Financial Risk and Flying Pigs

There is currently a belief that financial risk is easily measured. That we can stick some sort of risk-meter into the financial system and get an precise measurement of the risk of complex financial instruments. The poorly misguided belief that this risk-meter exists plays a key role in getting the financial system into the messContinue reading “Financial Risk and Flying Pigs”

SEC Will Reveal the IFRS Start Dates This Week for the US

This Wednesday, the SEC will finally let us know a date for US Companies to be allowed to start using IFRS as their reporting standards. It’s essentially going to be a roadmap that the SEC commissioners will consider, and then of course open it up to the public and watch the fireworks begin.

Think your offshore tax haven is protected? Think again…

The U.S. Senate is proposing two bills to get a stronghold on the abuse of offshore tax havens.  For those of you not sure of what this is, an offshore account is a bank account located outside the country of residence of the account holder, and typically in a low tax jurisdiction that provides financialContinue reading “Think your offshore tax haven is protected? Think again…”

Accountants Celebrate! No New Accounting Rules for 3 Years?!

That sounds like sweet music to my ears!  Of course, the SEC has yet to suggest a date by which U.S. companies have to adopt IFRS rules, and the thought of such a massive switch is the current topic of discussion at some of the hard partying accounting functions in the country (think fraternity kegContinue reading “Accountants Celebrate! No New Accounting Rules for 3 Years?!”

The Simplicity of FROs (and we’re not talking about the 70’s style hair-do)

As the opening bell was rung by Don Montanaro on May 8th, the creator of Fixed Return Options (FROs), he was hoping to see a new era of trading by bringing in a more simple way of option trading.  FROs, simply put, pays out in either an all or nothing structure that alleviates the painsContinue reading “The Simplicity of FROs (and we’re not talking about the 70’s style hair-do)”

Margin and Markup and two different things!

I know they both start with “M” and they both are used pretty frequently together.  Other then that, they have entirely different meanings and one can hurt the other. Margin: The percentage margin is the percentage of the final selling price that is profit. Markup: A markup is what percentage of the cost price youContinue reading “Margin and Markup and two different things!”