...BEHAVIORAL FIANCNE AND WEALTH MANAGEMENT AUTHOR : MICHAEL M. POMPiaN BEHAVIORAL FIANCNE AND WEALTH MANAGEMENT AUTHOR : MICHAEL M. POMPiaN BOOK REVIEW OF : BOOK REVIEW OF : PREPARED BY : ASHISH SHARMA PREPARED BY : ASHISH SHARMA 2014 2014 Behavioral Finance and Wealth Management Author Information “Michael M. Pompian, CFA, CFP, is a partner at Mercer Investment Consulting, a firm serving institutional and private wealth clients. Prior to joining Mercer, he was a wealth management advisor with Merrill Lynch and PNC Private Bank, and served on the investment staff of a family office. Pompian is a Chartered Financial Analyst (CFA), a Certified Financial Planner (CFP), and a Certified Trust Financial Advisor (CTFA). He is also a member of the CFA Institute (formerly AIMR) and the New York Society of Security Analysts (NYSSA). He holds a BS in management from the University of New Hampshire and an MBA in finance from Tulane University. Pompian is a regular speaker on the subject of behavioral finance and has published several articles on the subject. He is married with three sons and can be reached at michael.pompian@mercer.com. “ Michael M. Pompian describes various biases which we can see in human beings , also tells about various experiments on human beings in his book “ BEHAVIOURAL FINANCE AND WEALTH MANAGEMENT “ and tells “HOW TO BUILD OPTIMAL PORTFOLIOS THAT ACCOUNTS FOR INVESTOR BIASES “ The book is published...
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...Employee Stock Option By Vani Singh An assignment submitted in partial fulfillment of the requirement for FIN 609A School of Business Management National University Prof.: Dr. Farhang Mossavar-Rahmani March 20, 2012 Executive Summary Stock options play a vital role in the success of today’s companies. Stockholders provide stock options to their employees at all levels as an incentive because this helps them to retain, attract and motivate employees. In the past, stock options were given only to the executives because their goal was to maximize the wealth of the company. Lower level employees play an extensive role in helping executives attain this goal. Hence, stockholders decided to give employees stock options to give them the feel of ownership because this would motivate them to take the company toward success. There are two types of stock options: restricted and unrestricted. The restricted stock option restricts employees from exercising the stocks before the stated period of time. Whereas, an unrestricted stock option is a cash award equivalent to the share value, but the employee does not get the actual stock. Both company and employees get stock option tax benefits. Stock options impact the financial statements of the company; it is either considered as an expense or cost to the company. In both cases, the debt of the company increases, thereby providing a tax deduction. Stock options maximize employees’ personal wealth as well as the company’s...
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