Emanuel Pearlman’s Post

For those keeping score at home: 18,926 U.S. businesses filed for bankruptcy in 2023, which is an average of 52 cases per day. 2024 is already outpacing this rate, with the number expected to grow. Are you comfortable with the risk of your customer portfolio? Are you being conservative with offering credit, based on percieved risk? Comment below or message me directly to discuss.

1. who are the major participants of the financial system? Explain any 2 out of them with their roles and examples. Major Participants of Financial System :- (i) Buyers (ii) sellers (iii) brokers (iv) dealers (v) custodian (vi) regulatory agency (vii) depository (viii) clearing house (ix) Investment bank (x) sub custodian (xi) retail bank * Brokers :- Brokers are people or companies that help buyers and sellers make transaction. They don’t own the stocks, but they find someone to buy or sell for you. example:- Imagine you have a toy, and you want to sell it. A broker is like a friend who helps you find someone who wants to buy the toy. Your friend doesn't keep the toy but helps you make the sale, and you give them a small treat for their help. ____________________________________________ * Dealers :- Dealers are people or companies who buy and sell things, like stocks, on their own.They keep the stocks and try to sell them later at a higher price to make money. example :- you buy a toy for 100rs . Later, someone wants the same toy, so you sell it to them for 200rs. You are like a dealer because you bought the toy and sold it to make a profit. ___________________________________________ 2. explaining the how the company raises capital in the market? who are the major investors? And what are the advantages of investing in it? * Selling Shares: The company sells small parts of itself called shares. When people buy these shares, they own a tiny piece of the company. The company uses the money from selling these shares to grow. Example: If Apple sells shares, and you buy one, you now own a little bit of Apple. _________________________________________ * share :- The company can also borrow money by selling share. This is like the company taking a loan. They promise to pay back the money later with some extra money. example :- If you buy a share, You give a loan to a company and they promise to pay you more later. _________________________________________ Major investors :- (i) People (ii) banks (iii) companies etc. _________________________________________ advantages :- (i) When you buy shares, you own a small part of the company. (ii) If the company does well, the value of your shares can go up. You can sell them for more than you paid.

John Madden is rolling over in his grave!!! Protect your business with Trade Credit Insurance! It shields you from customer defaults, with 80% of businesses experiencing late payments. By securing your cash flow, you can confidently pursue growth opportunities and mitigate risks. Don’t let unpaid invoices hinder your success—invest in Trade Credit Insurance today! #TradeCredit #BusinessProtection

The quickest way to not have money is to chase it. Those who obsess over money miss the real value of relationships. True success comes from focusing on value, trust, and building something beyond the immediate payout. The short-sighted chase commissions; the wise build partnerships.

How To Pass a Prop Firm Account With Ease Before delving into the world of prop firm trading, it's imperative to conduct a thorough assessment of the prop company from which you intend to purchase an account. In subsequent discussions, we will delve into the specifics of this research process. However, the first consideration should be ensuring the firm can fulfill its promises regarding profit splits. It's essential to scrutinize their rules diligently, as some prop firms may harbor hidden regulations that could potentially impede or delay account progress. For clarity on these matters, direct communication with customer support is advisable (covered in subsequent discussions). Congratulations on acquiring a prop account with substantial capital to trade ($10,000!). However, it's vital to acknowledge that for practical purposes, we will be operating with your overall and daily drawdown, which effectively represents your actual balance. Aligning your maximum drawdown with your win rate and risk tolerance is paramount. Many prop firms typically offer a maximum overall drawdown of 10% and a daily drawdown of 5%. Let's consider a scenario where your trading edge yields a win rate of 40% at a risk-reward ratio of 1:3. It's crucial not to rush to meet account requirements hastily, as most prop firms allow an ample number of days to pass the challenge phase. In this hypothetical scenario, with $10,000 in your prop account, your daily drawdown would be $500 (5% of the account), and your overall drawdown would be $1,000 (10% of the account), with a 40% win rate, you can expect to win 4 trades out of 10. Risking 1% ($100) of your account per trade aligns well with a risk-reward ratio of 1:3, where the potential reward is $300. Let’s do the Math You took 10 trades, Lose 6 trades ($600) and Win 4 trades ($400 x 3 = $1,200). You are 6% up in your account already. Repeat again, you pass phase 1. Phase 2, show be 5% challenge, stick to your strategy one more time and you’re done. Adherence to your strategy is critical for safeguarding your account. Emotional trading, triggered by drawdowns, can lead to impulsive decisions driven by revenge, fear, or greed. It's essential to maintain discipline and stick to your plan, regardless of temporary setbacks. Whether you adopt a conservative or aggressive approach, align your maximum drawdown with your risk tolerance and trading style. This proactive measure serves to mitigate risks and preserve capital over the long term. Continue to adhere to this plan till you make your first withdrawal, covering your account purchase fee. #PropTrading #ProprietaryTrading #TradingStrategies #RiskManagement #FinancialMarkets #ForexTrading #StockMarket #DayTrading #Investing #ProfitSharing #CapitalAllocation #TradingEdge #TradeManagement #PortfolioManagement #TradingEducation

🚨 Have You Heard the News? True Value, a major player in the hardware industry, just filed for Chapter 11 bankruptcy. If your business is selling to True Value, how will you recover unpaid invoices? For those without trade credit insurance, the impact can be significant. Uninsured receivables tied to a bankrupt customer can cripple cash flow and leave your business exposed. On the other hand, companies with trade credit insurance continue to get paid, even in the event of a customer's bankruptcy, ensuring cash flow stability and peace of mind. If you're not already protecting your accounts receivable, let's connect and talk about how trade credit insurance can safeguard your business. #TradeCreditInsurance #RiskManagement #TrueValueBankruptcy

U.S. Bankruptcy Judge Karen Owens signed Oct. 13 an order permitting the sale of True Value Company to Do it Best. The deal calls for Do it Best to: 1) Pay True Value $153 million in cash; 2) Assume up to $45 million of True Value's liabilities to vendors; 3) Acquire substantially all of True Values assets under section 363 of the Bankruptcy Code; and 4) Provide up to $10 million to True Value's bank lenders if needed. https://lnkd.in/eHN9NVsG

New data shows bankruptcy filings have surged by 16.2% over the past year, driven by rising interest rates, inflation, and the end of COVID-19 relief measures. "I was not surprised, the business filings had gone up nearly 40% in 2023, and the non-business ones had shown a steady increase. We're basically back to where we were pre-COVID," said Carmen Contreras-Martinez, a partner at Saul Ewing LLP. Contreras-Martinez said that the most glaring reason is the rising interest rates. "Tougher lending standards have also made it harder to access cash, particularly for small businesses and individual filers," Contreras-Martinez said. "Additionally, the end of COVID relief that many relied on has contributed to this. This combination has led to a flurry of filings, especially for businesses." Read the full article here ➡ https://lnkd.in/gBhTKFFi

What actually happens in #negotiation around the #saleofabusiness? The common perception is that it's two people across a table talking tough and standing their ground. The more astute recognise that negotiation is a bit of give and take. However, most #businessowners think that it's price that the main point of contention at these negotiations. It's not. Here's what a #corporatefinance firm / #advisoryfirm is typically negotiating when selling your business. 1. Whether the sale is an #assetsale or #sharesale. 2. If it's an asset sale, what assets? If it's a share sale, what shares? (All the shares? The share of the #tradingcompany or the #holdingcompany?) 3. What assets will be removed from the business prior to transfer? 4. The amount of cash that sellers can extract via adding it to the sale price (more complicated than it looks as a buyer taking on that 'excess' cash can't draw it out of the business without paying dividend tax on it) 5. The percentage of the sale price that will be in cash on completion. 6. The terms of any #deferredpayment. 7. Negotiation around the security the buyer is providing to cover those deferred payments. 8. Working capital requirements of the business (ie what needs to be left for the buyer to enable him to continue running the business without a further cash injection) 9. If there's an #earnout, there'll be extensive discussion around what triggers the earn-out and what protection the seller has around the accounts being manipulated against them. 10. Sharing of risk - to what extent, and how, will the vendor/s share post-completion risk with the buyer? 11. Discussions around #clawbacks. 12. Some initial discussions around #warranties and reps (more detail will be trashed out by the lawyers later). 13. Whether to use locked box or completion accounts. 14. Tons of other stuff. And many of the bits above rely on other bits! If you're an advisor, what else are you negotiating on behalf of your clients?

MB Securities to Issue Nearly 26 Million MBS Shares https://ift.tt/zZP29GD MB Securities JSC (MBS: MCK, HNX) has announced its plan to conduct a private placement to raise charter capital in 2024. This decision was approved by the CEO and is in line with Resolution No. 01/NQ-MBS-ĐHĐCĐ dated March 28, 2024, of the Annual General Meeting of Shareholders and Resolution No. 60/NQ-MBS-HĐQT dated August 12, 2024, of the Board of Directors of MB Securities. MB Securities plans to offer over 25.7 million shares to professional securities investors as stipulated by law. The expected offering price is VND 23,040 per share, and the number of prospective investors is four. The payment deadline for purchasing these shares is from November 20, 2024, to 3:00 PM on November 28, 2024. Illustrative image With a par value of VND 10,000 per share, the total value of the expected share issuance exceeds VND 257.3 billion, equivalent to 4.704% of MB Securities’ charter capital after the previous issuance of bonus shares to existing shareholders. If this issuance is successful, the number of MB Securities’ shares will increase from 547.1 million to over 572.8 million. The purpose of this private placement is to strengthen MB Securities’ business operations. Accordingly, the expected proceeds of nearly VND 592.9 billion will be allocated as follows: almost VND 492.9 billion for margin lending activities and VND 100 billion for proprietary trading. The company plans to utilize this capital during 2024–2025, adhering to its business plan. Recently, the Hanoi Stock Exchange (HNX) approved the listing of over 109.4 million MBS common shares offered to the public, with a total value of nearly VND 1,094.1 billion based on the par value. Following this additional listing, the total number of listed MBS shares has increased to nearly 547.1 million, with a total value of nearly VND 5,470.8 billion based on the par value. Prior to this private placement, MB Securities had issued over 109 million shares to existing shareholders to increase its charter capital. Specifically, the company issued over 109.4 million new shares at a ratio of 4:1 (for every four shares held, one new share could be purchased). These shares are freely transferable, and the expected offering price was VND 10,000 per share. The company anticipated proceeds of nearly VND 1,094.2 billion, with allocations as follows: VND 50 billion for information technology system development, VND 450 billion for proprietary trading and underwriting, and nearly VND 594.2 billion for margin lending. You may also like The Chairman of a Bank Spent Over $500 Million on Stock Purchase A board member of the bank also plans to spend nearly VND 600 billion on purchasing shares, showcasing a strong vote of confidence in the company’s future prospects. Is...