These are negotiable certificates issued by a U.S. bank for equity shares of a foreign company. ADRs act as a convenient substitute for direct ownership of stock in foreign companies. The securities are held with a custodian. ADRs are registered with the SEC (The Securities and Exchange Commission). The first ADR was introduced by JPMorgan [...]
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Earnings Per Share, referred to as EPS from here-on, is one of the most widely used Profitability ratios. It’s often referred to as Net income per share. Its value symbolizes the Company’s earnings ($) available to the equity shareholder on a per outstanding share basis. The basic formula for calculating the EPS is EPS = [...]
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The assets and liabilities which appear in a balance sheet give only a rough idea of the size and strength of a company. Not all companies are transparent in preparing the balance sheets. Some companies may inflate their assets value and deflate their liabilities. It is important to make an intricate study of each item [...]
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Bookkeeping is the basic exercise in fabricating a balance sheet. So one should understand what is bookkeeping. The two aspects of any financial accounting are credit and debit. Whatever comes in is called a debit and whatever goes out is called a credit. To give an example, when a shareholder brings in money the cash [...]
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