...information of Visa Inc. is presented by revising the historical events and based on the respective 10-K Filing that this company published every year since its Initial Public Offering (IPO). First, the paper opens with a review of the company and its industry. Second, the Financial and Non-Financial facts are reported based on information stated on the Security and Exchange Commission (SEC) filings. Followed by an analysis that describes how successful was the IPO in raising capital, which continues with a narration of the happenings to the company since the IPO. Finally, the trend of Visa’s stock price since the IPO is scrutinized. THE COMPANY AND ITS INDUSTRY Visa Inc. is a company headquartered in San Francisco, California that engages the process of trading electronic payments through a network worldwide. It enables commerce through transferring data information (which has money value) among financial organizations, merchants, shoppers, businesses, and government entities via VisaNet (an exclusive asset of the company) which is a Network Information System (NIS) that is capable of offering fraud safety for consumers and guarantees payment for merchants. Visa’s payments platforms allow: credit, debit, prepaid, and cash access programs, that include digital, mobile, and eCommerce payments for individuals, businesses and government entities. In addition, the company offers risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded...
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...Program…………………………………………….….22 5. Maintaining your Depositary Receipt Program……………………………………..…….….31 6. Legal and Regulatory Framework…………………………………………………………..………..38 7. Glossary……………………………………………………………………………………………………………….57 Page 2 – JPMorgan Depositary Receipt Guide Increasing globalization and investor appetite for diversification offer a unique opportunity to companies looking to tap a new investor base, expand awareness, or raise capital. By creating a depositary receipts program, you gain the flexibility and access you need to achieve your company’s strategic goals. Depositary receipts hold special appeal for investors because they make investing in a company beyond the investor’s home borders easy and convenient. That ease fuels investor appetite, which in turn has driven explosive growth in the depositary receipt market. Companies from more than 80 countries have gained new investors outside their home markets. More than 2,100 issuers have issued depositary receipts. 500 depositary receipt programs are listed on US exchanges, providing the issuing company with important access to new capital. Depositary receipts account for 16% of the entire US equity market.* Since JPMorgan established the first depositary receipt program in 1927, depositary receipts have gained widespread popularity as both an investment vehicle and investment option. In particular, investors appreciate how depositary receipts mitigate the concerns that normally accompany cross-border investments, such as expensive and...
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...02109, +1 617 526 6000; 1875 Pennsylvania Avenue, NW, Washington, DC 20006, +1 202 663 6000. This material is for general informational purposes only and does not represent our legal advice as to any particular set of facts, nor does it represent any undertaking to keep recipients advised of all relevant legal developments. ® SM Attorney Advertising ® Table of Contents 2 US IPO Market Review and Outlook 6 Law Firm and Underwriter Rankings 8 Regional IPO Market Review and Outlook – California – Mid-Atlantic – New England – Tri-State 10 Securities Offering Reforms Are a Year Older – Are IPO Issuers a Year Wiser? 12 Selected WilmerHale Public Offerings 14 SEC Expands Required Compensation Disclosures 18 PIPEs and Rule 144A Market Review and Outlook 21 SOX 404 – The Saga Continues 22 Is the AIM to Reincorporate? 24 Best Practices: When You Want to Do More than Just Follow the Rules US IPO Market Review and Outlook 2006 Review With 198 offerings, deal volume in the 2006 US IPO market was essentially unchanged from the prior two years. However, total gross proceeds for the year increased 29% from 2005 to reach $40.4 billion in 2006, due largely to the return of super-sized IPOs, which more than offset an...
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...systems for personal computers (PCs), servers, phones, and other intelligent devices; server applications for distributed computing environments; productivity applications; business solution applications; desktop and server management tools; software development tools; video games, and online advertising. Its cloud-based computing services include Bing and Windows Live Essentials suite. In October 2011, it acquired Skype Global S.a r.l. In November 2011, the Company acquired VideoSurf Inc.” Microsoft’s leading products are: 1) Windows Division 2) X-Box 3) Skype Leadership style and innovative track record. Microsoft’s leadership style was earlier guided by Bill Gates , founder of Microsoft. http://investing.money.msn.com/investments/company-report?symbol=US%3aMSFT Oracle’s profile As per yahoo.com, “Oracle Corporation, an enterprise software company, develops, manufactures, markets, distributes, and services database and middleware software, applications software, and hardware systems worldwide.” The company also offers customers with rights to unspecified software product upgrades and maintenance releases; Internet access to technical content; and Internet and telephone access to technical support personnel. In addition, its hardware systems products consist of computer server and hardware-related software, including the Oracle Solaris Operating System; and storage products, such as...
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...(or one share) in a foreign stock that is traded on a U.S. exchange. ADRs are denominated in U.S. dollars, with the underlying security held by a U.S. financial institution overseas. ADRs help to reduce administration and duty costs that would otherwise be levied on each transaction. Introduction First introduced by the investment house of JP Morgan in 1927, ADRs are simple in concept. In the most basic terms, A United States bank or investment institution places a certain amount of stock of a foreign company into its vaults - the "depositary" part of the name - then allows investors to buy shares in that collection of stocks, priced in US dollars. Those shares, or receipts, can then be traded on regular stock markets almost as though they were shares held directly in the foreign company itself, only the arrangement is better for US investors. Since ADRs are traded in US dollars and are securities that originate within the United States, they carry none of the cross-border fees or other hassles that might ensue if an investor from Peoria were to try to buy stock directly in a South Korean steel mill. The worst most investors have to worry about are small fees, often a few pennies per ADR per year, charged by the depository institution to cover their costs of offering the service. Thus, in a sense, US investors gain access to the world through ADRs without having to leave the comfort of their own living rooms. Benefits 1. To The Company * Expanded market share...
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...was hired to write code by the Chicago firm InnerWorkings. InnerWorkings was founded in 2001 by Eric Lefkofsky, who had built several businesses around call centers and the Internet. In 2006, Lefkofsky became interested in an idea of Mason’s for a website that would act as a social media platform to bring people together with a common interest in some problem— Saurav K. Dutta is an Associate Professor and Dennis H. Caplan is an Assistant Professor, both at University at Albany, SUNY; and David J. Marcinko is an Associate Professor at Skidmore College. We thank the editor, associate editor, and two reviewers for their helpful insights, comments, and suggestions. We also acknowledge our accounting students who completed the case and provided us with valuable feedback. Editor’s note: Accepted by William R. Pasewark A Published Online: August...
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...Venture Capital Funding Proposal Venture Capital Funding Proposal 08 Fall 08 Fall EXECUTIVE SUMMARY Mobileye N.V. is a growing competitor in the Advanced Driver Assistance Systems (ADAS) industry. Mobileye is the successful developer of the EyeQ software on a low cost, automotive standards chip that allows for real time interpretation of data on visual surroundings, assisting drivers in prevention of collisions and identification of threats. The single camera system and strong relationship that Mobileye maintains with currently 18 original equipment manufacturers (OEMs) means the product is low cost, but still maintains quality and effectiveness. Mobileye being the developer of its flagship product, the EyeQ, with primary costs to production being the purchase of microchips on which the software is reproduced, means that cost of revenues is low, output is highly scalable and so Mobileye is capable of devoting substantial portions of future earnings to further research, improving existing products and gaining further growth through introduction of other ADAS products. This suggests extremely positive growth potential for Mobileye over the medium term. The ADAS market in which Mobileye operates shows a potential compound annual growth rate of more than 50% until 2018 (vli Ltd, 2014). This expected growth is attributed to several strong factors. Firstly, rapid technological progress has substantially lowered costs to production, meaning a much broader market of vehicles...
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...Insight on WorldCom Scandal Table of Contents ABSTRACT 2 The importance of accounting conceptual framework 3 Historical Background 5 The Scandal – what happened 6 PENALTIES 7 How the scandal relates to accounting theory 8 RELATION TO POSITIVE ACCOUNTING THEORY 9 Conservatism Principle 9 Lack of Reliability 10 Lack of Relevance 11 Financial Misstatement 11 Conclusion 12 Bibliography 14 Insight on WorldCom Scandal ABSTRACT The scope of this paper deals with the WorldCom accounting scandal of the early 2000’s as it relates to elements of accounting theory. The discussion will cover the key reasons that contributed to the collapse of WorldCom. Specifically, this paper will look at: Executive compensation, Earnings Management, and Information Asymmetry. The authors will present arguments that clearly show how each of these three sub-topics played a pivotal role in the scandal. The reader will also see how these reasons are often inter-related, and often overlap each other, the enormity of which caused the company to fall like a stack of dominoes. In particular, information asymmetry was allowed to flourish as the WorldCom executives lavished themselves with huge compensation, all the while keeping the board of directors and investors out of the loop. A poor corporate government structure existed as the board was filled with inept and ineffective individuals who were powerless to stop the pilfering of profits. The end result of these actions...
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...Stock Picking Skills of SEC Employees Shivaram Rajgopal Schaefer Chaired Professor of Accounting Goizueta Business School Emory University 1300 Clifton Road NE, Atlanta, GA 30030 Email: shivaram.rajgopal@emory.edu Roger M. White PhD Student in Accounting J. Mack Robinson School of Business Georgia State University Email: rwhite42@gsu.edu Preliminary and incomplete Comments welcome This draft: February 18, 2014 Abstract: We use a new data set obtained via a Freedom of Information Act request to investigate the trading strategies of the employees of the Securities and Exchange Commission (SEC). We find that a hedge portfolio that goes long on SEC employees’ buys and short on SEC employees’ sells earns positive and economically significant abnormal returns of (i) about 4% per year for all securities in general; and (ii) about 8.5% in U.S. common stocks in particular. The abnormal returns stem not from the buys but from the sale of stock ahead of a decline in stock prices. We find that at least some of these SEC employee trading profits are information based, as they tend to divest (i) in the run-up to SEC enforcement actions; and (ii) in the interim period between a corporate insider’s paper-based filing of the sale of restricted stock with the SEC and the appearance of the electronic record of such sale online on EDGAR. These results raise questions about potential rent seeking activities of the regulator’s employees. We acknowledge financial assistance from our respective...
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...DESCRIPTION ACC 401 Week 8 Quiz, ACC 401 Week 8 Quiz – Strayer Chapter 11 International Financial Reporting Standards Multiple Choice—Conceptual 1. The goals of the International Accounting Standards Committee include all of the following except a. To improve international accounting. b. To formulate a single set of auditing standards to be applied in all countries. c. To promote global acceptance of its standards. d. To harmonize accounting practices between countries. 2. Which of the following is true about the FASB after the mandatory adoption of IFRS by US companies? a. The FASB will serve in an advisory capacity to the IASB. b. The FASB will remain the designated standard-setter for US companies, but incorporate IFRS into US GAAP. c. The role of the FASB post-IFRS adoption has not been determined. d. The FASB will cease to exist. 3. Milestones in the transition plan for mandatory adoption of IFRS by US companies include all of the following except: a. Improvements in accounting standards. b. Limited early adoption of IFRS in an effort to enhance comparability for US investors c. Mandatory use of IFRS by US entities. d. All of the above are milestones in the transition plan for mandatory adoption of IFRS by US companies. 4. The roles of the IASC Foundation include a. establishing global standards for financial reporting. b. coordinating the filing requirements of stock exchange regulatory agencies. c. financing IASB operations. d. all of the above are roles...
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...ACC 401 Week 8 Quiz, ACC 401 Week 8 Quiz - Strayer Chapter 11 International Financial Reporting Standards Multiple Choice—Conceptual 1. The goals of the International Accounting Standards Committee include all of the following except a. To improve international accounting. b. To formulate a single set of auditing standards to be applied in all countries. c. To promote global acceptance of its standards. d. To harmonize accounting practices between countries. 2. Which of the following is true about the FASB after the mandatory adoption of IFRS by US companies? a. The FASB will serve in an advisory capacity to the IASB. b. The FASB will remain the designated standard-setter for US companies, but incorporate IFRS into US GAAP. c. The role of the FASB post-IFRS adoption has not been determined. d. The FASB will cease to exist. 3. Milestones in the transition plan for mandatory adoption of IFRS by US companies include all of the following except: a. Improvements in accounting standards. b. Limited early adoption of IFRS in an effort to enhance comparability for US investors c. Mandatory use of IFRS by US entities. d. All of the above are milestones in the transition plan for mandatory adoption of IFRS by US companies. 4. The roles of the IASC Foundation include a. establishing global standards for financial reporting. b. coordinating the filing requirements of stock exchange regulatory agencies. c. financing IASB operations. d. all of the above are...
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...PART 1 Company Allocation Ticker symbol | Company | | GICS Sector | GICS Sub Industry | Address of Headquarters | | BEN | Franklin Resources | | Financials | Diversified Financial Services | San Mateo, California | | FCX | Freeport-McMoran Cp & Gld | | Materials | Diversified Metals & Mining | Phoenix, Arizona | | The cost of capital of the aforementioned companies will be discussed in the following questions. The companies will be referred to by their Ticker Symbols henceforth. Question 1 BEN The book value of the company’s liabilities and equity can be deduced from a number of online sources. The US Securities and Exchange Commission (2013) provided the company filings data whereby BEN’s Form 10q, dated 29/07/2013, showed the following (included on page 2 of this report). The book value of long-term debt is $1,252.1 million, and the book value of equity is $10,402.3 million. The schedule of outstanding debt shows that this figure includes $54.5 million of FHLB advances and $1197.6 million of Senior Notes at various effective interest rates. The notes on Stockholders Equity and Non- Redeemable Non-Controlling Interests reveal that Franklin Resources Inc Stockholders Equity totals $9779.8 million whilst the Non- Redeemable Non-Controlling Interests (previously referred to as minority interests) totals $622.5 million. FCX The book value of the company’s liabilities and equity can be deduced from a number of online sources. The US Securities...
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...there are two divisions, Treasurer’s and Controllers offices that manage the finance function. The Treasurer’s Office is responsible for managing the firm’s cash and credit, its financial planning, and its capital expenditures. The Controller’s Office handles cost and financial accounting, tax payments, and management information systems. 3. What are the three forms of business generally encountered in the US? What are the main defining characteristics of each? The three forms of business generally encountered within the US are: Sole Proprietorship – One individual owns everything, Partnership – Two or more persons jointly own everything, and Corporation – Owners may be any number of people who all own shares (stock) of the business. 4. What is the basic financial goal of a business? The basic financial goal of a business is to maximize the wealth of the owners (stockholders in the case of corporations). 5. In the context of a corporation seeking to maximize the wealth of its owners, how is “wealth” defined? The wealth of a corporation's owners is measured by how much their stock is worth. 6. What are the three main factors affecting the market price of a corporation’s stock? The three main factors affecting market price of stock are: Expected EPS - profits per share, Timing of Cash Flows -...
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...issuer’s classes of capital or common stock as of the close of the period covered by the annual report: 13,517,672 Class A ordinary shares, par value US$0.001 per share, and 419,204,400 Class B ordinary shares, par value US$0.001 per share as of December 31, 2015. Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YesNo If this report is an annual or transaction report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. YesNo Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YesNo Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YesNo Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. Large accelerated...
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...Case 3 Question 1 The Nestle Group would like to partially list one of its largest non-food holdings, Alcon, for several reasons. Nestlé’s top executives would like to discover the true valuation for each of the company’s holdings on a separate basis. Up until now, Nestlé’s EBITDA figure represented Nestlé as a group, not independent of its non-food holdings. While this measure was comparable with others in the industry, the executives felt that it was not truly representative of either Nestlé or Alcon. Although small in comparison to Nestlé, Alcon’s growth and profitability had outpaced the Nestlé Group as a whole and, thus, could possibly skew investors’ true valuation of both companies. By listing Alcon, the executives believe that there would be no better way to shed Alcon of its buried position under Nestlé’s food and beverage division. This way, the market can naturally decide the value of Nestlé amongst the expansive food and beverage industry and Alcon amongst the niche ophthalmology industry. At the time of this debate, Nestlé was trading at a discount relative to other similar corporations in the food and beverage industry. The executives credited this to the fact that the non-food divisions of Nestlé, such as Alcon and L’Oreal, were incorporated in Nestlé’s food and beverage market valuation. Listing Alcon would therefore force analysts to break down Nestlé into its divisions and allow the food and beverage division to stand on its own. Once the executives were...
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