Manipulations
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7 Mistakes to Avoid In Bull Market
A bull market is an exciting place and a bull rally is as exhilarating as a roller coaster ride for an investor.
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How to save yourself from next Harshad Mehta?
This article covers the following: Was Harshad Mehta kind of Bull Run and Crash the first and last?
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Quality of Earnings: The Hidden Metric Every Investor Should Track
Investors often focus on revenue growth, profit margins, and earnings per share when evaluating companies. While these metrics are important, they do not always tell the complete story.
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How do companies use Mergers and Acquisitions to manipulate financial statements?
Tata Steel acquires 100% stake in Corus Group; Vodafone purchases 67% stake owned by Hutchinson-Essar; Indian major Ranbaxy acquired by Japanese pharmaceutical company Daiichi Sankyo – these were headlines that were splashed across newspapers for days together at their time. Many companies…
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Cash Flow Statement is the least manipulated Financial Statement. Or is it?
“The cash flow statement is one of the least manipulated financial statements”. The other two financial statements viz. the Profit & Loss and Balance Sheet, are often subjected to many manipulations. However, while the cash flow statement does render more transparency, it…
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How Companies Manipulate Liabilities in Financial Statements
As investors, we often pay more attention to the sales, net profit numbers on the profit and loss statement, while neglecting the balance sheet. After all balance sheet numbers are not as dynamic and interesting as the sales and net profit figures!…
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Balance Sheet Manipulation: How Companies Overvalue Receivables and Inventory
The balance sheet, also known as the statement of financial condition, offers a snapshot of the company’s health. It tells us how much a company owns (Assets), and how much it owes (Liabilities). Many analysts and investors look at the assets to…
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Depreciation Manipulation in Accounting: How Companies Inflate Profits
Depreciation manipulation in accounting is one of the most overlooked ways companies can artificially improve reported profits.
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Expense Manipulation in Financial Statements: Common Techniques Companies Use
Every now and then when the profits of a company suffer, we hear management talk about the various “cost-cutting measures” that it is implementing. Infact during a downturn, when customer orders are hard to come by and revenue growth slows down, companies…
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Revenue Manipulation in Financial Statements: How Companies Inflate Sales and How Investors Can Spot Red Flags
2010 was a year of scams for India – the CWG scam, 2 G scam, Adarsh scam. While government officials and departments are infamous for corruption and scams worth millions, history has also provided us many examples of corporates treading the same…