DISCLOSURE PRINCIPLE Definition

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DISCLOSURE PRINCIPLE states that any and all information that affects the full understanding of a companys financial statements must be include with the financial statements. Some items may not affect the ledger accounts directly. These would be included in the form of accompanying notes. Examples of such items are outstanding lawsuits, tax disputes, and company takeovers.

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ENTERPRISE VALUE (EV) is a measure of a companys value. Enterprise value is calculated by: market capitalization plus debt and preferred shares minus cash and cash equivalents. In effect, enterprise value is the theoretical takeover price, i.e., in the event of a buyout an acquirer would have to take on the companys debt but would pocket its cash.

INDICATIVE is a stock price quote that is non-firm. All quotes displayed by Market Makers in OTCBB issues are required to be firm, with the exception of DPPs which are limited to indicative quotes only.

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