Under fair value conditions, applying a DLOM creates an opportunity to make
risk-free profits (or arbitrage) between the marketable and nonmarketable security, which can lead to significant distortions from a financial reporting perspective.
About half of Kuwait's 30 billion dinar ($104 billion) development is likely to be financed via state-backed loans from banks and the prospect of
risk-free profits has sent lenders' shares soaring over the past month or so.
Caption: Robert Plotkin of BarMedia outlined best practices for tapping the incremental and
risk-free profits available from alcohol-free drinks.
JUST imagine you were in charge of a large organisation and had the chance to introduce a new product line on the internet, with the potential to generate sales exceeding a billion pounds a year and
risk-free profits of pounds 50 million.
75m workers in large companies are happily beating the share price doom and gloom that ordinary investors are struggling to avoid - and enjoying
risk-free profits from the stock market.
Dealers think they can make
risk-free profits betting on the inevitable.
Although program trading has become a catch-allphrase, it usually refers to "arbitrage," which sounds daring but is actually a strtegy that institutional investors can use to lock in
risk-free profits by exploiting differnces that develop between the value of teh actual stocks and the futures contract.
The FHP acquisition by PacifiCare was accomplished via a November 21, 1996 joint FHP/PacifiCare Registration Statement and Proxy (the "FHP/PacifiCare Merger Proxy") which falsely assured the FHP shareholders that the consideration to be paid and the related transactions were "fair" and in their "best interests" -- warning them that an investment in Talbert via exercise of the Talbert Rights involved "substantial risks," including the "substantial risk of loss," while concealing the true value of FHP and Talbert and serious existing conflicts of interest, in that top FHP insiders would obtain millions in
risk-free profits for themselves by selling Talbert in just the next few months.
25 per share -- thus obtaining large,
risk-free profits from insider trading.
Virtually all of the shares sold by Nellcor's insiders named as defendants were obtained by them by the exercise of stock options at much lower prices -- some as low as $14-1/8 per share -- and then sold by them to pocket millions in
risk-free profits based on Nellcor stock's inflated trading price.
