How could banks and financial firms be accused of being dishonest when they lower debt at the end of the quarter?
Well… the answer is quite simple they lower the debt strategically at the end of the quarter and then raise the debt to its peak by the quarter’s half way point.
This maneuver gives the banks a better looking balance sheet for quarterly reports which share holders are presented with. Thus the quarterl7y reports shed a different light on the debt levels held by the bank.
Just How Much Debt is Hidden?
Approximately 40 or so percent is the average practice. This figure is the difference between the mid quarterly peaks compared to the quarter’s end where levels sink.
In my opinion this practice is in deed deceiving to the average investor but I understand why it is done. Its legal. It is a natural operational strategy for a company that is so influenced by share price as a typical publicly held company is. I am sort of surprised that most companies do practice this habit.
Weird little practices like this are due to regulation of the financial markets.
Related Articles
Debt Help and Debt Solutions
DIY Debt Management
Sunday, April 11, 2010
Apple Steps into the World of Online Advertising With "iAD"
Mobile Advertising a growing advertising medium accounting for about 400 - 500 million dollars a year of the online advertising business just got shaken and stirred by Steve Jobs and Apple when the introduction to the "iAD" was unveiled last week.
Click to View Demo of the iAD
What Does the iAD mean for the world of Online Advertising?
Though this announcement of the Apple iAD mobile advertising platform is by all means a significant and important factor for the online advertising industry, the iAD relative to the 23 Billion dollar online advertising industry is a rather small ripple, at least in the short term.
Key iAD Points of Interest to Consider
- Only used for mobile app and online apps advertising
- User does not leave app if clicks on advertisement
- 60/40 revenue split with developer apps generally sell for 0 - 4 dollars
Subscribe to:
Posts (Atom)