China A-shares or simply A-shares are the stocks that are traded in Shanghai and Shenzhen stock exchanges. They are also called domestic shares because the Chinese currency Renminbi is needed in the trades.These shares are heavily restricted by the Chinese government and accessing them is almost impossible by foreign investors. However, the authorities have allowed some Qualified Foreign Institutional Investors (QFII) to deal in A-shares since 2003.China A-shares and China B SharesFor the foreign investors, there are B-shares that deal in Dollars. The idea is to keep foreign investors away from getting a share in Chinese companies while also allowing ... Read More

In simple words a patent is nothing but securing an invention and copyrights are nothing but securing original ideas. Both are governed by different rules and regulationsCopyrightsThe main objective of copyright is to secure the original idea or expression of idea of an artist. An artist's work can be a computer program, music, song, movie or any original work. Example − a book written by a cook.Others can't reproduce the same book or without permission of the book but however they can use the recipes used in it. To get copyrights, the artist first has to register with the respective ... Read More

Copyright and trademark comes under intellectual property. Although both look the same, sometimes it creates confusion in the readers' mind. Let us give brief idea about copyright and trademark and difference between themCopyrightThe main objective of copyright is to protect the artist's original work. Work may be a photo, book, painting, software code; article etc. copyright gives the owner a right to reproduce their work or profit off their underlying work.The principle involved is pretty simple "if you create something new or original work, you have to choose what to do". To get the copyrights you have to register first ... Read More

The term property means an individual or an organization owns it and it is protected by means of law. Intellectual properties are intangible assets of a business or a person. It can be a book, article in a magazine, a new design etc. which comes under intellectual properties.TypesThe types of intellectual properties are explained follows −PatentsA patent protects innovative ideas. It gives special rights to the respective owner/organization in making, selling and using the product or service period. A government authority or license conferring a right will be issued. An individual or an organization will approach the patent authority, submit ... Read More

Intellectual property rights give right to the persons over their inventions, literary works, etc. Rights for their creations have a timeframe. The right for protection is outlined in the universal declaration of human rights (Article 27).Importance of intellectual property was recognized in the Paris convention for protection of industrial property in 1883 and Berne convention for the protection of literary and artistic works in 1886. The World intellectual property organization administers both these treaties.Need for intellectual property rights are explained below −To encourage innovations.To increase economic growth.To safeguard creators' rights.Promote innovations.Transfer of technology.Safety of intellectual propertiesAn employee needs to understand ... Read More

Intellectual property is a type of intangible asset owned by a company and it is legally protected from outside use without company consent.In other words, intellectual property is an asset, which has the same protective rights just like a physical asset. It includes patents, copyrights, trademarks, trade secrets etc.Intellectual property valuation matters due to the followingTime and amount spent for intellectual property registration.It involves legal costs and other costs.Amount spent for advertising brands etc.Areas that require intellectual property valuation are as follows −Licensing.Transfer pricing.Purchase/sale of assets.Financial reporting.Corporate financing.Litigations.Methods of intellectual property valuation are as follows −Factors to be considered for ... Read More

Discounted cash flow (DCF) analysis tells about the present value of an asset/company, based on the money, which it can make in future. This analysis will estimate the intrinsic value of a company.Current and future performances of a company are taken into consideration. Both inflow and outflow cash flows are discounted to the present value and sum of all the present values of future cash flows are equal to the net present value.CategoriesThe categories of discounted cash flow (DCF) are explained below −Internal forces − Considered as solid data, because raw information (quantitative) is used. Information includes historical performances, current ... Read More

In market approach, valuation of business (intangible assets, ownership interest, etc.) are determined based on market price of similar assets/business that are sold in recent times/available in market.Sales, book value and P/E (price to earnings) are used as price indicators. After comparing with similar assets/business adjustments to qualities, quantities and size will be made.MethodsThe methods in market approach are as follows −Public company comparableThis method uses valuation metrics of publicly traded companies. Direct comparability is hard to attain in major situations. Selecting, adjusting and applying are complex processes, and need highly skilled, and experienced people to handle it. Guideline companies ... Read More

Cost approach has natural appeal. If merger/acquisition of two or more companies takes place then, new company value is the difference between asset and liabilities of its combined value.This analysis has similarities to the balance sheet. In this, the cost basis balance sheet is converted to required value. This approach in breakdown of components of value, facilitate structure deal and post-sale purchase price.Specialists identify all assets and liabilities including those which are not included in the balance sheet. After identification, they assign value for each, based on fair value.Contingent liabilities, pending litigations etc. are not included in the balance sheet.Another ... Read More

Generally, there are two ways for a valuation of a company namely, liquidation value and going concern way. Companies prefer going concern way of valuation. If a company wants to eliminate a targeted company or wants to remove it from the market, the company goes for valuation.Some of the methods of valuations are as follows −Price − Earnings Ratio (P/E Ratio)It compares a company's current share price to earnings per share. Investors prefer high P/E Ratio, because of high earnings.P/E Ratio tells about investors willing to pay per dollar of earnings. It can be easily manipulated.P/E ratio is useful in ... Read More