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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTrump's company tricked investors. Here's how
Donald Trump's claim of huge business success is a cornerstone of his presidential campaign. While his companies frequent trips to bankruptcy court are well known, there's another reason people might question his business acumen: One of his most high-profile companies was the first U.S. corporation to be accused of using "pro forma" accounting to exaggerate results and mislead investors.
Trump Hotels & Casino Resorts, a once publicly traded company whose shares dropped more than 90% when the firm sought bankruptcy protection, was charged in 2002 by the Securities and Exchange Commission for reporting financial results in a way that made it appear the company was doing better than Wall Street analysts expected due to "operational improvements," the complaint said. But that was a "false and misleading impression" that initially fooled investors into driving the stock price higher, the SEC said.
The case ushered in a series of changes that govern all publicly traded companies over how they must disclose any adjustments to so-called "pro forma" numbers. Using pro forma figures is a common practice where companies strip out any unusual non-recurring gains or losses, claiming its a way to show how the core business is actually doing. Companies that use such results are required to detail all of the adjustments that are made.
The SECs action against Trump Hotels centered around an Oct. 25, 1999, news release where the company disclosed its quarterly net income and earnings per share. The release stated that the net income figures left out an $81.4 million one-time charge. However, the SEC said that the release made no mention of the fact that the reported numbers included a one-time gain of $17.2 million resulting from the termination of a restaurant lease with the Trump Taj Mahal Casino Resort in Atlantic City. And by revealing the excluded charge, the SEC said the company intentionally misled investors to believe there were no other adjustments.
http://www.usatoday.com/story/money/markets/2016/06/24/trumps-company-tricked-investors-heres-how/86058802/
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Trump's company tricked investors. Here's how (Original Post)
Liberal_in_LA
Jun 2016
OP
PJMcK
(22,053 posts)1. Donald Trump will cheat anyone for a buck (n/t)
uponit7771
(90,364 posts)4. +1, "... for a buck..." yeap... that's literal, for one dollah
tanyev
(42,626 posts)2. At this point how is there anyone left still willing to do business with him?
And who is staying at his golf resorts in Scotland? It must be mostly foreign tourists, because it sounds like the people of Scotland can't stand him.
uponit7771
(90,364 posts)3. The media has mostly kept his slimy shit out of the forefront, this guy is into the fuck over to
.. the nth degree.
It doesn't matter if he has trillions of dollars his mindset is that of a broke ass man
Response to uponit7771 (Reply #3)
Liberal_in_LA This message was self-deleted by its author.