Clients with less assets generate less profits for the firm.
FORBES: BofA Has A Good Idea: Tells Merrill Lynch To Drop Small Clients
The company actually gets smaller, because it has less assets and less equity. (Compared to LInked-In, for example, that grew larger by selling shares and increasing its cash asset.) Over time the cash disappears, and the equity disappears.
FORBES: The Lion's Roar - Why Apple's Worth More than Wal-Mart, or Microsoft + Intel (Wintel)
Perhaps it takes a far more ethical mindset on the part of money management firms to decline to offer financial products that will result in vast assets under management and high fees (but poorer performance), in favor of less assets and fees but improved investor returns.
FORBES: Everyone Wants Kool Aid: Pruning the Money Management Tree (October 29, 2008)
Another 10 are microscopic, with only a few million dollars or less in assets.
The dislocation this time round, particularly for the prices of less liquid assets, is far more severe.
Mr Takenaka also wants it to buy less conventional assets such as exchange-traded funds (index-linked equity funds).
Has good information on how to identify net-net stocks (trading for less than assets minus all conceivable liabilities).
Observers say failure to secure a sale at a favourable price could make it more difficult to sell other, less profitable assets in the future.
Retirees, or those near retirement, typically prefer less risky assets.
Like the 1970s, Tillman sees this decade as one in which financial assets become less valuable than hard assets such as real estate, metals, raw materials and even collectibles.
The solution is not to try to dictate to banks what they can do or not do, but to require them to strengthen their capital to absorb potential losses and hold less risky assets.
FORBES: John Paulson: Gold Will Rise In Proportion To Bernanke's Dollar Printing
The yield on the note has fallen over the last month as demand for less risky assets increased following the crisis in Cyprus and signs of a slowdown in the U.S. The yield was as high as 2.06 percent on March 11.
If applied by the UK Government - and it may have to apply them quickly, as the Project Verde sale is well under way - that would require Lloyds to make its Project Verde assets much less onerous in capital assets required to back loans.
This portfolio can be used to embrace all manner of investments such as Bonds, Commodities, Equity, Foreign Exchange, Loans and Options plus less transparent assets such as Derivatives, Exchange Traded Funds, Film Box Office Sales Human Resources, Real Estate, Structured Products, Trade Marks, Patent and Marketing Rights.
The possible downside to a policy of greater reliance on money-finance or debt-finance is that it might make holding dollar-denominated financial assets less attractive to foreigners.
Network broadcasters would be better served spending less time and assets trying to preserve the status quo and better served by trying to create new business models.
FORBES: Broadcasters: Start Embracing (and Stop Suing) Innovation
One has to wonder how many investors would not do business with managers and brokers, or would risk less of their assets, if full disclosure were the rule.
In France, Dominique Strauss-Kahn, the finance minister, is seeking to convince his countrymen to keep less of their assets in savings accounts and put more to work on the stockmarket.
As a result, the difference between real yields in America and Japan has narrowed from a peak of nearly 5% in early 1998 to just over 2%, making dollar assets less attractive.
And, as everybody in Washington knows, so long as BP meets its commitments, government attempts to meddle in the firm's management, much less seize its assets, will be rejected by the courts.
For example, a company with illiquid assets, under a heavy debt burden facing upcoming debt maturities and finding itself unable to refinance, may have to sell off assets at a bad time for less money than it thought those assets were worth.
Or it might mean going for the very best assets in less attractive countries.
Graham liked to buy companies for less than net current assets, meaning cash, inventory and receivables minus all obligations.
As we currently trust financial institutions to look after our money, the financial industry has an opportunity to look after the more intangible (but no less valuable) digital assets.
FORBES: Will Banks Protect Your Reputation In The Online World?
The risk in America now is that slower nominal growth will force firms and individuals to improve their balance sheets by spending less or by selling assets, exacerbating deflationary pressures.
It includes outright gifts and charitable donations, sales of assets for less than fair market value (which constitute a transfer of the amount by which compensation received falls short of asset value), and forgiveness of debt.
Regulators said Tuesday that new banks will need to hold 4.5% in equity capital against assets, less than the roughly 10% levels required at the country's major banks, and the lowest level possible under coming international rules known as Basel III.
Taxpayers have been socking all sorts of assets -- including cash, stock and real estate -- into limited partnerships, and then claiming their stakes are worth 25%, 50% or even 90% less than the underlying assets for gift and estate tax purposes.
If Zynga as a company is worth less than the real assets within the company then the logical and economic thing to do is to close the company down , sell off the assets and return that greater amount of money to the shareholders.
应用推荐