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All posts for the day September 24th, 2013

Weighted Average Common Shares Outstanding (WACSO)

Posted by Bill Campbell III, CFA on September 24, 2013
Posted in: Level I Financial Reporting and Analysis.

One key to computing earnings per share (EPS) is computing the number of shares of common stock to use in the denominator; we call this number the weighted average common shares outstanding (WACSO).  There are two ways to calculate WACSO; I’ll cover both. There are several transactions than can change the number of shares of […]

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Put-Call Parity

Posted by Bill Campbell III, CFA on September 24, 2013
Posted in: Level I Derivatives.

Put-call parity is nothing more than an equation that shows how the price of a (European) put option (on, say, a stock) relates to the price of a (European) call option (on the same stock).  The equation arises from a simple finance fact: If, given any set of circumstances, portfolio A and portfolio B have […]

This article is for members only.  You can become a member now by purchasing a

CFA® Level I Membership

This will give you access to this and all other articles at that membership level.