange Commission.

From the perspective of someone interested in making investments with 20 + year holding periods in mind, you need to be careful of owning banks because of the debt to equity levels involved in the investment, you need to be wary of technology companies because they must constantly be innovating to remain profitable and relevant (unlike, say, Hershey, which could stick with its business model of selling chocolate bars for the next century), and retail stocks which are always subject to the risk of a new low - cost carrier arriving on the block.

And, with a larger company's capital at its back, DDD would no longer need to resort to equity - financed acquisitions, which put it at the risk of such reflexive boom - busts as we have just seen.

On the other hand, stocks (and equity - related mutual funds) involve an assortment of risks ranging from individual company performance to industry - specific factors to the fitness of the general economy.

In their October 2015 paper entitled «Huge Dispersion of the Risk - Free Rate and Market Risk Premium Used by Analysts in 2015», Pablo Fernandez, Alberto Pizarro and Isabel Acín summarize assumptions about the risk - free rate (RF) and the market / equity risk premium (MRP or ERP) used by expert analysts to value companies in six countries (France, Germany, Italy, Spain, UK and U.Risk - Free Rate and Market Risk Premium Used by Analysts in 2015», Pablo Fernandez, Alberto Pizarro and Isabel Acín summarize assumptions about the risk - free rate (RF) and the market / equity risk premium (MRP or ERP) used by expert analysts to value companies in six countries (France, Germany, Italy, Spain, UK and U.Risk Premium Used by Analysts in 2015», Pablo Fernandez, Alberto Pizarro and Isabel Acín summarize assumptions about the risk - free rate (RF) and the market / equity risk premium (MRP or ERP) used by expert analysts to value companies in six countries (France, Germany, Italy, Spain, UK and U.risk - free rate (RF) and the market / equity risk premium (MRP or ERP) used by expert analysts to value companies in six countries (France, Germany, Italy, Spain, UK and U.risk premium (MRP or ERP) used by expert analysts to value companies in six countries (France, Germany, Italy, Spain, UK and U.S.).

Many decades of market history suggest that you're likely to do considerably better in the long run if you use ETFs and index funds to spread their equity risk among thousands of companies, in 10 tried - and - true asset classes (only one of which is the S&P 500).

If a company's long - term debt burden is 100 % of its shareholder equity or more, it could be at risk of being too highly leveraged without a strong balance sheet to support it.

Hear Randy Swan, Founder and Lead PM of Swan Global Investments, discuss his background and the founding of our the company in 1997, as well as, the philosophy and process behind our distinct, hedged - equity investment approach called the Defined Risk Strategy (DRS).

As a company's increased debt generally leads to increased risk, the effect of debt is to raise a company's cost of equity.

Q: Why do you suppose so few people in risk management, and senior management at major financial firms, were unwilling to consider alternative views of the sustainability of the risks being taken as the risks got larger and larger relative to the equity of individual companies, the industry as a whole, and the economy as a whole?

But when you're focusing on the equity side of a portfolio, I think a good case can be made that large blue - chip companies help mitigate risk.

Investing in growing companies committed to sustainable practicesCommitted companies: The fund invests in growth companies with the goal of delivering positive financial and ESG performance.Active strategy: The managers utilize bottom - up research to identify companies with attractive sustainability, fundamental, and valuation characteristics.Veteran team: A dedicated sustainable investing team is backed by Putnam's equity research and quantitative / risk analysis groups.

Cheaply priced equities of companies with high distress risk are like the lemons that break down soon after you drive the car off of the lot.

Equity risk is the risk that the value of the equity securities, of U.S. or non-U.S. issuers, held by the Fund will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities held by the Fund participate, or factors relating to specific companies in which the Fund inEquity risk is the risk that the value of the equity securities, of U.S. or non-U.S. issuers, held by the Fund will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities held by the Fund participate, or factors relating to specific companies in which the Fund inequity securities, of U.S. or non-U.S. issuers, held by the Fund will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities held by the Fund participate, or factors relating to specific companies in which the Fund invests.

The scheme will invest in a diversified portfolio of equities of high growth companies and balance the risk through investing the rest in a relatively safe portfolio of debt.

The fund invests (i) equities (ii) convertible securities of U.S. companies without regard to market capitalization and (iii) employs short selling and enters into total return swaps to enhance income and hedge against market risk.

Hartford Risk - Optimized Multifactor US Equity Index is the exclusive property of Lattice Strategies LLC (a wholly owned subsidiary of Hartford Funds Management Company, LLC) which has contracted with Solactive AG to maintain and calculate the Index.

Cost of equity A company's cost of equity is the annual rate of return that an investor expects from a firm in exchange for bearing the risk of owning its shares...

Debt - to - equity ratio which is low, say 0.1, would suggest that the company is not fully utilizing the cheaper source of finance (i.e. debt) whereas a debt - to - equity ratio that is high, say 0.9, would indicate that the company is facing a very high financial risk.

Why do you suppose so few people in risk management, and senior management at major financial firms, were unwilling to consider alternative views of the sustainability of the risks being taken as the risks got larger and larger relative to the equity of individual companies, the industry as a whole, and the economy as a whole?

Convertibles & other types of preference capital are somewhat similar (and some companies include them in leverage ratios)-- arguably they're equity / non-callable liabilities, but they also increase risk / leverage for ordinary shareholders, so the same haircut's acceptable here too.

Which clearly presents attractive long term opportunities, but also substantial risks — not least of which is the company's over-indebtedness (despite any expected use of net IPO proceeds), cumulative net losses, negative free cash flow, poor governance & related - party deals, and possible equity dilution to come.

Companies with debt / interest in excess of that risk suffering: i) a significantly adjusted price for their equity in the event of a takeover — acquirer will refuse to take on debt, or will take on debt but haircut equity to compensate, ii) an eventual rights issue / placing to pay - down debt — this will probably hurt the share price and / or dilute intrinsic value per share significantly, or iii) investors will mark down company severely at some point.

Most IT related startup companies prefer equity financing through venture capital institutions rather than loan financing due to the high level of risk involved and such companies would tend to have very high interest coverage ratios.

So if I contribution $ 2k and invest it in a money market fund (very close to riskless with minimal yield), at the end of the year, my companies will put in another $ 2k into my account for a total of $ 4k — equating to a 100 % return on my invested equity with nearly zero risk.

Because index funds are made up of stocks, they still maintain the risks of equities, but they are inherently diversified because they match an index composed of many individual companies.

If you are discounting the composite cash flows of a multinational company, the equity risk premium should be a weighted average of the equity risk premiums of the countries that the company operates in, with the weights based on revenues or operating assets.

Outerwall has historically produced high returns on capital, and it's a business that doesn't need much tangible capital to produce huge amounts of cash flow (an attractive business), but it has been run similar to companies that get purchased by private equity firms — leverage up the balance sheet, issue a dividend (or buyout some shareholders), thus keeping very little equity «at risk».

I'll generally award a 1.0 Price / Book multiple for companies earning anywhere between an 8 - 12 % Return on Equity — entirely dependent on the quality of the company & its business model, plus the degree of risk and / or leverage involved.

Finally, the surplus of the insurance company is usually invested in risk assets — equities, private equity, real estate — whatever area the insurance company thinks they have expertise to make money.

Risk associated with equity investing includes stock values which may fluctuate in response to the activities of individual companies and general market and economic conditions.

Equity stocks of small and mid-cap companies carry greater risk, and more volatility than equity stocks of larger more established compaEquity stocks of small and mid-cap companies carry greater risk, and more volatility than equity stocks of larger more established compaequity stocks of larger more established companies..

Equity Funds: These ULIP funds fall in the medium to the high - risk category as they primarily invest in company stocks with the objective of capital appreciation.

Insurance companies provide a choice of funds with varying levels of exposure to debt and equity to suit different risk appetites.

Rather than purchasing equities outright, the insurance company typically enters into options contracts using some portion of the policy premium, which enables them to pass on the upside gains without the downside losses — but at the cost of an additional counterparty risk.