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How Does One ‘Nominally’ Book Profit?
In yesterday’s Wall Street Journal, it was reported that Panmure Gordon & Co., a London-based stockbroker, is buying ThinkEquity. In the article, it stated that ThinkEquity ‘nominally booked $2.8 million in profit,’ but the profit excluded debt interest payments and bonuses owed to employees. Based upon what I remember from business school, I’m pretty sure that interest payments and salaries are taken into account when calculating a company’s profit. It’s bad enough when companies start screwing around with how they calculate their numbers and report their financials, and this is one of the most ludicrous examples I’ve ever seen, but the Journal should not include such juvenile information in their reporting.
Time to read the Star Tribune this morning: 4 minutes and 39 seconds.
Daily recommendation for the dailies: When selecting which RSS feeds to subscribe to from your site, people should be allowed to selectively combine all the various RSS feeds under one single feed into my RSS reader. This is a minor point, I realize, but it would be a nice convenience for your readers.
[tags]Panmure Gordon, ThinkEquity, Goofy Accounting, Wall Street Journal, Sarbanes Oxley[/tags]