Understanding Investor Relations - Investor Relation is a strategic management responsibility that enables effective communication between a company, the financial & investor community, and rest of the constituencies. This relationship ultimately contributes to the company achieving a fair amount of valuation. Accordingly, the Investor Relations Officer (IRO) becomes the inevitable communicators.
Several months ago we received a phone call to give a second opinion on a situation that was truly horrifying to hear. Husband and wife, "we will call them Shaun and Jane" were first time investors and had decided to purchase an investment property. They were earning just over $92,000 of combined income with equity of $150,000, small super and small savings between the two. They were comfortably paying their mortgage off and early this year they decided to buy an investment property in Melbourne. They Google'd local investment property organisation and through them found list of properties. Finally they set their hearts on an apartment that they thought, will eventually sell to those city view loving buyers.
Options can be a great tool for mitigating price risk of an asset such as a stock or a commodity future. Unfortunately, much of the time it seems as though options are misunderstood. In actuality they are not as complicated as they sound. In fact, they can be quite simple.
Do you know if you are investing in stock market or simply speculating? Do you take the pains to know about your stock before buying it? Are you looking to get-rich-quick by investing in stock markets? You need to know when an investment turns into speculation in order to avoid losing your hard-earned money.
Educational article focusing on the choices faced by investors today, including real estate, franchising, and buying exempt market products. Franchise, Condos, Apartment Buildings, or Exempt Market Products: Which Would you Choose? Recently I had an extremely interesting conversation with an accredited investor living in Toronto. This gentleman owns a technology consulting business, is extremely intelligent and astute, and has achieved a level of success that affords freedom and choices. I love conversations with individuals who have carved their own path and taken the risk of starting a business. We can always learn something from true entrepreneurs.
It's not unusual for disconnects between fundamentals and asset values to occur, but it is unusual for them to persist as long as they have. Insights from the "Fourth Turning" by William Strauss and Neil Howe go a long way in explaining the reasons for the disconnect and also illuminate the path by which they will ultimately be resolved.
It can best be summarized as a business that offers only two unique results, either your business completes in the cash (winner) or out of the cash (loser). This is in marked comparison to traditional vanilla flavor options where ideas such as time corrosion (theta), motions, attack cost, a chance to expiration and the like all go into the costs.