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Finance: What are Passive Investing and Passive Investors?
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What are Passive Investing and Passive Investors? Passive investing and passive investors are ones who opt to ride the market out over the long ter...

Finance: What are Secured Bonds v Unsecured Bonds, and what is Non-Recourse Debt: Debentures (Subordinated and Senior)?
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When a bond is secured, it means it's protected, i.e. there are assets that would be forfeited if repayment is not made. When it's unsecured... it'...

Finance: What is Power Of Attorney (Trading Authorization)?
2 Views

Power of attorney refers to the authorization to conduct business on legal and financial matters on behalf of another party. So...choose wisely.

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Finance: What are Hidden Assets? 2 Views


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Description:

What are Hidden Assets? A hidden asset is an asset that doesn’t show up on a company’s balance sheet. Hidden assets can also be used in reference to undervalued assets that are not used to determine a company’s share price. Using these hidden assets, an investor can determine the fair value of the stock to possibly make a profit, or at least have more insight into what the stock could potentially be worth.

Language:
English Language

Transcript

00:00

Finance allah shmoop what are hidden assets Come and listen

00:07

to a story about a man named did poor mountaineer

00:10

Barely kept family Remember them Beverly hillbillies never watched nick

00:14

at nite Well ask your parents Yes So jet owned

00:17

forty acres and a mule and had been farming well

00:20

forever Then one day he was shooting at a raccoon

00:23

You think that's what that is When up from the

00:25

ground came a bubbling crude oil that is texas tea

00:29

black gold You know the song So yeah jed stumbled

00:32

on an oil or a goldmine and hundreds of millions

00:37

of dollars later that hidden asset like the oil was

00:40

hidden from his farm He just didn't know it was

00:42

there that he was shooting at a coon and gave

00:44

him a really nice swimming hole in nine o two

00:46

one oh seriously great hidden assets happen all the time

00:50

in corporate america as well A patent for flying robot

00:54

cars that the company didn't realize it had which suddenly

00:57

became relevant when you know tracking drones became like a

01:01

thing Broadcast rights attached to a tv station acquisition where

01:05

new technology lets cell phone spectrum clamp on and produce

01:09

Extremely clear phone calls while that asset was hidden No

01:13

not so much Well a change in tax law such

01:16

that the huge tax losses in the bankrupt company and

01:19

wired for scrap are now suddenly age enormous tax deduction

01:24

The acquirer won't pay taxes now for two years because

01:27

of it well asset don't remain hidden very long Usually

01:31

companies have to disclose where they find value if for

01:34

no other reason than that it usually goose is their

01:36

stock price and everyone likes being rich right Okay so

01:40

some people's idea of riches having eighty acres and two

01:43

mules But you know that's just jet good and listen

01:46

to a story about a man named shmoop over mountains 00:01:49.471 --> [endTime] and never never mind

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