Flow Through Shares – What Are Flow Through Shares Really Worth

Flow Through Shares - What Are Flow Through Shares Really Worth

When Canadian listed resource companies from the mining & oil and gas industry turn to the markets in order to raise capital, investors should always be cautious when they do this by offering Flow Through Shares (FTS). Resource companies typically have enormous upfront exploration costs and little or no revenue. Therefore they don’t need the … Read more

Employee Stock Options – How Do Stock Options Work

Employee Stock Options - How Do Stock Options Work

Employee stock options are offered to the company’s employees as a form of non-cash compensation. Employee stock options attempt to align the holder’s interest with those of the company’s shareholders. If a company’s stock price rises, holders of the (employee) stock options generally experience a direct financial benefit, especially when the stock price rises above … Read more

Share Structure – The Different Types of Company Shares Explained

Share Structure - The Different Types of Company Shares Explained

One of the first questions I ask myself when analysing a company’s financial statements is: “How Many Outstanding Shares Does this Company Have?” Shortly followed by: “How Does the Share Structure Looks Like?” When you dig into the accompanying notes to the share capital, which you will find in the annual and quarterly financial reports, … Read more

Personal Stock Holdings – The Risks of Holding Your Stocks Exposed

Personal Stock Holdings - The Risks of Holding Your Stocks Exposed

Assuming that you are able to justify the investment(s) you make by impersonal, objective reasoning, every investor still knows that there is a degree of risk involved when an investment has been made in a certain company. This is what I refer to as the risk of your personal stock holdings. I distinguish two types … Read more