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Understanding Accounting Frauds (Part-2)

Checklist to understand Recording of Revenue in Financial Statement (Part-2) In continuation of my previous blog post... https://myweekendspot.blogspot.com/2020/01/catch-trend-its-all-about.html?m=1 Investors  rely  on  the  information  that  they  receive  from  corporate executives  to  make  informed  and  rational  securities  selection  decisions.  This  information  is  assumed  to  be  accurate,  whether  the news  is  good  or  bad.  While  most  corporate  executives  respect  investors  and  their  needs,  some  dishonest  ones  hurt  investors  by  misrepresenting  the  actual  company  performance  and  manipulating the  company’s  declared  earnings. Below mentioned are some of the shenanigans done by companies to attract investors and cheat them by manipulating numbers. All the below described pointers cover the frauds that take place due to manipulating Revenue line item in the financials of the companies. RECORDING REVENUE TOO SOON Techniques to Record Revenue

It's important to stay calm while Investing!

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How to stay calm ,when markets are not?        Shuchi.P.Nahar Introduction: The stock market volatility has radically increased in recent days and economies are currently passing through a tumultuous period has reflected in all  financial markets and asset classes. The global economic slowdown created a lot of worries in the capital or equity and property market. Business organizations around the world have been affected by volatility in the stock and property markets. In India, fluctuations in the currency market can obstruct the stability in the equity market and hence stock market volatility shoots up. The study of volatility is therefore very important in an emerging market nation like India. Nifty volatility index is also called as India VIX which is treated as India’s volatility Index and is taken as an important indicator of market expectations of near-term volatility. Sometimes investing can feel like flying through a thunderstorm. Lots of bumps and noise. Hard

Is Long-term investing possible in volatile markets?

Weekend Blog 2                                                  Shuchi.P.Nahar "Role of behavioral finance for long-term investing". The basic and most frequently asked question in today's scenario.  Is long-term investing favorable in such volatile market? I s this the right time to take entry or wait ? Will markets fall from here or rise?  Is short-term investing a favorable strategy to make more returns in volatile market?  To all such basic questions to be answered, let's revise what markets probably have made us forgotten in past few months.  "Concept of long-term investing " If short-term investing is about capital preservation, long-term investing is about wealth creation.  Long - term investing is about building the kind of investment portfolio that will provide you with income for later in life, and for the rest of your life. That could be retirement, or sometimes sooner. Long-term investing doesn’t happen by accident. You n

Lessons to investors and managers by Warren E. Buffett

My Key Learnings :-  Twitter: @shuchi_nahar Book Name: A few Lessons to investors and managers -from from Warren E. Buffett Book by : Peter Bevelin CHAPTER 1 & 2 The price you pay, determines the return you will get.  According to Ben Graham, PRICE IS WHAT YOU PAY AND VALUE IS WHAT YOU GET. The return then received, can be compared with expected return from other opportunity. The value of any stock, bond or business today is determined by the cash inflow and outflow that are discounted at an appropriate rate. Individual needs to use the correct number, for example, proper discounting and that is the expected life of remaining assets.  Buffet has precisely mentioned the bitter truth about money that, ‘It doesn’t matter from where the cash comes from, because in the end it will all be spent.’ Financial asset that has the highest value in comparison to its price is the one that gives the highest return. The investment that is derived from ‘Discounting Cash Flow’ is cons