How to Calculate Volatility Using VWAP Price
VWAP Volatility Infinite Equity’s new approach to calculating historical volatility is to use Volume Weighted Average Prices (VWAPs). The merits of using this approach can be found in our Research Brief, A New Way to Estimate Volatility. The intent of this addendum is to illustrate how to calculate volatility using VWAP prices. Before we get…
Treatment of Equity for Retirement Eligible Employees
Retirement Eligible Employees and LTI: Accounting and Valuation Considerations Background Many companies allow for retirement eligible employees to continue to earn equity awards after retirement when meeting defined retirement criteria. Sometimes the retirement criteria are based on an age, or service, or a combined total of age and service. As a reward for their retirement…
Closing Prices Have Fat Tails
VWAP Volatility Infinite Equity is introducing innovative new thought leadership on the financial theory around determining historical volatility for purposes of ASC718. Introduced in the Research Brief, A New Way to Estimate Historical Volatility, and published collectively at www.VWAPVolatility.com. The intent of this Research Brief is to study closing prices compared against the tick-by-tick transaction…