Introduction to Financial Statement Modeling

Question 1

What are “Normalized Earnings”?

Answer 1

The expected level of mid-cycle earnings for a company in the absence of any unusual or temporary factors that affect profitability (either positively or negatively).

Question 2

What are “Information-Motivated Traders”?

Answer 2

Traders that trade to profit from information that they believes allow them to predict future prices.

Question 3

What are “Primary Capital Markets”?

Answer 3

The market where securities are first sold and the issuers receive the proceeds.