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8543
How do stocks like INL (traded in Frankfurt) work?
[ "369166", "198101" ]
[ "\"A \"\"stock price\"\" is nothing but the price at which some shares of that stock were sold on an exchange from someone willing to sell those shares at that price (or more) to someone willing to buy them at that price (or less). Pretty much every question about how stock prices work is answered by the paragraph ...
8546
What to do with your savings in Japan
[ "306130", "434201", "59029" ]
[ "The reason for these low interests is that the Japanese central bank is giving away money at negative interests to banks. Yes, negative. So, short of opening your own bank, you'll have to either choose less liquid investments or more risky ones. Get Japanese government bonds. Not a great interest, band not that li...
8549
How to explain quick price changes early in the morning
[ "224714", "114439", "508777", "106314" ]
[ "http://www.marketwatch.com/optionscenter/calendar would note some options expiration this week that may be a clue as this would be the typical end of quarter stuff so I suspect it may happen each quarter. http://www.investopedia.com/terms/t/triplewitchinghour.asp would note in part: Triple witching occurs when the...
8552
What happens to internal stock when a company goes public?
[ "238215" ]
[ "You'd likely be subject to a lock-up period before you could sell the shares along with possibly having other rules about how you could sell your shares as you'd likely be seen as an insider that may have information that gives you an unfair advantage for selling the stock possibly. Depending on how far in advance...
8553
A stock just dropped 8% in minutes and now all of a sudden the only way to buy is on the ask, what does this mean?
[ "88677", "400614" ]
[ "It doesn't sound fishy at all to me. Just seems like you may be dealing with a company that has relatively light trading volume to begin with, meaning that small trades could easily make the price drop 8% (which isn't much if you're talking about a stocks in the $5 or less range. If someone sells at the bid and th...
8554
What is my next step with investing, given a signing bonus of restricted stock units?
[ "81721" ]
[ "Coincidentally just read a nice post on this topic: http://thefinancebuff.com/no-tax-advantage-in-rsu.html In short, sell the stock as soon as it vests and treat it as a cash bonus. Assuming you're in the US and the stock is possible to sell (public company, no trading window restrictions, you have no material non...
8556
Why is Insider Trading Illegal?
[ "385704", "238121", "270994", "476485", "192055", "20016", "325092", "290659" ]
[ "A practical issue is that insider trading transfers wealth from most investors to the few insiders. If this were permitted, non-insiders would rarely make any money, and they'd stop investing. That would then defeat the purpose of the capital markets which is to attract capital. A moral issue is that managers and ...
8559
How does a dividend announcement affect a option straddle position
[ "315748" ]
[ "When dividend is announced the stock and option price may react to that news, but the actual payout of the dividend on the ex-dividend date is what you probably are referring to. The dividend payout affects the stock price on the ex-dividend date as the stock price will drop by the amount of paid out dividend (not...
8561
Buy stock in Canadian dollars or US?
[ "133540", "568313" ]
[ "From a purely financial standpoint, you should invest using whatever dollars get you the best rate. The general rule of thumb that I've come across is that if you are making another person/company change your money into another nation's currency, they will likely charge a higher exchange rate than you could get yo...
8562
How can I invest my $100?
[ "397383", "8861", "95322", "573213", "437069", "310935" ]
[ "What is your investing goal? And what do you mean by investing? Do you necessarily mean investing in the stock market or are you just looking to grow your money? Also, will you be able to add to that amount on a regular basis going forward? If you are just looking for a way to get $100 into the stock market, your ...
8563
Historically how do share prices perform after mass selling after an employee reward scheme?
[ "261522" ]
[ "Like others have already said, it may cause an immediate dip due to a large and sudden move in shares for that particular stock. However, if there is nothing else affecting the company's financials and investors perceive no other risks, it will probably bounce back a bit, but not back to the full value before the ...
8565
BATS/Chi-X Europe Smart Order routing
[ "156234" ]
[ "\"It is explained on their website. Just look for the word \"\"routing\"\" on the Features page: Choose Your Venues Liquidity Pools Group 1: Bats Europe Group 2: Liquidity Partner (LP) Add this group to access dark pool liquidity. Group 3: Exchanges and MTFs Choose to access additional Exchanges and MTFs across E...
8566
Diversification reduces risk, but does this base on the assumption that expected return of each asset is always in proportion to its risk?
[ "180855", "370777", "43683", "279072", "378403" ]
[ "Diversifying your portfolio between asset A and asset B only reduces the portfolio risk if asset A and asset B are not correlated. If they have either a low correlation or a negative correlation to each other, then you benefit from combining them in a portfolio in terms of risk reduction. The standard deviation of...
8568
Will I receive a 1099-B if I bought stocks but didn't sell?
[ "427067" ]
[ "A purchase of a stock is not a taxable event. No 1099 to worry about. Welcome to Money.SE" ]
857
Does renting a room on AirBnB make all interest taxable?
[ "196321", "393314" ]
[ "\"What theyre fishing for is whether the money was earned in the U.S. It's essentially an interest shelter, and/or avoiding double taxation. They're saying if you keep income you make outside the US in a bank inside the US, the US thanks you for storing your foreign money here and doesn't tax the interest (but ...
8570
Analysis of Valuation-Informed Indexing?
[ "536462", "93129" ]
[ "My reaction to this is that your observation @D.W. is spot on correct: It sounds like long-term market timing: trying to do a better job than the rest of the market at predicting, based upon a simple formula, whether the market is over-priced or under-priced. I read the post by the founder of Valuation Informe...
8571
Can a dividend reinvestment plan (DRIP) and share purchase plan (SPP) be used with a TFSA?
[ "48718" ]
[ "\"You can hold a wide variety of investments in your TFSA account, including stocks such as SLF. But if the stocks are being purchased via a company stock purchase plan, they are typically deposited in a regular margin account with a brokerage firm (a few companies may issue physical stock certificates but that is...
8573
How does a stock operate when it is listed between two exchanges?
[ "112461" ]
[ "Say a stock is listed in Nasdaq, and the same company has a stock listed in Tsx. Does the Nasdaq price affect the Tsx price as trading commences? Not directly. Basically, an exchange is a market, and the price is defined only by supply and demand in that market. However, any substantial price differential for a co...
8574
why would someone buy or sell just a few shares in stocks
[ "286527", "363919" ]
[ "Simple, there is no magic price adjustment after sales - why do you expect the stock price to change? The listed price of a stock is what someone was willing to pay for it in the last deal that was concluded. If any amount of stock changes ownership, this might have the effect that other people are willing to buy ...
8577
Is there a government-mandated resource that lists the shareholders of a public company?
[ "480748", "555344", "493321", "158639", "238186" ]
[ "\"The list of the public companies is available on the regulatory agencies' sites usually (for example, in the US, you can look at SEC filings). Otherwise, you can check the stock exchange listings, which show all the public companies traded on that exchange. The shareholders, on the other hand, are normally not l...
8580
What does volume and huge daily price increases say about stock prices?
[ "565539" ]
[ "Stock B could be considered to be more risky because it seems to be more volatile - sharp rises on large volume increases can easily be followed by sharp drops or by further rises in the start of a new uptrend. However, if both A and B are trading on low volume in general, they can both be more on the risky side ...
8585
Auto balancing portfolio through new purchases
[ "116499" ]
[ "\"Finding the \"\"optimal\"\" solution (and even defining what optimal is) would probably take a lot of searching of all the possible combinations of stocks you could buy, given that you can't buy fractional shares. But I'd guess that a simple \"\"greedy\"\" algorithm should get you close enough. For any given por...
8587
Is Peter Lynch talking about the Dividend Adjusted PEG Ratio in this quote?
[ "192686" ]
[ "Essentially, yes, Peter Lynch is talking about the PEG Ratio. The Price/Earnings to Growth (PEG) Ratio is where you take the p/e ratio and then divide that by the growth rate (which should include any dividends). A lower number indicates that the stock is undervalued, and could be a good buy. Lynch's metric is th...
8593
How can I calculate how much an option would be worth after X days if the underlying stock changed by +/- $Y?
[ "371621" ]
[ "\"You'd need to know the delta and the theta of the option. You can either calculate them yourself using a model like Black-Scholes (assuming you have a market price and can imply a volatility, and know the other factors that go into the model) or, you can see if your broker quotes \"\"greeks\"\" as well (mine doe...
8595
Can I buy stock of a company that just IPO
[ "44461" ]
[ "\"Yes, you could buy a stock on the day of its IPO. I'm a college student, and I wonder if I can buy stock from a company right after it finishes its IPO? Yes, you can. However, unless you are friends or family of an employee, chances are you'll be paying a higher price than you think as there is generally a fai...
8598
Why did my number of shares of stock decrease?
[ "581848" ]
[ "During a stock split the only thing that changes is the number of shares outstanding. Typically a stock splits to lower its price per share. Sometimes if a company's value is falling it will do a reverse split where X shares will be exchanged for Y shares. This is typically done to avoid being de-listed from an...
8599
Why is the stock market closed on the weekend?
[ "510101", "405847", "65274", "373726", "43544", "100241" ]
[ "While a lot of trading is executed by computers, a substantial amount is still done at the behest of humans. Brokers managing accounts, Portfolio Managers, and Managers of Mutual Funds doing stock picks etc. Those folks are still initiating a very large number of the trades (or at least one side of a trade). An...
86
Moving a personal business to a LLC accounting in California
[ "71569" ]
[ "You can move money in and out of the business at will, just keep track of every transaction. Ideally you'd use an accounting software like QuickBooks or similar. Create a Capital Contributions account and every time you put money into the business checking account record it as a Capital Contribution. Likewise, if ...
860
BoA Closed my Accounts and Froze my Funds. How can I get money back besides cashier's check?
[ "77670" ]
[ "I'd suggest you contact the Office of the Controller of Currency, who regulates BOA and file a complaint. This whole deal seems shady. According to the OCC FAQ, the fact that they closed the account is in their prerogative. However, I would think they are obligated to quickly return your funds, but can't find any...
8602
How a company can afford to give away so many shares as part of its ESOP
[ "579037", "52185", "207144" ]
[ "This question is very open ended. But I'll try to answer parts of it. An employer can offer shares as part of a compensation package. Instead of paying cash the employer can use the money to buy up shares and give them to the employees. This is done to keep employees for longer periods of time and the employer may...
8605
Does it make any sense to have individual stocks, bonds, preferred shares
[ "117634" ]
[ "Sure, with some general rules of thumb: what is the minimum portfolio balance to avoid paying too much for transaction fees? Well, the fee doesn't change with portfolio balance or order size, so I don't know what you're trying to do here. The way to have less transaction fees is to have less transactions. That m...
8608
What happens to unvested RSUs when a public company is bought out by private firm?
[ "555276" ]
[ "I would ask your HR or benefits department to be certain, but here's how I read that without any specific knowledge of the situation: What is right to receive the RSU consideration? Company A was bought by Company B. You had unvested Restricted Stock Units in A, which is now gone. B is saying that you now have t...
861
What are the advantages/disadvantages of a self-directed IRA?
[ "573935", "280356", "348927", "429106" ]
[ "There is nothing wrong with self directed IRA's the problem is that most of the assets they specialize in are better done in other ways. Real estate is already extremely tax advantaged in the US. Buying inside a Traditional IRA would turn longterm capital gains (currently 15%) into ordinary income taxed at your ta...
8610
How do I invest in the S&P 500?
[ "161445", "54947" ]
[ "The S&P 500 is a stock market index, which is a list of 500 stocks from the largest companies in America. You could open a brokerage account with a broker and buy shares in each of these companies, but the easiest, least expensive way to invest in all these stocks is to invest in an S&P 500 index mutual fund. Insi...
8615
Why don't forced buy-ins of short sold stock happen much more frequently?
[ "187568", "251711", "84891" ]
[ "Nobody is going to short sell stocks through a lender that forces people to buy in as soon as it is getting good for them.", "For the lenders to sell their positions they need buyers on the other side. For a large brokerage that means they should always be able to find another lender. For many contracts the clie...
8616
How converted stock is taxed due to an acquisition
[ "396180" ]
[ "\"I don't think its a taxable event since no income has been constructively received (talking about the RSU shareholders here). I believe you're right with the IRC 1033, and the basis of the RSU is the basis of the original stock option (probably zero). Edit: see below. However, once the stock becomes vested - the...
8617
Little hazy on how the entire RSU's and etrade works
[ "447651", "233248" ]
[ "Is the remaining amount tax free? As in, if the amount shown (which I can sell) on etrade is $5000 then if I sell the entire shares will my bank account be increased by $5000? The stocks they sell are withholding. So let's say you had $7000 of stock and they sold $2000 for taxes. That leaves you with $5000. But...
8619
Buying and selling the same stock
[ "178059", "282262", "172652", "581793", "156092", "396030" ]
[ "Elaborating on kelsham's answer: You buy 100 shares XYZ at $1, for a total cost of $100 plus commissions. You sell 100 shares XYZ at $2, for a total income of $200 minus commissions. Exclusive of commissions, your capital gain is $100 for this trade, and you will pay taxes on that. Even if you proceed to buy 200 ...
8622
Class of shares specifically for retirement accounts with contribution limits
[ "587539" ]
[ "\"The fair price of a stock is the present value of its future payments. That means the stock you have described would have a \"\"fair\"\" value that is quite high and you wouldn't be able to put much of it in your 401(k) or IRA. The IRS requires that \"\"fair value\"\" be used for calculating the value of IRA an...
8628
Can I use same stock broker to buy stocks from different stock markets?
[ "343638", "252084" ]
[ "\"In the US there is only one stock market (ignoring penny stocks) and handfuls of different exchanges behind it. NYSE and NASDAQ are two different exchanges, but all the products you can buy on one can also be bought on the other; i.e. they are all the same market. So a US equities broker cannot possibly restri...
8630
Why does a stock price drop as soon an I purchase several thousand shares at market price?
[ "275525", "379994", "442830", "471978" ]
[ "Any time a large order it placed for Buy, the sell side starts increasing as the demand of Buy has gone up. [Vice Versa is also true]. Once this orders gets fulfilled, the demand drops and hence the Sell price should also lower. Depending on how much was the demand / supply without your order, the price fluctuatio...
8638
Why are some long term investors so concerned about their entry price?
[ "133373", "419747", "466711", "249174", "368696" ]
[ "It has got to do with the irrationality of humans. The so called long term investor is in it for the long term, they are not worried about market fluctuations nor timing the market. But yet they will aim to try to get a bargain when they buy in. It is contradictory in a way. Think about it; if I buy a stock and ...
8640
When looking at a mutual fund, how can you tell if it is a traditional fund or an ETF?
[ "472663" ]
[ "\"An Exchange-Traded Fund (ETF) is a special type of mutual fund that is traded on the stock exchange like a stock. To invest, you buy it through a stock broker, just as you would if you were buying an individual stock. When looking at a mutual fund based in the U.S., the easiest way to tell whether or not it is ...
8642
How exactly is implied volatility assigned to an option's strike price?
[ "393496" ]
[ "\"As I understand it, Implied Volatility represents the expected gyrations of an options contract over it's lifetime. No, it represents that expected movement of the underlying stock, not the option itself. Yes, the value of the option will move roughly in the same direction the value of the stock, but that's no...
8643
How do the returns generated via Equity/Debt investment differ from the returns from a Mutual Fund based on Equity/Debt?
[ "336218" ]
[ "Just sticking to equities: If you are investing directly in a share/stock, depending on various factors, you may have picked up a winner or to your dismay a loser. Say you just have Rs 10,000/- to invest, which stock would you buy? If you don't know, then it’s better to buy a Mutual Fund. Now if you say you woul...
8644
Options price vs implied volatility - who drives who?
[ "215596" ]
[ "\"Currently, when \"\"implied volatility\"\" is spoken, the Black-Scholes-Merton model is implied. This model has been shown to be deficient, thus the Variance Gamma Model should be used. However, as nearly no one uses VG, it can be assumed that BS is still being implied. The BS formula has multiple variables. S...
865
Do shares purchased on FTSE AIM move with company to other markets?
[ "444749" ]
[ "\"Any shares you buy when a company is listed on one market will remain yours if the company moves to another market. Markets and exchanges like AIM are just venues for dealing in shares - indeed you can deal in those shares anywhere else that will allow you as well as on the AIM. The benefit of being listed in a ...
8656
Wells Fargo Brokerage has no shares of stock to short
[ "192900" ]
[ "This is the bird's eye view of how shorting works: When you place an order to sell a stock short, your broker attempts to grab the desired number of shares from any accounts of its other customers and makes them available for you to sell. If no other customers own shares of this stock, then generally you are out o...
866
Contribute to both a SEP IRA and solo Roth 401(k)?
[ "195637" ]
[ "In addition to the normal limits, A Solo 401(k) allows you to contribute up to 20% of net profits (sole proprietor) or 50% of salary (if a corporation), up to $49,000. Note that the fees for 401(k) accounts are higher than with the IRA. See 401(k)s for small business." ]
8662
Vanguard Mutual Funds — Diversification vs Share Class
[ "565738", "419985", "179282" ]
[ "\"If I were in your shoes I'd probably take the Vanguard Total Market fund with Admiral shares, then worry about further diversification when there is more in the account. Many times when you \"\"diversify\"\" in to multiple funds you end up with a lot of specific security overlap. A lot of the big S&P 500 consti...
8663
Why can it be a bad idea to buy stocks after hours?
[ "265365", "414036", "424706", "361163" ]
[ "There are several reasons it is not recommended to trade stocks pre- or post-market, meaning outside of RTH (regular trading hours). Since your question is not very detailed I have to assume you trade with a time horizon of at least more than a day, meaning you do not trade intra-day. If this is true, all of the a...
8669
Where can I buy European-style options?
[ "362049" ]
[ "On the US markets, most index options are European style. Most stock and ETF options are, as you noted, American style." ]
867
How to protect myself against unauthorized recurring CC charges?
[ "8570", "305954" ]
[ "\"The bank SHOULD be able to issue you a new card without letting vendors roll over the recurring payments. In fact, I've never had a bank move recurring payments to a new card automatically, or even upon request; they've always told me to contact the vendor and give them my new card number. So go back to the bank...
8670
Investing for Dummys
[ "70243", "325212", "582043" ]
[ "\"You can't get started investing. There are preliminary steps that must be taken prior to beginning to invest: Only once these things are complete can you think about investing. Doing so before hand will only likely lose money in the long run. Figure these steps will take about 2.5 years. So you are 2.5 years ...
8671
P/E (or similar) for index funds?
[ "96013", "417733" ]
[ "\"ycharts.com has \"\"Weighted Average PE Ratio\"\" and a bunch of other metrics that are meant to correspond to well known stock metrics. Other websites will have similar ratios.\"", "The S&P 500 is a market index. The P/E data you're finding for the S&P 500 is data based on the constituent list of that marke...
8677
Data source for historical intra-day bid/ask price data for stocks?
[ "459239", "334383", "167586", "146780" ]
[ "FreeStockCharts.com keeps some intra-day trading history. You have to create an account to look up individual stocks. Once you create a free account you can get intra-day trading history for the last month (Hourly for past month, 15 minutes for past week, 1 minute for past day). Going back past one month and it...
8679
Is CLM a stock or an ETF?
[ "162396", "489103", "424192", "468851" ]
[ "CLM is a Closed End Fund. It is a collection of other securities that trades as if it were stock issued by a single company. NASDAQ cares about how it trades, so that would be why they list it as you say they do. Here is a list of their top 25 holdings: http://portfolios.morningstar.com/fund/holdings?t=CLM&region...
8680
What to do with small dividends in brokerage account?
[ "234039", "128571", "102442" ]
[ "Assuming you have no new cash to add to your account as gyurisc has suggested, I wouldn't sweat the small amounts – it doesn't hurt to have a little cash sit idle, even if you want to theoretically be fully invested (the wisdom of doing that, or not, perhaps worthy of another question :-) If you try too hard to in...
8681
Do the nasdaq small cap stocks or penny stocks get promoted?
[ "261640", "488928" ]
[ "\"The penny/pink sheet stocks you tend to see promoted are the ones a) with small public floats or, b) they are thinly traded. This means that any appreciable change in buy/sell volume will have an outsized effect on the stock's share price, even when the underlying fundamentals are not so great. Promoters are f...
8685
Where can you find historical PEs of US indices?
[ "498424" ]
[ "Internet sites Books Academic" ]
8687
How can IV give an indication of the markets opinion about a stock when there's no such thing as IV for a stock?
[ "136363" ]
[ "Since near-term at-the-money (ATM) options are generally the most liquid, the listed implied vol for a stock is usually pretty close to the nearest ATM volatility, but there's not a set convention that I'm aware of. Also note that for most stocks, vol skew (the difference in vol between away-from-the-money and at...
869
How to move (or not move) an LLC from Illinois to New Mexico?
[ "124856" ]
[ "Why not just leave it as is and register as foreign entity in New Mexico? You won't avoid the gross receipts tax, but other than that - everything stays as is. Unless Illinois has some taxes that you would otherwise not pay - just leave it there." ]
8691
How are long-term/short-term capital gains tax calculated on restricted stock?
[ "38711", "499286" ]
[ "Fidelity has a good explanation of Restricted Stock Awards: For grants that pay in actual shares, the employee’s tax holding period begins at the time of vesting, and the employee’s tax basis is equal to the amount paid for the stock plus the amount included as ordinary compensation income. Upon a later sale of th...
8693
How much money do I need to have saved up for retirement?
[ "5673", "136862", "519856", "280967" ]
[ "\"I wrote a spreadsheet (<< it may not be obvious - this is a link to pull down the spreadsheet) a while back that might help you. You can start by putting your current salary next to your age, adjust the percent of income saved (14% for you) and put in the current total. The sheet basically shows that if one sav...
8699
Research for Info
[ "568687" ]
[ "quid's link should give you a definitive answer, but just to set expectations, here's an article from the UPI: Essex Chemical Corp. has agreed to be acquired by Dow Chemical Co. in a $366 million, $36-a-share deal ... Any shares that remain outstanding after the merger will be converted into the right to receive $...
87
What should one look for when opening a business bank account?
[ "357938", "537593" ]
[ "From my experience, I opened a business account to handle my LLC which owns a rental property. The account process and features were similar to shopping for a personal checking account. There would be fees for falling below a minimum balance, and for wanting a paper statement. In my case, keeping $2000 avoids the...
870
Helping my family sell their oil stocks. What to buy?
[ "385932" ]
[ "\"*(\"\"Fee-only\"\" meaning the only money they make is the fee your folks pay directly; no kickbacks from financial products they're selling.) The answer to this is: for God's sake, leave it alone! I commend you on wanting to help your family avoid more losses. You are right, that having most of one's retiremen...
8704
Options on the E-mini S&P 500 Futures at the CME: when were EW3, the weekly Monday options and the weekly Wednesday options introduced?
[ "40793", "293605" ]
[ "Why do you care? In any case, you can easily Google the answer... Effective Sunday, April 2, 2017 for trade date Monday, April 3, 2017, and pending all relevant CFTC regulatory review periods, Chicago Mercantile Exchange Inc. (“CME” or “Exchange”) will list Monday Weekly Options on the E-mini Standard and Poor...
871
Value investing
[ "477716", "135932", "166863", "371579" ]
[ "\"As an aside, why does it seem to be difficult to get a conclusive answer to this question? I'm going to start by trying to answer this question and I think the answer here will help answer the other questions. Here is a incomplete list of the challenges involved: So my question is, is there any evidence that va...
8712
How would one follow the “smart money” when people use that term?
[ "599157", "593378" ]
[ "\"Smart money (Merriam-Webster, Wiktionary) is simply a term that refers to the money that successful investors invest. It can also refer to the successful investors themselves. When someone tells you to \"\"follow the smart money,\"\" they are generally telling you to invest in the same things that successful i...
8717
Selecting between investment vehicles for income
[ "154508", "379546" ]
[ "You have a comparatively small sum to invest, and since you're presumably expecting to go to college.university soon, where you may well need the money, you also have a short timescale for your investment. I don't think anything stock-related would be good for you -- you need a longer timescale for stock market in...
872
Can you deduct hobby expenses up to hobby income in Canada?
[ "524879" ]
[ "\"Yes, your business needs to be in the business of making money in order for you to deduct the expenses associated with it. I suppose in theory this could mean that if you take in $10,000 and spend $30,000 every year, you not only don't get a net deduction of $20,000 (your loss) but you have to pay tax on $10,000...
8722
What kind of symbol can be shorted?
[ "47714", "543770" ]
[ "Any publicly traded financial instrument can be sold short, in theory. There are, however, many regulations associated with short sales of US equities that may prevent certain stocks from being sold short at certain times or through certain brokers. Some examples: the most basic requirement (this isn't a regulati...
8724
Why would a stock opening price differ from the offering price?
[ "327952", "499154", "11509" ]
[ "The offering price is the price at which that IPO is, well, offered. Think of it as a suggested retail price. The opening price is the actual price at which trading begins, on a particular day, for a stock. That price depends on demand/overnight-orders/what-have-you. Think of this as the actual price in the store....
8726
How does the process of “assignment” work for in-the-money Options?
[ "118360", "30070", "292045" ]
[ "First, it depends on your broker. Full service firms will tear you a new one, discount brokers may charge ~nothing. You'll have to check with your broker on assignment fees. Theoretically, this is the case of the opposite of my answer in this question: Are underlying assets supposed to be sold/bought immediately...
8728
How does selling rights issues work in practice?
[ "151802" ]
[ "Do you simply get call options you can sell on an options exchange? No, you don't get call options that you can sell on an options exchange. Rather, you get rights that you can (generally) sell on the stock exchange. The right issue is in essence a call option – in that it behaves like one, but it is not considere...
873
Is it acceptable to receive payment from U.S. in Indian saving bank account via PayPal?
[ "311028" ]
[ "It is fine to receive payments into Indian Savings Bank account. There are no restriction on deposits. There are only restrictions on number of withdrawls in a quarter. A Current[a.k.a Checking] account makes it easier to manage. You haven't asked about tax, but I you may already know you would need to pay taxes ...
8731
How will the net assets of a bankrupt company be divided among the common share holders
[ "142835" ]
[ "All investors of equal standing get the same proportion of the net assets on bankruptcy but not all shareholders are of equal standing. In general, once all liabilities are covered, bond holders are paid first as that type of investment is company debt, then preferred stock holders are paid out and then common sha...
8732
Long term drip (dividend reinvestment plan) stock
[ "106104", "467575" ]
[ "\"If you sold the stock for a profit, you will owe tax on that profit. Whether it is taxed as short-term or long-term capital gains depends on how long you held the stock before selling it. Presumably you're going to invest this money into mutual funds or something of that sort. Those may pay dividends which can b...
8737
Should I pay my Education Loan or Put it in the Stock Market?
[ "466806", "572888", "305862", "473427", "64267" ]
[ "\"2.47% is a really, really good rate, doubly so if it's a fixed rate, and quadruply so if the interest is tax-deductible. That's about as close to \"\"free money\"\" as you're ever going to get. Heck, depending on what inflation does over the next few years, it might even be cheaper than free. So if you have the ...
8738
When to convert employee shares in an RRSP into cash, even if there is a penalty?
[ "432511" ]
[ "The cost to you for selling is 3/8% of a years salary, this is what you won't get if you sell. Tough to calculate the what-if scenarios beyond this, since I can't quantify the risk of a price drop. Once the amount in he stock is say,10%, of a years salary, if you know a drop is coming, a sale is probably worth it,...
8739
Buy securities at another stock exchange
[ "334849", "243140", "295445", "418029", "587262" ]
[ "In a simple statement, no doesn't matter. Checked on my trade portal, everything lines up. Same ISIN, same price(after factoring in FX conversions, if you were thinking about arbitrage those days are long gone). But a unusual phenomenon I have observed is, if you aren't allowed to buy/sell a stock in one market a...
874
H&R Block says form 1120 not finalized? IRS won't take it yet?
[ "128752", "581345" ]
[ "This form is due March 15. This year, the 15th is Saturday, so the deadline is Monday March 17th. Keep in mind, the software guys would have two choices, wait until every last form is finalized before releasing, or put the software out by late November when 80%+ are good to go. Nothing is broken in this process....
8746
How to execute a large stock purchase, relative to the order book?
[ "320155", "513561", "264238" ]
[ "What is the average daily volume traded? It looks like this stock may have a liquidity problem. If that is the case I would not buy this stock at all as you may have the same problem when you try to sell it. Generally try to stay away from illiquid stocks, if your order size is more than 10% of the average daily v...
8747
Why does Warren Buffett say his fund performance, relatively, is likely to be better in a bear market than in a bull market?
[ "520677", "395100", "41809", "572340", "254498" ]
[ "Buffett is a value investor. His goal is to buy good companies when the market is overly worried and prices them below intrinsic value. When the market is highly priced it is much more difficult for him to find things that he thinks are at an attractive price. When people are very worried and the market has crashe...
8748
What drives the stock of bankrupt companies?
[ "442324", "291220", "476859" ]
[ "What drives the stock of bankrupt companies? The company's potential residual assets. When a company goes bankrupt it is required to sell its assets to pay off its debts. The funds raised from selling assets go to the following entities: The usual order of debt repayment, in terms of the lender, will be the gover...
8749
How can you sell stocks if you do not have any?
[ "409350" ]
[ "Shorting is the term used when someone borrows a stock and sells it at the current price to then buy it back later at hopefully a lower price. There are rules about this as noted in the link that begins this answer as there are risks to selling a stock you don't own of course. If you look up various large companie...
875
Can I locate the name of an account holder by the account number and sort code? (U.K.)
[ "505473" ]
[ "\"No, the best you can do is (probably) determine the bank, from the sort code. using an online checker such as this one from the UK payments industry trade association. Revealing the name of an account holder is something the bank would typically require a warrant for, I'd expect, or whatever is covered in the ac...
8750
Why can't I short a particular stock?
[ "384252" ]
[ "In order to short a stock, you have to borrow the number of shares that you're shorting from someone else who holds the shares, so that you can deliver the shares you're shorting if it becomes necessary to do so (usually; there's also naked short selling, where you don't have to do this, but it's banned in a numbe...
8751
Why would a mutual fund plummet on the same day it pays its annual distribution & capital gains? [duplicate]
[ "315345" ]
[ "The price of a share of a mutual fund is its Net Asset Value (nav). Before the payout of dividends and capital gain distribution, the fund was holding both stock shares and cash that resulted from dividends and capital gains. After the payout, a share only holds the stock. Therefore once the cash is paid out the N...
8752
What to do with a 50K inheritance [duplicate]
[ "529312", "452837", "270877", "331623" ]
[ "\"The basic optimization rule on distributing windfalls toward debt is to pay off the highest interest rate debt first putting any extra money into that debt while making minimum payments to the other creditors. If the 5k in \"\"other debt\"\" is credit card debt it is virtually certain to be the highest interest ...
8756
What is the principle of forming an arbitrage strategy?
[ "355236", "553105" ]
[ "\"Arbitrage is basically taking advantage of a difference in price. Generally extending to \"\"in different places for the same thing\"\". A monetary version would be interlisted stocks, that is stocks in companies that are on both the NYSE/Nasdaq and Toronto stock exchanges. If somebody comes along and buys a l...
8759
As co-founder, does Steve Jobs still own enough Apple shares to control Apple Inc.?
[ "223278" ]
[ "Everyone that owns a share of stock in a company is part owner. Some just own more than others. According to Apple's latest proxy statement he owns 5.5 million shares of the 914 million shares outstanding. So he owns approximately 0.6% of the company. If he owned more than 50% of the company's outstanding stock h...
876
Opening and funding an IRA in three days - is this feasible?
[ "176104", "53352" ]
[ "Some banks and credit unions have IRA accounts. They pay interest like a savings account or a CD but they are an IRA. After the 15th you can roll them over into a IRA at one of the big investment companies so you can get invest in an index or Target Retirement Fund. But it is not too late. Opening an account at on...
8760
Can warrants to buy stock contain conditions or stipulations other than price?
[ "110215" ]
[ "All sorts of conditions, yes. Most commonly is a limitation on the exercise date. The two more common would be American which is exercisable any time, and European which are only exercisable on their expiry date. Sometimes they may be linked to the original asset, and might only be convertible to stock if that or...
8761
What happens to an ETF if one of the companies in the ETF gets aquired?
[ "325818" ]
[ "There are a number of ways this can result. In a broad ETF, such as SPY, the S&P 500 spider, the S&P index will have 500 stocks no matter what, so a buyout would simply result in a re-shuffling of the index makeup. No buyout will happen so quickly that there's no time to choose the next stock to join the index. In...
8763
How an ETF pays dividend to shareholders if a holding company issues dividend
[ "99084", "281841", "133196" ]
[ "Join me for a look at the Quote for SPY. A yield of 1.82%. So over a year's time, your $100K investment will give you $1820 in dividends. The Top 10 holdings show that Apple is now 3% of the S&P. With a current dividend of 2.3%. Every stock in the S&P has its own different dividend. (Although the zeros are all t...
8767
How meaningful is the “stock price” of a stock?
[ "218842", "53263" ]
[ "Prices quoted are primarily the offer prices quoted by the numerous market makers on the stock exchange(s) willing to sell you the stock. There is another price which generally isn't seen on these websites, the bid prices, which are lower prices quoted by buyers and market makers willing to buy your shares from yo...
8768
Can I exchange rental property for REIT stock with 1031?
[ "393090" ]
[ "would buying the stock of a REIT qualify as a 'Like-Kind' exchange? Short answer, no. Long answer, a 1031 (Starker) exchange only applies to real estate. From the Wikipedia page on the topic: To qualify for Section 1031 of the Internal Revenue Code, the properties exchanged must be held for productive use in a tr...
877
How does one's personal credit history affect one's own company's credit rating?
[ "336468" ]
[ "\"For a newly registered business, you'll be using your \"\"personal\"\" credit score to get the credit. You will need to sign for the credit card personally so that if your business goes under, they still get paid. Your idea of opening a business card to increase your credit score is not a sound one. Business pl...