Financial Knowledge: Walking into the Balance Sheet (Part 2)

1、 Regarding operational risk, operational risk refers to the uncertainty of future profits caused by business decisions such as strategic choices and sales strategies. Although business risk involves various aspects of enterprise operation, its business style can be seen from the balance sheet. Generally speaking, a company with a more aggressive style will make long-term equity investments through continuous mergers and acquisitions; A company with a more conservative style will focus on its areas of expertise and less on other areas of business. Investors can use the balance sheet as a basis, combined with the information disclosure in the company's annual report, such as business performance, major mergers and acquisitions, or

Financial Knowledge: Walking into the Balance Sheet (Part 1)

The balance sheet mainly includes the following three categories: assets, liabilities, and owner's equity. Before interpreting this report, let's first talk about the correlation between the following two major factors and these three types of items: 1. Monetary element Monetary funds, commonly known as "money" or "cash". Most of the assets in the financial statements exist for the purpose of being converted into "money" in the future. Simply put, those that can be directly converted into money are monetary assets, such as accounts receivable or short-term investments, while those that can be indirectly converted into money are called non monetary assets, such as inventory, fixed assets, or intangible assets. There may be "killers" in the report that may "suck up" corporate cash in the future

Financial Knowledge: Pay Attention to Audit Opinions and Understand Listed Companies

After the disclosure of the 2021 annual report, the number of non-standard audit opinions issued on the financial statements of listed companies has reached a new high in recent years. Investors are highly concerned about the connotation of audit opinions and their impact on listed companies. 1、 What is an audit opinion on financial statements? Financial statements, as the most important information disclosure document of a listed company, reflect the company's financial condition, operating results, and cash flow for a certain period of time. They are the key basis for investors to understand the company's profitability, operating ability, debt repayment ability, and growth ability, and play a crucial role in investors' decision-making. So, how to ensure the reliability of financial information disclosed by listed companies

Cash dividends and exercise of rights

Cash dividends are one of the main ways for investors in listed companies to obtain returns, as well as an important way to cultivate long-term investment concepts and enhance the attractiveness of the capital market. How do investors exercise shareholder rights regarding cash dividends of listed companies? Let's learn more together! 1. What is cash dividend for listed companies? The main way of distributing company profits is to distribute dividends to shareholders. Dividends are divided into two types: dividends and bonuses. Dividends are the stock interest enjoyed by preferred shareholders, while dividends are the income of ordinary shareholders. Dividends are further divided into cash dividends (cash dividends) and stock dividends (stock dividends). Cash dividends, specifically referring to the company's

Investor Rights: Responsibilities of All Participants in the Securities Market

What are the participants in the securities market, what are their responsibilities, and what are their responsibilities? Answer: In the securities market, participants include listed companies, investors, securities companies, stock exchanges, securities registration and settlement institutions, securities intermediaries (accounting firms with securities industry qualifications, law firms, securities investment consulting institutions, and other intermediary institutions), and securities regulatory agencies. The "Outline of Responsibility Education for All Parties in the Securities Market" issued by the China Securities Regulatory Commission has made clear requirements for the responsibilities of all parties involved in the securities market. Investors should understand the responsibilities of the main participants in the securities market and be clear about all parties involved

Investor Rights: Investors' Rights in Major Asset Restructuring

What is a major asset restructuring? Answer: Major asset restructuring refers to the act of a listed company and its controlling or controlling companies purchasing, selling, or replacing assets to a certain standard and causing a change in most of the company's assets. If a listed company undergoes a major asset restructuring, it often has a significant impact on its stock price. This is because, after a major asset restructuring, the company's fundamentals often undergo significant changes, and even undergo a complete transformation. Therefore, investors must have an understanding of major asset restructuring activities. What are the standards for major asset restructuring? Answer: The "Listing" implemented on May 18, 2008