XW: It is a symbol used to signify that a security is trading ex-warrant. … [Read more...]
Archives for 19/03/2010
Voodoo Accounting
Voodoo Accounting system is an accounting system that uses unscrupulous methods, especially with a motive to please investors. For example, voodoo accounting may inflate profits by transferring funds to an off-the-books account set aside just for that purpose. It may also hide losses in subsidiaries or do other things to misrepresent a company's financial state. It is a form … [Read more...]
Volumetric Production Payment – VPP
VPP is a type of structured investment that involves the owner of an oil and gas interest selling a specific volume production in that field or property. The investor receives a stated monthly quota – often in raw output, which is then marketed by the VPP buyer – or a specified percentage of the monthly production achieved at the given property. A VPP deal allows the seller to … [Read more...]
Senior Stretch Loan
Senior Stretch Loan, or overadvance loan, is a hybrid debt instrument consisting of both asset-based loan and cash flow loan. It is a loan to a business enterprise that has elements of both asset-based and cash-flow lending. In a typical stretch loan the lender offers funding beyond the lendable value of current and fixed assets if the company demonstrates it can generate … [Read more...]
Wildcatting
Wildcatting is s policy instituted by the Securities and Exchange Commission (SEC) that calls for the review of an entire industry whenever critical problems like accounting fraud(s) are found within one or two companies in the industry. The origins of this term are derived from the oil industry, where companies drill for oil in unexplored or wild areas. This policy of … [Read more...]