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Make clear for me.
Impunity
#1 Posted : Thursday, March 10, 2011 12:44:47 PM
Rank: Elder

Joined: 3/2/2009
Posts: 26,331
Location: Masada
I have logged into my CSFS site and viewed my shares.
Two things are not clear for me:

Market Value portfolio.
Market portfolio value after haircut.


Now why is the former of higher value than the latter?

For instance, for me, the former is KES.120,361.50 while the later 103,546.53.

Please explain.Sad Sad Sad
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.

VituVingiSana
#2 Posted : Thursday, March 10, 2011 12:59:23 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,355
Location: Nairobi
Impunity wrote:
I have logged into my CSFS site and viewed my shares.
Two things are not clear for me:

Market Value portfolio.
Market portfolio value after haircut.


Now why is the former of higher value than the latter?

For instance, for me, the former is KES.120,361.50 while the later 103,546.53.

Please explain.Sad Sad Sad
Chief... when you get a haircut... you leave with less, sio?

What it means is a 'loss' due to commissions [yaani, the haircut]...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Impunity
#3 Posted : Thursday, March 10, 2011 1:12:38 PM
Rank: Elder

Joined: 3/2/2009
Posts: 26,331
Location: Masada
@VVS, thats alot of money,I thought the commissions charged are normally 2% of the value of sales?
If I sell me share currently worth 120K, will I lose a whopping 17K?
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.

VituVingiSana
#4 Posted : Thursday, March 10, 2011 1:25:48 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,355
Location: Nairobi
Impunity wrote:
@VVS, thats alot of money,I thought the commissions charged are normally 2% of the value of sales?
If I sell me share currently worth 120K, will I lose a whopping 17K?
Please check the prices they use to 'value' it... The portfolio might be using jana prices while the liquidated value might be current/live prices...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
the deal
#5 Posted : Thursday, March 10, 2011 1:59:37 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
VituVingiSana wrote:
Impunity wrote:
@VVS, thats alot of money,I thought the commissions charged are normally 2% of the value of sales?
If I sell me share currently worth 120K, will I lose a whopping 17K?
Please check the prices they use to 'value' it... The portfolio might be using jana prices while the liquidated value might be current/live prices...

Yeaah they use jana's prices to calculate the liquidable value...ooops its a Bear..@impunity ur portifolio has just lost 14% or 17K check kesho it will be worse.
Impunity
#6 Posted : Thursday, March 10, 2011 2:42:24 PM
Rank: Elder

Joined: 3/2/2009
Posts: 26,331
Location: Masada
You guys are not getting what I'm asking.anyone with CSFS stanbic broker can check thier accounts and conform what me is saying.
Sad
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.

erifloss
#7 Posted : Thursday, March 10, 2011 2:57:57 PM
Rank: Member

Joined: 6/21/2010
Posts: 514
Location: Nairobi
@Impunity, The Market value of your shares is valued at previous closing prices while the valuation after haircut is less by 25%. The valuation after haircut is normally used on instances when one is borrowing funds against the security so as to guard the lender against market fluctuations and is at times based on the spread or in developed markets when dealing in futures this is the amount that is normally locked in though the true amount or value locked is the market value.Most markets use 25%.
So don't get worried in any way the true value of your portfolio is 120k and not 103k, its just helping you know how much you can get on your portfolio as a security for any financing or the much you can lose on the basis of the spread.
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
groove
#8 Posted : Thursday, March 10, 2011 3:30:23 PM
Rank: New-farer

Joined: 2/1/2011
Posts: 10
VituVingiSana wrote:
Impunity wrote:
I have logged into my CSFS site and viewed my shares.
Two things are not clear for me:

Market Value portfolio.
Market portfolio value after haircut.


Now why is the former of higher value than the latter?

For instance, for me, the former is KES.120,361.50 while the later 103,546.53.

Please explain.Sad Sad Sad
Chief... when you get a haircut... you leave with less, sio?

What it means is a 'loss' due to commissions [yaani, the haircut]...


smile my mrkt value in portfolio is 67,270 @ after haircut is 50,452.50 .Applause Thanks alot @impunity for raising the query & the grat answers received from vitivingisana, the deal & erifloss as there is a first time for everything.d'oh! i had started panicing while reading the responce threads.
DON'T SELL YOURSELF SHORT
Impunity
#9 Posted : Friday, March 11, 2011 10:57:07 AM
Rank: Elder

Joined: 3/2/2009
Posts: 26,331
Location: Masada
erifloss wrote:
@Impunity, The Market value of your shares is valued at previous closing prices while the valuation after haircut is less by 25%. The valuation after haircut is normally used on instances when one is borrowing funds against the security so as to guard the lender against market fluctuations and is at times based on the spread or in developed markets when dealing in futures this is the amount that is normally locked in though the true amount or value locked is the market value.Most markets use 25%.
So don't get worried in any way the true value of your portfolio is 120k and not 103k, its just helping you know how much you can get on your portfolio as a security for any financing or the much you can lose on the basis of the spread.


@erifloss, thanks alot for the detailed info.
I am now up to date.

But dont floss.smile
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.

sparkly
#10 Posted : Thursday, June 30, 2011 12:08:11 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Impunity wrote:
erifloss wrote:
@Impunity, The Market value of your shares is valued at previous closing prices while the valuation after haircut is less by 25%. The valuation after haircut is normally used on instances when one is borrowing funds against the security so as to guard the lender against market fluctuations and is at times based on the spread or in developed markets when dealing in futures this is the amount that is normally locked in though the true amount or value locked is the market value.Most markets use 25%.
So don't get worried in any way the true value of your portfolio is 120k and not 103k, its just helping you know how much you can get on your portfolio as a security for any financing or the much you can lose on the basis of the spread.


@erifloss, thanks alot for the detailed info.
I am now up to date.

But dont floss.smile


was also piqued on those terms. I searched on google and it brought me straight to Wazua.

What does equity stand for just below the market value after haircut.
Life is short. Live passionately.
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