Corporative Finances 2ND Reading
Corporative Finances 2ND Reading
CORPORATIVE FINANCES.
SUMMARY / VOCABULARY
And Personal Commentary
2024.
VOCABULARY
In the long term, the company does itself a favor in its corporate
communication if it meets with investors and analysts, proactively addresses
risks and reflects them accordingly in the business plan. In this way, the
company helps create more realistic and resilient expectations and is in a
position to meet expectations with real fundamental developments or even
to surprise positively if risks do not materialize. Positive surprises or
"earning upgrades" can often be a powerful catalyst for price development.
There are two main types of shareholders: institutional investors and retail
investors. Institutional investors are usually large investment companies,
such as pension funds or hedge funds. They tend to buy large blocks of
shares and hold them for a long time. Retail investors are people who buy
shares of a company through a broker.
The type of shareholders a company has can affect the stock price in
several ways. First, institutional investors tend to have more information
about a company than retail investors. This is because they have access to
research that retail investors do not. As a result, they are better able to
make informed investment decisions.
3. Express a specific vision for the future
4. Rebuild credibility
5. Brand the turnaround