StudentShare solutions
Got a tricky question? Receive an answer from students like you! Try us!

Essay example - Finance and Accounts. Accounting Principles.

Only on StudentShare
Finance & Accounting
Pages 22 (5522 words)
Finance and Accounts. Accounting Principles.
Stock markets of late are very volatile and investors need to learn through various important concepts before proceeding to invest their hard earned money to ensure satisfactory returns…

Extract of sample

These situations should at least be reduced if they cannot be reduced as a whole. The process of loss reduction involves a complex understanding about the following terminologies:
1. CAPM and Arbitrage Pricing Theory
2. Efficient markets hypothesis and Pecking order theory
3. Modigilani and Miller approach and Residual theory
4. Symbolic interactionism, ethnography and phenomenology
5. Conceptual framework of accounting and
6. Conceptual framework of management accounting.
These abovementioned theories explain the basics of share trading and knowledge of them is a must to avoid risk in the stock market.
CAPM and Arbitrage Pricing Theory
Capital Asset Pricing Model (CAPM): It was developed to predict the future value of shares based on the previous trends in market equilibrium. It establishes the underlying relationship between the returns expected in the light of unavoidable risk. Any investment can be classified into risk free or portfolio categories. It analyzes the return which a portfolio is expected to deliver in the form of a characteristic line which comprises of three primary measures – the alpha (α), Beta (β) and unavoidable risk. α is the simple intercept of the line and is bound to be zero and any value below that would avert the investor to participate in that particular stock. ...
Download paper
Not exactly what you need?

Related papers

Accepted Accounting Principles related to Health Care
These rules were established by the Financial Accounting Standards Board. …
3 pages (753 words)
The Main Accounting Principles
This paper will shed light upon how JP Morgan Chase has modified their accounting principles in the past and what impact has the same had on their growth. An Analysis of JP Morgan Chase Business environment is consistently changing, some changes bring unprecedented challenges and these challenges should be met in order to consistently keep doing well. The likes of AIG, Lehmann Brothers could not…
7 pages (1757 words)
GlaxoSmithKline Finance and Accounting Essay
GSK is a UK based MNC which its presence in the pharmaceuticals and consumer health care. The GSK group prepares its consolidated statements in accordance with the IFRS and the company’s financial statements follow the guidelines of UK GAAP. The second part includes the main uses and types of users of accounting information. It has been analyzed if the Group has provided sufficient and relevant…
8 pages (2008 words)
Finance and Accounting Homework
Cost is a crucial aspect, and it facilitates realization of defined results in verifiable and objective amount. The matching of this accounting concept is usually facilitated in order to ensure that there is an accomplishment of radical goals within the depreciation expense parameters. Lump sum purchases should be treated in a way that plant’s asset useful life is well analyzed in a way that…
6 pages (1506 words)
Finance and Accounting
Managers of public sectors and their agencies are the politicians. Politicians are elected by the citizens to act on their capacity and serve their interests when in office. After being granted this mandate, the citizens bequeath their duty of keeping the politicians accountable. Worse still, the leadership portrayed by the politicians is always authoritative, as they do not give the opportunity…
3 pages (753 words)
Finance and accounting internship paper
Ibrahim, one of the finance managers, who directly reported to the Vice-president Finance department. However, the received my daily tasks and assistance from the financial executives who were in Mr. Ibrahim’s team. Mr. Ibrahim evaluated my performance, which my senior provided me. I assisted financial executives in different accounting and financial management functions associated with the…
15 pages (3765 words)
Finance and Accounting Concepts
It consists of financial activities which include collecting, recording, analyzing and communicating the financial information to others. The financial data is a collection of facts which is expressed in numerical symbols and characters. The major task of the accountant is to records the financial transactions and converts data into financial information. The study will deal with the various…
8 pages (2008 words)