Musings on Markets

SEPTEMBER 14, 2021

In keeping with my belief that you learn more by engaging with those who disagree with you, than those who do, I have tried my best to see things through the eyes of ESG true believers, and I must confess that the more I look at ESG, the more convinced I become that "there is no there there".

Start-ups 99

Start-ups Marketability Firm Value 99

Musings on Markets

MARCH 25, 2021

The Stocks Story As treasury rates have risen in 2021, equity markets have been surprisingly resilient, with stocks up during the first three months. Interest Rates and Value As interest rates have risen, the discussion in markets has turned ito the effects that these rates will have on stock prices.

Equity 52

Equity Risk-free Rate Treasury Start-ups 52

Musings on Markets

DECEMBER 15, 2021

Each semester, I step into a classroom wanting to teach the “best” class that I ever have, perhaps even the perfect class, knowing fully well that I will fall short, in practice, because there will be things to improve. Classes I am a dabbler, not a specialist, and my teaching reflects that predisposition.

Corporate Finance 56

Corporate Finance Finance Start-ups Technology 56

Musings on Markets

JANUARY 12, 2021

If it looks like I am over reaching, I start my corporate finance class with the simple proposition that any decision that involves money is a corporate finance decision, and by that definition everything that businesses do falls under its umbrella.

Corporate Finance 52

Corporate Finance Start-ups Finance Marketability 52

Musings on Markets

JULY 1, 2022

In 2022, as bond rates have risen, stock prices have fallen, and crypto has imploded, even true believers are questioning what the bottom for markets might be, and when we will get there. As inflation has taken center stage, markets have gone into retreat globally, and across asset classes. Risk Capital: What is it?

Marketability 88

Marketability Risk Premium Start-ups Equity 88

Musings on Markets

MARCH 19, 2022

The pie chart below, provides a measure of the gross domestic product of Russia and Ukraine, relative to the rest of the world: While Russia's share of the global economy is small, it does have a significant standing in the natural resource space, as a leading producer and exporter of oil/gas, coal and nickel, among other commodities.

Start-ups 100

Start-ups Risk Premium Equity Market Capitalization 100

Musings on Markets

JULY 17, 2023

Looking across company groupings, returns on stocks in 2022 flipped the script on the market performance over much of the prior decade, with the winners from that decade (tech, young companies, growth companies) singled out for the worst punishment during the year. trillion below their values from the start of 2022. that was lost last year.

Marketability 95

Marketability Risk Premium Start-ups Treasury 95

Musings on Markets

DECEMBER 21, 2022

I provide an introduction to cash flows and risk , and how they play out in the time value of money , and the basics of valuing contractual cash flows (bonds), residual cash flows (equity) and contingent cash flows (options). firms in emerging markets or private businesses.

Corporate Finance 89

Corporate Finance Finance Start-ups Marketability 89

Musings on Markets

JANUARY 8, 2022

After all, the key driver of investment success from investing in low PE ratio stocks comes from their reverting back towards the average PE, and the biggest driver of the Shiller PE as a market timing device is the idea that there is a normal range for PE ratios. You may look at the range of values for PE ratios, from 7.05

Risk Premium 91

Risk Premium Start-ups Market Capitalization Corporate Finance 91

Musings on Markets

JANUARY 31, 2024

For decades, the notion of maximizing value has been central to corporate finance, though there have been disagreements about whether maximizing stock prices would get you the same outcome, since that latter requires assumptions about market efficiency. That said, global (US) companies collectively generated $5.3 trillion ($1.8

Equity 79

Equity Book Value Start-ups Corporate Finance 79

Musings on Markets

NOVEMBER 15, 2022

Stories are memorable, numbers less so : Even the most-skilled number cruncher, aided and abetted with charts and diagrams, will have a difficult time creating a valuation that is even close to being as good a compelling business story, in hooking investors and being memorable.

Start-ups 90

Start-ups Marketability Market Capitalization Technology 90

Musings on Markets

AUGUST 2, 2021

Some of you felt that I was being far too generous in my assumptions about market share and profitability, for a company with no history of making money, and that I was over valuing the company. Thus, I could tell you that the best case value is ?423 423 and that my worst case value is ?

Marketability 52

Marketability Start-ups Technology Market Risk 52

Musings on Markets

JANUARY 5, 2024

In this, the first of the data posts for this year, I will describe my data, in terms of geographic spread and industrial breakdown, the variables that I estimate and report on, the choices I make when I analyze data, as well as caveats on best uses and biggest misuses of the data.

Dividends 98

Dividends Risk Premium Equity Book Value 98

Musings on Markets

NOVEMBER 4, 2022

Investors, used to a decade of better-than-expected earnings and rising stock prices at these companies, have been blindsided by unexpected bad news in earnings reports, and have knocked down the market capitalization of these companies by hundreds of billions of dollars in the last few weeks.

Start-ups 98

Start-ups Market Capitalization Marketability Dividends 98

Chris Mercer

FEBRUARY 14, 2024

This second musing addresses the use of restricted stock studies to support marketability discounts in gift and estate tax appraisals prepared for the Internal Revenue Service (or for anyone, for that matter). Restricted Stock Transactions Figure 8.1 What do we know based on this restricted stock transaction?

Marketability 52

Marketability Dividends Appraisal Business Valuation 52

Reynolds Holding

NOVEMBER 29, 2022

Deposits, stocks, bonds, notes, currencies, and other instruments possess value and give rise to claims, liabilities, or equity investment. 3] How have we not learned from the Great Financial Crisis of 2008 that the fragmentation and infighting among regulators is the best way to encourage unscrupulous market manipulators? Key message.

Marketability 137

Marketability Banking Start-ups Finance 137

Musings on Markets

OCTOBER 6, 2023

A few days ago, I valued Instacart ahead of its initial public offering , and noted that the reception that the stock gets will be a good barometer of where risk capital stands in the market, right now.

Intangible Assets 104

Intangible Assets Book Value Equity Start-ups 104

Brian DeChesare

MAY 18, 2022

On the other hand, global macro might be the best strategy if you have a professional sales & trading background or you’ve been an economist, strategist, or policy researcher: What is Global Macro? This chart from AQR on a 60/40 portfolio vs. “integrated macro” strategy (i.e., What Makes Global Macro Hedge Funds Different?

Banking 52

Banking Equity Marketability Finance 52

Audit Board

JUNE 8, 2023

FINRA : Financial Industry Regulatory Authority A non-governmental organization, FINRA requires broker-dealers to address nineteen areas of compliance, including Anti-Money Laundering (AML) and Cybersecurity and technology governance. The best way to avoid a painful audit is to be prepared. Who may need it?

Compliance 52

Compliance Start-ups Technology Accounting Firms 52

Reynolds Holding

OCTOBER 5, 2022

Figure 1 below reflects the semi-annual filing rates dating back to 2013 (all charts courtesy of Cornerstone Research). As illustrated in Figure 2 below, SPAC-related filings are on track to meet or exceed last year’s chart- topping performance and already exceed the total SPAC-related filings in all of 2019 and 2020 combined.

Start-ups 72

Start-ups Marketability Equity Compliance 72

Reynolds Holding

MARCH 27, 2023

Filing Trends Figure 1 below reflects the federal filing rates in 2022 (all charts courtesy of NERA). The Supreme Court Takes On Slack Pirani The case arises out of the New York Stock Exchange’s (“NYSE”) rule, introduced in 2018, that allows companies to go public through a direct listing. The stock allegedly fell 13% on this news.

Technology 59

Technology Start-ups Compliance Finance 59

Value Scope

SEPTEMBER 24, 2020

Today, ESG is not only a dominant topic of discussion across the American business and investment community, it is driving business decisions, impacting corporate structures and organizational charts and it is having a profound impact on investment decisions. That leads to another interesting aspect: the psychological factor.

Intangible Assets 130

Intangible Assets Alpha Beta Marketability 130