Financial Management – Statements
Předmět
Tematická oblast
Autor
Škola
Anglický jazyk
Odborná angličtina - obchodní, ekonomická a ICT
Ing. Stanislav Kindl, MBA
Hotelová škola, Obchodní akademie a Střední průmyslová škola, Teplice,
Benešovo náměstí 1, příspěvková organizace
Kód VY_32_INOVACE_JAA_847
Datum 16.01.2013
Zadání: Pracujte s textem a připravenými úkoly či otázkami. Podtrhněte si neznámé pojmy.
Financial Management Course II
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Financial Management II – Statements
TASK 1 – As discussed, please, give more details to the security analysis.
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Hint: Use slide No7. There we have learnt up to nine subjects interested in the security analysis. Could
you tell provide a bit of details to each?
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What do we mean by “securities”? Find two main categories of securities and briefly
contrast them.
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Financial Management Course II
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TASK 2 – Book Value vs. Market Value
Will you be able to match the right titles to the following explanations?
TITLES:
(1) BOOK VALUE, (2) PREFFERED STOCK, (3) MARKET VALUE,
(4) SHARES OUTSTANDING, (5) STOCKHOLDERS’ EQUITY
TEXT I - __________ (title?)
It is the total value of the company's assets that shareholders would theoretically
receive if a company were liquidated. By being compared to the company's market
value, the book value can indicate whether a stock is under- or overpriced.
In personal finance, the book value of an investment is the price paid for a security or
debt investment. When a stock is sold, the selling price less the book value is the
capital gain (or loss) from the investment.
TEXT II - __________ (title?)
The current quoted price at which investors buy or sell a share of common stock or a
bond at a given time. Also known as "market price". The market capitalization plus
the market value of debt. Sometimes referred to as "total market value".
In the context of securities, market value is often different from book value because
the market takes into account future growth potential. Most investors who use
fundamental analysis to pick stocks look at a company's market value and then
determine whether or not the market value is adequate or if it's undervalued in
comparison to its book value, net assets or some other measure.
TEXT III - __________ (title?)
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.
Also referred to as "issued and outstanding" if all repurchased shares have been
retired. 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).
Financial Management Course II
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TEXT IV - __________ (title?)
A class of ownership in a corporation that has a higher claim on the assets and
earnings than common stock. Preferred stock generally has a dividend that must be
paid out before dividends to common stockholders and the shares usually do
not have voting rights. The precise details as to the structure of preferred stock is
specific to each corporation. However, the best way to think of preferred stock is as a
financial instrument that has characteristics of both debt (fixed dividends) and equity
(potential appreciation). Also known as "preferred shares".
TEXT V - __________ (title?)
The portion of the balance sheet that represents the capital received from investors in
exchange for stock (paid-in capital), donated capital and retained earnings.
Stockholders' equity represents the equity stake currently held on the books by a
firm's equity investors. It is calculated either as a firm's total assets minus its total
liabilities, or as share capital plus retained earnings minus treasury shares.
Stockholders' equity is often referred to as the book value of the company, and it
comes from two main sources. The first and original source is the money that was
originally invested in the company, along with any additional investments made
thereafter. The second comes from retained earnings that the company is able to
accumulate over time through its operations. In most cases, especially when dealing
with older companies that have been in business for many years, the retained
earnings portion is the largest component.
Note: I am aware of the fact that this exercise was very easy for you. However, are
you sure you understand what you have just read? And are you familiar with all the
terms that have been used to explain those five key words? Make sure you feel
confident before you move on to another exercise. You may want to do additional
research or take notes which we can discuss during our online session.
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TASK 3 – Financial Statements : PPTX Slides Self-Study
Please, open your PowerPoint slides 8 to 15. Read the fundamental information
related to financial statements; the balance sheet in particular. Make a summary.
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What financial statements [apart from the balance sheet] can you recall? Please,
open this link to learn a bit more about the most common statements. Give a short
summary within which a comparison of the statements needs to be provided.
http://www.quickmba.com/accounting/fin/statements/
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TASK 4 – News : Please, do not forget.
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Notes / Questions
Financial Management Course II
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