Leverage is the ratio of capital to liabilities (or to assets perhaps) but it is not, never has been and never will be any ratio of assets to umm, assets, as is being claimed here.
Capital gains tax liabilities may be realized, commissions will occur when stocks are sold and you may even have to pay fees to transfer money out of your brokerage account.
Pillar 1 provides the guidelines on the valuation of assets, liabilities and capital requirements and defines the financial resources that a company needs to hold in order to be considered solvent.
Whereas the accounts of firms such as Berkshire Hathaway, headed by a guru of the old economy, Warren Buffett, are required by American accounting rules to record their tax liabilities alongside their capital gains, those of Softbank are silent.
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Might the German banks have 32 times their capital base in either assets or liabilities?
Next down the chain of capital, preferred equity and derivatives liabilities are eliminated.
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As the government spends more to finance its contingent liabilities, the cost of capital in China should rise, Huang writes.
Leverage is the act of borrowing lots, or taking on large liabilities, when compared with the amount of capital you have.
But America, if Mr Obama has his way and the Bush tax cuts for high earners are eliminated, is heading for the worst possible outcome: raising taxes on income and capital but failing to trim the country's pension liabilities and rising health-care costs.
In its first survey focused on bank liabilities, the BOE said that it found lenders' capital levels were broadly unchanged in the first three months of the year, despite expectations of an increase, as losses, charges and fines for various wrongdoings ate into profits.
Forcing bond insurers to hold exposure to credit derivatives while ceding good liabilities like municipal bond insurance would swamp their already over-leveraged capital bases, but save municipal bond investors, taxpayers and local governments from further losses, Spitzer said.
Banks fail because they either run out of capital to support their ongoing operations, their asset values drop below that of their liabilities, or fraud forces regulators to step in and take over.
Because in the developed world, social overhead capital produces too many bridges to nowhere, too many non-jobs with long term unfinanced liabilities attached, bureaucracy and the regulation of everything that moves.
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