Miscellaneous
Alternative Investment:
An investment that is not one of the three traditional asset types (stocks, bonds and cash).
Most alternative investment assets are held by institutional investors or accredited, high-net-worth individuals because of their complex nature, limited regulations and relative lack of liquidity. Alternative investments include hedge funds, managed futures, real estate, commodities and derivatives contracts.
Trade Blotter:
DEFINITION of ‘Blotter’ A record of trades and the details of the trades made over a period of time (usually one trading day). The details of a trade will include such things as the time, price, order size and a specification of whether it was a buy or sell order.
Spin Off:
The creation of an independent company through the sale or distribution of new shares of an existing business or division of a parent company.
A spinoff is a type of divestiture. Businesses wishing to streamline their operations often sell less productive or unrelated subsidiary businesses as spinoffs. For example, a company might spin off one of its mature business units that is experiencing little or no growth so it can focus on a product or service with higher growth prospects.
A means of reorganizing an existing corporate structure in which the stock of a business division, subsidiary or newly affiliated company is transferred to the stockholders of the parent company in exchange for stock in the latter. Split-offs often occurs when the parent company wishes to draw a greater distinction between itself and the split-off business.
Parts of Financial Statements:
– Managements Report
(Provides details of prepared based on GAAP i.e. Generally Accepted Accounting Policies, True and Fair, All material expects are covered, etc.)
– Auditors Report (Provides opinion on Financial Accounts)
– Statement of Assets & Liabilities
– Statement of Operations / Statement of Profit
– Statement of Cash Flow
– Schedule of Investments (Details of Investment i.e. Country, Sector, Currency, etc.)
Levels of Investments Classification under IFRS:
– Level 1 : Valued at Quoted price in active market
– Level 2 : Quoted price not available but valued based on observable market data
– Level 3 : Not based on market data