Are stock buybacks tax deductible? What are the share buyback tax implications? There are conditions when stock buybacks are tax deductible and there are also conditions when they are not. Read on to understand the tax implications of a share buyback and also to know the best time to sell … Read more
The stock valuation formula varies across the methods of valuation which may fall under absolute valuation or relative valuation. These formulas and methods are explained in the article with examples. The importance of valuing stocks evolves from the fact that a stock’s intrinsic value, is not attached to its current … Read more
The preferred stock formula is used to calculate how much an investor will pay to purchase the stock and how much they get as dividends for the preferred stock they have acquired. The formula which tells the investor how much they will spend is expressed as the preferred stock dividend … Read more
Buying back shares by a company has its pros and cons. In this article, we will discuss the advantages and disadvantages of buyback of shares. But before we start, what really is share buyback? Why would a company buy back its shares? Share buyback is also known as repurchased shares, … Read more
Why would a company purchase treasury stock? There are many reasons why a company would own treasure shares, but the most important reason why companies buy back their own shares is to prevent a hostile takeover. Other reasons would be listed and explained in the following section. Before discussing the … Read more
Negative treasury stock is the normal way of accounting for treasury shares on the balance sheet. According to GAAP, the treasury stock is a contra account in the shareholders’ equity section of the balance sheet. When a company decides to repurchase its issued shares, the repurchased shares must be accounted … Read more
The net asset value per share formula is an economic or real estate metric that is used to assess the value of a real estate investment trust (REIT). This real estate investment trust is any company that finances real estate or owns and operates income-producing real estates such as shopping … Read more
Market capitalization (MCAP) is the market value of a company’s equity. Increased market capitalization is an important factor for companies but it can be affected by some factors; therefore, how does market cap increase? We will outline the factors that decrease or increase the market capitalization of companies with some … Read more
Capitalism is a social, economic, and political system in which private property is used in the production and distribution of goods and services. One of the characteristics of capitalism is to increase profits by utilizing the power of workers, consumers, capitalists, and corporations. Another major capitalism characteristic, especially in pure … Read more
Price to research ratio (PRR) is used to compare the expenses of a company on R&D to its market value. The idea of the price to research ratio formula and calculation is that once a company spends more on research and development (R&D) in relation to its market value, it … Read more
