Finance and accounting Books

Book SynopsisStraightforward and accessible, Commodity Investing balances academic-quality analysis with clear, compelling prose, and provides those interested in this fast-growing field with unparalleled investment insights. Page by page, you'll acquire a deeper understanding of this discipline and discover how to make more informed decisions when investing in such a dynamic environment. With this book as your guide, you'll benefit from the lessons of experienced practitioners and quickly come to grips with what it takes to make it in today's commodity market.Table of ContentsAcknowledgments ix PART ONE Basics 1 CHAPTER 1 Introduction 3 CHAPTER 2 Commodity Futures as Investments 9 CHAPTER 3 Commodities for the Long Run 29 PART TWO Understanding Energy 37 CHAPTER 4 Crude Oil 39 CHAPTER 5 Heating Oil 57 CHAPTER 6 Gasoline 67 CHAPTER 7 Natural Gas 79 PART THREE Understanding Grains and Oilseeds 93 CHAPTER 8 Corn 95 CHAPTER 9 Wheat 107 CHAPTER 10 Soybeans 117 PART FOUR Understanding Livestock 131 CHAPTER 11 Hogs 133 CHAPTER 12 Cattle 141 PART FIVE Understanding Industrial Metals 151 CHAPTER 13 Copper 153 CHAPTER 14 Aluminum 165 CHAPTER 15 Zinc 177 PART SIX Understanding the Softs 187 CHAPTER 16 Coffee 189 CHAPTER 17 Sugar 197 CHAPTER 18 Cocoa 207 CHAPTER 19 Cotton 213 PART SEVEN How to Invest 221 CHAPTER 20 Some Building Blocks of a Commodity Futures Trading System 223 CHAPTER 21 The Rise of the Indexes 245 CHAPTER 22 Conclusion 265 APPENDIX The London Metal Exchange 269 Notes 273 References 283 About the Authors 287 Index 289

Read more less

Book SynopsisIn Becoming Your Own China Stock Guru, James Trippon, who runs the largest independent equity investment research firm in Mainland China, reveals how to profit from the investment opportunities available in the rise of the world's newest economic superpower. Trippon has invested in the Chinese market for more than twenty years and made his clients millions of dollars in the process. Now, with this new book, he offers you detailed guidance on how to profit from this significant financial opportunity.Trade Review"…any reader unwilling to at least hear Trippon make his case will be denying themselves the view of a veteran, outspoken China-watcher willing to take an aggressive stance on the future of China and of his wealthy clients." (SFO Magazine, October 2008)Table of ContentsContents. Forward Introduction. Acknowledgements. I. Trends – Why The Future Belongs to China. Chapter 1: Sunrise in the East: China Becomes the New World Superpower. Chapter 2: Sunset in the West: The End of American Economic Supremacy. Chapter 3: The End of the Bicycle Kingdom: Common Misconceptions about Today's China. Chapter 4: The Coming Financial Flood. Chapter 5: Becoming a China Stock Guru. II. China's Economic Landscape. Chapter 6: China's Booming Base: Manufacturing. Chapter 7: China's Auto Industry: In Full Gear. Chapter 8: China's Energy Industry: Red Hot Chapter 9: China's Bonanza: Banking and Insurance. Chapter 10: China's Communications Revolution: Almost Free Speech. III. Understanding China's Financial Centers Chapter 11: The Epicenter of a Capitalist Revolution. Chapter 12: Shenzhen: China's Test City. Chapter 13: Shanghai: China's Own Manhattan. Chapter 14: Taiwan: The Breakaway Prodigy Chapter 15: Hong Kong: China's Modern Frontier. IV. Building a China Stock Guru Portfolio. Chapter 16: Buying China Without Leaving Home. Chapter 17: Understanding ADRs, ETFs and Mutual Funds. Chapter 18: Identifying Value in Chinese Stocks. Chapter 19: Assembling Your Portfolio and Performing Risk Management. V. Conclusion: A Peek at Your Guru Future. Index.

Read more less

Book SynopsisAs head FX strategist at CMC Marketsone of the world''s leading forex/commodity brokersAshraf Laidi understands the forces shaping today''s currency market and their interplay with interest rates, equities, and commodities. And now, with Currency Trading and Intermarket Analysis, he shares his extensive experiences in this field with you. Throughout the book, Laidi outlines the tools needed to understand the macroeconomic and financial nuances of this dynamic field and provides you with insights that are essential to making the most of your time within it.Table of ContentsForeword xi Preface xiii Acknowledgments xvii Chapter 1 Gold and the Dollar 1 End of Bretton Woods System Marks Gold’s Takeoff 2 Fed Tightening and FX Interventions Rein in Gold Rally 3 Central Banks’ Gold Sale Agreements 5 Gold-USD Inverse Relation 6 Recent Exceptions to the Inverse Rule 6 Using Gold to Identify Currency Leaders and Laggards 8 Gold’s Secular Performance 11 Valuing Currencies via Gold 13 Golden Correlations 14 Don’t Forget Falling Gold Production 16 Gold and Equities: Hard versus Monetary Assets 16 Equity-to-Gold Ratios 19 TheRoleoftheSpeculators 21 Gold Is Part of a Larger Story 22 Chapter 2 Oil Fundamentals in the Currency Market 25 From a Gold Standard to an Oil Standard (1970s–1980s) 26 Oil Glut and Price Collapse (1981–1986) 32 The Super Dollar of 1980–1984: The World’s Third Oil Shock 34 World Intervenes against Strong Dollar (1985–1987) 39 Iraq’s Invasion of Kuwait and the Gulf War (1990–1991) 41 The Asian Crisis and OPEC’s Miscalculation (1997–1998) 44 Oil Thrives on World Growth, Dot-Com Boom (1999–2000) 46 Iraq War Fuels Oil Rally, Dollar Flounders, China Takes Over (2002 to Present) 46 Summary 49 Chapter 3 When the Dollar Was King (1999–2001) 51 The Major Theories 52 Annual Performance Analysis of Individual Currencies 53 Summary 70 Chapter 4 The Dollar Bear Awakens (2002–2007) 71 2002: The Beginning of the Dollar Bear Market 71 2003: Dollar Extends Damage, Commodity Currencies Soar 78 2004: Global Recovery Boosts Currencies against U.S. Dollar 84 2005: Commodities Soar alongside Dollar, Carry Trades Emerge 90 2006: Dollar Vulnerable as Fed Ends Two-Year Tightening 94 2007: Record Oil Boosts Loonie, Helpless Fed Hits Greenback 102 Lessons Learned 108 Chapter 5 Risk Appetite in the Markets 111 Carry Trades in Foreign Exchange 112 Using Risk Appetite to Gauge FX Flows 121 Tying It All Together: 1999–2007 134 Chapter 6 Reading the Fed via Yield Curves, Equities, and Commodities 137 Yield Curves and the Economy 138 Types of Yield Curves 139 Rationale of Inverted Yield Curve Implications 142 Effectiveness of Yield Curve Signals’ Implications 142 Greenspan’s “Conundrum” Proved Bernanke’s Problem 143 Implications for Growth, Stocks, and Currencies 145 Tying Interest Rates to the Gold-Oil Ratio 153 Conclusion 158 Chapter 7 U.S. Imbalances, FX Reserve Diversification, and the U.S. Dollar 161 The U.S. Twin Deficits 162 U.S. Current Account Deficit: Old Problem, New Challenges 165 Adding the Budget Balance to the mix 169 Financing the Deficits: The Path to Unsustainability? 170 Dissecting U.S.-Bound Foreign Capital Flows 172 U.S. Stocks and Bonds Vie for Foreign Money 173 Capital Flows Shift Identities 177 Foreign Direct Investment and M&As 179 How Long Will Foreign Capital Be Available on the Cheap? 181 Don’t Ignore U.S. Investors’ Flows Abroad 182 Currency Reserve Diversification: OPEC and the Middle East 185 Further Currency Diversification Is Inevitable 187 The View Ahead 189 Chapter 8 Commodities Supercycles and Currencies 191 The Current Commodity Cycle versus Previous Cycles 193 Dissecting Commodity Classes 196 Commodities and their Currencies 207 Developing World to Maintain Ripe Outlook for Food and Grains 208 Energy Efficiency Not Enough to Halt High Oil 214 Copper and Gold to Shine on Long-Term Fundamentals 219 Commanding Heights or Common Bubbles? 223 Chapter 9 Selected Topics in Foreign Exchange 225 Revisiting Yield Curves 225 Is Dollar Stability a Necessity? 230 How Far Will Commodities Outstrip Equities? 236 U.S. Politics and the U.S. Dollar 240 Conclusion 247 Bibliography 249 About the Author 251 Index 253

Read more less

Book SynopsisMake Millions Selling on QVC is more than just a guide to getting you and your products in front of millions of potential customers; it's an inside look at how the largest television retailer in the world operates. The information and advice found throughout these pages will give you a distinct edge in this competitive business and allow you to exceed your professional expectations and enjoy the success you deserve.Table of ContentsAcknowledgments vii Introduction ix Chapter 1 How a Niche Product Generated $441,158.40 in Ten Minutes 1 Chapter 2 The Home Shopping Phenomenon 7 Chapter 3 How to Find or Create Hot Products 11 Chapter 4 Be First and Fastest to Mass Market 17 Chapter 5 How to Protect Your Product 25 Chapter 6 How to Get on QVC 31 Chapter 7 What QVC Looks for in a Product 43 Chapter 8 Your First Meeting—Pitching Your Product for Acceptance 49 Chapter 9 Your Product Has Been Accepted—Now What? 57 Chapter 10 How to Prepare for Your Big Moment on TV 63 Chapter 11 A Day in the Life at QVC 77 Chapter 12 The Two Most Important Words You Can Associate With Your Product 83 Chapter 13 Getting Paid, Returns, Backorders, and Surges 85 Chapter 14 How to Add Easy Money to Your Bottom Line, and Other Ways to Drive Your Success 89 Chapter 15 Six Mistakes that Can Snap the Back of Your Business, and How to Avoid Them 99 Chapter 16 Open Doors to Greater Success 109 Chapter 17 Beyond QVC—The Big Picture 117 Final Thoughts 123 Appendix A: Resource Directory 125 Appendix B: Frequently Asked Questions 129 Glossary of Terms 132 About the Author 138 Index 139

Read more less

Book SynopsisDolf de Roos's Commercial Real Estate Investing reveals all the differences between residential and commercial investing and shows you how to make a bundle. De Roos explores the different sectors-retail, office space, industrial, hospitality, or specialist-to help you discover which is right for you.Table of ContentsPreface xi Acknowledgments xiii Notes on Reading This Book xv Introduction xvii CHAPTER 1 Just What Is Commercial Real Estate? 1 CHAPTER 2 People versus Contracts 5 CHAPTER 3 Why Invest in Commercial Real Estate? 11 Lease Duration 11 Assignment of Lease 15 The Tenants Pay the Outgoings 17 Tenants Earn Their Income on Your Premises 18 Landlord Pays for Improvements to Commercial Premises 21 Certainty of Collecting Rent 22 Upward-Only Rent Reviews 24 Government Interference 25 Management Overhead 27 CHAPTER 4 The Downside of Commercial Real Estate 29 Much More Difficult to Acquire Commercial Tenants 29 Banks Will Lend a Smaller Proportion of a Commercial Property 30 CHAPTER 5 The True Value of Real Estate 33 CHAPTER 6 How to Overcome the Disadvantages of Commercial Real Estate 41 CHAPTER 7 How to Attract a Tenant 45 Who Wants to Run a Funeral Business? 45 Finding a Tenant for a Warehouse in an Oversupplied Market 50 The Power of the Internet 55 Many Prospective Tenants Know Your Building 56 Engage a Real Estate Firm or Property Management Company to Find a Tenant 59 Wait for (or Cause) a Zone Change 60 Split a Single Tenancy into Multiple Tenancies 62 Consolidate Multiple Tenancies into One 64 The Ultimate Way to Attract a Tenant 66 CHAPTER 8 How to Increase Rental Income (and hence the Capital Value) 71 Helipads 72 Cell Phone Towers 73 More Rooftop Antics 74 Naming Rights 76 Air Space 77 Parking 81 The Humble Webcam 89 Interior Remodel 93 The Triple Win of Alarm Systems 100 Rent Reviews to Market 101 CHAPTER 9 What Were the Disadvantages of Commercial Real Estate? 103 CHAPTER 10 Finding Commercial Real Estate 107 Newspaper Advertisements 107 Real Estate Firms 112 The Internet 114 Keeping Your Eyes Peeled 116 Networking 118 Word of Mouth 118 Helping Other People 124 The 100:10:3:1 Rule 126 Summary 130 CHAPTER 11 Analyzing Deals 131 Due Diligence 132 Four Questions to Ask about Any Commercial Property 142 Return on Investment 144 CHAPTER 12 Negotiating Commercial Real Estate Deals 155 The Uncooperative Seller 156 Other Negotiations 159 CHAPTER 13 Financing Commercial Real Estate 163 Proposal for Finance 166 Summary Paragraph 171 General Description of Property Offered as Collateral 174 Property Portfolio Statistics and Cash Flows 176 Statement of Assets and Liabilities 177 What to Include in the Appendix 178 How to Use the Proposal for Finance 179 Umbrella Loans 182 CHAPTER 14 Structuring Commercial Real Estate Ownership 183 CHAPTER 15 Managing Commercial Real Estate 187 Tenant Selection 188 Rule Enforcement 189 Rent Reviews 190 How to Get a Tradesman to Do Your Work First 190 Accounting 193 Summary 193 CHAPTER 16 How to Beat the Average 195 Geography 196 Zone Changes 199 Proximity to Views 200 The Center of Town 200 High Technology 201 Leasing and Management Tactics to Beat the Average 202 Combining All Methods of Beating the Average 202 CHAPTER 17 Raw Land 205 Best Choice Properties 208 Spring Mountain Ski Ranch 211 The Benefit of Having Great Partners 214 Getting Back to Commercial Real Estate Investing 216 CHAPTER 18 Extraordinarily Odd Commercial Deals 217 Oil in Them Thar Hills 219 Marine Farms 222 CHAPTER 19 Property Ventures Limited 225 Five Mile 230 CHAPTER 20 Never Sell 233 CHAPTER 21 Thirteen Golden Rules of Commercial Real Estate Investment 239 Golden Rule 1: Risk Is Equal to Yield 239 Golden Rule 2: Ensure Safety of Principal 240 Golden Rule 3: Control Your Liabilities 240 Golden Rule 4: Add Value to a Deal 241 Golden Rule 5: A Broker or Agent Must Bring Something to the Deal 242 Golden Rule 6: Real Estate Is a Long-Term Investment 243 Golden Rule 7: The Number of Voting Partners Is Directly Proportional to the Failure of the Project 244 Golden Rule 8: You Are Going to Be in a Lawsuit 244 Golden Rule 9: It Only Takes One Deal to Go Broke 245 Golden Rule 10: It Only Takes One Deal to Make a Million Dollars 245 Golden Rule 11: The Value of a Property Is Limited by the Tenant’s Ability to Pay Rent 246 Golden Rule 12: Appreciation and Inflation Are Compounded Annually 246 Golden Rule 13: You Cannot Give Kindness Away—It Is Always Returned 247 CHAPTER 22 Investing Abroad 249 CHAPTER 23 Live Life to the Fullest 261 About the Author 269 Appendix: Resources 271 Index 281

Read more less

Book SynopsisThe Forex Options Course is a practical, hands-on guide to understanding and trading forex options. Designed to build a trader''s knowledge base in a step-by-step manner, this reliable resource moves from the straightforward to the more sophisticated with discussions of everything from basic plain vanilla calls and puts to intriguing first-generation exotic binary options. Written in a straightforward and accessible style, The Forex Options Course will help you develop the skills and strategies needed to succeed in today''s dynamic forex market.Table of ContentsPreface ix Acknowledgments xi About the Author xiii PART ONE Key Option Elements 1 CHAPTER 1 The Elements of an Option Trade 3 Plain Vanilla Options 3 Purchasing an Option 3 Writing an Option—Beginners Don’t 8 Elements of an Option Trade or Ticket 10 The Greeks 15 Summary 23 CHAPTER 2 What Affects Forex Option Prices? 25 Time 25 Volatility 27 Summary 50 PART TWO Forex Market Drivers 51 CHAPTER 3 Finding Direction for Your Forex Option Trade 53 The Importance of Interest Rate Expectations 53 How to Anticipate the Direction of the Federal Open Market Committee (FOMC) 54 How to Use Housing Sector Data for Developing Forex Option Trade Direction 62 Evaluating Real Estate Exchange-Traded Funds (ETFs) 71 Summary 77 CHAPTER 4 Tracking Fundamental Directions 79 Using Currency Targeted Exchange-Traded Funds (ETFs) to Determine If the Market Is Dollar Bearish or Bullish 79 Diagnosing Global Economic Conditions 83 Group Currencies by Purchasing Power Parity (PPP) (Big Mac Index) 84 Tracking the Currency–Commodity Connection 94 The Currency Outlook Checklist 97 Summary 98 PART THREE Timing the Trade with Technical Analysis 99 CHAPTER 5 Chart Patterns and Trade Entry 101 Chart Patterns and How to Use Them 101 Scanning for Volatility 110 Summary 114 CHAPTER 6 Using Experts to Shape Trading Decisions 115 Forecasting Accuracy? 116 Professional Sources of Expert Forex Opinion 117 Follow the Housing Prices 122 Follow the Think Tanks 124 Follow the Bank Forecasts 125 Summary 128 PART FOUR Forex Options Strategies 129 CHAPTER 7 Vanilla, Spreads, and Volatility Strategies 131 Plain Vanilla Strategies 131 Currency Pair Spreads: Playing the Correlations and Divergencies 133 Commodity–Currency Spread Strategies 139 Carry Trade Option Strategies 144 Trading Delta Call/Put Ratios 147 Trading Vega or Volatility 150 Gamma Spread Trading 154 Key Forex Option Combinations and Components 156 Summary 163 CHAPTER 8 Binary Option Strategies 165 What Is a Binary Option? 166 Using Exotics to Derive Market Sentiment 170 Combining Binary Options with Plain Vanilla and Spot Trading 173 Summary 177 CHAPTER 9 Option Strategies for Extreme Outcomes and Scenarios 179 Recession in China or Continued Boom 179 Option Trading to Play Carry Trades with Hedge—Putting on Collars 181 $ 1000 + Gold and $200 + Crude Oil 182 Trading $Oil Shock ($200) in Forex Options 183 Play a U.S. Stagflation and Inflation 184 Preemptive Attack on Iran 184 Recovery of Housing 185 Summary 185 CONCLUSION Putting It All Together 187 Achieving Optimal Forex Option Trading Fitness 187 Forward Testing Your Forex Option Trading Fitness 188 Where to Trade Forex Options 189 APPENDIX Selected Futures Columns 191 Index 213

Read more less

Book SynopsisElectronic Health Records: An Audit and Internal Control Guide describes the infrastructure of electronic health records and the impact that the government''s new criteria will have on the private and public marketplace. Understand what to look for in a health care record management system and find tips and helpful guidance for implementation. If you are trying to facilitate an audit of a health record management system, you can apply the example described in the model, which will serve as a timely model and invaluable resource.Table of ContentsPreface. About the Author. Acknowledgments. Introduction. Chapter 1. Market Background. E-Health. How is Electronic Information Created? Information Technology Considerations. How is Health Information Created? Review of Primary HCC Market Players. Patients. Providers. Third Party Vendors. Payers. Review of HCC Secondary Market Players. Major Initiative for E-Health. Audit Implication Overview. Chapter 2. Industry Application. Public Uses. Private Uses. Information Continuum. Market Standards and Initiatives. Agency for Healthcare Research and Quality. Health Level Seven. Certification Commission for Healthcare Information Technology. Department of Defense Records Management Program. Association of Records Managers and Administrators. Audit Implication Overview. Chapter 3. Impact of E-Health on Case Management. Financial Picture. Hospital-Based FCM Application. Background Information and Provider Perspective. Problem: Getting Paid Correctly for Services Provided. Findings. Additional Findings. Summary. Consumer-Based FCM Application. Market Problems: The Industry as It Operates Today. Consumer FCM Model. Healthcare Portfolio Application. Virtual Case Management. VCM Payer Model. VCM Patient Model. VCM Hospital Model. VCM Physician Model. VCM Allied Health Services. VCM Nontraditional Health Services Model. VCM Other Business Services Model. Audit Implication Overview. Chapter 4. Data in an E-Health Environment. Data Library. Data Intelligence. New Data. More New Data. Processed Data. Data Warehouse. Audit Implication Overview. Chapter 5. Algorithms. Background. Understanding Algorithms. Data Elements. Case Study. Algorithm Selection Auditor Implication Overview. Chapter 6. Data-Driven Health Decisions in an E-Health Environment. Knowledge Models. Primary Healthcare Continuum. Secondary Healthcare Continuum. Information Continuum. Third-Party Vendor Knowledge Model. Knowledge Models For White-Collar and Organized Crime. Sample Identity Theft Case. Medical Identity Theft. Medical Identity Theft – Definition. How Medical Identity Theft Occurs. Damages To Primary Victims. Medical Identity Theft From A Consumer Perspective. When The Consumer Is Not Aware. When The Consumer Is Involved. When An Individual Wants Products Or Services. Damages To Secondary Victims. Medical Identity Theft From An Entity’s Perspective. Auditor Considerations. Sample Fraud Case. Sample Pharmaceutical Fraud Case. Audit Implication Overview. Examples Of Worldwide Activity. Chapter 7. Analytic Tools and Audit Checklists. E-Health And Healthcare Business Processes. Patient Business Process. Problem #1: Financial Case Management Advocacy. Problem #2: Clinical Case Management Advocacy. Provider Business Process. Problem #1: Lack Of Electronic Internal Controls. Problem #2: Lack Of Internal Controls With User Identity. Problem #3: Lack Of Internal Controls For Services Provided And Charged. Payer Business Process. Problem #1: Use And Loss Of Health Information – Handling Subcontracted Vendors. Problem #2: Lack Of Insurance – Processing Fraudulent Claims For Enrolled Beneficiaries. Plan Sponsor Business Process. Problem #1: Employee Working Environments. Problem #2: Employer Increase In Healthcare Expenditures. Third-Party Vendor Business Process. Problem: Increase In Pharmaceutical Expenditures. Audit Implication Overview. Chapter 8. Electronic Health Records. Current E-Health Offerings. Market Evolution. E-Health Content Standards. E-Health Offering Vulnerabilities. Audit Implication Overview. Chapter 9. Healthcare Portfolio. Health Infomediary Support. PHR Attributes. Future Considerations. Major Market Activity. Audit Implication Overview. Chapter 10. Conclusions. Market Overview. Market Standards. Market Conflicts. Market Intelligence. Market Audits. Market Directions. Consumer Response to PHRs. Audit Implication Overview. Index.

Read more less

Book SynopsisPraise for At Your Own Risk "Every global company faces risks from all sides: competition, earthquakes, pandemics, or the practices of suppliers far down their value chain. Gary Lynch knows how hundreds of companies handle-or mishandle-risks, and he explains how the best of them find opportunities in the risks they face.Trade Review"…Lynch draws on his vast experiences in operations, supply chain, and information technology risk management to provide a well-balanced, practical guide to contemporary risk assessment and management. Excellent vignettes, illustrations, and case studies complement the chapters." (Choice; 1/09)Table of ContentsIntroduction. Cause and Effect in the Brave New World. Section I. Change, the Double-Edged Sword. Chapter 1. Rapid Change, Escalating Risk. Chapter 2. Cause and Effect. Chapter 3. The Vulnerable Organization. Section II. Line of Sight. Chapter 4. A Leadership Crisis? Chapter 5. The Value Chain. Section III. Consciousness, Engagement and Execution. Chapter 6. Develop, nurture and sustain a risk conscious culture. Chapter 7. Diverse Stakeholders Views Motivations Across the Value Chain. Chapter 8. Executing the Plan.

Read more less

Book SynopsisPolicies and procedures are the foundation of internal controls for organizations. Taking a complicated subject and breaking it into manageable components, this book enables you to hit the ground running and significantly accelerate your completion of a solid policies and procedures program. Comprehensive and practical, this useful book provides you with sample documents you can personalize and customize to meet your company''s needs.These manuals are favorites for organizations and companies that need a foundation and grounding to ensure an internal control posture of integrity, credibility, method, process and process: or a reminder of its importance. URLs were included when first published to encourage the dissemination and distribution of relevant chapters to those interested and in charge of the specific departments. Although times have changed, the principles professed are sound and solid for today's accounting and business environment. Implementing these coTrade Review"The author provides an excellent framework for organizations to use in establishing and updating policies and procedures. This book is an excellent resource that auditors can use to steer management to as an example of a structured approach to policy and procedure development." (Auditnet.org, June 2008)Table of ContentsHow to Use this Manual xiii Preface xvii Before Getting Started xix Getting Started with the Program xxiii Developing the Table of Contents xxvii Self Assessment xxxi Program 1 A01 Program Mandate 3 A02 Overview—Getting Started: Presentation 9 A03a Create, Revise, Issue Policies and Procedures 21 A03b Template—Name of Document 26 A04 Request to Deviate from Policies and Procedures 28 A05 Rescind Policies and Procedures 32 Policies and Procedures 35 B01 Account Reconciliation 37 B02 Accounting for Compensated Absences 41 B03 Accounting for Goodwill, Patents, Trademarks, and Other Intangible Assets 44 B04 Accounting for Mergers and Acquisitions 47 B05 Accounting for Post-Employment Benefits 50 B06 Accounting for Restructuring and Reorganization 53 B07 Accounting for Sales Compensation: Expense, Accrual, Reconciliation 57 B08 Accounts Payable: Request for Payment to Third Party Vendors 62 B09 Accounts Receivable: Allowance for Doubtful Accounts 68 B10 Accounts Receivable: Third-Party Trade and Customer—Credit, Collection, and Cash Applications 72 B11 Accruals 81 B12 Accounting and Audit-Related Complaints 86 B13 Authorization: Delegation, SubDelegation of Authority 90 B14 Bank Reconciliation 100 B15 Business Combinations, Consolidation and Foreign Entity Reporting 103 B16 Business Licenses 106 B17 Cash and Banking 109 B18 Communication with Financial Community 116 B19 Escheat, Abandoned Property, Unclaimed Checks: U.S., Canada, and Where Local Regulations Require 119 B20 Finance Code of Ethical Conduct 123 B21 Key Financial Indicators 126 B22 Financial Planning and Analysis 131 B23 Property, Plant and Equipment: Fixed Assets, Long-Lived Assets, Tangible Assets 134 B24 Foreign Currency Risk Management 153 B25 Funding and Financing Risk Management 156 B26 Hiring and Use of External Auditors 158 B27 Income Tax Preparation and Reporting 164 B28 Insurance and Risk Management 169 B29 Intercompany Transactions 174 B30 Inventory 180 B31 Investment and Marketable Securities 186 B32 Journal Entries: Routine, Non-Routine, and Estimates 189 B33 Capital, Operating Leases, and Real Estate Rental Property 195 B34 Letter of Representation, Quarterly Financial Sub Certification Process 202 B35 Payroll and Salary Expense 208 B36 Petty Cash 212 B37 Physical Counts and Evaluation for Inventory, Property, Plant and Equipment 216 B38 Prepaid Assets/Expenses 219 B39 Revenue Recognition 222 B40 Source and Use of Exchange Rates 228 B41a Travel, Entertainment, and Expense 231 B41b Travel, Entertainment, and Expense Manual 235 Bonus Policies and Procedures 251 C01 External Communications and Public Relations 253 C02 Material Nonpublic Information and Insider Trading 261 C03 Procurement 265 C04 Records Information Management 270 Index 287

Read more less

Book SynopsisPraise for Fraud in Accounts Payable Fraud in Accounts Payable is an insightful book that takes an in-depth look at the three most frequently committed fraudulent cash disbursement schemes directly related to your accounts payable function. Mary provides colorful and poignant stories showing how easy it can be to steal from both within and outside an organization. But the real beauty of this book is that Mary illustrates ways you can immediately begin implementing effective and efficient controls to reduce the opportunities for fraud within your organization. Matthew D. Storlie, CFE, Fraud & Forensic Services Virchow, Krause & Company, LLP Mary has delivered another book full of specific suggestions for improving accounts payable processes. Fraud in Accounts Payable is an easy-to-read guide that identifies real-world problems and offers practical solutions. Her books and articles have quickly become some of my core resources. StephanieTrade Review"The author has significant experience in this area and offers compelling best practices to detect and prevent fraud from occurring within your organization. This book goes a long way to get your organization thinking and acting to detect and prevent fraud." (Auditnet.org, October 2008)Table of ContentsPreface xvii Acknowledgments xxiii Part One: Where Accounts Payable Fraud Can Happen in Your Organization 1 1 Profiles of Fraud in the Business World 3 Three Big Myths 4 Fraud Statistics 4 Occupational Fraud: It’s a Big Problem 5 Definitions and Frequency 5 Who Gets Hit the Hardest? 6 How Fraud Is Detected 7 Who Commits Occupational Fraud? 7 To Prosecute or Not 8 Is Fraud an Equal Opportunity Crime? 9 Fraud in the Eyes of the Beholder 9 Effect of Status of Fraudster 10 Big Boss Issue 11 Why Do Insiders Steal? 11 Conditions that Permit Frauds to Occur 12 Why Aren’t More Fraudsters Prosecuted? 13 Fraud in the Real World 13 Concluding Thoughts 14 2 Check Fraud: Still a Huge Problem 17 Internal Controls to Prevent Check Fraud by Insiders 17 Recommended Controls 19 What Else Can You Do? 20 How Bad Is the Check Fraud Problem? 20 What Does the Law Say? 21 Impact on Accounts Payable 22 What Should You Do? 22 Positive Pay and Its Cousins 23 Internal Controls, Segregation of Duties, and Positive Pay Exceptions 25 Internal Controls and Paper Checks 26 What Can Go Wrong 26 Consequences of Poor Internal Check Production Processes 27 The Right Way 27 The Best Way 29 Questions that Reveal Your Internal Check Controls 29 Best Check-Handling Practices between Printing and Mailing 30 Mailing Checks 30 From Printing to Mailing: Do You Know Where Your Checks Are? 31 When the Checks Are Signed and Returned 33 Wire Transfers 34 Rebate and Refund Checks 34 Rush Checks 34 Why Returning Checks to Requisitioners Can Be a Problem 35 How Companies Handle Check Return Requests by Requisitioners 36 Fraud in the Real World 38 Concluding Thoughts 41 3 Check Stock: Stop the Fraudsters’ Presses 43 Security Features in Your Check Stock 43 What Else? 45 Some Check Fraud Security Features 45 A Word about Void Pantographs 49 Void Pantographs and Positive Pay 49 Fraud in the Real World 50 Concluding Thoughts 50 4 P-Card: Not as Big an Issue as You Might Think 51 Printing of the Invoice 51 Start Off on the Right Foot 52 Policy and Procedures Manual 52 Spell Out Consequences 53 Require Documentation 54 Don’t Overlook Receipts 54 Role of a Program Administrator in Fraud Prevention 55 Approvals and Compliance 55 Role of Limits with Respect to Fraud 56 Train, Train, and Then Train Again 56 What About Inappropriate Use? 57 Fraud in the Real World 58 Closing Thoughts 59 5 Electronic Payment Fraud: Not a Growth Industry—Yet! 61 ACH Blocks 61 ACH Filters 62 ACH Positive Pay 63 Payment Account Data: Is It Accurate? 63 Ach Data Accuracy: Real-Life Solutions to a Very Practical Problem 65 CPA’s Perspective 68 Fraud in the Real World 70 Closing Thoughts 70 6 Desktop Fraud: Few Think About This—But Everyone Should 71 Example 71 Overview 72 Issues 73 Recommendation 74 Lovallo’s Guidelines 74 Bringing It All Together 76 Fraud in the Real World 77 Concluding Thoughts 78 7 Travel and Entertainment Fraud: Not All Your Employees Are Honest 79 The Book that Teaches Your Employees How to Steal 80 Danger Signs 80 Other T&E Scams 81 Drawing a Line 82 Latest T&E Issue: Verifying Boarding Passes Printed at Home 82 Solutions to the Boarding Pass Issue 83 T&E Fraud Prevention Best Practices 84 Detecting Expense Reimbursement Fraud 85 Uniform Enforcement of the T&E Policy 86 What to Do When Expense Reimbursement Fraud Is Detected 86 Last-Ditch Collection Efforts 87 Fraud in the Real World 88 Closing Thoughts 90 8 Petty Cash Fraud: Petty Indeed 93 Petty Cash Awful Practices 93 How Much Money Should the Box Have? 94 Petty Cash Box 95 Surprise Audits 96 Where Does Responsibility for the Box Lie? 96 Do We Still Need Petty Cash? 97 Receipt Review 97 Petty Cash versus T&E 98 Fraud in the Real World 98 Concluding Thoughts 99 9 Vendor and Invoice Fraud: Not Every Invoice (Or Vendor!) Is Legit 101 Fraudulent Invoices—or Not 102 Solicitations that Look Like Invoices 102 Other Common Invoice Frauds 103 Fraud and Poor Payment Practices 104 A Word about Collusion 106 Brief Commentary on Purchasing 106 Up-Front Vendor Verification 107 Control Challenge in Real Life 107 Advice from the Better Business Bureau 111 Fraud in the Real World 112 Concluding Thoughts 113 10 Master Vendor File Fraud: How Employees Play Games with Your Records 115 Some Really Bad Master Vendor File Practices 116 Master Vendor File Reports 116 Coding Standards Prevent Fraud 117 Cleansing the Master Vendor File 118 Who Has Responsibility for the Master Vendor File 119 A New System 120 Master Vendor File and Your Employees 121 Fraud in the Real World 121 Closing Thoughts 122 11 Payroll Fraud: Ghostbusting and More 123 Phantom Employees 123 What You Can Do to Detect and Prevent Ghost Employees 124 Falsified Hours and/or Salary 125 What You Can Do to Detect and Prevent Employees from Falsifying Data 126 Commission Schemes 127 False Workers’ Compensation Claims 128 Some Overall Prevention Tactics 129 Fraud in the Real World 130 Concluding Thoughts 131 12 Telecom Fraud: Yes, It Can Happen to You 133 Types of Phone Fraud 133 Nuisance Fraud 134 Examples of Cramming 134 Getting Refunds and Combating Cramming 135 Slamming 136 Phone System and Voice Mail Fraud 137 Social Engineering Fraud 138 Call Forwarding/Conferencing Problems 139 VOIP Fraud 140 Fraud in the Real World 141 Concluding Thoughts 142 Part Two: Strategies to Deter, Prevent, And Detect All Sorts of Accounts Payable Fraud 143 13 Best Practices—Not: Tactics that Unintentionally Promote Fraud 145 Closing Thoughts 147 14 Fraud Monitoring Reports: A Necessary Evil 149 Automated Monitoring 149 How Anyone Can Run Reports 150 A Word about More Sophisticated Monitoring 150 How Much Checking Is Enough? 151 The Big Report Everyone Should Run 152 The Easy Report 152 Other Fraud Detection Reports 153 The ACT List 159 Closing Thoughts 160 15 Fraud Detection and Prevention: Simple Tactics You Can Use 161 2006 Report to the Nation Fraud Detection 161 PricewaterhouseCoopers 2007 Global Economic Crime Survey Fraud Detection 162 Anonymous Hotlines 162 What Companies Can Do to Prevent Fraud 163 Simple Tactics to Make Sure No One Robs the Till on Your Watch 163 Fraud in the Real World 166 Closing Thoughts 167 16 Sarbanes-Oxley 169 Sarbanes-Oxley 169 Overview of the Act 170 Sarbanes-Oxley Survey 170 Impact of the Act on Accounts Payable Operations 171 Outside Influences 172 Functions Improved 172 T&E Reimbursement and Review Processes 173 Internal Audit Reviews 173 Backup for Check Requests 174 Records Retention Policy 174 1099 Reporting 174 Invoices 175 Master Vendor File 176 Other Regulatory Concerns 176 Using the Act to Enforce Needed Change 176 The Act and Its Effects on Private Companies 177 Whistle-Blower Protections 178 The Anonymous Hotline 178 Concluding Thoughts 179 Appendix A: Fraud Schemes: Physical and Virtual Checks 181 Appendix B: 2007 Top Frauds 183 Appendix C: Segregation of Duties 185 Appendix D: The Sarbanes-Oxley Act of 2002 Titles 187 Resources 191 Index 195

Read more less

Book SynopsisA comprehensive look at the tools and techniques used in quantitative equity management Some books attempt to extend portfolio theory, but the real issue today relates to the practical implementation of the theory introduced by Harry Markowitz and others who followed. The purpose of this book is to close the implementation gap by presenting state-of-the art quantitative techniques and strategies for managing equity portfolios. Throughout these pages, Frank Fabozzi, Sergio Focardi, and Petter Kolm address the essential elements of this discipline, including financial model building, financial engineering, static and dynamic factor models, asset allocation, portfolio models, transaction costs, trading strategies, and much more. They also provide ample illustrations and thorough discussions of implementation issues facing those in the investment management business and include the necessary background material in probability, statistics, and econometrics to make the book Table of ContentsPreface xi About the Authors xv Chapter 1 Introduction 1 In Praise of Mathematical Finance 3 Studies of the Use of Quantitative Equity Management 9 Looking Ahead for Quantitative Equity Investing 45 Chapter 2 Financial Econometrics I: Linear Regressions 47 Historical Notes 47 Covariance and Correlation 49 Regressions, Linear Regressions, and Projections 61 Multivariate Regression 76 Quantile Regressions 78 Regression Diagnostic 80 Robust Estimation of Regressions 83 Classification and Regression Trees 96 Summary 99 Chapter 3 Financial Econometrics II: Time Series 101 Stochastic Processes 101 Time Series 102 Stable Vector Autoregressive Processes 110 Integrated and Cointegrated Variables 114 Estimation of Stable Vector Autoregressive (VAR) Models 120 Estimating the Number of Lags 137 Autocorrelation and Distributional Properties of Residuals 139 Stationary Autoregressive Distributed Lag Models 140 Estimation of Nonstationary VAR Models 141 Estimation with Canonical Correlations 151 Estimation with Principal Component Analysis 153 Estimation with the Eigenvalues of the Companion Matrix 154 Nonlinear Models in Finance 155 Causality 156 Summary 157 Chapter 4 Common Pitfalls in Financial Modeling 159 Theory and Engineering 159 Engineering and Theoretical Science 161 Engineering and Product Design in Finance 163 Learning, Theoretical, and Hybrid Approaches to Portfolio Management 164 Sample Biases 165 The Bias in Averages 167 Pitfalls in Choosing from Large Data Sets 170 Time Aggregation of Models and Pitfalls in the Selection of Data Frequency 173 Model Risk and its Mitigation 174 Summary 193 Chapter 5 Factor Models and Their Estimation 195 The Notion of Factors 195 Static Factor Models 196 Factor Analysis and Principal Components Analysis 205 Why Factor Models of Returns 219 Approximate Factor Models of Returns 221 Dynamic Factor Models 222 Summary 239 Chapter 6 Factor-Based Trading Strategies I: Factor Construction and Analysis 243 Factor-Based Trading 245 Developing Factor-Based Trading Strategies 247 Risk to Trading Strategies 249 Desirable Properties of Factors 251 Sources for Factors 251 Building Factors from Company Characteristics 253 Working with Data 253 Analysis of Factor Data 261 Summary 266 Chapter 7 Factor-Based Trading Strategies II: Cross-Sectional Models and Trading Strategies 269 Cross-Sectional Methods for Evaluation of Factor Premiums 270 Factor Models 278 Performance Evaluation of Factors 288 Model Construction Methodologies for a Factor-Based Trading Strategy 295 Backtesting 306 Backtesting Our Factor Trading Strategy 308 Summary 309 Chapter 8 Portfolio Optimization: Basic Theory and Practice 313 Mean-Variance Analysis: Overview 314 Classical Framework for Mean-Variance Optimization 317 Mean-Variance Optimization with a Risk-Free Asset 321 Portfolio Constraints Commonly Used in Practice 327 Estimating the Inputs Used in Mean-Variance Optimization: Expected Return and Risk 333 Portfolio Optimization with Other Risk Measures 342 Summary 357 Chapter 9 Portfolio Optimization: Bayesian Techniques and the Black-Litterman Model 361 Practical Problems Encountered in Mean-Variance Optimization 362 Shrinkage Estimation 369 The Black-Litterman Model 373 Summary 394 Chapter 10 Robust Portfolio Optimization 395 Robust Mean-Variance Formulations 396 Using Robust Mean-Variance Portfolio Optimization in Practice 411 Some Practical Remarks on Robust Portfolio Optimization Models 416 Summary 418 Chapter 11 Transaction Costs and Trade Execution 419 A Taxonomy of Transaction Costs 420 Liquidity and Transaction Costs 427 Market Impact Measurements and Empirical Findings 430 Forecasting and Modeling Market Impact 433 Incorporating Transaction Costs in Asset-Allocation Models 439 Integrated Portfolio Management: Beyond Expected Return and Portfolio Risk 444 Summary 446 Chapter 12 Investment Management and Algorithmic Trading 449 Market Impact and the Order Book 450 Optimal Execution 452 Impact Models 455 Popular Algorithmic Trading Strategies 457 What Is Next? 465 Some Comments about the High-Frequency Arms Race 467 Summary 470 Appendix A Data Descriptions and Factor Definitions 473 The MSCI World Index 473 One-Month LIBOR 482 The Compustat Point-in-Time, IBES Consensus Databases and Factor Definitions 483 Appendix B Summary of Well-Known Factors and Their Underlying Economic Rationale 487 Appendix C Review of Eigenvalues and Eigenvectors 493 The SWEEP Operator 494 Index 497

Read more less

Book SynopsisA declining market is the best market in which to make money. Donald J. Trump With rising foreclosure rates, it''s easy to find discount properties--especially in the abandoned property market. But how do you choose the best ones with the most profit potential? And how do you deal with the complexities and problems associated with abandoned properties? The Abandoned Property Investor''s Kit gives you all the practical, effective tools you need to break into this lucrative real estate niche. Reggie Brooks, the #1 abandoned property specialist in North America, shows you how to find abandoned properties, locate the owners, negotiate a cheap sale, get the financing you need, and turn your investment into big bucks. Brooks also explains the tricky aspects of abandoned property investing and offers proven solutions for dealing with them. Inside, you''ll discover how to: Start investing in your spare time, with little or no money downTable of ContentsChapter 1: How I Got Started Making an Extra $43,000 Investing in Abandoned Properties—And How You Can Too! Investing in Abandoned Properties Is a Public Service to Your Community. Foreclosures Feed the Abandoned Property Market. How I Got Started. The Beauty of Abandoned Property Investing: Very Few Competing Buyers! Chapter 2: Why Every Real Estate Investor Should Do at Least One Abandoned Property Deal. Motivated Sellers. Advantages of Abandoned Property Investing over Other Strategies. Combining Abandoned Properties with Other Techniques. Chapter 3: How to Nail Low- or No-Money-Down Deals. Raise the Price, Lower the Interest Rate. Government Programs. How to Research Grants in Your Area. Available Loan Programs. Chapter 4: Find Abandoned Properties Fast. Target Your Search. Spread the Word. Join the Club. Other Commonsense Strategies. Stick with a System. Chapter 5: Track Down the Owner. Ask the Neighbors. The Tax Advantage. Other Public Records. Simplicity Itself. Chapter 6: Negotiating: Understand What Owners Want. Key Principles. Emotions in Negotiation. Preparing to Negotiate. Striving for a Win-Win. Establishing Rapport. What Does the Seller Need? Chapter 7: Want an Option? Be Convincing. A Sample Option Purchase. Purchase Agreement and Receipt for Deposit. Another Great Option Story. Selling an Option. Other Option Techniques. Chapter 8: Creative Financing Techniques. The Wraparound Mortgage. The Subject-To Deal. The Contract for Deed. Other Creative Strategies. Chapter 9: Turning the Corner and Heading Down the Home Stretch to the Abandoned Properties Winner’s Circle. Determining the Value of a Property. Making an Offer. A Standard Real Estate Purchase Contract. The Purchase Contract Explained. Chapter 10: Rehabbing Abandoned Properties: Creating Curb Appeal and Homes in Demand for Maximum Profit. Preparation and Inspection. Renovating for Rental. Renovating for Resale. A Shopping Trip. Chapter 11: An Abandoned Property Deal from A to Z. Schedule Reggie Brooks to Speak at Your Event. Special Bonus: How to Create Massive Wealth in Real Estate. Here’s How to Get Your Free Wealth-Building Bonus . . . . Who Is Reggie Brooks? Index.

Read more less

Book SynopsisAn updated look at the theory and practice of financial analysis and modeling Financial Analysis and Modeling Using Excel and VBA, Second Edition presents a comprehensive approach to analyzing financial problems and developing simple to sophisticated financial models in all major areas of finance using Excel 2007 and VBA (as well as earlier versions of both). This expanded and fully updated guide reviews all the necessary financial theory and concepts, and walks you through a wide range of real-world financial problems and models that you can learn from, use for practice, and easily adapt for work and classroom use. A companion website includes several useful modeling tools and fully working versions of all the models discussed in the book. Teaches financial analysis and modeling and illustrates advanced features of Excel and VBA, using a learn-by-doing approach Contains detailed coverage of the powerful features of Excel 2007 essential for financTable of ContentsAbout This Book xix CHAPTER 1 Introduction to Financial Analysis and Modeling 1 Steps in Creating a Model 5 How This Book Is Organized 9 Part One Excel for Financial Analysis and Modeling CHAPTER 2 Excel 2007 and the Previous Versions 15 The New Features in Excel 2007 15 The New User Interface 16 Other New Features 19 New File Formats in Excel 2007 23 CHAPTER 3 Excel Basics 25 Improving Your Excel Skills 26 The Basic Excel Features 32 Naming Workbooks and Worksheets 33 Finding the Commands You Need 33 Working with Worksheets 33 Working with Rows, Columns, and Cells 34 Using the Toolbars 34 Using Keyboard Shortcuts 34 Navigating the Worksheet 36 Formatting 36 Entering and Working with Formulas 37 Using Paste Special 37 Controlling the Worksheet View 38 Using Undo and Redo 38 Customizing the Excel Work Environment 38 Controlling When Formulas Are Calculated 39 Printing 39 Creating Charts 40 Working with More Than One Workbook 40 Using the Scroll Lock 41 CHAPTER 4 Advanced Excel Features 43 Copying Formulas Using Absolute and Relative Cell References 46 Using Names in Formulas 56 A1 and R1C1 Reference Styles 57 Using Comments in Cells 58 Data Validation 60 Controls 62 Custom Number Formats 65 Hiding and Protecting 67 Custom Views 71 Arrays and Array Formulas 72 Outline 75 CHAPTER 5 Making Decisions and Looking Up Values 77 Making Decisions 78 Looking Up Values 97 Conditional Formatting 103 CHAPTER 6 Analyzing Databases 109 Sorting 112 Filtering 120 Tables 124 PivotTable 135 CHAPTER 7 Answering What-If Questions 161 Data Tables 162 Scenario Manager 166 CHAPTER 8 Finding Iterative Solutions 171 Circular Reference 171 Goal Seek 174 Solver 177 CHAPTER 9 Doing Statistical Analysis 185 Descriptive Statistics 187 Frequency Distributions and Histograms 192 Counting, Ranking, and Calculating Quantiles 195 Normal Probability Distributions 203 Random Numbers 207 Statistical Tests 218 CHAPTER 10 Using the Financial Functions 221 Annuity Functions 221 Investment Analysis Functions 228 Bond Functions 232 Depreciation Functions 237 CHAPTER 11 Other Useful Excel Functions 243 Mathematical Functions 243 Date and Time Functions 248 Text Functions 251 Information Functions 254 Part Two Financial Modeling Using Excel CHAPTER 12 Building Good Excel Models and Debugging Them 257 Attributes of Good Excel Models 257 Documenting Excel Models 260 Debugging Excel Models 262 Using Formula Auditing Tools for Debugging 265 Learning Modeling Using Excel 267 CHAPTER 13 Financial Statements Forecasting 271 Review of Theory and Concepts 271 Modeling Examples 281 CHAPTER 14 Time Value of Money 327 Review of Theory and Concepts 327 Modeling Examples 341 CHAPTER 15 Financial Planning and Investments 365 Review of Theory and Concepts 365 Some Basic Issues 365 Saving and Investing for Retirement 368 Structuring Portfolios 371 Modeling Examples 372 Model 1: Return with Changing Reinvestment Rates 372 Model 2: Saving for Retirement 376 Model 3: Retirement Planning in Real Dollars 379 Model 4: Retirement Planning in Nominal Dollars 380 Model 5: Portfolio Structuring 385 CHAPTER 16 Analyzing Market History 389 Review of Theory and Concepts 389 Modeling Examples 394 CHAPTER 17 Bond Pricing and Duration 409 Review of Theory and Concepts 409 Modeling Examples 416 CHAPTER 18 Simulating Stock Prices 427 Review of Theory and Concepts 427 Modeling Examples 438 CHAPTER 19 Options and Option Portfolios 449 Review of Theory and Concepts 449 Modeling Examples 460 CHAPTER 20 Binomial Option Pricing 487 Review of Theory and Concepts 487 Modeling Examples 491 Model 1: European Options on Stocks with Known Dividend Yield 491 Model 2: American Options on Stocks Paying No Dividend 495 Model 3: American Options on Stocks with Known Dividend Yields 498 Model 4: American Options on Stocks with Known Dollar Dividends 500 Part Three VBA for Financial Modeling CHAPTER 21 Introduction to VBA 505 Example of a VBA Model 510 Recording Macros 520 Using VBA’s Help 524 The Strategy to Learn VBA Efficiently 526 CHAPTER 22 VBA Essentials 529 The Visual Basic Editor 530 Some Basics 535 Variables, Constants, and Arrays 545 Objects, Properties, and Methods 557 Branching 561 Looping 567 Using Built-In Functions 574 CHAPTER 23 Sub and Function Procedures 577 Sub Procedures 577 Function Procedures 582 CHAPTER 24 Debugging VBA Codes 589 The Four Basic Types of Bugs 590 The VBA Debugging Tools 591 Part Four Financial Modeling Using VBA CHAPTER 25 How to Build Good VBA Models 597 Attributes of Good VBA Models 597 Documenting VBA Models 601 Learning Modeling Using VBA 603 CHAPTER 26 Time Value of Money 607 Review of Theory and Concepts 607 Modeling Examples 611 CHAPTER 27 Financial Planning and Investments 663 Modeling Examples 663 CHAPTER 28 Analyzing Market History 691 Modeling Examples 691 CHAPTER 29 Simulating Stock Prices 717 Modeling Examples 717 CHAPTER 30 Options and Option Portfolios 725 Modeling Examples 725 CHAPTER 31 Binomial Option Pricing 741 Modeling Examples 741 APPENDIX A Keyboard Shortcuts for Excel 755 APPENDIX B VBA Quick Reference 757 APPENDIX C Excel and VBA Built-In Functions 759 About the CD-ROM 777 Index 781

Read more less

Book SynopsisSolving the world''s water problems is proving to be one of the greatest investment opportunities of our time. Already, world water supplies are inadequate to meet demand, and the problem is going to get much worse in the years ahead. The World Bank estimates that 1.1 billion people lack access to safe drinking water and about 50 percent of the world''s hospital beds are populated by people who have contracted water-borne diseases. If present consumption rates continue, in 25 years the world will be using 90 percent of all available freshwater. To address the problem, trillions of dollars will need to be invested in water infrastructure projects. And while the problems are most acute in developing and rapidly growing economies, there are huge water infrastructure needs in industrialized countries, as well. In the U.S. alone, it''s estimated that more than $1 trillion will be needed for water and wastewater infrastructure projects. In Planet Water, water investment expert Steven HoffmanTrade ReviewNamed a top investment book of the year by the Stock Trader’s Almanac 2010. “The book. . . might well guide some very satisfactory investments. . . Mr. Hoffmann does an able job of laying out the basics of water scarcity and delivery, and he presents a persuasive case for water's looming importance, rivaling oil as the most important commodity this century. . . A strong current of the investing advice in "Planet Water" is Mr. Hoffmann's contention that water utilities will move toward privatization and away from government management. Private management will make companies concentrate on core competencies to keep efficiencies high; those companies are the ones for investors to pursue.”--Wall Street Journal, 5/27/2009Table of ContentsPart I. Water. Chapter 1. Water: Prerequisite for Life, and Living. Prerequisite for Life. Prerequisite for Living. Chapter 2. The Global Water Condition. The Human Cost of Waterborne Disease. Supply and Demand. Regional Fundamentals. Water Institutions. Overview of Water Reguation in the United States. Global Water Regulations. Non-Governmental Organizations. The Institutional Impact on Water Investing. The Role of Water in Economic Growth. Chapter 3. Public Good, Commodity or Resource? What Is Water? Water as a Public (Social) Good. Water as a Commodity. The Answer: Water as a Resource. Chapter 4. The Cost of Clean Water. How Big Is the Universe? The Global Cost of Clean Water. From the Whole to the Parts. The Transition from Cost to Price. Part II. Investing in Water. Chapter 5. The Business of Water. Water versus Wastewater. Functional Categories. Water-Related Applications. Drivers of the Water Industry. Chapter 6. Water Utilities. A Brief History. Regulatory Providers Face Regulatory Burdens. Non-Regulated Activities. The Future of Water Utilities. Foreign Water Utilities. Conclusions. Chapter 7. Centralized Water and Wastewater Treatment. The Basics. Centralized Treatment. Treatment Chemicals. Mixed Oxidants. Carbon. Resins: Ion Exchange. Chapter 8. Decentralized Water and Wastewater Treatment. Decentralized Treatment. The Roots of Decentralized Treatment. Water Softeners and Salinity. Groundwater Treatment. Membrane Bioreactors: The Future of Decentralized Treatment. Chapter 9. Water Infrastructure. The Distribution System. Stormwater Infrastructure. Investment Components. Pipeline Rehabilitation. Flow Control and Pumps. Chapter 10. Water Analytics. Metering. Monitoring, Measuring, and Testing Asset Management Chapter 11. Water Resource Management. Water Resource Management Defined. The Principle of Sustainability. Remediation. Water Supply: Reservoirs and Dams. Irrigation. Chapter 12. Desalination. The Promise of Desalination. The Process of Desalination. Part III. Water Beyond the 21st Century. Chapter 13. Emerging Issues. Unregulated Contaminants. Biosolids Management: There's Money in Sludge. Biotechnology. Regulation. Regulating Nonpoint Sources of Water Contamination. Water Reuse. Water Conservation. Nanotechnology. Algal Toxins. Measuring Chlorophyll-a. Pharmaceuticals and Personal Care Products. Chapter 14. Water As An Asset Class. Is Water an Asset Class? What Is An Asset Class? Chapter 15. Climate Change and the Hydrologic (Re)Cycle. Planning for Uncertainty. Impacts on Water Quality. Occurrence of Drought. Investing in Drought. Chapter 16. Conclusion. The Windfall Profits Tax…On Water. The Age of Ecology, Again. Is Water The Next Oil? Appendix A. Water Contaminants. Microbial Contaminant Candidates. Chemical Contaminant Candidates or CCL3 Candidates. Appendix B. Acronyms. Appendix C. Conversions. Notes. About the Author. Index.

Read more less

Book SynopsisThis one-of-a-kind collection consists of actual cases written by fraud examiners out in the field. These cases were hand selected from hundreds of submissions and together form a comprehensive picture of the many types of computer fraud how they are investigated, across industries and throughout the world. Topics included are email fraud, on-line auction fraud, security breaches, counterfeiting, and others.Table of ContentsPreface. Chapter 1. Just What the Doctor Ordered (George Kyrilis). Chapter 2. Of Botnets and Bagels: Vaccinating the Hospital against Cybercrime (Frank Riccardi and Jennifer Campbell). Chapter 3. Pandora's Box (Dr. Vishnu Kanhere). Chapter 4. Mail Order Fraud (Robin Conrad). Chapter 5. Lancelot Gone Missing (Carolyn Conn, Paul Price, and Karon Murff). Chapter 6. The Invoice Doctor (Bill Long). Chapter 7. Unimaginable Wealth (Sandra Burris). Chapter 8. Hacked (Jon Lambiras). Chapter 9. Bad Education (Russ Allen). Chapter 10. If Only His Nose Could Grow (Barry Davidow). Chapter 11. Keeping Up with the Jamesons (Mike Andrews). Chapter 12. Imaginary Satellites (George Kyriakodis). Chapter 13. Never Pass Your Password (James Martin and Harry Cendrowski). Chapter 14. Why Computers and Meth Don't Mix (Stephen R. Menge). Chapter 15. Fishing in Dangerous Waters (Joe Dervaes). Chapter 16. The Man Who Told on Himself (Alan Greggo). Chapter 17. Triple Threat (Jean-Francois Legault). Chapter 18. Swiped (Peter Belloli). Chapter 19. Have Computer, Will Video (Dominic A. D'Orazio). Chapter 20. Server, We Have a Problem (Marty Musters). Chapter 21. Do It for the Kids (Michael Ammermon). Chapter 22. Moving Money (Neil Harrison). Chapter 23. Operation Overnight Identity Theft (Bruno Pavlicek). Chapter 24. The Karma of Fraud (David Clements and Michael Cerny). Chapter 25. Secret Shopper (Jay Dawdy). Chapter 26. Would You Like a Receipt? (Shirley Quintana). Chapter 27.The Coupon Code Crooks (Danny Miller, Michael Rose, and Conor Donnelly). Chapter 28. He Fought the Law (Clifford Hunter). Chapter 29. Eyes on the Company Secrets (Tyson Johnson). Chapter 30. French Connections (Michael Nott). Chapter 31. Irreconcilable Differences (Jennifer Birtz). Chapter 32. Keeping It In the Family (Eric Sumners). Chapter 33. I Due (Rebecca Busch). Chapter 34. What Lies Inside the Trojan Horse (Johnathan Tal). Chapter 35. Lost in Transition (Amy Cron). Chapter 36. Super Hero Syndrome (Hatitye Zhakata). Chapter 37. Stealing for the Sale (William J. Pederson, Timothy M. Strickler). Chapter 38. Double Trouble (Stephen P. Weber). Chapter 39. Do As I Say, Not as I Do (Richard Woodford). Chapter 40. Cinderella: One Glass Slipper Just Wasn't Enough (Antonio Ivan S. Aguirre). Chapter 41. Bloggers: Separating the Wheat from the Chaff (Steven Solieri, Joan Hodowanitz, and Andrew Felo). Chapter 42. The Campus Con (Kevin Sisemore). Chapter 43. One for You, One for Me: A Tale of Crooked Insurance (Steve Martin).

Read more less

Book SynopsisA timely guide for financial professionals looking to tap into the lucrative world of the ultra-affluent The ultra affluentdefined here as those having $50 million or more in liquid assetsare an elite class who expect their financial advisors to not only preserve and grow their assets, but also help them with soft issues such as philanthropy and family governance. One of the biggest factors to success in this field is the relationship between the client and the advisor. In Advising Ultra-Affluent Clients and Family Offices, author and practicing investment consultant Michael Pompian provides a practical introduction to who the ultra-affluent actually are and reveals what it takes to build and maintain a solid relationship with them. Filled with in-depth insights and expert advice, this unique resource offers valuable information on issues that every advisor to the ultra-affluent must be familiar with.Table of ContentsForeword xiii Preface xv Acknowledgments xvii Part One Introduction to Advising Ultra-Affluent Clients and Family Offices 1 Chapter 1 Who Are the Ultra-Affluent? 3 Defining the Ultra-Affluent 5 Quantifying Ultra-Affluence Among Total Global Wealth 10 Looking to the Future 11 A World of Opportunities for Advisers 17 Chapter 2 Understanding the Mindset of the Ultra-Affluent Client 19 Why Advising the Ultra-Affluent is Different 20 What Ultra-Affluent Clients Value in an Adviser 23 Building Relationships by Asking Questions and Listening to the Answers 29 Matching Client with Adviser 32 Consultant Questionnaire 33 Conclusion 37 Chapter 3 Wealth Attitudes, Aspirations, and Investor Behavior of Ultra-Affluent Clients 39 Family Aspirations 40 Wealth Attitudes of Ultra-Affluent Clients 42 Where Psychology Meets Finance 47 Investor Biases 48 Conclusion 60 Chapter 4 Noninvestment Best Practices 61 The Challenges Associated with Wealth 61 Guidelines for Sustaining Multigenerational Wealth 63 Conclusion 71 Part Two Investment Strategies for Ultra-Affluent Clients and Family Offices 73 Chapter 5 Practices of the Best Investment Organizations 75 Differences between Endowments and Private Investors 76 Investment Committees 77 Investment Policy Statements 82 Key Considerations for Portfolio Oversight 88 Conclusion 93 Chapter 6 Asset Allocation Considerations for Ultra-Affluent Clients and Family Offices 95 What Is Asset Allocation? 96 The Importance of Assumptions in the Asset Allocation Selection Process 97 The Importance of Asset Allocation 99 Considerations in Asset Allocation for Individual Investors 100 Chapter 7 Domestic and International Equity 111 Introduction to U.S. and International Equity Securities 112 The Five-Step Equity Strategy Process 115 Chapter 8 Domestic and International Bonds 135 Introduction to Bonds 137 Descriptions of Bond Asset Classes 141 Chapter 9 Private Equity 159 What Is Private Equity and How Does It Work? 162 Three Primary Types of Private Equity Investments 166 Creating a Customized Private Equity Program 172 Chapter 10 Hedge Funds 179 What Is a Hedge Fund? 180 Hedge Fund Investing by UACs and Family Offices 185 A History of Hedge Funds 187 The Legal Environment of Hedge Funds 189 Hedge Fund Strategies 191 Manager Selection 202 Chapter 11 Real Assets 203 The Portfolio Benefits of Real Assets 204 Real Estate: A Long-Term Inflation Hedge 205 Natural Resources 210 Part Three Multigenerational Considerations for Ultra-Affluent Clients and Family Offices 223 Chapter 12 Selecting an Adviser 225 Trust: The Key Ingredient 226 How UACs Select an Adviser 228 Questions for Prospective Advisers 234 Conclusion 237 Chapter 13 Selecting a Custodian and Investment Vehicle Structure 239 Custodial Services 239 Investment Vehicle Structure 250 Conclusion 257 Chapter 14 Considerations for Creating a Family Office 259 What is a Family Office? 261 Challenges of Wealth 262 Practical Reasons to Create a Family Office 264 Challenges of Running a Family Office 265 Services Provided by a Family Office 267 Administrative Considerations for Establishing a Family Office 268 Considerations for Establishing a Private Trust Company 274 Conclusion 277 Chapter 15 Wealth Transfer Planning 279 Estate Planning Basics 282 Conclusion 295 Part Four Special Topics for Ultra-Affluent Clients and Family Offices 297 Chapter 16 Concentrated Equity Risk Management 299 What Constitutes a Concentrated Equity Position? 300 Concentrated Stock Risk Minimization Strategies 304 Conclusion 315 Chapter 17 Family Governance 317 Generational Division 318 Family Governance: An Essential Part of Successful Wealth Transfer 319 The Incredible Family 320 Policies 326 Stages of Development 327 Conclusion 328 Chapter 18 Risk Management and Asset Protection 331 Family Office Risk Management 332 Individual Family Member Risk Management 337 Legal Asset Protection 341 Conclusion 344 Chapter 19 Philanthropy 345 Philanthropic Strategy Development through Asking Questions 347 Mission Statement 348 Implementation of Philanthropic Strategy 349 Philanthropic Investing 352 Best Practices of Giving Large Gifts to Colleges and Universities 355 Appendix: The Next Generation: Redefining the Philanthropic Landscape 358 Chapter 20 Multigenerational Asset Allocation Strategies 367 Different Asset Allocations for Different Generations 369 Single Allocation for an Entire Family 370 Customized Asset Allocation by Generation or Family Unit 371 Asset Allocation Targeting 374 The Behavioral Finance Approach to Asset Allocation 374 Conclusion 375 Notes 377 Index 387

Read more less

Book SynopsisDivided into three comprehensive parts, Trade to Win explains the fundamental elements of author Thomas Busby''s proven trading approachwhich deals with the significance and use of time, key numbers, and market indicators. Along the way, you''ll find strategies for trading stocks, options, futures, and other financial products, and go beyond the numbers to learn about a few of the often overlooked aspects of tradingincluding risk management, money management, and the impact of emotions on your trading.Table of ContentsForeword. Preface. Acknowledgments. PART ONE A Foundation for Success. CHAPTER 1 The Trader’s Edge. The Road to Vegas. Becoming a Trader. The Aftermath of Black Monday. Revolutions in Technology and Communication. The Dark Ages: Circa 1986. New Games, New Toys. Bet on Yourself. The Challenge for Traders. Review. CHAPTER 2 Time Is Money. Time and Its Importance. Maggie and Me. Trading Patterns Are Timely. Time to Stay Out. Special Times to Watch. Know When to Cash Out. Review. CHAPTER 3 Opening the Vault with Key Numbers. Stocks and Key Numbers. Key Numbers in Metals, Fuels, and Commodities. Gold Numbers. Key Numbers in the Equity Index Futures. Connecting the Dots. “T” Square. Review. CHAPTER 4 Commonsense Market Indicators. Tracking the Seven Sisters. The NYSE and Nasdaq Issues. The NYSE Tick. The TRIN. The V-Factor and the TTICK. Review. CHAPTER 5 The Art of Trading. Time. Key Numbers. Market Indicators. The Fourth Element. Review. PART TWO Strategies to Win. CHAPTER 6 The Path of Least Resistance. The Face Peel. Off to the Races. The Fast Dance. The Squeaky Wheel. Review. CHAPTER 7 News Pays. Never Predict the Market. Strategies for Early News. A 9:00 News Strategy. Earnings Season and How to Use It. Caution. Breaking News. Review. CHAPTER 8 Making Money with Bernanke. The Corvette Trade. The Model “T”. Review. CHAPTER 9 Dancing with the Dax. The Early Riser. The Basketball Trade. Review. CHAPTER 10 Money Never Sleeps. The Follow-Through. Trading When the Sun Rises. Trading After-Hours News. Holiday Trading. After Hours—A New Frontier. Characteristics of Night Markets. Review. CHAPTER 11 Cashing in on Bonds. Review. CHAPTER 12 Options Strategies to Make Money. Options Logic and Risk. Options Strategies. Probing. Review. CHAPTER 13 Reaping Profits on the Farm. The Morning Face Peel. Review. CHAPTER 14 Going for the Gold. Review. CHAPTER 15 Stocks and ETFs. The Wave of the Future—ETFs. Review. PART THREE The Wild Cards. CHAPTER 16 Beyond the Numbers. Winners Trade the Numbers. Be Disciplined. Kiss Your Ego Goodbye. Be Persistent. Patience Pays. Believe in Yourself. Review. CHAPTER 17 Risk Management. Three Strikes and You Are Out. Limit Risk. Use the Two-Minute Rule. Use Stop/Loss Orders. Have an Exit Strategy. Manage Every Trade. Phasing Into and Out of Positions. Diversify. Review. CHAPTER 18 Psychology and Discipline: The Winner’s Edge. The Psychology of Winning. Gaining Balance. Review. CHAPTER 19 The Last Word. Resources. About the Authors. Index.

Read more less

Book Synopsis20/20 Money: See the Markets Clearly and Invest Better Than the Pros To be a more successful investor, you need to see the investment landscape more clearly. 20/20 Moneyfrom Fisher Investments Presscan help you achieve this goal. Designed to help you think differently about your investing choices, this reliable resource addresses new ideas and challenges widely held conventions. With 20/20 Money as your guide, you''ll quickly learn how gaining a firm understanding of various conceptsfrom stock market and systems theory to neuroscience and psychologycan help you begin making better investment decisions. Along the way, you''ll also discover some of the most successful strategies for thinking and learning, and how they can be applied to your investing endeavors. To become a better investor, you have to have the discipline to make tough choiceschoices that may not always be in line with tradition or commonly accepted invested wisdom. But the approach Table of ContentsAcknowledgments xi Introduction xiii Chapter 1 Investing Is a Science 1 Apollo's Arrow Shot Crooked 2 Dionysus—More Than Just a Good Vintner 3 Use the Method, Not the Dogma 5 Careful with Categories 13 Could Math Be Wrong? 15 Reduction: Why You Can't Quantify Everything 19 Chapter 2 Investing Is a Discipline 27 Discipline, Discipline, Discipline 29 Sagacity: Seeing Isn't Believing 41 Understanding and Being Curious 48 Chapter 3 Human Behavior 51 Brain Basics 53 Brains on the Market 64 My, What a Terrible Memory You Have! 71 Bad Behavioral Finance 76 Behavioral Miscellany 79 Chapter 4 Sentiment and the Media 83 Sentiment Basics 85 News and the Media 90 What's Their Motive? 98 Tips and Tricks to Navigate the Media 100 Metaphors We Invest by 106 Chapter 5 How Stock Markets Really Work 113 Capitalism by Any Other Name 114 It's Complicated . . . A Crash Course in CEAS 118 The New Golden Rule 130 Oldest and Still the Best: Supply and Demand 139 Chapter 6 Forecasting, Part 1—The Principle of Probability 147 Forecasting Is Strange Alchemy 148 Types of Predictions 150 Probability Theory, or How Markets Are Nothing Like Coin Tosses 154 The Biggest Problem of Them All 163 Investing Lessons from Probability 165 Looking Ahead . . . 170 Chapter 7 Forecasting, Part 2 —Recognizing Patterns 173 A Pattern by Any Other Name 174 Stock Market Patterns 175 Patterns Through the Noise 179 It's a Game of Relative Expectations 181 Back to the Future: Using History to Find Patterns 187 Three Big Drivers 191 An Optimistic Note on Future Patterns 195 Chapter 8 Practical Portfolio Management 197 The Virtues of Heuristics 198 Goal Setting 199 Personal Goals 201 Portfolio Goals 205 The Top-Down Philosophy 210 Miscellaneous Heuristics 223 Chapter 9 The Nature of Risk and Navigating Markets in Troubled Times 229 Risk and Uncertainty 231 Financial Risk, or What Happens When You Assume 233 In Troubled Times 239 Parting Thoughts 253 Notes 255 Selected Bibliography and Further Reading 259 About the Author 269 Index 271

Read more less

Book SynopsisDrawing on her many years as a consultant to numerous companies big and small, author Rose Hightower infuses Internal Controls Policies and Procedures with her wealth of experience and knowledge. Instead of reinventing the wheel, your company can use this useful how-to manual to quickly and effectively put a successful program of internal controls in place. Complete with flowcharts and checklists, this essential desktop reference is a best practices model for establishing and enhancing your organization''s control framework.These manuals are favorites for organizations and companies that need a foundation and grounding to ensure an internal control posture of integrity, credibility, method, process and process: or a reminder of its importance. URLs were included when first published to encourage the dissemination and distribution of relevant chapters to those interested and in charge of the specific departments. Although times have changed, the princTable of ContentsHow to Use this Manual xi Preface xiii Governance Journey 1 A01 Big G to little g governance journey 3 Appendix: Background for COSO, SOX, PCAOB 7 A02 Risk Assessment 10 A03 Oversight 16 A04 Documentation 20 Internal Control Program 25 B01 Internal Control Program 27 B02 Internal Control Process 37 B02a Internal Control Policy and Procedure 52 B02b Internal Control Program Charter 55 B02c Internal Control Plan 57 B03 Authorization and Approval Program 69 B03a Delegation of Authority 73 B03b Authorization – Delegation, SubDelegation of Authority 79 B03c Responsibility, Authority, Support, Counsel, and Inform (RASCI) 83 B04 Information Technology Program 87 B04a End–User Computing—Control of Spreadsheets Policy and Procedure 95 B05 Account Reconciliation Program 97 B05a Account Reconciliation 101 B06 Quarterly Subcertification Program 105 B06a Quarterly Subcertification 120 B06b Quarterly Subcertification – Matrix 122 B06c Quarterly Financial Subcertification Training For First-Time Subcertifiers 124 Control Activity Program Testing Guides 133 C01 Control Activity Program 135 C01a Control Activities Template 147 C01b Result of Control Activity Testing 148 C01c Internal Control – Planning, Testing, and Remediation Worksheet 149 C01d Reporting Scorecard 151 C02 AP – Disbursements 153 C02a AR – Allowance for Doubtful Accounts 158 C02b AR – Cash Applications 162 C02c AR – Collections 166 C02d AR – Credit Administration 169 C02e Cash and Marketable Securities 172 C02f Financial Planning and Analysis 176 C02g Fixed Assets, Long Lived Assets 179 C02h Intercompany Transactions – Cross Charges 183 C02i Raw Materials and Inventory 187 C02j Journal Entries 194 C02k Payroll 197 C02l Procurement 201 C02m Revenue Recognition 205 C02n Retail Sales Orders to Business Partners 209 C02o Income Tax 213 Appendix Internal Control Planning, Testing and Remediation Worksheets 217 Acronyms 263 References 265 Index 267

Read more less

Book SynopsisIn many ways, Bernstein's A Primer on Money, Banking, and Gold can be seen as one long preface to his bestselling The Power of Gold. In A Primer on Money, Banking, and Gold , Bernstein discusses the link that still exists between our money and gold and why.Trade Review"This book reveals and discusses the link that still exists between money and gold." (Finance & Management Faculty, October, 2008)Table of ContentsForeword by Paul A. Volcker ix New Introduction xv Original Introduction xxv Part One The Money Problem Chapter 1 Why Worry about Money and Gold? 3 Chapter 2 Spending and Financing 8 Chapter 3 The Price of Money 16 Part Two The Creation of Money Chapter 4 Money in Hand and Money in the Bank 29 Chapter 5 The Business of Banking 39 Chapter 6 Bank Credit and Money 49 Part Three The Control of Money Chapter 7 The Federal Reserve System 69 Chapter 8 Federal Reserve Tools of Control 84 Chapter 9 Reserve Requirements 105 Chapter 10 Currency: A Complication 120 Part Four Gold Chapter 11 Gold at Home 133 Chapter 12 Gold Abroad 142 Part Five Theory in Practice Chapter 13 The Experience of 1938 to 1945 163 Chapter 14 The Experience of 1945 to 1963 176 Chapter 15 The Experience of 1966 188 Conclusion Money and Gold in the Future 203 Appendix Reading the Weekly Federal Reserve Statement 215 Bibliography 227 Acknowledgments 231 Index 233

Read more less

Book SynopsisAn updated and revised look at the truth behind America's housing and mortgage bubbles In the summer of 2007, the subprime empire that Wall Street had built all came crashing down.Trade Review"Chain of Blame is one of the first books to delve deeply into the central role that big banks played in the mess…for a juicy, name-dropping read, Muolo and Padilla’s book is hard to beat."--BusinessWeek "Muolo and Padilla examine just who was to blame for the crisis and find that it is not just cowboy operators." (CEO Middle East, September 2008) “…a level-headed book…the anecdotal style is easy-going...much the best book on the mortgage industry”. Fund Strategy 1 September 2008 “…a ripping piece of reporting… The authors know their stuff.”Bloomberg News Monday 28 July 2008Table of ContentsIntroduction: Financial Ashes vii Cast of Characters xiii Chapter 1 Angelo Speaks, the Worldwide Contagion Begins 1 Chapter 2 The Repo Man Meets the Bald Granny: A Short History of Subprime 23 Chapter 3 The Death of the Bailey Building and Loan, the Rise of Millionaire Loan Brokers and Countrywide 47 Chapter 4 The Beach Boys of B&C: How Roland Arnall Became the Johnny Appleseed of Subprime 73 Chapter 5 Angelo Rising: The Son of a Bronx Butcher Makes Good 103 Chapter 6 The Holy Roller of REITs 127 Chapter 7 The End of the (New) Century 149 Chapter 8 A Conspiracy by Merrill? 179 Chapter 9 A Warning from Lewie: CDOs, SIVs, and Other Things No One Understands 205 Chapter 10 Deep in the Belly of the Bear 227 Chapter 11 Armageddon Times: The Tan Man Departs, Bye-Bye Bear 249 Chapter 12 What the Hell Happened? Ten Bad Years for Housing in America 277 Chapter 13 TARP, the Great Recession, and the Return of Stan Kurland 309 Afterword TBTF: A Mortgage Cartel Rises from the Ashes 335 Source and Interview Notes 341 Glossary 351 Acknowledgments 359 About the Authors 361 Index 363

Read more less

Book SynopsisPraise for SMALL STOCKS for BIG PROFITS George has done it again with Small Stocks for Big Profits. His in-depth experience is invaluable in helping traders explore stocks that are $5 or less, without getting caught up in the fly-by-night idea companies that plague this investment level. He shows you where to look for opportunity and more importantly how to lock in profits in this little understood investment arena. Impressive! Noble DraKoln, author of Winning the Trading Game In Small Stocks for Big Profits, George Angell outlines an effective strategy for finding up-and-coming companies with the potential of earning you incredible returns. Filled with in-depth insights and practical advice, this reliable resource shows you how using a combination of technical and fundamental analysis-along with other essential tools-can put you in a position to profit from the explosive growth of smaller companies with undervalued, low-priced stocks. Page Table of ContentsPreface. Chapter 1: Making Money in Small-Caps. Small-Caps: The Next Bull Market. Separating the Wheat from the Chaff. Hidden Value: The Small Stock's Secret Weapon. The Value Investor. Timing. Small Stocks, Big Profits. Paying Pennies, Selling for Dollars. Every Stock Has its Story. Chapter 2: Getting Started in Technical Analysis. The Conventional Wisdom. What Is Technical Analysis? Where to Begin? Support and Resistance. Charts and Trendlines. Breakouts. Managing the Breakout Trade. Continuation and Reversal Patterns. The Most Reliable Chart Patterns. The Real Value of Technical Analysis. Time and Price. Momentum. A Word about Short Sellers and How They Impact a Stock's Price. Chapter 3: Profitable Strategies. Identify Support. The Rule of Three. The Momentum Play. Contrary Opinion. Identify the Correct Phase of the Trend. A Personal Observation. Finding Gold Amid the Dross. The Bottom Reversal. Aggressive Buying. When to Cut and Run. Stocks That Trend Well. . . . . .And Those That Don't. The Rebound Theory. Timing the Rebound. When is a Stock Ready to Buy? How to Identify the Low-risk Buy. Chapter 4: Timing. Seasonality. How to Use the Bullish Consensus with Seasonal Patterns. How to Construct an Oscillator. Momentum Analysis. Trading Filters. Stops. Moving Averages. Market Timing: Pro and Con. Chapter 5: IPOs. The Basics. The Public Offering Process. How to Read a Prospectus. The Cooling-Off Period and Road Show. What Happens Next. Chapter 6: Insider Buying. Who is an Insider? How to Track Them. Small Stocks Have the Edge. Chapter 7: The Selection Process. Asset Plays and Concept Stocks. Guidelines. Nuts and Bolts. Money Management. Revenues and Earnings. Cash Flow. Price-to-Sales. Balance Sheet Basics. Understanding Return on Investment (ROI). Debt. Chapter 8: Options. The Basics. The Terms of an Option. Getting Started in Options Trading. How to Use Option Volume to Pinpoint Moves. The Rules. Chapter 9: Your Roadmap for Success Tomorrow. Buy When Stocks are Low-Priced and Depressed. Identify First Leg and Countermove. The Worst Performing Issues. Always Buy at Support. Price Capitulation. Developing a Winning Mind-Set. An Investor's Checklist. The Look Ahead. About the Author. Index.

Read more less

Book SynopsisIn When Giants Fall, author Michael Panzner puts the coming age of post-American dominance in perspective, and addresses both the far-reaching effects it will have on our lives, as well as the vast economic opportunities that will arise from it.Table of ContentsPreface ix Acknowledgments xiii Introduction xv Part I: Fault Lines of a Fading Empire 1 Chapter 1: Descent into Disorder 3 Chapter 2: Tides, Torrents, and Tsunamis 23 Chapter 3: A Future of Violence 43 Chapter 4: Money Talks 63 Chapter 5: Local Is the New Global 83 Chapter 6: Multiplying Divisions 103 Part II: Opportunities and Threats 123 Chapter 7: Everybody’s Business 125 Chapter 8: Small Fortunes 145 Chapter 9: The Power of One 167 Conclusion 181 Bibliography 185 About the Author 253 Index 255

Read more less

Book SynopsisModern Auditing has become established as one of the leading textbooks for students taking university and professional courses in auditing. This extensively revised third edition continues to provide the reader with a comprehensive and integrated coverage of the latest developments in the environment and methodology of auditing.Table of ContentsPreface vii Chapter 1 Auditing and the Public Accounting Profession 1 Chapter 2 Financial Statement Audits 37 Chapter 3 Professional Ethics 71 Chapter 4 Auditors’ Legal Liability 111 Chapter 5 Audit Risk and Audit Evidence 141 Chapter 6 Accepting the Engagement and Planning the Audit 183 Chapter 7 Internal Control and Control Risk Assessment 225 Chapter 8 Audit Sampling 269 Chapter 9 Designing Substantive Procedures 307 Chapter 10 Auditing Sales and Trade Receivables (Debtors) 341 Chapter 11 Auditing Purchases, Trade Payables (Creditors) and Payroll 383 Chapter 12 Auditing Inventories (Stocks) and Tangible Noncurrent Assets (Fixed Assets) 421 Chapter 13 Auditing Cash and Investments 461 Chapter 14 Completing the Audit 501 Chapter 15 Reporting on Audited Financial Statements 529 Chapter 16 E-Commerce and Auditing 575 Chapter 17 Contemporary Issues in Auditing 603 Answers to Multiple-Choice Questions 639 Suggested Answers to Professional Application Questions 651 The IAASB’s Glossary of Terms 703 Index 719

Read more less

Book Synopsis Cost Recovery: Turning Your Accounts Payable Department into a Profit Center shows how to identify a company''s hidden financial assets. It provides tools to assist organizations generate cash recoveries, stop profit leaks, move away from control issues, and work towards process improvements. The book shows how to incorporate profit recovery technology, and how to pair a company with a recovery expert best suited to the company''s needs to achieve bottom line results. The book discusses how to utilize free services offered by cost recovery consultants, using of top money-saving proves improvements, and how to create a plan to maximize recovering technology. Trade Review"Now every organization can generate cash recoveries, stop profit leaks, move away from control issues, and work toward process improvements with the tools found in Cost Recovery. Authoritatively showing how to incorporate profit recovery technology to achieve stellar-bottom-line results, this insightful and highly readable book provides step-by-step guidance for completing a cost recovery effort of any company's spending." (AccountingWEB.com, February 8, 2010) "Mr. Lanza has authored an excellent how-to book for auditing your accounts payable functions to determine how you might recover costs for your company…it is logically organized, clearly written and meant to be a work guide. This book should be on every financial manager, controller and CFO's desk." (Executive Leader Coach, December 2009)Table of ContentsAbout the Author xiii Foreword xv Preface xvii Acknowledgments xxi How to Use This Book xxiii CHAPTER 1 Benefits of Recovery Services 1 U.S. General Accounting Office Report “Recommends” Recovery Auditing 1 Top Benefits of Cost Recovery 2 Top Reasons for Recovery 4 Recovery Estimates—Embrace the Uncertainty 5 When Recovery Becomes Fraud 6 Sarbanes-Oxley Implications 9 CHAPTER 2 Overcoming Obstacles to Getting Recovery Started 15 Overcoming Obstacles to a “No Brainer” Service 15 Why Internal Audit Department Are Sometimes the Worst Resource for Doing Recovery Audits 19 Why Internal Audit Departments Are Truly the Best Resource for Doing Recovery Audits 20 Why Select a Provider for Your First Audit 23 CHAPTER 3 Assessing Opportunities and Risk 25 Focusing on the Largest Fish 25 Scattergraphing: A Powerful Tool to Identify Changes in Company Activity 27 Going Deeper and Data Auditing Vendor Accounts 30 Using Vendor Toolsets 33 The Top 10 Questions to Ask When Deciding to Do a Recovery Audit 33 CHAPTER 4 The Overall Cost Recovery Marketplace 36 How the Industry Worked in the Past 36 Recovery Consulting Today 37 The Evolving and Continuous Recovery Process at Companies 38 Why Recovery Consulting Is so Popular 39 Dimensions of Recovery 41 Recovery Categories 44 How the Recovery Areas Are Defined in This Book 47 CHAPTER 5 Accounts Payable and Procurement 49 Case Study 5.1: American Auto Runs a Tight Ship 49 Case Study 5.2: Public Utility with Staffing Problems 51 Case Study 5.3: Contract Compliance with Pinpoint Profit Recovery Services, Inc. 53 Case Study 5.4: International Personal Goods Manufacturer with Retail Outlets 54 Case Study Wrap-Up 56 Recoveries to Find 58 Questions to Ask When Assessing the Opportunity 59 Conclusion 62 CHAPTER 6 Advertising Agency Audits and Media Reviews 63 Overview 63 Case Study 6.1: Reluctant Marketing Department Hiding Its Intentional Agency Benefit 63 Case Study 6.2: Exit Audit after an Agency Transition 64 Case Study 6.3: Media Management 65 Case Study 6.4: Global Software Company 66 Case Study Wrap-Up 67 Recoveries to Find 71 Prioritizing the Opportunity 73 Conclusion 74 CHAPTER 7 Audit Firm Benchmarking 76 Overview 76 Case Study 7.1: An Auditor in Trouble? 77 Case Study 7.2: Utility Service Firm Paying too Much 81 Case Study Wrap-Up 84 Recoveries to Find 87 Questions to Ask 87 Conclusion 87 CHAPTER 8 Escheatment (Unclaimed Property) 88 Overview 88 Case Study 8.1: Accounts Receivable Overcrediting 92 Case Study 8.2: Pinpoint Profit Recovery Assists Large Services Corporation 93 Case Study Wrap-Up and Recoveries to Find 96 Questions to Ask When Assessing the Opportunity 99 Conclusion 100 CHAPTER 9 Freight Bill Auditing 101 Overview 101 Case Study 9.1: When Freight Classes and Descriptions Make a Difference 102 Case Study 9.2: Aluminum Manufacturer and Distributor Post-Audit 102 Case Study Wrap-Up 102 Recoveries to Find 107 Questions to Ask 108 Conclusion 108 CHAPTER 10 Health Benefits Auditing 109 Overview 109 Case Study 10.1: Midwest Municipality Cuts Costs 111 Case Study 10.2: Employer Takes Control 114 Case Study 10.3: Holding Company Uses Comparison to Advantage 116 Case Study Wrap-Up 117 Recoveries to Find 121 Questions to Ask 122 Conclusion 123 CHAPTER 11 Lease Audits 124 Overview 124 Case Study 11.1: The Portfolio Assessment of a National Consulting Firm 125 Case Study 11.2: Variety of Issues at a National Banking Corporation 126 Case Study 11.3: Park Avenue, New York City, with Inappropriate Cleaning and Utility Costs 127 Case Study 11.4: Multinational Corporation Audits One Lease for Big Savings 129 Case Study Wrap-Up 130 Recoveries to Find 133 Questions to Ask When Assessing the Opportunity 134 Conclusion 135 CHAPTER 12 Order to Cash Reviews 136 Overview 136 Case Study 12.1: Construction Materials Not Reporting All Cement Loads or Pricing Them Properly 136 Case Study 12.2: Too Many (Fraudulent) Fourth-Quarter Sales 138 Case Study Wrap-Up 139 Recoveries to Find 141 Questions to Ask When Assessing the Opportunity 143 Conclusion 148 CHAPTER 13 Payroll Tax Credits 150 Overview and Recoveries: Savings to Find 150 Other Federal Programs 153 State and Local Incentives and Credits 154 Questions to Ask When Assessing the Opportunity 154 Conclusion 155 CHAPTER 14 Proactive Fraud Audits 156 Overview 156 Case Study 14.1: Association of Certified Fraud Examiners Report to the Nation 158 Case Study Wrap-Up 159 Recoveries to Find 174 Questions to Ask When Assessing the Opportunity 175 Conclusion 175 CHAPTER 15 Project Fraud Audits 177 Overview 177 Case Study 15.1: California State Welfare Automation Project 178 Case Study Wrap-Up 180 Recoveries to Find 183 Questions to Ask to Assess the Opportunity 184 Conclusion 186 CHAPTER 16 Real Estate Cost Segregation 187 Overview 187 Case Study 16.1: Franchise Restaurant 188 Case Study 16.2: Apartment Complex 189 Case Study 16.3: Assisted Living 191 Case Study 16.4: Two-Story Medical Office Facility 192 Case Study Wrap-Up 193 Recoveries to Find 194 Questions to Ask When Assessing the Opportunity 195 Conclusion 199 CHAPTER 17 Research and Development Tax Credits 200 Background 200 Case Study 17.1: Engine Service Firm R&D Credits 201 Case Study Wrap-Up 203 Questions to Ask When Assessing the Opportunity 208 Conclusion 208 CHAPTER 18 Strategic Sourcing 210 Overview 210 Case Study 18.1: $1.6 Million in Annual Savings for Food Distribution Company 211 Case Study 18.2: Private College Saves More than $200,000 212 Case Study 18.3: Multi-Project Strategic Sourcing 212 Case Study Wrap-Up 214 Recoveries to Find 219 Questions to Ask When Assessing the Opportunity 221 Conclusion 221 CHAPTER 19 Telecommunications Auditing 223 Overview 223 Case Study 19.1: Refund of Local Service Charges at a Transportation Company 224 Case Study 19.2: Future Savings of Local Service Charges at a Multi-Location Retail Chain 224 Case Study 19.3: California School District 225 Case Study 19.4: Future Savings of Wireless Charges at a Media Company 225 Case Study Wrap-Up 226 Recoveries to Find 227 Questions to Ask 230 Conclusion 230 CHAPTER 20 Travel and Entertainment Reviews 231 Overview 231 Case Studies 20.1: How to Make $20,000 in One Year, Tax-Free: Specific Schemes 232 Case Study Wrap-Up 233 Automation Benefits 236 Recoveries to Find 237 Questions to Ask When Assessing the Opportunity 238 Conclusion 239 CHAPTER 21 Utility Reviews 240 Overview 240 Case Study 21.1: Fortune 1,000 Manufacturer Cuts Its Utility Costs in Several Ways 241 Case Study 21.2: Hospital Water Cost Leak Plugged 242 Case Study 21.3: Small Town Manufacturer—Electric Refund 244 Case Study 21.4: Entertainment Company with Multiple Locations Chooses Deregulation for Select Sites 245 Case Study Wrap-Up 246 Recoveries to Find 247 Questions to Ask When Assessing the Opportunity 248 Conclusion 249 CHAPTER 22 Selecting a Provider 250 Overview 250 Applying Discipline . . . It’s a Good Thing 250 Step 1: Form the Team 251 Step 2: Set Requirements and Success Metrics 252 Step 3: Draft a Request for Proposals 253 Step 4: Negotiate 257 Step 5: Complete Decision Analysis 260 Conclusion 262 CHAPTER 23 Technology Used in Recovery Efforts 263 Introduction 263 Data Analysis/Mining/External Data 265 Assessing Vendors against Watch Lists 282 Making the Scattergraph 286 Continuous Monitoring 288 Pre-Formatted Workpapers/Process Workflow/Client Management Dashboards 293 Conclusion 295 CHAPTER 24 Conclusion 298 Where Do We Go from Here? 298 What Else Can You Do? 298 APPENDIX 1 Additional Publications Related to Business Cost Savings 301 APPENDIX 2 Accounts Payable 304 Risk Assessment Questions by Profit Leak 304 APPENDIX 3 Records Retention and Right to Audit 312 APPENDIX 4 Discussion Paper Continuous Controls Monitoring with ACL AuditExchange 2009 and Scripted Analytics 314 Purchasing Payables and Payments 315 ACL AuditExchange 2009 316 Purchase-to-Payment Cycle: Critical Processes and Activities 316 ACL Analytics Technology 317 Customer Successes 319 Client Benefits 319 APPENDIX 5 Tapping the Strategic Potential of Procurement 322 Challenges 324 Key Success Factors 326 Fulfilling Potential 330 Index 331

Read more less

Book SynopsisDestined to become the go-to resources for real estate investors and operators around the country, these CompleteLandlord. com real estate guides cover all the basics of landlording, real estate investing, and property management. Written by William Lederer, Publisher and President of CompleteLandlord.Table of ContentsAcknowledgments. List of Icons. Introduction. SECTION ONE: WHAT ARE YOU GETTING YOURSELF INTO? Chapter 1 Residential Real Estate as the Ultimate Storehouse of Value(s). Chapter 2 Why Investing in Residential Rental Property Will Get You Where You Want to Go Faster at Less Risk. Chapter 3 The Pros and Cons of Landlording: Do You Have What It Takes? Chapter 4 Think Like a Real Estate Mogul: Build a Winning Strategy, Plan and Build the Team to Match. SECTION TWO: INVESTING IN RESIDENTIAL PROPERTY FOR INCOME. Chapter 5 Which Rental Properties Are Right for You? Chapter 6 Property and Investment Analysis. Chapter 7 Sourcing Investment Rental Property: Searching for Bargains and Adding Value. Chapter 8 When Should You Sell? Trick Question! Hardly Ever. SECTION THREE: PROPERTY MANAGEMENT AND YOUR LANDLORDING RESPONSIBILITIES. Chapter 9 Legal and Financial Considerations. Chapter 10 Maximizing Cash Flow. Chapter 11 Tax Planning for Landlords. Chapter 12 Insuring Your Rental Property. SECTION FOUR: PLAN THE WORK, WORK THE PLAN. Chapter 13 Beyond Record Keeping: Choose the Right Systems, Metrics, and Policies. Chapter 14 Handling Maintenance, Repair, and Construction. SECTION FIVE: RESIDENTS. Chapter 15 Taking Over and Finding and Showing Tenants Property. Chapter 16 Screening and Choosing the Best Tenants. Chapter 17 Rental Agreements, Leases, and Other Forms. Chapter 18 Rent: Pricing, Collecting, and Tracking. Chapter 19 Communicating with Your Tenants. Chapter 20 How to Keep Good Tenants . . . and Cope with Bad Ones. SECTION SIX: WHERE TO FROM HERE? NEXT STEPS. Chapter 21 Should You Do It Yourself or Hire a Property Management Company? Chapter 22 Continuing Your Landlording Education. APPENDIXES. Appendix A Summary of Icon Information in Appendix. Appendix B Tour of the CompleteLandlord Site with Free Trial Membership Offer. Appendix C Essential CompleteLandlord Worksheets, Checklists, and Other Forms. Appendix D Associations and Other Resources. Appendix E Managing Risk and Limiting Personal Liability as a Landlord. Appendix F Questions Frequently Asked by Landlords. Appendix G Questions Frequently Asked by Tenants. Appendix H Glossary of Landlord Terms. Index. CLL Catalog.

Read more less

Book SynopsisA practical guide for making the most of the crowd's investment mistakes in financial markets The Art of Contrarian Trading provides readers with techniques for identifying and exploiting investment opportunities, which arise when crowd-based groupthink causes markets to become overvalued or undervalued.Table of ContentsPreface. CHAPTER 1 Can You Beat the Market? The Speculator's Edge. Lending a Helping Hand to Investors. Uncovering Market Mistakes. Looking at the Evidence. Market Timing. Catch 22. CHAPTER 2 Market Mistakes. Efficient Markets. Roller Coasters and Stock Markets. Do Stock Prices Fluctuate Too Much? A Look at Behavioral Finance. Behavioral Finance and Exploitable Market Mistakes. No Free Lunch Redux. CHAPTER 3 The Edge. A Theory of Market Mistakes. To Get Along, Go Along. Go Along and Create a Mistake. The Social Calculus of Crowds. The Vision of a Contrarian Trader. CHAPTER 4 The Wisdom and Follies of Crowds. Can a Crowd Be Wiser Than Its Members? The Need for Collective Wisdom. Independent Decisions in the Financial Markets. Forecasting Market Psychology. Information Cascades into the Whirlpool of Speculation. CHAPTER 5 The Life Cycle and Psychology of an Investment Crowd. Prologue. The Cycle of Birth and Death. The Stock Market Bubble of 1994-2000. It's Different This Time: The New Information Economy. Shattered Dreams: The Bear Crowd of 2001-2002. Popular Instincts and the Search for Certainty. The Pied Pipers of Investment Crowds. The Mental Unity of Investment Crowds. Suggestibility, Volatility, and Disintegration. CHAPTER 6 The Historical Context for Market Mistakes. Mature Investment Themes and Market Crowds. Mistakes versus Fair Value. Market Data Sources. The Deadly Mistake. When Is the Stock Market (Extremely) Overvalued? When is the Stock Market Undervalued? The Peak Oil Bubble. CHAPTER 7 How Crowds Communicate. What Do Information Cascades Tell Investors? The Role of the Mass Media. A Word about Personal Flexibility and the Future of Media. Monitoring the Markets. Studying the History of Bubbles and Crashes. CHAPTER 8 Constructing Your Media Diary. Gaining the Edge. How My Diary Made a Difference in 2002. Get Ready to Cut and Paste. Excerpts from My Media Diary: November 2005. Excerpts from My Media Diary: June 2006. Interpreting Magazine Covers. CHAPTER 9 Important Investment Themes. Telling the Market's Story. New Eras. Effect of War and International Political Crises on the Stock Market. Financial Crises Create Crowds. New Industries and Companies. Commodity Booms. Interest Rate Movements and the Bond Market. Using Your Media Diary to Track Investment Themes. CHAPTER 10 Interpreting Your Diary: Market Semiotics. Media and Information Cascades. Your Media Diary: A Living History of Information Cascades. Semiotics: The Study of Signs. The Most Important Sign: The Price Chart. Magazine Cover Stories. Newspaper Headlines. Front Page Stories and Editorials. Crystallizing Events. The Weight of the Evidence. More on Market Semiotics. CHAPTER 11 The Grand Strategy of Contrarian Trading. Contrarian Investment Planning. Contrarian Trader's Investment Portfolio. The Investment Goal of the Contrarian Trader. A Warning about Capital Gains Taxes. Contrarian Trading Strategy #1: Don't Speculate. Contrarian Trading Strategy #2: Don't Invest with the Crowd. Contrarian Trading Strategy #3: Contrarian Rebalancing. The Aggressive Contrarian. A Long-Only Strategy for the Aggressive Contrarian Trader. More Aggressive Contrarian Trading Strategies. CHAPTER 12 The Great Bull Market of 1982-2000. Prologue. The 1987 Crash. Interlude: The 1929-1932 Crash and Bear Market. The S&L Crisis, the 1987-1990 Bull Market, and the 1990 Bear Market Crowd. Rally without Joy, 1991-1994. The Stock Market Bubble Inflates, 1995-2000. The Aggressive Contrarian Faces the 1987 Crash. The 1990 Low. Long Term Capital Management Goes Bust. Chapter 13 Collapse of the Bubble: The 2000-2002 Bear Market. The End of the Great Bull Market. Contrarian Rebalancing during the 2000-2002 Bear Market. The Long Way Down Again. Contrarian Rebalancing during the Crash. The Aggressive Contrarian During the 2000-2002 Bear Market. A Wall Street Wreck. The Summer Rally. The March 2001 Plunge. Terrorists Attack on 9/11. End of a Bear Market. Transition to a New Bull Market. CHAPTER 14 The Postbubble Bull Market of 2002-2007. Escaping the Bear's Claw What Bull? Looking for Signs of a Bullish Information Cascade. The Story of Google's IPO. The Housing Bubble. Aggressive Contrarian Trading during the 2002-2007 Bull Market. April 2005—A Buying Opportunity. June 2006—Another Buying Opportunity. Aggressive Contrarian Trading in Early 2007. July-October 2007. CHAPTER 15 The Panic of 2008. The Conservative Contrarian during the Panic. The Mortgage Mess. The Debt-Deflation Spiral Takes Hold. Lenders of Last Resort. The Credit Crisis and the Contrarian Trader. Bull Market Top and the First Step Down. The Bear Stearns Failure. Fannie and Freddie. The Crash: Bankruptcy of Lehman Brothers. CHAPTER 16 Vignettes on Contrarian Thought and Practice. The Psychology of the Stock Market. The Godfather of Contrary Opinion. Opinion Polls: What Do You Think? Is The Odd Lotter Always Wrong? A Forecasting Giant of the Past. Paul Montgomery, The Magazine Cover Contrarian. Irrational Exuberance and Other Bubbles. Value Investing—A Back of the Envelope Approach. About the Author. Index.

Read more less

Book SynopsisIn this fully updated book, options trading innovator George Fontanills arms you with the knowledge and skills youneed to unleash the phenomenal power of your computer to become a successful online options trader. Following a concise review of the basics of online trading--including hardware and software requirements and essential online resources--Fontanills cuts to the chase with step-by-step coverage of proven managed risk option trading strategies. Specifically designed for online traders, these tested off-floor techniques provide you with a sure-fire method for consistently building up your trading account. Drawing upon his years as a leading international options educator, Fontanills makes it easy for you to master online options trading by walking you through a series of hypothetical trades that demonstrate how to compute the maximum risk, maximum profit, breakevens, and exit alternatives for each strategy. Trade Options Online also includes a comprehensive guide to fundamental Table of ContentsAcknowledgments. Introduction: Online Trading in the Twenty-first Century. Chapter 1 The Options Market Today. Chapter 2 Online Investing 101. Chapter 3 Online Trading Resources. Chapter 4 A Primer for Trading Stocks and Options. Chapter 5 Basic Option Trading Strategies. Chapter 6 Vertical Spreads. Chapter 7 Delta Neutral Strategies. Chapter 8 Ratio Spreads and Backspreads. Chapter 9 Sideways Strategies. Chapter 10 The Futures Market. Chapter 11 Online Trading from A to Z. Chapter 12 The Quest for the Ultimate Online Brokerage. Chapter 13 Order Processing. Chapter 14 Ready, Set, Engage. Appendix A Useful Tables, Data, and Strategy Reviews. Appendix B Market Analysis Terminology. Appendix C Financial Software Guide. Appendix D Financial Web Site Guide. Appendix E Online Brokerage Directory. Index.

Read more less

Book SynopsisIn Billion Dollar Green , Tobin Smith gives the facts and forecasts on growth in the green investing front and lets readers see for themselves just how large the opportunity is. The green tech sphere has become increasingly popular over the past few years, and is now one of the hottest industries to invest.Table of ContentsForeword. Preface. Introduction. It's a Green, Green, Green, World. What Drives the Green Wave? An Oily Proposition. We Want Our NRG! A Cleaner Future. Green Is Getting Cost Competitive. Mo' Money, Mo' Growth. The Greening of the Consumer. Building a Green Portfolio. Environment Protection Becomes Big Bucks. The Goal of This Book. Chapter 1: Catalyzing into Green: Why, and Why Now? Rising Global Energy Demand. The Chindia Syndrome. Where Does That Energy Come From? Energy Security: The New Cold War. Carbon Concerns. Chapter 2: Mandating Growth: Creating Greener Pastures. Green Public Policy. Mo' Money, Mo' Growth. The Green Capital Boom. The VC View. Making Real Money. Chapter 3: Waving The Green Flag: Clean Transportation. Driving Along in My Automobile. A Green Way Forward. The Hybrid Theory. Plug In and Fire Up the Engine. EV All the Way. How Do We Make Money? The Bleeding Edge. Words of Caution. Chapter 4: I Wanna Soak up the Sun!: Harnessing the Profit Power of Solar. Sand and Sun, Not Just a Vacation Mantra. Costs and Incentives: Creating Sunny Choices. Let the Sunshine In. The Changewave Thesis. Solar Superstars. A Solar Epilogue. Chapter 5: Water, Water, Everywhere, Nor Any Drop to Drink: Sympathizing with the Ancient Mariner. You're Going to Drive Me to Drinking. If You Build It, They Will Drink. A Tall Drink of Green Water. The Alliance Dips Its Toe into the Water. Splashing Around in the Water Investment Pool. Toweling Offâ??and on to the Power Grid. Chapter 6: Avoiding "Grid" Lock: The Powers that Be Are Going Smart. A Vision for the Modern Grid. Seven Valuable Virtues of the Modern Grid. Meters for the New Millennium. The Smart Meter Players. Adopting the Information Solution. Chapter 7: Eco-Efficient IT: The Nerds Are Turning Green. What Is Virtualization? Saving Kilowatts Equals Saving Money. Virtually the Best. Eco-Efficient IT is the Future. Chapter Eight: Green Plastics: Cleaning Up Society's Legacy. The Rise of Green Plastics. The Why and Who of Green Plastics. A Question of Cost and Market Adoption. Just a Drop in the Bio Bucket. Chapter 9: Fill 'Er Up with Biofuels: Growing Your Own Octane. Ethanol: The Good, the Bad and the Ugly. Cellulosic Ethanol. Blame It on Rio. Mandates, Tax Credits, and Tariffs. Investing in Team Ethanol. Bye-Bye Biologics. Chapter 10: Fuel Cells and Advanced Batteries: The Rise of Pink Bunny Power. Fuel Cells: Hydrogen Anyone? Fuel Cell Types and Applications. Big Costs, Big Benefits. Powering Your Portfolio with Fuel Cells. Advanced Batteries. Chapter 11: Wind Power: Harnessing Nature's Breath. Blowin' Up the Energy Charts. The Good and the Bad of Blowin' in the Wind. Turbines at a Glance. The Breezy Dynamics of Growth. Subsidies and Supply Shortages. Investing in Windy Conditions. Blowing on to Chapter 12. Chapter 12: The New, Old Green Tech: Cleaning Up Coal's Act. The Coal, Hard Facts. Movin' On Up from Low Grade to High Grade. Scrubbing Coal's Image. The Great Carbon Roundup. A Deeper Shade of Green. Chapter 13: Living La Vida Verde: Green Buildings, Lighting, Natural Foods, and Lifestyles. The Green We Inhabit. By the Dawn's Early Green Light. LED Lighting Leads the Way. Green Movement Market Opportunities. Toward the End of a Green Journey. Chapter 14: Building a Green Portfolio: A Green Call to Arms. CAUTION: Green Portfolio Construction Ahead. The World is Not Flatâ??It's Voracious. Appendix A: Master List of Green Companies. Appendix B: Green Investing Resources. References. Index.

Read more less

Book SynopsisBusiness Valuation Discounts and Premiums SECOND EDITION Discounts and premiums do not just affect the value of a company; they play a crucial role in influencing a host of other factors and conditions that can make or break a deal. When it comes to business valuations, it''s the business appraiser''s responsibility to be intimately knowledgeable with every aspect of discounts and premiums: the different types, the situations when they may or may not apply, and how to quantify them. In this newly updated edition of Business Valuation: Discounts and Premiums, Shannon Pratt?one of the nation''s most recognized and respected business valuation consultants?brings together the latest collective wisdom and knowledge about all major business discounts and premiums. Addressing the three basic approaches to conducting a valuation?the income approach, the market approach, and the asset approach?Shannon Pratt deftly and logically details the different discountsTable of ContentsList of Exhibits xv About the Author xix About the Contributing Authors xxi Foreword xxv Preface xxvii Acknowledgments xxix 1 Overview of Business Valuation Discounts and Premiums and the Bases to Which They Are Applied 1 Discounts and Premiums Are Big-Money Issues 2 ‘‘Entity Level’’ versus ‘‘Shareholder Level’’ Discounts and Premiums 3 How the Valuation Approaches Used Affect the Level of Value 8 Use of Public Company Data to Quantify Discounts and Premiums 9 How the Standard of Value Affects Discounts and Premiums 10 American Society of Appraisers Business Valuation Standard VII:Valuation Discounts and Premiums 12 Summary 13 2 Minority Discounts and Control Premiums 15 Relevant Definitions 16 Basic Minority/Control Value Relationship 16 Prerogatives of Control 17 Factors Affecting Degree of Control 18 How the Valuation Methodology Affects the Minority Discount or Control Premium 25 Do Publicly Traded Minority Stock Prices Reflect Control Value? 29 Treatment of Control Premiums in the Delaware Courts 35 How the Purpose of the Valuation Affects Minority Discounts or Control Premiums 37 Summary 38 3 Empirical Data Regarding Minority Discounts and Control Premiums 41 Premiums Paid in Acquisitions 41 Identifying Industries with Higher or Lower Control Premiums 62 Caveats Regarding Use of Control Premium Data 63 Are Control Premiums Too High? 65 Percentage Discounts from Net Asset Value 66 Summary 66 4 Minority Discounts and Control Premiums in the Courts 68 Gift, Estate, and Income Tax Cases 70 Discounts for Lack of Control in Employee Stock Ownership Plan Cases 74 Dissenting Shareholder Cases 75 Shareholder Oppression Cases 80 Marital Dissolution Cases 80 Bankruptcy Case 82 Summary 82 5 Discounts for Lack of Marketability for Minority Interests: Concept and Evidence 86 Public Market Benchmark for Marketability 86 Empirical Evidence to Quantify Discounts for Lack of Marketability 87 Restricted Stock Studies 88 Pre–Initial Public Offering Discount for Lack of Marketability Studies 90 Courts’ Aversion to ‘‘Benchmarking’’ 91 Regulatory and Court Recognition of Empirical Marketability Discount Studies 92 Summary 92 6 Synopsis of Restricted Stock Studies 95 Securities and Exchange Commission Institutional Investor Study 96 Gelman Study 100 Trout Study 100 Moroney Study 101 Maher Study 101 Standard Research Consultants Study 101 Silber Study 101 FMV Opinions Study 103 Management Planning Study 104 Johnson Study 110 Columbia Financial Advisors Study 110 LiquiStat Database 111 Summary 111 7 LiquiStat Database (Restricted Stocks, Options, Warrants, and Convertible Securities) 113 Restricted Stock as a Basis 114 Biases Beyond Illiquidity in Traditional Restricted Stock Studies 114 How LiquiStat Is Different 115 Options and Warrants in LiquiStat 116 Convertible Securities in LiquiStat 117 Summary 117 8 Blockage Discounts 118 Blockage Is Distinct from Restricted Stock 119 Factors to Analyze in Quantifying Blockage Discounts 119 Must Consider Ways of Selling Stock 122 ‘‘Price Pressure’’ and ‘‘Market Exposure’’ 122 Block Buyer Could Ameliorate Blockage Discount 122 Blockage Discounts Recognized in Estate and Gift Tax Regulations 123 Blockage Discounts in U.S. Tax Court 123 Financial Accounting Standards That May Affect Blockage Discounts 126 Blockage Discounts Used to Estimate Illiquidity Discounts 126 Summary 126 9 John Emory Pre–Initial Public Offering Discount for Lack of Marketability Studies—Complete Underlying Data 128 Study #1: Adjusted Study, January 1980–June 1981 129 Study #2: Adjusted Study, January 1985–June 1986 129 Study #3: Adjusted Study, August 1987–January 1989 130 Study #4: Adjusted Study, February 1989–July 1990 130 Study #5: Adjusted Study, August 1990–January 1992 130 Study #6: Adjusted Study, February 1992–July 1993 130 Study #7: Adjusted Study, January 1994–June 1995 131 Study #8: Adjusted Study, November 1995–April 1997 131 Study #9: Adjusted Study, Dot-Com Companies, May 1997–March 2000 131 Study #10: Adjusted Expanded Study, May 1997–December 2000 133 Summary 133 10 Valuation Advisors Discount for Lack of Marketability Study 182 Description of Study 182 Results of Study 184 Summary 185 11 Factors Affecting Discounts for Lack of Marketability for Minority Interests 186 Size of Distributions 187 Prospects for Liquidity 191 Pool of Potential Buyers 193 Risk Factors 194 Summary 198 12 Discounts for Lack of Marketability for Controlling Interests 200 Discounts for Lack of Marketability for Controlling Interests: A Controversial Concept 202 ‘‘Control, Marketable’’ Is an Oxymoron 202 Bases from Which Controlling Interest Discounts for Lack of Marketability May Be Deducted 202 Factors Affecting Controlling Interest Discounts for Lack of Marketability 204 Public versus Private Company Acquisition Multiples 207 Court Treatment of Controlling Interest Discounts for Lack of Marketability 210 Summary 211 13 The Quantitative Marketability Discount Model: A Shareholder Level DCF Model 213 Introduction 213 The Structure of the Shareholder Level DCF Model 214 AVisual Representation of the Shareholder Level DCF Model 217 Factors Contributing to Marketability Discounts 218 Summary 223 14 Marketability Discounts in the Courts—Minority Interests 225 Gift and Estate Tax Cases 227 Employee Stock Ownership Plan Case 231 Dissenting Shareholder Cases 232 Minority Oppression Cases 234 Marital Dissolution Cases 234 Summary 238 15 Marketability Discounts in the Courts—Controlling Interests 241 Gift and Estate Tax Cases 241 Marital Dissolution Cases 243 Summary 244 16 Voting versus Nonvoting Stock 245 Voting versus Nonvoting Stock Scenarios 245 Empirical Studies Show Little Differential for Small Minority Interests 246 Transactions Involving Premiums for Control Blocks 251 Court Cases Involving Voting versus Nonvoting Stock 251 Summary 258 17 Key Person Discounts and Premiums 260 Empirical Evidence Supports Key Person Discount 261 Internal Revenue Service Recognizes Key Person Discount 263 Factors to Consider in Analyzing the Key Person Discount 264 Quantifying the Magnitude of the Key Person Discount 265 U.S. Tax Court Cases Involving Key Person Discounts 266 Key Person Discounts in Marital Dissolutions 270 Key Person Discounts in Other Types of Cases 272 Summary 274 18 Discounts for Trapped-In Capital Gains Taxes 276 Rationale for Trapped-In Capital Gains Tax Discount 277 ‘‘General Utilities Doctrine’’ 277 Tax Court Recognizes Trapped-In Capital Gains 278 Internal Revenue Service Acquiesces to Trapped-In Capital Gains Discount 279 Subsequent Tax Cases Regularly Recognize Trapped-In Capital Gains Tax Discount 280 Trapped-In Capital Gains in Dissenting Stockholder Actions 282 Trapped-In Capital Gains in Bankruptcy Court 283 Trapped-In Capital Gains Taxes in Marital Dissolutions 283 Treatment of Capital Gains Tax Liability 286 Treatment of Capital Gains Tax Liability in S Corporations 288 Summary 288 19 Nonhomogeneous Assets (‘‘Portfolio’’) Discounts 291 Portfolio Discount Principle 291 Empirical Evidence Supporting Portfolio Discounts 292 How to Value Companies with Disparate Portfolios 294 Quantifying the Portfolio Discount 295 Portfolio Discounts in the Courts 295 Summary 298 20 Discounts for Environmental, Litigation, and Other Contingent Liabilities 300 Concept of the Contingent Liability Discount 300 Financial Accounting Standard #5 May Provide Guidance in Quantifying Contingent Liabilities 301 Treatment of Contingencies in the U.S. Tax Court 301 Treatment of Contingencies in Marital Dissolution 304 Summary 304 21 Discount Adjustments for Limited Partnership Interests and Other Asset Management Entities 305 Introduction 307 Partnership Features 307 Other State Law and Regulatory Issues 308 Compliance with Federal Income Tax Regulations 308 Compliance with Federal Transfer Tax Regulations 309 Analysis of Ownership and Classes of Interests 309 Analysis of Underlying Adjusted Net Asset Value 310 Analysis of Income Capacity Value 310 Valuation of Noncontrolling Entity Interests 311 Discounts for Lack of Control and Marketability 313 Court Cases Regarding Limited Partnership Values 315 Summary 321 22 Adjusting Values for Differences in Size 323 Income Approach 323 Market Approach 325 Criticisms of the Size Premium 329 Court Cases Involving the Size Premium 329 Summary 334 Sources of Additional Data 334 23 Discounts and Premiums in ESOP Valuations 337 ESOP Definition, Types, and Benefits 337 ‘‘Adequate Consideration’’ for ESOP Valuation Purposes 338 Control Premiums in ESOP Valuations 339 Discounts for Lack of Marketability in ESOP Valuations 339 ESOP Court Cases 340 Summary 344 24 Discounts and Premiums in Divorce Disputes 345 Control Premiums in Divorce 345 Discounts for Lack of Marketability in Divorce 345 Discounts for Lack of Voting Rights in Divorce 346 Key Person Discounts in Divorce 346 The Effective Discount for Personal Goodwill in Divorce 346 Active versus Passive Appreciation 347 Summary 347 25 Discounts and Premiums in Corporate and Partnership Dissolution and Oppression Cases 349 Dissolution for Shareholder (Partner) Oppression 349 Discounts 351 California Oppression Cases 357 Delaware’s Approach 359 Summary 360 26 Discounts and Premiums in Fair Value for Financial Reporting 362 Introduction 362 Fair Value of Reporting Units 363 Fair Value of Share-Based Compensation 369 Summary 371 Additional Reading 371 27 Premium and Discount Issues in Undivided Interest Valuations 372 Description and Characteristics of Undivided Interests 373 Appraisal of Assets in Fee-Simple Interest 376 Factors Affecting the Value of an Undivided Interest 379 Valuation Adjustments for Undivided Interests 381 Court Decisions Related to Undivided Interest Discounts 389 Summary 395 28 Common Errors in Applying Discounts and Premiums 397 Using Synergistic Acquisition Premiums to Quantify Premiums for Control 398 Assuming That the Discounted Cash Flow Valuation Method Always Produces a Minority Value 398 Assuming That the Guideline Public Company Method Always Produces a Minority Value 398 Valuing Underlying Assets Rather Than Stock or Partnership Interests 399 Using Minority Interest Marketability Discount Data to Quantify Marketability Discounts for Controlling Interests 399 Using Only Restricted Stock Studies (and Not Pre–Initial Public Offering Studies) as Benchmark for Discounts for Lack of Marketability 399 Inadequate Analysis of Relevant Factors 400 Indiscriminate Use of Average Discounts or Premiums 400 Applying (or Omitting) a Premium or Discount Inappropriately for the Legal Context 400 Applying Discounts or Premiums to the Entire Capital Structure Rather than Only to Equity 401 Quantifying Discounts or Premiums Based on Past Court Cases 401 Using an Asset Appraiser to Quantify Discounts or Premiums for Stock or Partnership Interests 401 Summary 401 Appendix A Bibliography 403 Books 403 Articles 404 Periodicals 407 Appendix B Data Resources 410 Control Premiums/Minority Discounts 410 Discounts for Lack of Marketability 410 Discounts from Net Asset Value for Limited Partnership Interests 412 Discounts from Net Asset Value for REITs and REOCs 413 Discounts from Net Asset Value for Closed-End Investment Funds 413 Discount and Capitalization Rates 414 Appendix C How Much Can Marketability Affect Security Values? 416 I. The Framework 417 II. The Upper Bound 418 III. A Comparison 420 IV. Conclusion 422 References 422 Appendix D Internal Revenue Service Revenue Ruling 77-287 424 Section 1. Purpose 424 Sec. 2. Nature of the Problem 424 Sec. 3. Background and Definitions 424 Sec. 4. Securities Industry Practice in Valuing Restricted Securities 425 Sec. 5. Facts and Circumstances Material to Valuation of Restricted Securities 427 Sec. 6. Weighing Facts and Circumstances Material to Restricted Stock Valuation 428 Sec. 7. Effect on Other Documents 429 Appendix E Securities and Exchange Commission Rules 144 and 144A 430 History 442 Appendix F Table of Cases 448 Index 455

Read more less

Book SynopsisIntroduction to Securitization is intended as an easy-to-comprehend first guide to securitization, addressing applications of this technology to mortgages, collateralized debt obligations, future flows, credit cards, auto loans, etc.Table of ContentsPreface xiii About the Authors xvii Part One Background 1 Chapter 1 Introduction 3 What Is a Securitization? 5 Illustration of a Securitization 8 Securities Issued in a Securitization 10 Key Points of the Chapter 11 Chapter 2 Issuer Motivation for Securitizing Assets and the Goals of Structuring 13 Reasons Securitization Is Used for Funding 13 Structuring Goals 21 Key Points of the Chapter 24 Part Two Structuring ABS Transactions 29 Chapter 3 Structuring Agency MBS Deals 31 Prepayments and Prepayment Conventions 31 Sequential Pay Structures 38 Planned Amortization Class Bonds and Support Bonds 43 Targeted Amortization Class Bonds 50 Accrual Bonds and Accretion-Directed Bonds 50 Floating Rate Bond Classes 55 Notional Interest-Only Bond Classes 60 Key Points of the Chapter 61 Chapter 4 Structuring Nonagency Deals 65 Identification of the Asset Pool 68 Selection of the Assets 69 Identification of Risks 70 Determination of the Sources and Size of Credit Support 72 Determination of the Bond Classes 73 Time Tranching of Bond Classes 75 Selecting the Pay Down Structure for the Bond Classes 76 Determination of the Amount and Sources for Liquidity Support 77 Determining if Any Prepayment Protection Is Needed 78 Inclusion of Structural Protection Triggers 79 Key Points of the Chapter 80 Chapter 5 Credit Enhancements 85 Credit Enhancement Mechanisms 86 Sizing of Credit Enhancements 93 Key Points of the Chapter 97 Chapter 6 Use of Interest Rate Derivatives in Securitization Transactions 101 Interest Rate Swaps 101 Caps and Floors 115 Counterparty Risk 118 Key Points of the Chapter 120 Chapter 7 Operational Issues in Securitization 123 The Servicing Function 124 Types of Servicers 124 Servicer Strengths 125 Servicer Qualities 128 Servicing Transition 141 Backup Servicer 142 Reporting by the Servicer 142 Role of Trustees in Operation of the Transaction 143 Fraud Risk 144 Key Points of the Chapter 145 Part Three Review of ABS Collateral 147 Chapter 8 Collateral Classes in ABS: Retail Loans 149 Collateral Classes: Basis of Classification 149 Collateral Classes: Main Types 152 Credit Card Receivables 153 Auto Loan Securitization 161 Key Points of the Chapter 165 Chapter 9 Asset-Backed Commercial Paper Conduits and Other Structured Vehicles 169 Types of ABCP Conduits 170 Traditional Securitization and ABCP 173 ABCP Collateral 174 Credit Enhancement Structure 174 Liquidity Support 177 Parties to an ABCP Program 178 Rating of ABCP Conduits 180 Key Points of the Chapter 182 Chapter 10 Securitization of Future Cash Flows: Future Revenues, Operating Revenues, and Insurance Profits 187 Future Revenues Securitization 187 Whole Business or Operating Revenues Securitization 195 Securitization of Insurance Profits 204 Key Points of the Chapter 206 Part Four Collateralized Debt Obligations 209 Chapter 11 Introduction to Collateralized Debt Obligations 211 Why Study CDOs? 211 Terminology: CDO, CBO, CLO 212 Types of CDOs 213 Typical Structure of a CDO 217 Basic Economic Drivers of CDOs 220 CDO Market and the Health of Banking 224 Growth of the CDO Market 225 Key Points of the Chapter 227 Chapter 12 Types of Collateralized Debt Obligations 229 Balance Sheet CDOs 229 Arbitrage CDOs 243 Resecuritization or Structured Finance CDOs 249 Index Trades and Index Tracking CDOs 251 Key Points of the Chapter 252 Chapter 13 Structuring and Analysis of CDOs 255 Measures of Pool Quality 255 Asset and Income Coverage Tests 257 Ramp-Up Period 261 The CDO Manager 261 Investing in CDOs 265 Collateral and Structural Risks in CDO Investing 266 Key Points of the Chapter 270 Part Five Implications for Financial Markets 273 Chapter 14 Benefits of Securitization to Financial Markets and Economies 275 Securitization and Funding Costs 277 Securitization and Financial Intermediation 281 Benefits of Securitization in an Economy 284 Key Points of the Chapter 288 Chapter 15 Concerns with Securitization’s Impact on Financial Markets and Economies 291 Reduces the Effectives of Monetary Policy 291 Adverse Impact on Banks 293 Lax Underwriting Standards and Poorly Designed Securities 294 Increases Opaqueness of Bank Risk 300 Key Points of the Chapter 302 Appendix A Basics of Credit Derivatives 305 Elements of a Credit Derivative Transaction 306 Bilateral Deals and Capital Market Deals 310 Reference Asset or Portfolio 311 Structured Portfolio Trade 312 Types of Credit Derivatives 321 Appendix B Valuing Mortgage-Backed and Asset-Backed Securities 325 Cash Flow Yield Analysis 325 Zero-Volatility Spread 327 Valuation Using Monte Carlo Simulation and OAS Analysis 328 Measuring Interest Risk 339 References 343 Index 349

Read more less

Book SynopsisHow to diagnose and monitor key hedge fund operational risks With the various scandals taking place with hedge funds, now more than ever, both financial and operational risks must be examined. Revealing how to effectively detect and evaluate often-overlooked operational risk factors in hedge funds, such as multi-jurisdictional regulatory coordination, organizational nesting, and vaporware, Hedge Fund Operational Due Diligence includes real-world examples drawn from the author''s experiences dealing with the operational risks of a global platform of over 80 hedge funds, funds of hedge funds, private equity, and real estate managers.Trade Review"Informative book by Jason Scharfman, on, well, pretty much everything you need to run a hedge fund…Scharfman also explains the reliance on technology that is becoming ever more apparent in hedge funds, the dangers of phantomware, and questions that should be asked before committing to any new technology." (hedgeco.net, January 26th, 2009) "In his book, Jason Scharfman identifies these operational risks and recommends a strong and innovative "operational" due diligence review program as the best defense against them. His book outlines a step-by-step guide that shows investors how to effectively detect and evaluate often-overlooked operational risk factors in hedge funds and other investments in order to provide hedge funds and their investors with the skills to understand and hopefully mitigate these risks." (The Hedge Fund Law Report, January 8, 2009)Table of ContentsPreface xiii Chapter 1 What Is Operational Risk? 1 Brief History 2 Modern Definition of Operational Risk in a Hedge Fund Context 7 Operational Due Diligence versus Operational Risk 8 Key Areas 9 External Risks 12 Internal Risks 23 Blended Risks 36 The Five Core Themes 45 Chapter 2 The Importance of Operational Due Diligence 49 Why Should Investors Care about Operational Risk? 49 Morton’s Fork or a Hobson’s Choice? 50 Outright Fraud Still Exists 51 Hedge Fund Fraud Cannot Be Modeled 52 Small Discrepancies Add Up 52 Lack of Standardized Regulation 54 Each Hedge Fund Is Different 55 Ability to Generate an Informational Edge 56 Potential to Reduce Losses and Increase Returns 57 Considering Operational Risk Factors Presents a Different View into a Firm 57 Common Misconceptions 58 Other Considerations: There Is Not Necessarily a Positive Correlation between Assets and Operational Quality 60 A Study in Operational Failure: Bayou Hedge Fund Group 60 Affiliated Broker-Dealer 61 Large Discrepancies in the Performance of Onshore and Offshore Funds 62 Declining Capital of Broker-Dealer 63 Board of Directors: Members and Actions 63 Lavish Expenses of Broker-Dealers 63 Fake Audits Prepared by a Phony Auditor 64 Background Questions 64 Lack of Investor Communication 64 Ties to People Barred from the Securities Industry 65 Revision of Conflicted Marketing Materials 66 Other Anomalies 66 Chapter 3 Who Is Qualified to Perform an Operational Due Diligence Review? 69 Essential Skills 73 Primary Skills 74 Primary, Secondary, Blended, and Other Skills 84 In-house versus Outsourcing 85 Evolution of Independent Operational Rating Agencies 86 Benefits of Third-Party Rating Agencies 86 Criticisms of Third-Party Rating Agencies and Operational Due Diligence Providers 87 Factors to Consider before Performing an Operational Review of a Hedge Fund 90 Chapter 4 Creating an Initial Operational Profile 91 When Does an Operational Due Diligence Review Begin? 91 Documentation 92 The Piñata Problem 93 Due Diligence Questionnaire: To Use or Not to Use? 99 Background Investigations 101 Other Considerations 106 Importance of Onsite Visits 107 Which Office to Visit 108 Manager Interview Process 109 What Topics Should Be Covered During an Onsite Review? 111 Sample Topic Questions 113 In What Order Should These Topics Be Covered? 117 Service Provider Reviews 117 Qualitative Operational Report: Documenting the Operational Data 119 Chapter 5 Evaluating the Gray Areas: Examples 121 Scenario 1: “It Was Not Me”—Hedge Fund Manager Claims Mistaken Identity 121 Scenario 2: “It Was Me, But Everyone Was Doing It”—Are Regulatory Witch Hunts Real? 123 Scenario 3: “It Was Me, But I Did Nothing Wrong”—Manager Proved Not Guilty 127 Scenario 4: The Low-Profile Hedge Fund Manager—Is No News Good News? 129 Scenario 5: The Infrastructure Outsourcer—Can One Administrator Do Everything? 135 Scenario 6: The Mountain Climber—Can Plans for Large, Fast Growth Trip You Along the Way? 137 Scenario 7: The Stumbling Giant—Can a Large Manager Lose Sight of Small Controls? 140 Scenario 8: The Apologetic Headmaster—Are Junior Staff as Informed as Senior Management? 143 Chapter 6 Ten Tips for Performing an Operational Due Diligence Review 145 Tip 1: Avoid Meeting with the Wrong People or the Wrong Groups 146 Tip 2: Get Out of the Conference Room 147 Tip 3: Little White Lies Can Turn into Big Problems 149 Tip 4: Be Wary of Phantomware 151 Tip 5: Focus on Documentation and Negotiation 153 Tip 6: Read the Fine Print (Financial Statement Notes, etc.) 154 Tip 7: Reference Checking: Importance of In-Sample and Out-of-Sample References 156 Tip 8: Credit Analysis: Are Funds Financially Viable? 157 Tip 9: Long-Term Planning: Key Staff Retention, Succession Planning, and More 157 Tip 10: Growth Planning: Is the Manager Proactive or Reactive? 158 Chapter 7 Ongoing Operational Profile Monitoring 161 How Often Should Onsite Operational Reviews Be Conducted? 163 Remote Operational Due Diligence Monitoring 164 Media Monitoring 164 Litigation and Regulatory Monitoring 166 Hedge Fund Communication Reviews 166 Assets Under Management and Performance Monitoring 167 Operational Events 168 Effect of Discovery on the Magnitude of an Operational Event 169 Onsite Visit Frequency and Operational Events 169 Developmental Operational Traps 169 Chapter 8 Techniques for Modeling Operational Risk 179 Scoring Systems 179 Building a Scoring System: Category Determination 179 Category Definitions 185 Combinations of Category Definition Approaches 189 Category Weight Assignment 193 Weighting Aggregation Model 195 Weighting Disaggregation Model 197 WAM versus WDM 200 Category Weight Consistency and Reweighting Considerations 201 Factor Marginalization 202 Category Scale Determination and the Meaning of Scores 203 Threshold Self-Assessment and Determination 204 Score Assignment 206 Discretionary Penalties and Bonuses 212 Score Aggregation: Sum Totaling and Weighted Averages 214 Criticisms of Scorecard Models 215 Benefits of Scorecard Models 217 Visualization Techniques 217 Chapter 9 Bridging the Gap: Incorporating Operational Risk Consideration into the Portfolio Construction and Asset Allocation Process 225 Proactive Monitoring: Graphical Universe Creation 227 Proactive Management of Operational Risks 232 Protecting against Conglomeration Risks: Multivariate Commonality Analysis 233 Operational Directional Views 235 Example of Multivariate Commonality Analysis 236 First Objective: Total Diversity Goal 237 Second Objective: FSA Overweight Goal 239 Third Objective: FSA Underweight Goal 243 Conclusions of Scenario Analysis 243 Considering Operational Reviews in the Hedge Fund Portfolio Rebalancing Process 245 Operational Drag 245 Meta Risks 249 Operational Factor 250 Operational Scenario Analysis 253 Can Operational Risk Be Entirely Eliminated? 254 Factoring Operational Risk into Total Risk Calculations 256 Beyond Scorecard Approaches: Discounting Expected Return 257 Discounted Expected Returns with the Operational Factor 261 Operational Haircuts 262 Expected Return and Operational Risk 263 Shape of the Expected Return versus Operational Risk Curve 264 Second Operational Threshold 265 Final Thoughts 267 Chapter 10 Looking Ahead: Trends in the Space 269 Increased Use of Consultants 269 Commoditization of Background Investigations and Canned Operational Due Diligence Reports 272 Increased Reliance on Service Provider Consulting Services 277 Capture of Hedge Funds by Service Providers and Employees 278 Hedge Fund Pursuit of Audit Certifications 280 Operational Activism 281 AU 332 and FAS 157 283 Development of Hedges to Operational Risks 286 Links between Operational Risk and Credit Analysis 288 Proposed Reregulation of the Hedge Fund Industry 289 Index 293

Read more less

Book SynopsisYou can still find plenty of good deals in a failing real estate market by applying the advice in The Peebles Path to Real Estate Wealth: How to Make Money in Any Market. Multimillionaire teal estate mogul R. Donahue Peebles makes it possible for you to always win in real estate, provided you have the right knowledge and exercise good judgment in the deals you make. Start with small investments and work up to bigger, more profitable properties; before you know it, you'll be a smart investor earning large profits!Table of ContentsIntroduction: The Opportunity of Setbacks (Why I Wrote This Book) ix Part One A Recent History of the Real Estate Roller Coaster 1 Chapter 1 The Big Bang: The Post-2000 Real Estate Explosion 3 Between 2000 and 2006, mortgage interest rates in the United States fell in half. That started a feeding frenzy, which sent housing prices to dizzying heights. Chapter 2 The Great Flood: The Oversupply of Housing 17 Combined with the growing thirst for inventory, spiraling prices encouraged developers to build more projects. And guess what? Blind to the downturn, they built way too much. Chapter 3 Down Time: The New Buyer’s Market 33 Because of the credit crunch and the oversupply, we are now on the down slope of the housing bubble, with prices dropping across the country. That means opportunities are everywhere. Part Two Fundamental Tools for Real Estate Investing 45 Chapter 4 Information Please: Where to Find The Data 47 The good news about real estate investing is that anyone can do it. Having said that, you need to do your homework to make a superior investment. Chapter 5 Adding It Up: A Crash Course in Valuation 57 Figuring out the value of a piece of property—what it’s really worth—is both an analytic and creative process. It is also fundamental to making a good investment. Chapter 6 The Big Guns: Finding Help from the Government 71 If you want to buy property, or protect property that is now threatened by skyrocketing mortgage payments, don’t discount the power of government programs. Chapter 7 Money Talks: Negotiating with the Lender 81 The average person who goes to a bank for a mortgage figures it’s not negotiable. Wrong. Here are a few helpful insights to help you negotiate with the man behind the curtain. Part Three CREATING WEALTH IN THE NEW LANDSCAPE 89 Chapter 8 Boom to Bust: Making Money in Down Times 91 To understand the current situation you have to look back at historic real estate cycles, in particular to the real estate crisis of the early 1990s. Chapter 9 Fundamental Values: Buying in the Right Regions, Cities, and Neighborhoods 107 A big aspect of the current real estate crisis is that it’s indiscriminant. It’s hurting every market in the country, even places with solid fundamentals. And that’s where to buy. Chapter 10 Specific Observations: Making the Deals 119 Once you understand current values—where to buy and when to buy—you still have to make that perfect deal. So size up your seller. Chapter 11 Techniques, Tactics, and Tricks: Useful Tools to Make Money 133 Understanding real estate principles is vital, but it also helps to know a few things about auctions, foreclosures, bank-owned properties, and contracts for preconstruction sales. In other words, how can you best leverage cash and credit, or just one of the two? Chapter 12 Outside the Residential Box: Investing in Commercial Real Estate 157 The opportunities in real estate go beyond the residential marketplace; should you consider investing in commercial properties? Part Four Saving Your Bacon 173 (How to Avoid Getting Swept Under by the Subprime Tide) Chapter 13 Be Like the Rich: Change Your Way of Thinking 175 In America we have been conditioned to follow the rules. But what happens when the rules change and the system does not protect you? Chapter 14 Showtime: Dealing with Your Lender 185 The first lesson in learning how to think (and act) differently is how to renegotiate. Even if you have a bad mortgage on a property you own, you have more leverage than you think, even in foreclosure. Chapter 15 Know When to Fold: The Time to Walk Away, and How to Do It 197 Sometimes it no longer makes sense to fight for a property. Then you need to know how to get out with the least possible damage. Index 202

Read more less

Book SynopsisA trust and estate lawyer to the stars offers an engaging look at how to avoid numerous estate planning mistakes In The 101 Biggest Estate Planning Mistakes, author Herbert Nass, an estate planner for some of today's most famous celebrities, offers an entertaining look at what not to do when setting up an estate plan, or administering an estate.Table of ContentsPreface xv Acknowledgments xxi Chapter 1 The Single Biggest Mistake Is Not Planning for the One Certainty in Life Death 1 Mistake #1: No Estate Planning Whatsoever 3 Mistake #2: Out-of-Date Wills 14 Mistake #3: Losing Your Will 17 Mistake #4: Do-It-Yourselfers and Handwritten Wills 19 Mistake #5: Not Signing Your Will Because You Physically Can’t 24 Mistake #6: Not Properly Executing Documents 32 Mistake #7: The Best-Laid (Estate) Plans 35 Mistake #8: Dying Intestate, or Without a Will 42 Chapter 2 Mistakes Involving Tangible Personal Property 45 Mistake #9: Nemo Dat Quo Non Habet (Latin for “He Who Has Not Cannot Give”) 46 Mistake #10: Not Properly Documenting the Delivery and Completion of a Gift 49 Mistake #11: Selling Valuable Tangible Personal Property Too Close to Death 51 Mistake #12: Bequeathing Tangible Personal Property That You Do Not Own 54 Mistake #13: Mentioning Too Many Details in Your Will 56 Mistake #14: Not Including Any Details in Your Will 60 Mistake #15: Not Providing Properly for the Care of Your Pets After Your Death 64 Mistake #16: Leaving Too Much Money for Your Pets After Your Death 66 Mistake #17: Giving the Same Tangible Personal Property Item to More Than One Person 68 Mistake #18: Not Properly Providing for the Disposition of Your Artworks after Your Death 69 Mistake #19: Not Providing for Your Tangible Personal Property in a Revocable Living Trust 73 Chapter 3: Mistakes Involving Real Estate 75 Mistake #20: Not Confirming How Title Is Held to Real Estate Before or Right After Death 76 Mistake #21: Forgetting That Real Estate Usually Passes Subject to Loans and Mortgages 78 Mistake #22: Not Draining the Water Pipes in a Vacant House in Cold Weather 80 Mistake #23: Failing to Maintain Adequate Property and Casualty Insurance on Estate Property—Especially Vacant Real Estate 82 Mistake #24: Failing to Provide That Children, or Others, May Continue to Reside in the Family Home with the Executor’s or Trustee’s Approval 84 Mistake #25: Failing to Provide That Existing Leases Will Terminate on Reasonable Terms After the Death of the Owner of the Property 87 Mistake #26: Owning Land, a House or an Apartment in a Foreign Country 89 Mistake #27: Assuming That a Co-operative Apartment Building Board Will Always Do What You Would Like 90 Mistake #28: Placing Real Estate in a Trust Without Checking on the Ramifications of Doing So 92 Chapter 4: Mistakes Involving Executors and/or Trustees 95 Mistake #29: Selecting Only One Executor in a Complicated Estate 96 Mistake #30: Selecting Too Many Executors 98 Mistake #31: Selecting an Even Number of Executors 102 Mistake #32: Selecting Executors with a Conflict of Interest 103 Mistake #33: Not Compensating (or Under-Compensating) Your Executors 107 Mistake #34: Not Selecting Your Spouse as an Executor 110 Mistake #35: Surprising Your Spouse with the Terms of Your Will 112 Mistake #36: Not Naming Your Children as Executors Mistake #37: Naming Your Children as Executors 114 Mistake #38: Naming a Literary Executor in Your Will 116 Mistake #39: Naming a Corporate Fiduciary That Can Be Removed by an Individual Fiduciary 119 Chapter 5 Mistakes Involving Guardians, Minors, or Step-Children 123 Mistake #40: Not Naming the Biological Parent as the Guardian of Your Minor Children 124 Mistake #41: Naming the Biological Parent as the Guardian of Your Minor Children 128 Mistake #42: Failing to Periodically Review Your Choice of Guardian(s) 130 Mistake #43: Assuming That Your Step-Children Have the Same Legal Rights as Your Biological Children 132 Chapter 6 Mistakes Involving Prior Marriages, Prenuptial Agreements, and Significant Others 135 Mistake #44: Not Taking into Account the Terms of an Existing Separation or Divorce Agreement 136 Mistake #45: Entirely Disinheriting Children or Grandchildren Out of Stupidity or Inadvertence 138 Mistake #46: Not Taking Your Spouse’s Legal or Statutory Rights into Account 141 Mistake #47: Putting Your Child in Charge of a Surviving Spouse Who Is Not His or Her Parent 142 Mistake #48: Assuming That Your Divorce Automatically Revokes Your Will in Its Entirety 144 Mistake #49: Not Updating Your Will at the Start of Your Divorce Proceedings 146 Mistake #50: Not Respecting the Validity of a Prenuptial Agreement 148 Mistake #51: Not Mentioning the Prenuptial Agreement in Your Will 149 Mistake #52: Failing to Fund a Revocable Living Trust During Your Lifetime to Avoid Probate 150 Chapter 7 Estate Planning Mistakes Involving Tax and Copyright Issues 153 Mistake #53: Eliminating Your Residuary Estate Because of High Taxes on Your Personal Property 154 Mistake #54: Not Taking Full Advantage of the Available Tax Exemption Amount 156 Mistake #55: Not Having Assets Titled in the Name of Each Spouse 158 Mistake #56: Failing to Ascertain Whether Gift Tax Returns Were Ever Filed 159 Mistake #57: Failing to Pay the Five Percent Annual Minimum Distribution Requirement for Private Charitable Foundations 161 Mistake #58: Not Having a Buy-Sell Agreement in a Closely Held Business, Partnership, or Limited Liability Corporation 163 Mistake #59: Failing to Title Appreciated Real Estate in the Name of the Spouse More Likely to Die First 165 Mistake #60: Separating the Copyright Interest from the Actual Work of Art That Is Bequeathed to a Charity 167 Chapter 8 Estate Planning Mistakes Involving Disgruntled Friends and Family 169 Mistake #61: Lack of a No Contest or In Terrorem Clause in Your Will 170 Mistake #62: Using a One-Dollar No Contest/In Terrorem Clause in Your Will 171 Mistake #63: Using a Codicil Instead of a New Will 175 Mistake #64: Impulsively Changing Your Will by Whipping Out a Quick “Down-and-Dirty” Codicil 180 Mistake #65: Not Contacting the Attorney for the Beneficiary of a Will When Trying to Settle a Dispute with the Attorney for the Executor 182 Mistake #66: Requiring Survivorship by a Certain Number of Days 184 Mistake #67: Not Including Your Long-Time Secretary or Assistant as a Beneficiary in Your Will 185 Mistake #68: Entirely Disinheriting Children or Grandchildren Out of Anger or Vindictiveness 187 Mistake #69: Failing to Mention the Names of the Heirs You Intend to Disinherit in Your Will 191 Mistake #70: Directing That a Specific Attorney or Other Advisor Be Hired by Your Executor 195 Mistake # 71: Not Taking Advantage of a Qualified Disclaimer within Nine Months of Death 197 Mistake #72: Offering Too Large an Amount at the Outset of Negotiations 199 Mistake #73: Arguing with Your Attorney about Legal Fees 200 Mistake #74: Fighting with a Lawyer with “Criminal” Clients 201 Mistake #75: Having Your Former Mother-in-Law Own a Life Insurance Policy on Your Life 202 Mistake #76: Not Getting the Original Will Back from the Person Replaced as an Executor 203 Chapter 9 Mistakes Involving Funerals, Burials, or Cremation 205 Mistake #77: Not Appointing Someone to Make Burial and Funeral Arrangements 207 Mistake #78: Spending Too Much on a Funeral or Burial 212 Mistake #79: Providing Overly Detailed Funeral and Burial Instructions in Your Will 214 Mistake #80: Prepaying for Your Funeral, or Not 217 Mistake #81: Directing That There Be No Funeral or Memorial Service 218 Mistake #82: Losing the Deed for Your Cemetery Plot 222 Mistake #83: Directing That Your Bodily Remains or Ashes Be Buried or Scattered in an Illegal Manner 223 Mistake #84: Directing That Your Pet’s Remains Be Buried with Yours 225 Mistake #85: Getting Too Religious in Your Will 227 Chapter 10 One-of-a-Kind Mistakes by Celebrities and Icons 229 Mistake #86: Not Making Charitable Gifts in Your Will When Your Sons Are the Heirs to the British Throne 230 Mistake #87: Mentioning the Name of a Lawsuit Involving You in Your Own Will 232 Mistake #88: Leaving Your Estate to an Older Person Outright and Not in Trust 235 Mistake #89: Leaving It All to Your Girlfriend Who Has a Drug Addiction 240 Mistake #90: Making a Bequest with Politically Incorrect or Racist Strings Attached 243 Mistake #91: Not Properly Identifying an Organization That Receives a Bequest 245 Mistake #92: Not Providing a Way to Determine That Your Wife Has Regained Her Sanity 247 Mistake #93: Murdering Your Spouse (or Anyone Else) 249 Chapter 11 Rookie or Boneheaded Mistakes 251 Mistake #94: Making a Material Misrepresentation on a Life Insurance Application 252 Mistake #95: Not Settling a Dispute When the Downside Is Much Greater Than the Upside 254 Mistake #96: Making Handwritten Changes to a Will after It Has Been Signed and Witnessed 256 Mistake #97: Acting as a Witness to a Will in Which You Are Named as a Beneficiary 258 Mistake #98: Removing the Staples from an Original Will 259 Mistake #99: Putting Your Original Will in a Bank Safe Deposit Box That May Be Sealed 262 Mistake #100: Preparing Only a Videotaped Will Instead of a Written One 263 Mistake #101: Owning a Large Amount of Life Insurance in Your Name Individually 264 About the Author 267 Index 269

Read more less

Book SynopsisThis nuts-and-bolts guide examines all aspects of an M&A due diligence-from coming to the decision to acquire a company, to who should be on the due diligence team, to the actual process and the final report and post-closing follow up.Trade Review"The authors of this book offer what they call a holistic approach to the due diligence aspects of corporate mergers and acquisitions. Although the authors briefly point to legal considerations in the M&A process, this is not a legal title. It was written by CPAs to provide practical guidance to due diligence activities. The authors accomplish this goal therefore the book would be more approporiate for an undergraduate or graduate business library than an academic law library." (Legal Information Alert, Vol 29, No 3)Table of ContentsPreface xiii Step-by-Step Guidance xiii Organization xiv Planning xv Investigation xvi Execution xvii About the Authors xix Part One Planning 1 Chapter 1 Introduction 3 Overview 3 Mergers and Acquisitions: A Way of Corporate Life 3 Mixed Results 6 Acquisition Risk and Due Diligence 7 Preventable Causes of Failure 10 Myopic Approach to Due Diligence 11 Reacting to Deals 11 Compartmentalized Behavior 13 Inactionable Findings 13 Exclusive Focus on Risk Mitigation 14 Key Success Factors 14 Holistic View of Due Diligence 14 Growth Strategy 15 Integrated Management 15 Purposeful Action 16 Value Orientation 16 Due Diligence and Value Creation 16 Plan to Create Value 16 Strategic Purpose 17 Value Drivers 20 Key Risks 23 Purposeful Behavior 24 Key Points 25 Chapter 2 Planning for Value Creation: Growth Strategy 27 Introduction 27 Central Role of Strategic Planning 27 Chapter Focus 28 The Strategic Planning Process 29 Managing the Process 30 Characteristics of an Effective Planning Process 31 Process Overview 32 Strategic Assessment 32 Market Targeting Process 33 Investment Objectives 34 Market Expansion 35 Vertical Integration 37 Infrastructure Improvement 38 Investment Alternatives 38 Characteristics of Investment Types 39 Backup Planning 45 Plan Outputs 46 Conclusion 51 Key Points 51 Chapter 3 Implementing the Growth Strategy 53 From Identification to Pursuit 53 Choosing an Acquisition Strategy 53 Winnowing Process 54 Identification 58 Marketplace for Acquisitions 58 Identifying Prospects 59 Qualification 64 Strategic Fit 64 Availability 66 Engagement 67 Proactive Engagement 68 Role of Management versus Intermediaries 70 Confidentiality of Information: Nondisclosure Agreement (NDA) 70 Reactive Engagement 71 Assessment 73 Notification/Approval Document 73 Plan to Create Value 76 Pursuit 78 Transaction Framework: Sellers’ and Acquirers’ Different Perspectives 79 Taking Action: Assembling the Core Acquisition Team 81 Key Points 83 Part Two Investigation 85 Chapter 4 Preparing for Due Diligence 87 Introduction 87 Due Diligence Reviews 88 Chapter Focus 89 Environmental Factors 90 External Constraints of the Sale Process 90 Internal Limitations of the Acquirer 92 Nature of the Target Company 92 Impact of Environmental Factors on the Review 93 Creation of the Due Diligence Team 93 Introduction 93 Composition of the Due Diligence Team 94 A Caveat 97 Other Considerations 97 Initial Preparation Measures 98 Development of the Due Diligence Program 99 Program Development Process 99 Key Aspects of the Due Diligence Program 100 Objectives, Procedures and Findings, and Recommendations Illustrated 103 A Due Diligence Mind-Set 105 Planning Due Diligence 106 Finalize the Program 106 Mechanisms for Team Coordination 107 Resolve Issues of Overlap 107 Maintain an Aggressive Posture 107 Communicate Logistical Information 108 Communicate Responsibility and Timing of Report Submissions 108 Key Points 108 Appendix 4A: Due Diligence Checklist 109 I. Review Company Background and Organization and Proposed Transaction 109 II. Financial 112 III. Technology 114 IV. Products 115 V. Marketing and Sales 116 VI. Legal 116 VII. Insurance 119 VIII. Human Resources 119 Chapter 5 Conducting the Due Diligence Review 125 Introduction 125 Overview of Transaction Types 125 Auctions 126 Auctions: The Buyer’s Perspective 127 Preemptive Bids 128 Purchase Premium Preemption 129 Price Preemption: The Buyer’s Perspective 129 Relationship-Based Preemption 130 Relationship-Based Preemption: The Buyer’s Perspective 130 Summary of Transaction Characteristics 131 Components of the Due Diligence Review 131 Management Presentations 132 Management Team Interviews 134 Document Review 135 Tour of the Facilities 136 Technology Trade-Offs 137 Due Diligence Reviews: An Objectives-Driven Approach 138 Overview 138 Due Diligence Objectives 139 Integration 140 Assessment by Function 141 Finance and Accounting 142 Human Resources 145 Sales and Marketing 148 Research and Development 150 Information Technology Review 151 Operations/Production Review 152 Legal and Insurance Review 153 Cross-Functional Coordination and Analysis 154 Conclusion 159 Key Points 159 Appendix 5A: Illustrative Final Process Letter Outline 160 Invitation 160 Description of Transaction Process 160 Guidelines for Final Offers 161 Appendix 5B: Illustrative Data Room Information Listing 161 Chapter 6 Reporting on Due Diligence: Deliverables and Decisions 165 Introduction 165 Outcomes of the Due Diligence Review 165 The Importance of Backup Planning 166 Elimination in the Auction Process 167 Outputs/Reports 168 The No-Go Decision 170 No-Go Discoveries 171 Strategic Issues 171 Valuation Issues 172 Risk Issues 173 Outputs/Reports 175 Renegotiations of Major Terms 175 Outputs/Reports 178 Decision to Proceed 179 Outputs/Reports 179 Comprehensive Due Diligence Report 180 Summary Due Diligence Report 180 Corporate Approval Document 182 Integration Plan 186 Contingency Plan 188 Key Points 188 Part Three Execution 191 Chapter 7 Optimizing Value: Translating Due Diligence Findings into Action 193 Acting on Due Diligence Findings 193 Preacquisition vs. Postacquisition Issues 193 Revisiting the Valuation and Purchase Price 195 Reviewing the Acquisition Transaction Structure 199 Contingent Purchase Price 199 Acquiring Assets vs. Stock 200 Sharing Risk: Contractual Terms and Conditions 202 Marking Up the Draft Purchase Agreement 202 Contract Drafting and Revision 202 Key Sections of the Purchase Agreement 203 Purchase and Sale 203 Closing 205 Representations and Warranties of the Seller 206 Representations and Warranties of the Buyer 208 Covenants 208 Employment Matters 209 Conditions to Close 210 Termination 211 Indemnification 211 Tax Matters 212 General Provisions 212 Disclosure Schedules 213 Transition Services Agreement 213 Managing Contract Negotiations 215 Effective and Efficient Negotiations 215 Empowered Leadership 215 Support of Legal Counsel 216 Support by Experts 217 Review and Feedback 218 Commitment to Getting the Deal Done 220 Closing 220 Shepherding the Transaction toward Closing 220 Regulatory Approval 221 Hart-Scott-Rodino (HSR) Act 221 Buyer Financing 224 Third-Party Consents 224 Closing the Transaction 224 Key Points 225 Chapter 8 Integration: Extracting Value and Mitigating Risk 227 Dual Focus of the Integration Effort 227 Extracting Value 228 Mitigating Risk 229 Integration Team 231 Early Formation 231 Leadership 232 Structure and Composition 233 Integration Plan 234 Plan Components 234 First 90 Days vs. Longer Term 238 Management of the Integration Process 239 Communication 239 Reporting and Decision Making 242 Contingency Plan 245 Broader View of Risks 245 Plan Components 245 Human Factors 247 Culture 247 Knowledge Transfer 249 Recommendations for Postacquisition Management 250 Key Points 251 Appendix What is the Premerger Notification Program: An Overview 253 Index 275

Read more less

Book SynopsisThe Practical Guide to Wall Street is an indispensable resource for anyone who aspires to a front-office sales or trading position on Wall Street and an essential desk reference for market practitioners and those who interact with this exciting but widely misunderstood industry.Table of ContentsPreface xiii A Comment on the Events of 2008 xxiii Acknowledgments xxv Part One What Is a Stock? 1 Chapter 1 Equity Fundamentals (Part 1): Introduction to Financial Statements 3 Introduction 3 Equity and Corporation 4 Introduction to Financial Statements 5 The Balance Sheet 6 The Income Statement 15 Statement of Cash Flows 20 Summary 24 Chapter 2 Equity Fundamentals (Part 2): Financial Ratios, Valuation, and Corporate Actions 27 Introduction 27 Financial Ratios 28 Growth and Value 38 Bloomberg 39 Valuation 40 Technical Analysis 51 Corporate Actions 54 Summary 64 Part Two Products and Services 67 Chapter 3 Cash Market 69 Introduction 69 How a Stock Exchange Functions 69 Exchange Structure 76 Order Types 81 How the Cash Trading Business Works 102 Communication 112 Purchasing a Stock in a Foreign Currency 115 Summary 121 Chapter 4 Equity Indices 123 Introduction 123 Index Construction 125 What an Index Doesn’t Tell Us 129 Valuation and Calculation 131 Replicating Portfolio 134 Trading an Index Portfolio 136 Index Changes 139 Index Dividend Points 142 Total Return Index Calculation 144 Multicurrency Indices 145 Equity Indices in Practice 147 International Indices 156 Summary 165 Chapter 5 Program Trading 167 Introduction 167 Explanation of a Sample Trade 173 When Is Program Trading More Beneficial? 182 Portfolio Analytics 184 Transition Management 189 Principal Trades 191 Summary 201 Chapter 6 Exchange-Traded Funds (ETFs) 203 Introduction 203 Trading Mechanics 205 Net Asset Value (NAV) 207 Popularity 208 Trading versus Holding 212 ETFs in Practice 214 Summary 214 Chapter 7 Forwards and Futures 217 Introduction 217 Calculation of Fair Value 219 Futures 223 Index Arbitrage 233 The Futures Roll 240 Exchange for Physical (EFP) 245 Basis Trades 254 Futures Contracts in Practice 259 Technical Comment on the Accuracy of Approximations 263 Summary 264 Chapter 8 Swaps 267 Introduction 267 Motivation for a Swap 267 A Long Equity Swap Example 269 The Swap in Detail: Definitions and Terminology 272 Calculation of Payments 277 Short Swap 279 Back-to-Back Swaps 280 Swaps as a Trading Tool 281 A Comment on Hedging 286 Swap Valuation: Accrual versus NPV 287 Currency Exposure 289 ISDA 293 Risks and Other Considerations 294 Summary 296 Chapter 9 Options (Part 1) 299 Introduction 299 Definitions and Terminology 300 Payoff Structure 301 Option Values Prior to Maturity 311 Quantitative Considerations 323 The Black-Scholes Derivation 326 Types of Volatility 337 Summary 341 Chapter 10 Options (Part 2) 343 Volatility Trading 343 Option Sensitivities: The “Greeks” 354 Implied Volatility Revisited 374 OTC and Exotic Options 377 Summary 383 Chapter 11 The Trading Floor 385 Introduction 385 Organization of the Sales and Trading Businesses 386 Other Groups 390 Summary 404 Part Three Economics 405 Chapter 12 Macroeconomics for Trading and Sales 407 Introduction 407 Capital Asset Pricing Model (CAPM) 408 Overview of Macroeconomics 408 The Fed 417 Moving beyond the Big Three: Other Macroeconomic Concepts 424 Other Variables 426 A Final Observation 428 Summary 429 Chapter 13 Economic Data Releases 431 Introduction 431 Preliminary Definitions 433 Principal U.S. Economic Indicators 436 Rest of the World Economics 456 Europe 457 European Economic Statistics 462 Asia 466 The Market’s Reaction Function 471 What the Market Tells Us about the Economy 476 Summary 480 Appendix Mathematical Review 481 Introduction 481 Functions 482 Compound Interest and Exponential Growth 483 Calculus 487 Random Variables, Probability, and Statistics 494 Summary 505 Notes 507 About the Author 519 Index 521

Read more less

Book SynopsisIn Financial Darwinism, author Leo Tilman lays the groundwork for understanding the new financial order by introducing his evolutionary thesis and then outlines an actionable decision-making framework that enables financial institutions and investors to fully leverage the power of business strategy, corporate finance, investment analysis, and risk management. Financial Darwinism is an invaluable road map to today''s financial world and an essential guide to surviving and thriving during these challenging times.Trade Review"As the world places increasing emphasis on fair valuation, risk-based financial disclosure and risk-focused regulation, Tilman's guide becomes more important for CEOs, directors and fiduciaries who must build risk evaluation into all fundamental decisions." (Corporate Governance) “While Tilman's thesis is directed to financial firms, the concept applies to all businesses. Failure to adopt a risk management strategic planning model will lead to extinction, hence the "Darwinism" in the title. Summing Up: Recommended.” (Choice, April 2009) "...Tilman couldn't have chosen a better time...clearly written and with plenty of rational advice for financial institutions" (City A.M., December 11th 2008) "One of the book's merits is that he offers tables that provide taxonomies of business model transformation." (Financial World, February 2009) "This book is highly recommended for finance professional sat all levels of an organization as well as investors desiring insights into how firms can weather the "tectonic shift" in the financial landscape. The terminology and models used should be within the grasp of anyone who has taken an undergraduate course in finance." (Journal of Corporate Finance and Accounting) “[Tilman] sees much to be learned from the collective blindness that led to the economic meltdown. … says the first steps to recovery are humility and innovation” (Alpha magazine) "This book offers a deeply thoughtful and well-reasoned analysis of what has gone wrong and the outlines of an eventual road to recovery." (Financial Executive International)Table of ContentsForeword ix Preface xv Acknowledgments xix CHAPTER 1 Understanding and Navigating the Financial Revolution 1 Introduction: The Need for Transformational Thinking 1 From George Bailey to the Golden Age 5 Accounting for Profits the Old-Fashioned Way 7 The “Great Moderation” As an Evolutionary Catalyst 11 Economic Performance in the Dynamic New World 14 Pressures on Static Business Models 18 Dynamic Finance Perspective on Financial Crises 21 Pillars of Strategic Decision Making 25 Value Creation Through Dynamism and Business Model Transformations 26 Beyond the Facade: The Importance of Risk-Based Transparency 35 CHAPTER 2 The Old Regime and Its Demise 39 Economic Performance and Viability of Financial Institutions 39 Static Business Models 41 Dominant Forces: The Future that Has Already Happened 46 Pressures on Static Business Models 55 CHAPTER 3 The Dynamic New World 65 Risk-Based Economic Performance 65 Balance Sheet Arbitrage 68 Principal Investments 69 Systematic Risk Exposures 71 Fees and Expenses 74 Capital Structure Optimization 75 Economic Performance Attribution 75 CHAPTER 4 Business Model Transformations 79 Pillars of Strategic Decisions in a Dynamic World 79 Responsive Recalibrations of Business Models 81 Full-Scale Business Model Transformations 86 Making the Strategic Vision a Reality 93 CHAPTER 5 The Road to Financial Darwinism 99 Real-World Business Model Transformations 99 Stakeholder Communication & Equity Valuation in a Dynamic World 109 Economic Value Creation (and Destruction) by Non-Financial Corporations 112 The Infamous “Carry Trade” and the Old Ways of Thinking 115 A Dynamic Finance Perspective on Modern Financial Crises 118 Beyond the Facade: The Need for Risk-Based Transparency 127 Conclusion 129 Epilogue: Financial Darwinism and the Crisis of 2007–2008 133 Appendix A: The Risk-Based Economic Performance Equation 137 Appenidx B: A Case Study in Dynamic Finance 141 Notes 157 References 163 About the Author 167 Index 169

Read more less

Book SynopsisA fraud investigation is aimed at examining evidence to determine if a fraud occurred, how it happened, who was involved, and how much money was lost. Investigations occur in cases ranging from embezzlement, to falsification of financial statements, to suspicious insurance claims. Expert Fraud Investigation: A Step-by-Step Guide provides all the tools to conduct a fraud investigation, detailing when and how to investigate. This guide takes the professional from the point of opening an investigation, selecting a team, gathering data, and through the entire investigation process. Business executives, auditors, and security professionals will benefit from this book, and companies will find this a useful tool for fighting fraud within their own organizations.Table of ContentsPreface xv Acknowledgments xvii Chapter 1 Finding Fraud 1 Signs of Fraud 1 Looking for Suspects 9 Evaluating Fraud Tips 11 Should You Investigate? 12 Confronting Suspects 13 Skills of a Fraud Investigator 14 Differences between Audits and Investigations 16 Conducting a Fraud Investigation 19 Notes 19 Chapter 2 Beginning the Investigation 21 Assessing the Engagement 22 Making Recommendations 26 Budgeting and Cost Control 28 Fees 30 Billing Practices 35 Engagement Letters 36 Chapter 3 Managing the Case 39 Assembling the Team: Where to Start 40 Assembling the Team: Company Insiders 41 Assembling the Team: Key Participants 43 Assembling the Team: Outside Consultants 44 Importance of Credentials 45 Management and Supervision of Staff 46 Work Programs and Checklists 47 Document Management 48 Preserving Evidence 50 File Maintenance 52 Investigative Software 54 Professional Standards 54 When to Stop Investigating 57 Chapter 4 Searching for Fraud 59 Analytical Review 60 Key Financial Ratios 61 Write-offs, Adjustments, and Miscellaneous 65 Manual Disbursements 67 What about Financial Statement Audits? 68 Looking for Fraud in Little Things 70 Chapter 5 Sources of Information 73 Who Acquires Information 73 Internal Records 75 Private Records 77 Public Records 82 The Internet and Search Engines 91 Chapter 6 Investigative Techniques 93 Corporate Background Checks 94 Individual Background Checks 94 Searching for Friends, Family, and Associates 95 Surveillance 96 Digital Data Analysis 97 Computer Forensics 99 Interviewing Witnesses and Suspects 99 Confirmation with Customers and Vendors 104 Creativity and the Fraud Investigator 106 Chapter 7 Investigation of Asset Misappropriation Schemes 107 Cash Receipts Schemes 108 Disbursement Schemes 113 Noncash Schemes 129 Chapter 8 Investigation of Financial Statement Fraud 133 Revenue Overstatement 134 Channel Stuffing 137 Round-Tripping 138 Asset Overstatement 139 Liability and Expense Understatement 143 Reserve Manipulation 147 Misrepresentation or Omission of Information 148 Improper Recording of Mergers and Acquisitions 149 Off-Balance-Sheet Items 150 Accounting Involves Judgment and Estimates 151 Earnings Management 152 Note 152 Chapter 9 Investigation of Corruption Schemes 153 Bribes 154 Kickbacks 155 Extortion and Conflict of Interest 156 Related-Party Transactions 156 Money Laundering 158 Foreign Corrupt Practices Act (FCPA) 160 Prevention and Detection 161 Note 162 Chapter 10 Investigation of External Fraud Schemes 163 Corporate Espionage 163 Investment Schemes 165 Pyramid or Ponzi Schemes 167 Securities Fraud 169 Hidden Income or Assets 170 Insurance Fraud 173 Bankruptcy Fraud 174 Note 175 Chapter 11 Reporting and Litigation 177 Stick to the Facts 178 Keep It Simple 178 Background Information 179 Investigation Procedures 181 Opinions 182 Attachments 183 Draft Reports 184 Unfavorable Opinions 185 Follow-up to the Fraud Investigator’s Work 186 Being an Expert Witness 189 Preparing for Testimony 189 Deposition Testimony 191 Trial Testimony 194 Note 195 Chapter 12 Other Issues 197 Moving Forward as a Company 197 Preventing Future Frauds 199 Marketing a Fraud Investigation Practice 201 Competing with Other Firms 202 Conducting a Global Investigation 203 Professional Liability Issues 204 Reducing Fraud with Investigations 206 Note 207 Appendix 209 Index 215

Read more less

Book SynopsisAn indispensable hands-on guide to financial accounting In light of recent accounting scandals, it is critical that all financial practitioners understand and play by the rules of the accounting field. Starting from the assumption that the reader is not familiar with any accounting jargon, Mastering Financial Accounting Essentials presents material in a way that explains the key features of modern accounting step by step and helps you develop an intuitive understanding of accounting. Each chapter presents important accounting concepts, from inventory valuation methods and the timing of erosion of productive assets to how internal managers calculate ratios and trends to evaluate business efficiency. For those who need to understand the language and law of this discipline in order to communicate effectively with accountants and clients, Mastering Financial Accounting Essentials will be an indispensable guide.Table of ContentsPreface. Acknowledgments. CHAPTER 1 Creating Ledger Accounting. Count Everything. The Beginnings of Double-Entry Accounting. Double-Entry Recording of Business Transactions. Handling Debits and Credits. Keeping Track of Data. A Mathematical Description of Double-Entry Conventions. Handling Income Items. Determining Profit in the Simple Accounting Model. Permanent Accounts Overview. Temporary Accounts Overview. Conclusion. Questions. CHAPTER 2 Accounting Conventions. Reasons Accountants Develop Conventions. Accounting Cycle. Classification. Comparability. Conservatism. Double-Entry. Full Disclosure. Focus on Addition. Generally Accepted Accounting Principles (GAAP). Going-Concern Value. Journal Entry. Matching. Materiality. Recognition. Understandability. Usefulness. Valuation. Verifiability. Conclusion. Questions. CHAPTER 3 Balance Sheet. Balance Sheet Contains Permanent Accounts. Time Line of Cash Flows. Types of Balance Sheet Accounts. Presenting the Classified Balance Sheet. Conclusion. Question. CHAPTER 4 Adding an Income Statement. Temporary Accounts. Using Temporary Accounts. Types of Transactions Involving Temporary Accounts. Income Accounts. Single-Step Income Statement. Multistep Income Statement. Conclusion. Questions. CHAPTER 5 Timing and Accrual Accounting. Journaling Accounting Transactions. Cash Basis Accounting. Accrual Basis Accounting. Conclusion. Questions. CHAPTER 6 The Statement of Cash Flows. Importance of Cash. An Intuitive Way to Track Cash. Standard Accounting Categories on the Statement of Cash Flows. Using the Indirect Method to Document Changes in the Cash Position. Using the Direct Method to Document Changes in the Cash Position. Producing a Statement of Cash Flows Using the Indirect Method. Producing a Statement of Cash Flows Using the Direct Method. Conclusion. Questions. CHAPTER 7 Ensuring Integrity. Internal Controls and Procedures. Independent Auditing. The Role of the User of Financial Statements. Conclusion. Questions. CHAPTER 8 Financial Statement Analysis. Restating Accounting Results. Ratio Analysis. Trend Analysis. Industry Analysis. Conclusion. Questions. Collected Questions. Answers. About the Author. Index.

Read more less

Book SynopsisAn essential guide to corporate finance Understanding corporate finance is a necessity for financial practitioners who struggle every day to find the right balance between maximizing corporate value and reducing a firm''s financial risk. Divided into two comprehensive parts, Mastering Corporate Finance Essentials presents the material by example, using an extended scenario involving a new business formation. In Part One, present and future value mathematics are introduced followed by a number of applications using the tools. In Part Two, statistics as applied to finance are examined, with detailed discussions of standard deviations, correlations, and how they impact diversification. Through theory and real-world examples this book provides a solid grounding in corporate finance Other titles by Stuart McCrary include: Mastering Financial Accounting Essentials, How to Create and Manage a Hedge Fund, and Hedge Fund Course Table of ContentsPreface. Acknowledgments. Chapter 1 Time Value of Money Toolbox. Introduction. Cash Flows. Future Value. The Impact of Compounding Frequency on Future Value. Equivalent Interest Rate. Continuously Compounded Interest. Present Value. Formulas for Present Value and Future Value. Conclusion. Questions. Chapter 2 Statistics for Finance. Introduction. The Meaning of Mean or Average. Median as a Substitute for Mean. Standard Deviation Measures the Noise. Annualizing Variance and Standard Deviation Estimates. The Normal Curve Is a Probability Distribution. The Cumulative Density Function. Measures of Dependency. Measuring Covariance and Correlation. Calculating Statistics in Practice. Combining Normal Distributions. Conclusion. Questions. Chapter 3 Core Finance Theories and the Cost of Capital. Introduction. Risk Reduction from Diversification. Systematic versus Unsystematic Risk. The Market Portfolio. The Capital Asset Pricing Model. Using Beta to Determine the Required Return for a Stock. Other Factor Models. Cost of Debt. Weighted Average Cost of Capital. Modigliani and Miller. Patterns of Debt and Equity in Capital Structures. Conclusion. Questions. Chapter 4 Capital Budgeting Tools. Introduction. Three Ways to Evaluate Investments. Calculating Net Present Value. Net Present Value Example. Calculating Internal Rate of Return. Calculating Years to Payback. Financial Decision Making. The Annuity Formula. Valuing an Annuity with More Frequent Cash Flows. Using the Present Value Formula and the Annuity Formula to Value a Bond. Using the Annuity Formula to Value a Mortgage. NPV Using the Annuity Formula. Valuing a Perpetuity. Valuing a Growth Annuity. Introduction to Uncertainty. Conclusion. Questions. Chapter 5 Techniques for Handling Uncertainty. Introduction. Using Scenario Analysis. Using Monte Carlo Simulation. Uniform Random Numbers. Transforming Uniform Distributions. Adding and Multiplying Two Random Numbers. Using Random Numbers in a Budget Analysis. Using Random Numbers in a Capital Budgeting Analysis Conclusion. Questions. Chapter 6 Real Options Analysis of Capital Investments. Introduction. Why Study Options? What Is a Real Option? Types of Real Options. Methods for Valuing Real Options Conclusion Questions. Appendix: Day Counting for Interest Rate Calculations. Introduction. The 30/360 Method The Actual/Actual Method. The Actual/360 Method. The Actual/365 Method. Example and Comparison of 30/360 and Actual/Actual. Impact of Day Counting over Longer Intervals. Calculating Calendar Intervals over Long Periods. A Note about Continuous Compounding. Conclusion. Questions and Answers. About the Author. Index.

Read more less

Book SynopsisThis timely book, Investment Performance Measurement will help investment professionals successfully analyze and manage their wealth. The CFA Institute is the largest association of professional investment mangers worldwide.Table of ContentsForeword xi Robert R. Johnson, CFA Introduction 1Philip Lawton, CFA, CIPM, and Todd Jankowski, CFA PART I: OVERVIEW OF PERFORMANCE EVALUATION CHAPTER 1 Evaluating Portfolio Performance 11Jeffery V. Bailey, CFA, Thomas M. Richards, CFA, and David E. Tierney PART II: PERFORMANCE MEASUREMENT CHAPTER 2 Benchmarks and Investment Management 81Laurence B. Siegel CHAPTER 3 The Importance of Index Selection 189Christopher G. Luck, CFA CHAPTER 4 After-Tax Performance Evaluation 203James M. Poterba CHAPTER 5 Taxable Benchmarks: The Complexity Increases 217Lee N. Price, CFA CHAPTER 6 Overcoming Cap-Weighted Bond Benchmark Defi ciencies 233William L. Nemerever, CFA CHAPTER 7 Yield Bogeys 251Brent Ambrose and Arthur Warga CHAPTER 8 Jumping on the Benchmark Bandwagon: Benchmark Methodologies Are the Subject of Vigorous Debate 259Crystal Detamore-Rodman PART III: PERFORMANCE ATTRIBUTION CHAPTER 9 Determinants of Portfolio Performance 267Gary P. Brinson, L. Randolph Hood, CFA, and Gilbert L. Beebower CHAPTER 10 Determinants of Portfolio Performance II: An Update 277Gary P. Brinson, Brian D. Singer, CFA, and Gilbert L. Beebower CHAPTER 11 Determinants of Portfolio Performance—20 Years Later 289L. Randolph Hood, CFA CHAPTER 12 Equity Portfolio Characteristics in Performance Analysis 293Stephen C. Gaudette, CFA, and Philip Lawton, CFA, CIPM CHAPTER 13 Mutual Fund Performance: Does Fund Size Matter? 307Daniel C. Indro, Christine X. Jiang, Michael Y. Hu, and Wayne Y. Lee CHAPTER 14 Multiperiod Arithmetic Attribution 327José Menchero, CFA CHAPTER 15 Optimized Geometric Attribution 351José Menchero, CFA CHAPTER 16 Custom Factor Attribution 367José Menchero, CFA, and Vijay Poduri, CFA CHAPTER 17 Return, Risk, and Performance Attribution 387Kevin Terhaar, CFA CHAPTER 18 Global Asset Management and Performance Attribution 397Denis S. Karnosky and Brian D. Singer, CFA CHAPTER 19 Currency Overlay in Performance Evaluation 457Cornelia Paape PART IV: PERFORMANCE APPRAISAL CHAPTER 20 On the Performance of Hedge Funds 481Bing Liang CHAPTER 21 Funds of Hedge Funds: Performance and Persistence 501Stan Beckers CHAPTER 22 Hedge Fund Due Diligence: Putting Together the Pieces of the Mosaic Helps Reveal Operational Risks 513Cynthia Harrington, CFA CHAPTER 23 Putting Risk Measurement in Context: Why One Size Does Not Fit All 517Cynthia Harrington, CFA CHAPTER 24 Conditional Performance Evaluation, Revisited 521Wayne E. Ferson and Meijun Qian CHAPTER 25 Distinguishing True Alpha from Beta 591Laurence B. Siegel CHAPTER 26 A Portfolio Performance Index 605Michael Stutzer CHAPTER 27 Approximating the Confi dence Intervals for Sharpe Style Weights 619Angelo Lobosco and Dan DiBartolomeo CHAPTER 28 The Statistics of Sharpe Ratios 629Andrew W. Lo CHAPTER 29 Risk-Adjusted Performance: The Correlation Correction 653Arun S. Muralidhar CHAPTER 30 Index Changes and Losses to Index Fund Investors 669Honghui Chen, Gregory Noronha, CFA, and Vijay Singal, CFA CHAPTER 31 Information Ratios and Batting Averages 693Neil Constable and Jeremy Armitage, CFA CHAPTER 32 The Information Ratio 705Thomas H. Goodwin CHAPTER 33 Does Asset Allocation Policy Explain 40, 90, or 100 Percent of Performance? 719Roger G. Ibbotson and Paul D. Kaplan CHAPTER 34 Fund Management Changes and Equity Style Shifts 731John G. Gallo and Larry J. Lockwood CHAPTER 35 Managing Performance: Monitoring and Transitioning Managers 745Louisa Wright Sellers CHAPTER 36 Does the Emperor Wear Clothes or Not? The Final Word (or Almost) on the Parable of Investment Management 757Philip Halpern, Nancy Calkins, and Tom Ruggels CHAPTER 37 Does Historical Performance Predict Future Performance? 767Ronald N. Kahn and Andrew Rudd CHAPTER 38 Evaluating Fund Performance in a Dynamic Market 785Wayne E. Ferson and Vincent A. Warther CHAPTER 39 Investment Performance Appraisal 799John P. Meier, CFA CHAPTER 40 Thinking Outside the Box: Risk Management Firms Put a Creative Spin on Coupling Theory with Practice 815Susan Trammell, CFA PART V: GLOBAL INVESTMENT PERFORMANCE STANDARDS CHAPTER 41 Global Investment Performance Standards 825Philip Lawton, CFA, CIPM, and W. Bruce Remington, CFA APPENDIX A Global Investment Performance Standards (GIPS®) 899 APPENDIX B Corrections to GIPS Standards 2005: Last Updated October 31, 2006 951 About the Contributors 953 Index 956

Read more less

Book SynopsisProvides a code intensive, progressive example introductory work to structured finance modeling in VBA Provides a concise, immediate, practical, and pragmatic guide to quickly develop a meaningful level of modeling expertise on a problem in structured finance.Table of ContentsPreface xvii About the Web Site xxi PART ONE Introduction 1 CHAPTER 1 Why? What? Who? Where? and How? 3 The Immortal Question(s) 3 What Are the Advantages of Learning VBA? 6 What Are the Disadvantages of Learning VBA? 8 What Is a Model? 10 Why Is Modeling a Valuable Skill? 12 What Are the Stages of Model Design and Construction? 12 Other Aspects of Modeling 20 Perspective of This Book 22 Structure of the Book 23 Putting the Deliverables “On the Target” 24 CHAPTER 2 Common Sense 27 Overview 27 Deliverables 27 Do Not Eat Anything Bigger Than Your Head 27 You Only Hurt the One You Love 28 It is OK to Be Right; Just Do Not Be Dead-Right 29 Know When to Hold ‘Em 30 Next Steps 30 PART TWO The Securitization Process 31 CHAPTER 3 Securitizing a Loan Portfolio 33 Overview 33 Deliverables 34 Financing a Loan Portfolio 34 Description of the Collateral 37 Collateral Cash Flows 39 Expense and Liability Structure 43 Measuring the Performance of the Structure 45 Functional Requirements of the Model 46 The Role of the Model in the Process of Securitization 47 Deliverables Checklist 49 Next Steps 49 On the Web Site 49 PART THREE Designing the Model 51 CHAPTER 4 Understanding the Excel Waterfall 53 Overview 53 Deliverables 54 Under Construction 54 Waterfalls 54 Structure of the Cash Flow Waterfall 55 Collateral Cash Flows Section 56 Deal Expenses Section 58 Conduit Interest Section 59 Conduit Principal Section 60 Excess Cash Treatment Section 60 Conduit Summary Section 61 Delinquency Reserve Section 63 Deal Triggers Section 65 Debt Costs Section 66 Default Tests Section 66 Debt Performance Calculations Support Section 67 Deal Wind-down Trigger 68 Cash Flow Waterfall “Box Score” Section 70 Deliverables Checklist 72 Next Steps 72 On the Web Site 72 CHAPTER 5 Designing the VBA Model 73 Overview 73 Deliverables 74 Under Construction 75 What Are the Desired Results? 75 What Processes Must the Model Perform? 76 Introduction to Template Files 77 Collateral Selection Reports 81 Ineligible Collateral Reports 82 Eligible Collateral Reports 85 Cash Flow Waterfall Reports 89 Cash Flow Matrix Reports 89 Designing the Menus 89 Designing the Collateral Selection Output Screen 94 It Should Look Like This 94 Deliverables Checklist 94 Next Steps 95 On the Web Site 95 PART FOUR Learning the VBA Language 97 CHAPTER 6 Laying the Model Groundwork 99 Overview 99 Deliverables 101 Under Construction 101 Creating the External Model Environment 102 Creating the Internal Model Environment 105 Writing the Main Program in Pseudo Code 112 Deliverables Checklist 114 Next Steps 114 On the Web Site 114 CHAPTER 7 Recorded Macros: A First Look at the VBA Language 117 Overview 117 Deliverables 118 Under Construction 119 Recording VBA Code 119 Running the Edited Code 128 Using Recorded Macros to Build a Simple Model 134 Deliverables Checklist 135 Next Steps 136 On the Web Site 136 CHAPTER 8 Writing Menus: An Introduction to Data, Ranges, Arrays, and Objects 139 Overview 139 Deliverables 139 Under Construction 141 Role of the Menu 142 Structural Elements of a Menu 145 Introduction to VBA Variables 147 Variable Types 147 How to Create and Use Variables 148 Scope of Variables 152 Assigning Values to Variables 156 Constants 157 Option Explicit Statement 161 Performing Calculations with Variables 161 Ranges 163 Objects 171 Building a Menu from Scratch 173 Deliverables Checklist 179 Next Steps 180 On the Web Site 180 CHAPTER 9 Controlling the Flow of the Model 183 Overview 183 Deliverables 183 Under Construction 185 Decision Structures 185 Looping Structures 192 Subroutines 199 Functions 203 Deliverables Checklist 205 Next Steps 206 On the Web Site 206 CHAPTER 10 Building Messaging Capabilities 207 Overview 207 Deliverables 207 Under Construction 208 Progress Messages 208 Error Messages 211 Run-time Option Error Checking 223 Deliverables Checklist 224 Next Steps 225 On the Web Site 225 CHAPTER 11 Designing the Model’s Reports 227 Overview 227 Deliverables 227 Under Construction 227 Collateral Reporting Activity 228 Ineligible Collateral Reporting 229 Eligible Collateral Reporting 235 Cash Flow Waterfall Report 236 Deal Summary Matrix Reports 237 Matrix Report Package 239 Assumptions Report 239 Deliverables Checklist 240 Next Steps 241 On the Web Site 241 PART FIVE Writing the Model 243 CHAPTER 12 Main Program and Menus 245 Overview 245 Deliverables 246 Under Construction 247 Main Program 249 Typical Subroutine Called by the Main Program 252 Three Subroutine Calls from the Main Program 252 Building Menu Error Checking 253 Reading the Contents of All the Menus 257 Reading the Contents of the Collateral File 264 Deliverables Checklist 266 Next Steps 268 On the Web Site 268 CHAPTER 13 Writing the Collateral Selection Code 271 Overview 271 Deliverables 271 Under Construction 272 The Collateral Reporting Package 273 Ineligible Collateral Report Package 278 Producing the Ineligibility Report Package 289 Helping Make It All Happen 304 Eligible Collateral Report Package 305 Writing Out the Assumptions of the Model Run 316 Deliverables Checklist 318 Next Steps 318 On the Web Site 318 CHAPTER 14 Calculating the Cash Flows 321 Overview 321 Deliverables 321 Under Construction 323 Pause Awhile and Reflect 323 Overview of the Cash Flow Generator 333 Writing the VBA Code 336 Setting Up the Scenario Loops 355 Cash Flow Calculation Sequence 356 Building a Cash Flow Trace Capability 361 Concluding Remarks 362 Deliverables Checklist 362 Next Steps 363 On the Web Site 363 CHAPTER 15 Running the Waterfall: Producing Initial Results 365 Overview 365 Deliverables 366 Under Construction 367 Running the Waterfall Spreadsheet 370 Loading the Collateral Cashflows 370 Capturing the Waterfall Results 373 Reporting the Summary Report or “Box Score” Information 374 Loading the Matrix Reports Information 375 Producing the Waterfall Spreadsheet Report Package 376 Producing the Matrix Report Package 382 Deliverables Checklist 386 Next Steps 387 On the Web Site 387 CHAPTER 16 Debugging the Model 389 Overview 389 Deliverables 390 Under Construction 390 Compiling the Model 390 Types of VBA Errors 391 Common Syntax Errors 393 Common Compile Errors 393 How to Run the VBA Debugger 395 Runtime Errors 404 Logical Errors 406 Deliverables Checklist 412 Next Steps 412 On the Web Site 413 PART SIX Testing, Use, and Deployment 415 CHAPTER 17 Validating the Model 417 Overview 417 Deliverables 417 Under Construction 418 Steps in the Validation Procedure 420 Validating the Menu Error Checking Code 421 Validating the Menu Inputs 422 Validating the Code for Reading the Portfolio Data File 423 Validating the Collateral Selection Code 423 Validating the Eligible Collateral Reporting Code 427 Validating the Floating Rate Loan Reset Period Levels 428 Validating the Cash Flow Calculation Code 439 Validating the Cash Flow Waterfall Spreadsheet 449 Future Back Testing Activity 452 Validation Activities by Third Parties 453 Deliverables Checklist 453 Next Steps 453 On the Web Site 453 CHAPTER 18 Running the Model 455 Overview 455 Deliverables 456 Under Construction 456 Installing a “Run Button” 457 Steps of the Structuring Process 458 Organizing the Output 459 Step 1: Determine Composition of Proposed Collateral Portfolio 460 Step 2: Initial Collateral Selection 462 Step 3: Addressing Portfolio Concentration Issues 464 Step 4: Correcting Concentration Issues 467 Step 5: Running the Expected Case Cash Flows 468 Step 6: Expected Case Sensitivity Analysis 472 Time Out! Building a Batch Processing Capability 474 Sensitivity Analysis Results 477 Help! A Post-Processing Program 487 Step 7: Rating Agency Stress Tests 488 Step 8: Adjusting the Seller Interest 490 Sizing Results Table 492 We Are Done! 493 Deliverables Checklist 493 Next Steps 493 On the Web Site 494 Extractor.xls Program 495 Batch Program Inputs Menu Entries 499 CHAPTER 19 Building Additional Capabilities 503 Overview 503 Under Construction 503 Deliverables 504 Peek-A-Boo! Immediate Access to Model Results 504 Single Scenario Report File 506 Ability to Run Interest Rate Sensitivities 513 Adding Information to the Assumptions Page 529 Next Steps 534 On the Web Site 534 PART SEVEN After the Model Is Written 537 CHAPTER 20 Documentation of the Model 539 Overview 539 Deliverables 540 Under Construction 540 Online Documentation 540 External Documentation 545 User Training Documentation 546 Deliverables Checklist 546 Next Steps 547 On the Web Site 547 CHAPTER 21 Managing the Growth of the Model 549 Overview 549 Deliverables 549 Under Construction 550 Maintaining the Model Environment 550 Streamlining the Validation and Promotion Process 554 Evolution of the Form of the Model 557 Evolution of the Structure of the Model 558 Deliverables Checklist 558 Next Steps 559 On the Web Site 559 PART EIGHT Risk Assessment and Valuation 561 CHAPTER 22 Building Portfolio Monitoring Model 563 Overview 563 Deliverables 563 Under Construction 564 How Much of the Structuring Model Can We Use? 566 Why Two Models? 567 Designing the New Report Package 568 You Can’t Make an Omelet Without Breaking Some Eggs 576 Modifying Some of the Code 594 What a Brave New Model That Has Such Features in It! 606 Validating the Model 613 Deliverables Checklist 614 Next Steps 614 On the Web Site 614 CHAPTER 23 Valuation Techniques: How Do We Determine Price? 615 Overview 615 Deliverables 616 Under Construction 616 Introduction to Pricing a Security 617 Assessing Risk 622 Adding the Pricing Functionality to the Monitoring Model 627 Deliverables Checklist 636 Next Steps 637 On the Web Site 637 CHAPTER 24 Challenging Times for the Deal 639 Overview 639 Deliverables 639 Under Construction 639 Using the Monitoring Model to Assess the Performance and Value of the Deal 639 Three Months from Issuance 643 Six Months from Issuance 644 Nine Months from Issuance 646 Twelve Months from Issuance 648 Fifteen Months from Issuance 654 Eighteen Months from Issuance 655 Twenty-One Months from Issuance 659 Twenty-Four Months from Issuance 660 End of the Exercise 662 On the Web Site 664 PART NINE Farewell 665 CHAPTER 25 Parting Admonitions 667 What We Have Learned 667 Next Steps 669 APPENDIX A Mortgage Math 671 Overview 671 Loan Amortization Terms 672 Components of the Cash Flows of a Loan 674 Next Steps 688 APPENDIX B Bond Math 689 Overview 689 Future Value 690 Present Value 693 Tenor Measurements 695 Yield and Return Measurements 697 Loss and Coverage Measurements 701 Next Steps 705 Exhibits Index 707 Subject Index 727

Read more less

Book SynopsisOne of today''s most influential financial commentators offers his advice on keeping your money safe in an uncertain world The Little Book of Safe Money acts as a guide for those trying to make their way through today''s down markets. The topics covered include everything from investing behavior-why our minds come with their own set of biases that often prove harmful-to the use of financial advisors. But this timely book goes one step further than the rest by questioning an investor''s true appetite for risk. The Little Book of Safe Money also contradicts many of the myths that whirl around Wall Street with chapters like Why Ultra-ETFs Are Mega-Dangerous and Hedge-Fund Hooey. Writing in the classic Little Book style, author Jason Zweig peels away layer after layer of buzz words, emotion, and myths to reveal what''s really going on in today''s financial markets. Outlines strategies for satisfying our ever-changing investment appetites while fTrade Review"A little book with big advice. Jason Zweig . . . doesn’t promise investors the moon, but in language that everyone can understand, he offers solid, common-sense steps to protect and improve their portfolios. . . Such advice is consistent with the bigidea of Zweig’s book: If an investment looks too good to be true, it probably is. And he offers a useful process to help readers remember it." —SmartMoney.com "There are very few in the financial media whose material I would consider recommended reading. Wall Street Journal columnist Jason Zweig is one of them, and his new book is one you should consider. His latest work adds to his reputation for books that not only provide important insights into the winning investment strategy, but are also good reads. This little book is filled with sage counsel from which even sophisticated investors can benefit. . . His book also provides advice on how to avoid many of the behavioral mistakes investors keep repeating. As William Bernstein, who wrote the forward, put it: ‘Jason Zweig knows your financial demons, where they live, why they’re making your poor, and how you can beat them." —Larry Swedroe, CBS MoneyWatch This book is a well written, fascinating page turner that I read in one sitting with a big bag of microwave popcorn. Yet, I don’t just recommend a book because it was thoroughly enjoyable. The main reason to read this book is that it can put you on the path toward reaching financial freedom. But it’s up to you and whether you’d rather spend your retirement years pursuing your interests, or spend them asking strangers if they’d like their value meal supersized. —Allan Roth, Founder of Wealth Logic, and author of How A Second Grader Beats Wall Street Table of ContentsForeword xv Introduction xxi Chapter One The Three Commandments 1 Chapter Two Solid, Liquid, or Gas? 5 Chapter Three You are an Egg 19 Chapter Four Keeping Your Cash from Turning into Trash 31 Chapter Five Guarantees are Not All They’re Cracked Up to Be 45 Chapter Six Fixing Your Fixed Income 53 Chapter Seven Stocks for the Wrong Run 67 Chapter Eight Rules for Stock Investors to Live By 77 Chapter Nine Little Things Mean a Lot 89 Chapter Ten How to Get Your Kids through College without Going Broke 99 Chapter Eleven What Makes Ultra ETFs Mega-Dangerous 107 Chapter Twelve Hedge Fund Hooey 117 Chapter Thirteen Commodity Claptrap 131 Chapter Fourteen Spicy Food Does Not Equal Hot Returns 141 Chapter Fifteen WACronyms: Why Initials are So Often the Beginning of the End 149 Chapter Sixteen Sex 157 Chapter Seventeen Mind Control 167 Chapter Eighteen Financial Planning Fakery 183 Chapter Nineteen Advice on Advice 189 Chapter Twenty Fraudian Psychology 199 Chapter Twenty-One The Terrible Tale of the Missing $10 Trillion 211 Chapter Twenty-Two How to Talk Back to Market Baloney 219 Acknowledgments 229

Read more less

Book SynopsisPraise For The Retirement Plan Solution Short, clear, complete, and always interesting. Best book on DC plans and what we should do-now. Charles D. Ellis, author, Winning the Loser''s Game At a time when the world is in turmoil, along with retirement expectations, the authors have hit a home run. After reading this book, I have a plan. Read it for your path to retirement security. Dallas Salisbury, President and CEO, Employee Benefit Research Institute The Retirement Plan Solution offers a refreshing and provocative perspective on how to assess retirement needs, save to meet these needs, and manage the retirement payout process. In this time of financial turmoil, employees, plan sponsors, and financial advisors will find this highly practical resource volume both useful and humorous. Olivia S. Mitchell, Director, Pension Research Council, Wharton School The Retirement Plan Solution is a mTrade Review'...the book's positive and inspiring message is one the UK would do well to head.' (Pensions Age, September 2009).Table of ContentsPreface xiii Acknowledgments xix INTRODUCTION The Great American Retirement System? 1 Defined Benefit and Defined Contribution 2 The Dynamics of the Retirement Plan 3 Room for Improvement in the Accumulation Phase 4 The Right Sort of Education 5 Other Ways of Running Defined Contribution Plans 6 The Individual’s Role in Decumulation 7 The Plan Sponsor’s Role 8 A Final Thought: From Biggest to Best 9 CHAPTER 1 DC Version 2.0 11 Coming of Age 12 The New Retirement Superpower 13 Coming Soon to a Dictionary Near You: DBization 14 At the Heart of Version 2.0: A Different Objective 15 Income Replacement 15 Is This the First Nail in the Coffin of Defined Contribution? 16 “Hold on a Second . . . ” 17 PART ONE The Dynamics of the Retirement Plan CHAPTER 2 More than You Ever Wanted to Know about Life Expectancy 21 What Is “Life Expectancy”? 21 How Life Expectancy Has Changed 22 But an Individual’s Life Span Is Uncertain 23 Longevity Distributions: Let’s Take a Look 26 What Does This Mean? 29 And Will Longevity Improve Even More? 30 CHAPTER 3 Retirement Is Expensive 31 The Goal Is a Targeted Level of Income Replacement 32 The Fundamental Pension Equation and the Defined Benefit System 33 A Simple Model of Retirement Plan Accumulation and Decumulation 34 Base Case Results 34 When to Start Saving 37 The Base Case May Not Be a Reliable Guide 38 How to Act in the Face of Uncertainty 39 Appendix: Further Analysis of the Uncertainty Associated with Investment Returns 41 CHAPTER 4 Investment Returns Are All-Important 43 The 10/30/60 Rule 44 Games at a Virtual Casino 46 Investment Analogs 48 Historical Return Patterns 49 What Are the Lessons? 52 What Follows? 54 How Much Investment Risk Can You Tolerate? 54 CHAPTER 5 Sustainable Spending 57 Lifetime Annuities 57 Simulations 58 Appendix: The Multiple 61 PART TWO Opportunities in the Accumulation Phase CHAPTER 6 Save More 65 Employers with No Plan 65 Employees Who Do Not Enroll 67 Employees Who Start Saving Too Late 69 Employees with Low Savings Rates 70 Employees with Gaps in Continuous Participation 72 CHAPTER 7 Limit Leakage 75 Cashing Out 75 Loans 76 Hardship Withdrawals 77 CHAPTER 8 Invest Better 81 Evidence of Waste 81 The Importance of a Good Default Option 83 The “Target Date” Solution 84 And for the Investment Experts? 89 CHAPTER 9 Reduce Fees 91 The Impact of Fees 91 Fees for What? 92 Looking for Fee Leakage 92 Fee-Sharing Arrangements 93 Institutional versus Retail Fees 94 Active Management 95 Record-Keeping Fees 97 PART THREE We Need the Right Sort of Education CHAPTER 10 Why the Waste? Because We’re Only Human 101 Overconfidence in Retirement Planning 101 Behavioral Finance 102 Low Participation and Savings Rates 103 Poor Investment Results 106 What to Do? 108 CHAPTER 11 Financial Education 109 Facts that Surprised Us 109 Enthusiastic Initiatives 110 What Exactly Can Be Taught? 112 Why Hasn’t This Already Been Taught? 115 A Literate Default System 115 A Final Anecdote 116 PART FOUR Other Ways of Running Defined Contribution Plans CHAPTER 12 Case Study—Australia 119 Some Features of the Australian Defined Contribution System 120 Consequences for Coverage 121 Consequences for Adequacy 122 Consequences for Employer Attitudes 123 Lessons for the United States 124 Consequences for Investment Choices 125 CHAPTER 13 Three Defined Contribution Plan Models 127 The Bank Savings Model 127 The Fund Supermarket Model 129 The Retirement Income Model 129 An Example of a Participant Statement in the Retirement Income Model 130 CHAPTER 14 Collective Defined Contribution 133 The Principles 133 Broader Applications by the Dutch and Canadians 135 There’s More than One Way to Skin a Cat 137 PART FIVE The Perspective of the Individual in Decumulation CHAPTER 15 The First Dial: Your Personal Spending Policy 141 Step One: How to Keep Score—The Current Position 142 Step Two: What about the Future? 144 Step Three: The Projected Outflow—The First Attempt to Quantify Your Spending Plan 145 Step Four: How Long Will Your Assets Sustain Your Spending Plan? 147 Checkpoint: Is There a Gap to Be Bridged? 148 Next Up 150 CHAPTER 16 The Second Dial: Your Longevity Protection Policy 151 How an Immediate Annuity Works 151 The Benefit of Buying a Lifetime Annuity 153 Should Everyone Buy an Immediate Annuity? 154 Reasons Why Some People Don’t Like to Buy Immediate Annuities 156 Fortunately . . . 157 Appendix: More on Annuity-Equivalent Wealth 157 CHAPTER 17 The Third Dial: Investment Policy 159 A Reminder of Our Goals and Our Choices 159 A Framework 160 Taking Owner-Occupied Real Estate into Account 161 Many Rules of Thumb Are Just Plain Wrong 163 Four Wealth Zones 164 How Your Wealth Zone Determines Your Choices 166 Bequests 169 CHAPTER 18 Product Innovation with Decumulation in Mind 173 Variations on the Lifetime Annuity 173 Longevity Protection Plus Long-Term Care Insurance 174 Guaranteed Minimum Withdrawal Benefits 175 The Longevity Pool 177 Advanced Life Deferred Annuities 177 Pure Decumulation Products 178 Which Type of Product Is Best? 179 PART SIX The Plan Sponsor’s Role CHAPTER 19 Defined Contribution Plan Governance 183 The Purpose of Defined Contribution Plan Governance 183 Risk Management 184 A Defined Contribution Plan’s Purpose and Objectives 185 Fiduciary Duty 186 What Should a Prudent Expert Know—And When? 189 New Choices Based on New Knowledge 189 In Summary 190 CHAPTER 20 Defined Contribution Plan Effectiveness 191 Participation Rate 193 Participation Delay 193 Employee Savings Rate 194 Employer Contribution Rate 195 Match Maximization 195 Participant Net Investment Return 196 Hardship Withdrawal Usage 198 Loans as Distributions 199 Early Withdrawals 200 Conclusion 200 CHAPTER 21 The Defined Contribution Plan Sponsor’s Role in Decumulation 201 Providing Education 202 Providing Access to Financial Products: In-Plan or Out-of-Plan 203 Design Features 204 Product Features 205 Simplicity 206 Parting Thought 206 Notes 207 About the Authors 223 Index 225

Read more less

Book SynopsisThe first and only comprehensive explanation of GIPS, including how to comply with and implement them While the CFA Institute has published Global Investment Performance Standards (GIPS) for years, there has never been a serious discussion of their implementation and best use.Table of ContentsAbout the Authors xi Preface xiii Acknowledgments xv Introduction xvii PART ONE: Explanation of the GIPS Standards CHAPTER 1. Fundamentals of Compliance 3 Scope of the GIPS Standards 3 History of the GIPS Standards 4 Governance of the GIPS Standards 5 Organization of the GIPS Standards 7 Fundamentals of Compliance 8 Summary 12 CHAPTER 2. Defining the Firm and Composites 13 Defining the Firm 13 Defining Composites 23 Summary 50 PART TWO: The Methodology for Calculating Returns CHAPTER 3. Portfolio Return Measurement 53 Single Period Rate of Return 54 Time Value of Money 63 Performance of the Investor: Money Weighted Returns 67 Internal Rate of Return 71 Performance of the Investment Manager: Time Weighted Returns 77 Portfolio Return Calculations for the GIPS Standards 82 Summary 90 CHAPTER 4. Composite Return Measurement 91 Composite Constituents 91 Composite Returns 93 Single Period Composite Return Considerations 97 Multi-period Composite Returns 100 Summary 107 CHAPTER 5. Dispersion and Risk Measurement 109 Internal Dispersion 109 Equal Weighted Dispersion 111 Asset Weighted Dispersion 114 Risk 119 Summary 137 PART THREE: Reporting and Maintaining Compliance with the GIPS Standards CHAPTER 6. Disclosing and Advertising Composite Performance 141 Required Numerical Information 141 Required Disclosures 149 Length of Time for Disclosures 168 Presentation and Disclosure Recommendations 168 Supplemental Information 170 GIPS Advertising Guidelines 171 Summary 177 CHAPTER 7. Wrap-Fee/SMA, Private Equity, and Real Estate 179 Wrap-Fee/Separately Managed Accounts 180 Private Equity 188 Real Estate 198 Summary 203 CHAPTER 8. Maintaining Compliance with the GIPS Standards 205 Organization and Oversight 205 Return Calculation 211 Error Correction 215 Managing Composites and Presentations 220 Summary 226 CHAPTER 9. Verification 227 Verification 228 Performance Examinations 229 Verification Considerations 230 Required Verification Procedures 234 The Verifier’s Report 241 Preparing for Verification 241 Summary 245 Index 247

Read more less

Book SynopsisToday''s world of personal investing is not a friendly place. Individuals are assaulted with an unending barrage of financial news, expert advice, investing tools, trading systems, and more, to the point where they are overwhelmed. As a result, most people simply entrust their portfolios to third-party advisers and, in doing so, lose control of their financial security. Nobody is more familiar with this situation than author Leland Hevner. As President of the National Association of Online Investors (naoi.org) and a longtime educator in this field, he understands that to succeed in today''s chaotic markets you don''t need more news, advice, or analysis tools. Instead, you need a completely new and simpler approach to building an effective portfolio on your own?one that includes updated investing concepts and dramatically new ways of looking at the market. That''s why he created The Perfect Portfolio. Written in a straightforward and accessible style, this reliable resouTable of ContentsForeword vii Preface ix Author’s Note xvi The Perfect Portfolio Online Supplement xviii Acknowledgments xxi Part I: The Problem, The Solution, and Getting Started Chapter 1 The Woeful State of Personal Investing and the Need for Change—A View from Main Street 3 Chapter 2 The Perfect Portfolio Methodology—A Revolutionary Approach to Creating a Superior Portfolio 21 Chapter 3 Building Your Portfolio’s Core Segment—Establishing a Firm Foundation 41 Part II: Supercharging Your Portfolio with Target Market Investing Chapter 4 Building Your Portfolio’s Target Market Segment—Five Asset Building Blocks that Will Supercharge Your Portfolio 63 Chapter 5 Adding Gold to Your Portfolio—An Investment with Intrinsic Value 89 Chapter 6 Adding an Energy Component to Your Portfolio—An Asset that Runs the World’s Economy 107 Chapter 7 Adding Agricultural Commodities to Your Portfolio—The Staples of Life as a Staple of Your Portfolio 121 Chapter 8 Adding a Real Estate Component to Your Portfolio—Considering a Truly Unique Asset 135 Chapter 9 Adding Emerging Market Stocks to Your Portfolio—Searching the World for Extraordinary Returns 157 Part III: Creating and Working with Your Perfect Portfolio Chapter 10 Designing Your Perfect Portfolio—Building a Powerful Portfolio that Meets Your Unique Needs 177 Chapter 11 Implementing, Monitoring, and Managing Your Perfect Portfolio—Keeping Your Portfolio on Course in Changing Conditions 207 Chapter 12 Maximizing the Potential of Your Perfect Portfolio—Transforming Your Personal Involvement into Wealth 229 The Perfect Portfolio Summary Reviewing, Teaching, and Experiencing the Perfect Portfolio Methodology 249 Appendix A Sample PPM Building Block Trading Plan 261 About the Author 269 Index 271

Read more less

Book SynopsisFormer subprime lender Richard Bitner once worked in an industry that started out helping disadvantaged customers but collapsed due to greed, lack of financial control and willful ignorance. In Confessions of a Subprime Lender: An Insider''s Tale of Greed, Fraud, and Ignorance, he reveals the truth about how the subprime lending business spiraled out of control, pushed home prices to unsustainable levels, and turned unqualified applicants into qualified borrowers through creative financing. Learn about the ways the mortgage industry can be fixed with his twenty suggestions for critical change.Trade Review"...packed with tales of crooked brokers, deceitful customers, avaricious Wall Street banks and all too obliging credit rating agencies." (The Guardian, September 19, 2008) "If this is even near the truth, it is remarkable...Bitner's book was more firmly rooted in the world we live in." (Prospect Magazine, October, 2008) "...pulls back the curtain on the players who created the subprime disaster...In a breezy style and from a special vantage" (Pensions World, November 2008)Table of ContentsAcknowledgments ix Introduction xi CHAPTER 1 Why I Bailed Out of the Industry 1 CHAPTER 2 The Gunslinging Business of Subprime Lending 15 CHAPTER 3 The Underbelly: Mortgage Brokers 39 CHAPTER 4 Making Chicken Salad Out of Chicken Shit: The Art of Creative Financing 73 CHAPTER 5 Wall Street and the Rating Agencies: Greed at Its Worst 103 CHAPTER 6 Secondary Contributors: The Fed, Consumers, Retail Lenders, Homebuilders, and Realtors 127 CHAPTER 7 How to Fix a Broken Industry 151 Glossary 183 Resources 185

Read more less