Ad
related to: book to market vs priceedmunds.com has been visited by 100K+ users in the past month
Search results
Results From The WOW.Com Content Network
The price-to-book ratio, or P/B ratio, (also PBR) is a financial ratio used to compare a company's current market value to its book value (where book value is the value of all assets minus liabilities owned by a company). The calculation can be performed in two ways, but the result should be the same.
Simple example If an investor owns 10 shares of a stock purchased for $4 per share, and that stock now trades at $6, the "mark-to-market" value of the shares is equal to (10 shares * $6), or $60, whereas the book value might (depending on the accounting principles used) equal only $40.
Hedge funds may use mark-to-model for the illiquid portion of their book.. Another shortcoming of mark-to-model is that even if the pricing models are accurate during typical market conditions there can be periods of market stress and illiquidity where the price of less liquid securities declines significantly, for instance through the widening of their bid-ask spread.
An asset's initial book value is its actual cash value or its acquisition cost. Cash assets are recorded or "booked" at actual cash value. Assets such as buildings, land and equipment are valued based on their acquisition cost, which includes the actual cash cost of the asset plus certain costs tied to the purchase of the asset, such as broker fees.
The advantage of the bought deal from the issuer's perspective is that they do not have to worry about financing risk (the risk that the financing can only be done at a discount too steep to market price.) This is in contrast to a book building or fully marketed deal, where the underwriters have to "market" the offering to prospective buyers ...
If market-moving news comes out in the interim, you may get a much different price than you first intended, if you don’t cancel the order. Limit orders: Advantages and disadvantages
In 2013, Fama shared the Nobel Memorial Prize in Economic Sciences for his empirical analysis of asset prices. [1] The three factors are: Market excess return, Outperformance of small versus big companies, and; Outperformance of high book/market versus low book/market companies; There is academic debate about the last two factors. [2]
Get AOL Mail for FREE! Manage your email like never before with travel, photo & document views. Personalize your inbox with themes & tabs. You've Got Mail!