Corporate Finance

Corporate Finance is about how companies make decisions about what projects to pursue and how to value those projects.

Ratio Analysis

Ratio Analysis is taking two numbers from financial statements and dividing one by the other. What we are doing is taking two pieces of accounting data, put one over the other, and this forms a ratio. We are taking two pieces of data and forming a performance metric. Ratios are usually presented as a percentage or a number depending on whether the usual case is bigger or less than one.

Time value of money

Time is money, literally. If there is a prospect of receiving a certain sum then the sooner you receive it the more it is worth. Interest rates describe this relationship between present value and future value.

Discounting Cash Flows

A company is essentially an entity that generates cash flows each year into the future. The trick is estimating those future cash flows and how much they might grow or shrink and what the risks are to realizing (receiving) them.

Present value and Future value

$100 invested for one year, earning 5% interest, will be worth $105 after one year, therefore $100 paid now and $105 paid exactly one year later both have the same value to a recipient who expects 5% return. That is $100 invested for one year at 5% interest has a future value of $105.

Net Present Value

The way we look at decisions about whether to fund a project or calculate the value of an asset is to turn that stream of future dollars into today’s dollars. Then we compare that sum of present value, we don’t do the deal, if t is less, it is considered a good deal.

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40 Key Stock Trading Terms – For Beginners

1. Buy – Means to take a position or to buy shares in a company.
2. Sell – Getting rid of the shares that you purchased, either because you’ve achieved you want to cut your losses.
3. Bid – Your bid is what you’re willing to pay for a stock.
4. Ask – Ask, on the other hand, is what people selling stocks are looking to get for their shares.
5. Bid-Ask spread – The bid-ask spread is the difference between what people have to spend and what people want to get. The spread must be resolved before the transaction can take place.
6. Bull Market – A bull market is a market condition that means stock prices are expected to rise.
7. Bear Market – A bear market is one in which investors expect stock prices to fall. This is where short sellers shine.
8. Limit Order – A limit order provides instruction to only execute at or under a purchase price or at or above a sale price. Always use limit orders, not market orders.
9. Market Order – A market order provides instruction to execute, as quickly as possible, a transaction at the present, or market price. Don’t use market orders.
10.  Good till cancelled order – A GTC order means that your order stands until you cancel it and it will be executed whenever the stock comes to your price – even if that’s 2-3 weeks down the road.
11. Day Order – Day order means that your order is only good for the day when it’s placed.
12. Volatility – Volatility is simply how fast a stock moves up and down.
13. Liquidity – Liquidity is how easily you can get into and out of a stock.
14. Trading Volume – Trading volume is the number of shares being traded each day – a factor that has huge implications for a stock’s liquidity.
15. Going long – You’re betting that the company’s stock will increase in price so that you can buy low and sell high.
16. Averaging down – This is when an investor buys more of a stock as the price goes down. This results in a decrease of the average price at which the investor purchased the stock.
17. Capitalization – Market capitalization refers to what the market thinks a company’s value is.
18. Public Float – This is the number of shares that can actually trade, once shares that insiders (like the company’s C-suite and early investors) control are subtracted.
19. Authorized shares – This is the total number of shares that a company can trade. It’s always bigger than the public float.
20. IPO – An IPO is an initial public offering which happens when a private company becomes a publicly-traded company, in order to raise money.

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21. Secondary Offering – If a company’s stock is doing well, they may do another offering, in order to sell more stock and raise more money.
22. Blue chip stocks – These are the large industry-leading companies offering stable dividend payments.
23. Forex – Forex or “foreign exchange” – involves trading different currencies.
24. Hedge funds/mutual funds – Hedge funds and mutual funds are two different types of investment accounts that you can buy into. They turn around and invest your money in dozens, hundreds or even thousands of stocks.
25. ETFs – ETFs are exchange traded funds. They’re like stock, because you buy and sell shares but they’re also like mutual funds, because they track an index.
26. ADRs – ADRs are American depository receipts for foreign companies that trade in the US.
27. BETA – A measurement of the relationship between the price of a stock and the movement of the whole market. If stock XYZ has a beta of 1.5 that means that for every 1 point move in the market, stock XYZ moves 1.5 points and vice versa.
28. Broker – A person who buys or sells an investment for you in exchange for a fee.
29. Day Trading – The practice of buying and selling within the same trading day, before the close of the markets on that day.
30. Dividend – This is a portion of a company’s earnings that is paid to shareholders, the people that own that company’s stock, on a quarterly or annual basis.
31. Exchange – An exchange is a place in which different investments are traded. The most well-known in the United States are the New York Stock Exchange and the NASDAQ.
32. Execution – When an order to buy or sell has been completed if you put in an order to sell 100 shares, this means that all 100 shares have been sold.
33. Margin – A margin account lets a person borrow money (take out a loan) from a broker to purchase an investment. The difference between the amount of the loan and the price of the securities is called the margin.
34. Moving Average – A stock’s average price-per-share during a specific period of time. Some time frames are 50 and 200 day moving averages.
35.  Portfolio – A collection of investments owned by an investor.
36. Quote – Information on a stock’s latest trading price. This is sometimes delayed by 20 minutes, unless you are using an actual broker trading platform.
37.  Rally – a rapid increase in the general price level of the market or of the price of an individual stock.
38. Sector – A group of stocks that are in the same business. An example would be the “Technology” sector, including companies like Apple and Microsoft.
39. Stock Symbol – A stock symbol is an arrangement of characters—usually letters—representing publicly-traded securities on an exchange.
40. Yield – This refers to the measure of the return on an investment that is received from the payment of a dividend.

Corporate Finance

What is Corporate Finance?

– Business involves decisions which have financial consequences and any decision that involves the use of money is said to be a corporate finance decision.

– Corporate finance is one of the most important part of the finance domain as whether the organization is big or small they raise and deploy capital in order to survive and grow.

– These are the various roles that corporate finance plays, which are very interesting and challenging, one of the main roles is that of being a finance adviser.

– This can comprise helping to manage investments or even suggesting a mergers and acquisitions (M&A) strategy.

Corporate Finance Principles

Investment Principle:
This principle revolves around the simple concept that businesses have resources which need to be allocated in the most efficient way.

Financing Principle:
The job here for the corporate financier is to make sure that the business has right amount of capital and the right mix of debt, equity and other financial instruments.

Dividend Principle:

So the basic discussion here is that if the excess cash should be left in the business or given away to the investors/owners.

Understanding the concepts

Capital budgeting

Capital budgeting is the process of planning expenditures on assets (fixed assets) whose cash flows are expected to extend beyond one year. Managers study projects and decide which ones to include in the capital budget.

*The “capital” refers to long-term assets.
*The “budget” is a plan which details projected cash inflows and outflows during future period.

Time value of money

If you have a dollar today, you can earn interest on it and have more than a dollar next year. For example, $100 of today’s money invested for one year and earning 8% interest will be worth $108 after one year.

Mina Mar Group / Miro Zecevic Helping OTC Listed Companies To Overcome Corona Crisis

Mina Mar Group with the bridge finance assists pubcos to get current with their reporting obligations be it full SEC reporting or OTC alternative reporting.

LANTANA, FLORIDA, UNITED STATES, April 3, 2020 /EINPresswire.com/ — Mina Mar Group, CEO Miro Zecevic said “we are pleased to announce the launch of the financing “bridge finance option” project for all OTC Markets listed companies effected by the Corona virus crisis”.

Mina Mar Group (MMG) in the bridge finance option assists publicly listed companies to get current with their reporting obligations be it full SEC reporting or OTC alternative reporting. MMG will finance OTC companies in order to pay their service providers and other regulatory obligations. This cash injection will help issuers to get over the hump. MMG, in turn, will take preferred shares (which typically do not trade and serve as the control block of the issuer) as security with a fixed repayment schedule. MMG sees this action where everyone benefits, from the service providers, the company and shareholders alike. It is a win-win solution all around. MMG in business for over 15 years servicing OTC and NASDAQ issuers has been assisting companies around the globe to overcome internal issues and crises. MMG’s M&A division offers full-scale MA services from mergers corporate governance compliance and all matters affecting small-cap issuers.

In order to find out more details, please email MMG at corporate@minamargroup.com or visit our web site at www.minamargroup.com for a full view of all products and services we offer.

ABOUT Mina Mar Group:

MMG Since 2005 has been assisting publicly traded companies create a win-win relationship with their shareholders and followers. MMG specialize or focus on small-cap both reporting and non-reporting companies. In addition to RTO we do corporate turn around and offer a full range of boutique private placement financing. Our unique methodology enables us to provide end-to-end IPO services with minimal upfront fees. If you would like to go public you will be guided by our team of experienced professionals every step of the way.

Mina Mar Group, Inc.
Mina Mar Group Corporation
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What are the benefits of being Foreign Private Issuer?

Many foreign companies wish to have access to capital market an become publicly traded company in the United States. The reason is that being part of the largest and most liquid capital market bring many benefits including prestige, visibility, ability to attract and retain top talents, etc. To become a part of capital market in the United States and experience all the benefits that it carries, foreign company may undergo reorganization of corporate governance and operations. Foreign issuer in federal securities law is defined as foreign government, foreign national or corporation incorporated by any foreign country. Any foreign issuer (except foreign government) can be considered foreign private issuer except if more than 50% of the issuers outstanding voting securities are held by residents of United States and if any of the following applies: majority of issuer’s executives and directors are residents of United States, more than 50% of issuer’s assets is located in the United States or the issuer’s business in administered principally in the United States.
When it comes to requirements for foreign private issuer status SEC doesn’t have strict rules. For example Commission will allow issuer to choose one of two methods for calculating number of record ownership meaning that they must apply chosen methodology on consistent basis. Same goes when evaluating holder’s U.S. residency or determining whether majority of issuer’s assets is in the United States. To decide whether business is administered principally in the United States foreign issuer must assess the location from which its executives and directors mostly direct and coordinate its activities.
Compared to U.S domestic issuers foreign private issuers receive certain regulatory concessions:
FPIs must file annual report on Form 20 F within four months after the end of fiscal year compared to 60-90 days requirement for domestic issuers
Foreign private issuers are not required to file or make public quarterly financial information, unless they have class of shares listed on NYSE. In that case they must submit semi-annual unaudited financial statement on Form 6-K.
Foreign private issuers are not required to file proxy solicitation material in connection with annual or any other special meeting
Both foreign private and domestic issuers must annually assess their internal control over financial reporting and in many cases providing independent auditor for such control. FPIs are not obliged to assess changes in their internal control over financial reporting quarterly like domestic issuers.
Foreign private issuers are exempt from detailed disclosure requirement regarding individual executive compensation.
Directors and officers of an FPI don’t have to report their equity holdings and transactions.
Financial statement can be prepared in accordance with International Financial Reporting Standards.
Certain issuers that are registering for the first time with SEC may submit their registration statement on a confidential basis.
If the foreign private issuer satisfies certain conditions it can be automatically exempt from Exchange Act reporting obligations.
FPI may terminate its registrations of equity securities under Exchange Act and cease filing reports with SEC in certain conditions.
The SEC provides exemptions to independence requirement for audit committee in case of FPIs.

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