Earnings call (Ofer Abarbanel online library)

An earnings call is a teleconference, or webcast, in which a public company discusses the financial results of a reporting period (“earnings guidance”). The name comes from earnings per share (EPS), the bottom line number in the income statement divided by the number of shares outstanding. The US-based National Investor Relations Institute (NIRI) says that 92% of companies represented by their members conduct earnings calls and that virtually all of these are webcast.[citation needed] Transcripts of calls may be made available either by the company or a third party. Continue reading “Earnings call (Ofer Abarbanel online library)”

Monetary/fiscal debate (Ofer Abarbanel online library)

The monetary/fiscal policy debate,[1] otherwise known as the Ando–Modigliani/Friedman–Meiselman debate[2][citation needed] (or AM/FM debate[citation needed] from the main instigators’ initials, and for this reason sometimes jokingly called the “radio stations debate”[note 1][3]), was the exchange of viewpoints about the comparative efficiency of monetary policies and fiscal policies that originated with a work[4] co-authored by Milton Friedman and David I. Meiselman and first published in 1963, as part of studies submitted to the Commission on Money and Credit. Continue reading “Monetary/fiscal debate (Ofer Abarbanel online library)”

Electronic communication network (Ofer Abarbanel online library)

An electronic communication network (ECN) is a type of computerized forum or network that facilitates the trading of financial products outside traditional stock exchanges. An ECN is generally an electronic system that widely disseminates orders entered by market makers to third parties and permits the orders to be executed against in whole or in part. The primary products that are traded on ECNs are stocks and currencies. ECNs are generally passive computer-driven networks that internally match limit orders and charge a very small per share transaction fee (often a fraction of a cent per share).[1] Continue reading “Electronic communication network (Ofer Abarbanel online library)”

Equity (finance) (Ofer Abarbanel online library)

In finance, equity is ownership of assets that may have debts or other liabilities attached to them. Equity is measured for accounting purposes by subtracting liabilities from the value of an asset. For example, if someone owns a car worth $15,000 and owes $5,000 on the loan used to buy the car, then the difference of $10,000 is equity. Equity can apply to a single asset, such as a car or house, or to an entire business entity. Selling equity in a business is an essential method for acquiring cash needed to start up and expand operations. Continue reading “Equity (finance) (Ofer Abarbanel online library)”

Equity premium puzzle (Ofer Abarbanel online library)

The equity premium puzzle refers to the inability of an important class of economic models to explain the average premium of the returns on a well-diversified U.S. equity portfolio over U.S. Treasury Bills observed for more than 100 years. The term was coined by Rajnish Mehra and Edward C. Prescott in a study published in 1985 titled The Equity Premium: A Puzzle,[1][2]. Continue reading “Equity premium puzzle (Ofer Abarbanel online library)”

Stock exchange (Ofer Abarbanel online library)

stock exchangesecurities exchange or bourse[note 1] is a facility where stockbrokers and traders can buy and sell securities, such as shares of stock and bonds and other financial instruments. Stock exchanges may also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividends.[citation needed] Continue reading “Stock exchange (Ofer Abarbanel online library)”

Event-driven investing (Ofer Abarbanel online library)

Event-driven investing is a hedge fund investment strategy that seeks to exploit pricing inefficiencies that may occur before or after a corporate event, such as an earnings call, bankruptcy, merger, acquisition, or spinoff.[1] In more recent times market practitioners have expanded this definition to include additional events such as natural disasters and actions initiated by shareholder activists.[2] However, merger arbitrage remains the most well-known investment strategy within this group.[3] Continue reading “Event-driven investing (Ofer Abarbanel online library)”

Monetary economics (Ofer Abarbanel online library)

Monetary economics is the branch of economics that studies the different competing theories of money: it provides a framework for analyzing money and considers its functions (such as medium of exchange, store of value and unit of account), and it considers how money, for example fiat currency, can gain acceptance purely because of its convenience as a public good.[1] The discipline has historically prefigured, and remains integrally linked to, macroeconomics.[2] This branch also examines the effects of monetary systems, including regulation of money and associated financial institutions[3] and international aspects.[4] Continue reading “Monetary economics (Ofer Abarbanel online library)”