Thursday, September 23, 2010

Consensus EPS

Consensus EPS is average of all the analysts expected EPS within that region universe or market

Types of Shares

Non-voting stock Means
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A Stock that provides the shareholder very little or no vote on corporate matters, such as election of the board of directors or mergers. This type of share is usually implemented for individuals who want to invest in the company’s profitability and success at the expense of voting rights in the direction of the company. Preferred stock typically has nonvoting qualities.
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Multiple Voting Shares Means
Securities which entitle the holder to exercise a greater number of votes per security than the holder of any other class or series of securities of the Issuer
Securities which are issued at a price per security which is significantly lower than the market price per security of any class of listed Equity Shares
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Restricted Shares Means
Equity Shares that are not Common Shares and may include Multiple Voting Shares, Non-Voting Shares, Subordinate Voting Shares and Restricted Voting Shares.
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Restricted Voting Shares Means
Securities which carry a right to vote if the number or percentage of securities which may be voted by a Person or group of Persons is limited
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Subordinate Voting Shares Means
Restricted Shares that carry a right to vote but another class of securities is outstanding that carries a greater right to vote on a per security basis;
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Voting Shares means
Securities that carry the right to vote under all circumstances if the Issuer also has a class of Restricted Shares

Absolute and relative return

Absolute return - is simply whatever an asset or portfolio returned over a certain period.
If a mutual fund returned 8% last year, then that 8% would be its absolute return. Pretty simple
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Relative return - on the other hand, is the difference between the absolute return and the performance of the market (or other similar investments), which is gauged by a benchmark, or index, such as the S&P 500
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For example - if the absolute return of your portfolio is 10% and the performance of the S&P 500 during the same time period is 6%, then you have a relative return of 4% greater than the market (10% - 6% = 4%). If, however, during this same time period the S&P 500 returns 15%, then you have a relative return of -5% (10% - 15% = -5%).
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Why is relative return so important?
Because it is a way to measure the performance of actively managed funds, which should get a return greater than that of the market. After all, you can always buy an index fund that has a low management expense ratio (MER) and will guarantee the market return. If you're paying a manager to perform better than the market and the investment doesn't have a positive relative return over a long period of time, it may be worth your time shopping around for a new fund manager!
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Relative return can also be used within a context smaller than the entire market. For example, a technology fund's performance could be measured or benchmarked against other technology funds.
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The bottom line is that absolute return does not say much on it's own. You need to look at the relative return to see how an investment's return compares to other similar investments. Once you have a comparable benchmark in which to measure your investment's return, you can then make a decision of whether your investment is doing well or poorly and act accordingly

Diff between Outstanding Share and Issues Shares

Outstanding Shares
Stock currently held by investors, including restricted shares owned by the company's officers and insiders, as well as those held by the public. Shares that have been repurchased by the company are not considered outstanding stock.
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Shares outstanding are common shares that have been authorized, issued, and purchased by investors. They have voting rights and represent ownership in the corporation by the person or institution that holds the shares. They should be distinguished from treasury shares, which is common stock held by the corporation
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Shares outstanding can be calculated as either basic or fully diluted. The fully diluted shares outstanding count includes diluting securities as options, warrants or convertibles.
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This number is shown on a company's balance sheet under the heading "Capital Stock" and is more important than the authorized shares or float. It is used to calculate many metrics, including market capitalization and earnings per share (EPS).
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Diff between Outstanding Share and Issues Shares
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Issued Shares: The number of shares that has ever been sold to and held by the shareholders of a company
Includes stock that has been repurchased by the company
Does NOT include shares that have been retired
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Outstanding Shares: Stock currently held by investors.
Does NOT include stock that has been repurchased by the company