ORIGINAL Z-SCORE Definition

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ORIGINAL Z-SCORE (For Public Manufacturer) If the Z-Score is 3.0 or above - bankruptcy is not likely. If the Z-Score is 1.8 or less - bankruptcy is likely. A score between 1.8 and 3.0 is the gray area. Probabilities of bankruptcy within the above ranges are 95% for one year and 70% within two years. Obviously a higher Z-Score is desirable.

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MULTINATIONAL is involving or operating in several nations or nationalities (Example: Multinational corporations).

SPECULATOR is an investor who is willing to accept sub­stantial risk for the possibility of a large return.

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