mnemonics and tricks

We all have our own little tricks for remembering information. For me visual stuff works pretty well so I try to remember the first letters of every word of a phrase or memorize a sentence that I can apply to multiple situations. I have flash cards with this stuff taped all over my apt walls :slight_smile: For example: DuPont == PTL (profit*turnover*leverage) Type 1 Error == RTN (reject true null) “margins are always numerators” “cash ratios have CFO numerator” “turnover are always denominators” “day ratios are turnover reciprocals” Post if you got any good ones, especially the option call/put limits, their killing me!

Someone has the one for options and calls, something like ( might have D reversed): S X T V R D call + - +/- + + - put - + +/- + - + where s = stock price X = strike t = time V = vol r= rate D = dividend I remember the letters in order b/c SXT is the abbrev. for a sell ticket on Bloomberg and we also do VRDN trades (variable rate demand notes) so it sticks in my head.

I (ncome from continuing operations) -D (iscontinued operations) -E (xtraordinary items) -A (ccounting policy changes) -------------- Net Income This mnemonic is useful when trying to remember what goes below the line. ___________________________________________________ Portfolio mgmt / Investment policy TURTLe T - Time horizon / constraint U - Unique requirement R - Regulatory /legal req T - Tax concerns L - Liquidation / earlier needs _________________________________ 5 factors determining intensity of competition within an industry: Remember SERBS Suppliers of raw materials Entrance Barriers Rivalry Buyers (power over product/pricing) Substitute products _______________ Risk from Lowest to Highest Remember: British Broadcasting Corp Has Silly Office Comedies All Fall Bill/Bond/Corp/House/Stock/Office(commercial RE)/Coins/Art/Futures ________ the characteristics of a good market I LIE Information (timely and accurate) Liquidity : marketability , price continuity and depth Internal efficiency low transaction costs External efficiency prices adjust quickly to new info

something simple, but it could get you an easy mark… remember a nice glass of PINOT NOIR Nominal Ordinal Interval Ratio (in that order)

found on AF (don’t know the authors) “POUDOO” premium CFO understated, Discount cfo overstate; CFF - the reverse _________________________ Capitalized: BLFT - Brands, License, Franchise and Trademarks im gonna capitalize a nice big sandwich… not just a BLT… but a BL(Fhkn)T _________________________ For the extended dupont I use Every Saturday I Am Studying And Acing ethics. E, S, I, A --> all on top S, A, A, E --> all on bottom dont forget the tax rate

SNOB capital lease test PUFE all the elements of other comp income BIDS fed buys bonds, increases supply, sells bonds, decreses supply. (read BI first, then read SD next) NOIR scales DISC real estate valuation - disct, income, sales comp (hedonic), cost

U studied with stalla…

For the put call parity: c+X = p + S This is crude, but sound out how men urinate. “c@x p!s” I just remember that X is always X/(1+r)t