Musings on Markets

JANUARY 21, 2023

In this post, I will begin by chronicling the damage done to equities during 2022, before putting the year in historical context, and then examine how developments during the year have affected expectations for the future. Actual Returns Your returns on equities come in one of two forms. Stocks: The What? at the start of that year.

Equity 70

Equity Risk Premium Start-ups Dividends 70

Cooley M&A

JANUARY 19, 2023

1] On December 27, 2022, the Department of the Treasury (“Treasury”) and the IRS issued Notice 2023-2 (the “Notice”), providing interim guidance on the Excise Tax. SPAC stock issued in a private investment in public equity financing or in a deSPAC transaction) would reduce the Excise Tax under the “netting rule.”

Fair Market Value 52

Fair Market Value Marketability Treasury Dividends 52

Musings on Markets

JANUARY 17, 2024

Heading into 2023, US equities looked like they were heading into a sea of troubles, with inflation out of control and a recession on the horizon. Breaking equities down by sub-region, and looking across the globe, I computed the change in aggregate market capitalization, by region: While US stocks accounted for about $9.5

Risk Premium 77

Risk Premium Start-ups Equity Treasury 77

Musings on Markets

JANUARY 8, 2022

Most of the variables that I report are micro variables, relating to company choices on investing, financing and dividend policies, or to data that may be needed to value these companies. I extend my equity risk premium approach to cover other countries, using sovereign default spreads as my starting point, at this link.

Risk Premium 91

Risk Premium Start-ups Market Capitalization Corporate Finance 91

Brian DeChesare

JANUARY 4, 2023

Just look at the handy chart the Financial Times put together to see the horrifically bad numbers: In January 2022, everything seemed quite frothy, with mega-deals happening left and right and crypto and equity prices still at high levels. Treasuries: 19% [Up 19%]. Real Estate (Equity Funds + Owned Properties): 15% [Up 5%].

Marketability 86

Marketability Start-ups Treasury Dividends 86

Reynolds Holding

JANUARY 4, 2023

On December 27, 2022, Treasury released Notices 2023-7 and 2023-2 (the “Notices”). The Notices are intended to provide interim guidance until proposed Treasury Regulations are promulgated. The Treasury and IRS have requested further comments on this issue. 1] The CAMT and the Buyback Tax both are effective January 1, 2023.

Treasury 45

Treasury Dividends Marketability Finance 45

Musings on Markets

JULY 17, 2023

In my second data update post from the start of this year , I looked at US equities in 2022, with the S&P 500 down almost 20% during the year and the NASDAQ, overweighted in technology, feeling even more pain, down about a third, during the year. trillion below their values from the start of 2022.

Marketability 95

Marketability Risk Premium Start-ups Treasury 95

Musings on Markets

JANUARY 9, 2021

The second was that, starting mid-year in 2020, equity markets and the real economy moved in different directions, with the former rising on the expectations a post-virus future, and the latter languishing, as most of the world continued to operate with significant constraints.

Risk Premium 52

Risk Premium Market Capitalization Equity Start-ups 52

Harvard Corporate Governance

OCTOBER 1, 2022

Wang (discussed on the Forum here ); and Share Repurchases, Equity Issuances, and the Optimal Design of Executive Pay by Jesse M. Department of the Treasury (“Treasury”) is directed to issue regulations that exempt certain repurchases by securities dealers. Fried and Charles C.Y. Fried (discussed on the Forum here ).

Treasury 226

Treasury Dividends Equity 226

Musings on Markets

JANUARY 20, 2021

With equities, the metric that has been in use the longest is the PE ratio, modified in recent years to the CAPE, where earnings are normalized (by averaging over time) and sometimes adjusted for inflation. Estimation Approaches Why is it so difficult to estimate an equity risk premium?

Risk Premium 52

Risk Premium Risk-free Rate Equity Dividends 52

Musings on Markets

MAY 11, 2021

The Taxation of Investment Income In much of the world, income from investments (interest, dividends) is treated differently than earned income (salary, wages), by the tax code, and the reasons for the divergence are both practical and political: 1.

Dividends 52

Dividends Start-ups Risk Premium Treasury 52

Benzinga

APRIL 18, 2022

Return on average tangible common equity (1). . . They will also benefit from enhanced service offerings including expanded commercial loan and treasury management solutions.". "We The return on average tangible assets was 1.07%, compared to 1.30%, and the return on average tangible common equity was 10.31%, compared to 12.37%.

Banking 40

Banking Book Value Equity Intangible Assets 40

ThomsonReuters

JULY 13, 2021

The Tax Equity and Fiscal Responsibility Act of 1982 and Interest and Dividend Compliance Act of 1983 requires payers to backup withhold tax from certain reportable payments. This 24% is taken from any future payments to make sure the IRS receives the tax due on this income and is known as backup withholding (BWH).

Treasury 98

Treasury Dividends Compliance Equity 98

Reynolds Holding

APRIL 11, 2022

If adopted, such rules would significantly impact many of the common practices that companies and their insiders have come to rely on to manage equity award programs and to conduct share repurchases and personal trading. Why should a company repurchase its shares? What is a “going private” transaction and what are its implications?

Banking 45

Banking Marketability Equity Compliance 45