Ethical and Professional Standards The candidate should be able to demonstrate a thorough knowledge of the CFA Institute Code of Ethics and Standards of Professional Conduct, familiarity with the Global Investment Performance Standards, and familiarity with corporate governance issues and risks affecting companies. Study Session 1 Ethical and Professional Standards Reading Assignments 1.* “Code of Ethics and Standards of Professional Conduct” Standards of Practice Handbook, 9th edition
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Higher valuations may support listings associated with greater agency costs. We test the predictions that follow from this idea on a sample of publicly listed subsidiaries in Japan. Subsidiaries in which the parent sells a larger stake and subsidiaries with greater scope for expropriation by the parent firm are more overpriced at listing, and minority shareholders fare poorly after listing as mispricing corrects. Parent firms often repurchase subsidiaries at large discounts to valuations at the time
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80% of the news before the announcement and the 3 and 6-month returns after the announcement was approximately zero. Ball concludes his paper by saying "the theory of efficient markets is, like all theories, an imperfect and limited way of viewing stock markets. The issue will be impossible to solve
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a large number of independent, profit-maximizing investors engaged in the analysis and valuation of securities. A second assumption is that new information comes to the market in a random fashion. The third assumption is that the numerous profit-maximizing investors will adjust security prices rapidly to reflect this new information. Thus, price changes would be independent and random. Finally, because stock prices reflect all information, one would expect prevailing prices to reflect “true” current
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Case 1 Goodwill Impairment Testing Should management have performed an interim goodwill impairment test as of September 30, 2010? Galaxy Sports Inc. (Galaxy) is a U.S. based manufacturer of sports equipment. It is an SEC registrant with one operating segment with three separate reporting units: fitness, golf and hockey. The fitness is the largest division of Galaxy with allocated goodwill of $200 million. The golf division reports $130 million of goodwill and the hockey has $30 million of goodwill
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share valuation concerns MOHAN R. LAVI SHARE · COMMENT (1) · PRINT · T+ As with Dell, questions on the offer price have arisen in the case of Cadbury in India. The story of Dell represents the story of American enterprise. Started in a college dormitory room, and making products that the technology age devoured with passion, the company wasted no time in catapulting itself to a market capitalisation of more than $100 billion. For some time, it was also the darling of the stock market
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Comparable companies analysis – Done to determine appropriate valuation multiple for Crocs, Inc. • • Selected peer group based on industry, business and financial characteristics Included explosive growth stocks such as Lulelemon & Under Armour having similar prospects for growth and ROIC as Crocs, Inc. and some mature, stabilized businesses with stable industry growth rates – Nike, Deckers & Timberland. This mix will help us provide valuation from an aggressive sales growth and maturing sales context
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Get to Know the BAT Table of Contents Introduction Test Overview Sample Questions Scoring Introduction We are excited about your participation in the Bloomberg Assessment Test (BAT). The BAT is a global, standardized online exam that the Bloomberg Institute has developed in partnership with premier companies, university faculty, and business professionals around the world. The test is designed for undergraduates and recent graduates who are interested in an entry‐level job in the business
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be attributed to changes in the composition of the companies going public. We attribute much of the increase in underpricing, however, to previously latent agency problems between underwriters and issuing firms. We argue that the increase in valuations over time has caused issuers to be more complacent about leaving money on the table. Keywords: Initial public offerings; agency problems; internet bubble; underwriter reputation 1 1. Introduction What explains the severe underpricing of
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Introduction For any economy stock market is the heart, the entire economy depends on this market. Normally what do we understand by market? Market is a place where some people buy and some people sell their goods, same thing happen in stock market. In any country or economy there is few people who have innovative idea and passion to take risk but no money, on the other hand there is few people who have money but don’t have the passion to do something. Stock market is the place where this two
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