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What considerations are there for making investments on behalf of a friend? | If you want to do #1, then you should form an "investment club." This is an entity that is recognized by the SEC and the IRS. From the SEC: An investment club is a group of people who pool their money to make investments. Usually, investment clubs are organized as partnerships and, after the members study different in... |
How to get started with savings, paying off debt, and retirement? | You have a small emergency fund. Good! Be open about your finances with each other. No secrets, except around gift-giving holidays. Pay off the debts ASAP. Don't accumulate more consumer debt after it's paid off. I wouldn't contribute anything more to the 401k beyond what gives you a maximum match. Free money is fr... |
Should I buy ~$2200 of a hot stock or invest elsewhere? | Forget investing, you need to focus on managing your debt. I would keep the 6k in a checking or savings account because you need that money in case of an emergency. If you save up more than 10k, use the excess to pay down the principal on your debt. Worry about investing when you have a positive net worth. |
Retired, want to buy a mobile home; how to finance? | Do you think your 403b will earn more than the mortgage interest rate? If so, then mortgage seems the way to go. Conservative investment strategies might not earn much more than a 3-4% mortgage, and if you're paying 5-6% it's more likely you'll be earning less than the mortgage. From another point of view, though, I w... |
Price movement behaviour before earnings announcements | This depends entirely on what the market guesses the news will be and how much of that guess has already been factored into the price. There is no general answer beyond that. Note that this explains the apparently paradoxical responses where a stock good down on good news (the market expected better) or up on bad news... |
Why do people always talk about stocks that pay high dividends? | The answer, for me, has to do with compounding. That drop in price post-ex-div is not compounded. But if you reinvest your dividends back into the stock then you buy on those post-ex-div dips in price and your money is compounded because those shares you just bought will, themselves, yeald dividends next quarter. Also... |
Why would I vote for an increase in the number of authorized shares? | Why would I want to approve an increase in the number of authorized shares? Because you trust management to use those shares wisely. What it comes down to is, management is asking for money. While it may not be cash they're asking for, it has the same effect. Before you approve this, you have to evaluate the request (s... |
Why do companies have a fiscal year different from the calendar year? | Maybe it's just because of the foundation date. If I start a company on August 1st, I would like its FY starts on that date too, in order to track my first whole year. Would be quite useless to finish my year on December, after just five months. I want to have data of my first year after a twelve months activity. |
Will unpaid taxes prevent me from getting a business license? | Generally these things are unrelated. Your tax debt is to agency X, your license is (mostly) from agency Y. If your business involves agency X, then it may be a problem. For example, you cannot get a EA license (IRS Enrolled Agent) if you have unsettled tax debt or other tax compliance issues. You should check Michigan... |
How to pay taxes on YouTube if I'm a dependent? | The Form 1040 (U.S. tax return form) Instructions has a section called "Do You Have To File?". Below a certain income, you are not required to file a tax return and pay any tax. This amount of income at which you are required to file depends on several things, including your dependency status (you are a dependent of ... |
Can a company stop paying dividends? | Dividends are supposed to be paid from company profits (in the current or previous financial years), there are nuances around what profits mean from country to country, but the link is the UK definition from the HMRC. Profits from previous financial years are commonly called retained earnings. There are a few items aro... |
How to deal with intraday prices conflicting with EOD highs and lows | In the US, stocks are listed on one exchange but can be traded on multiple venues. You need to confirm exactly what your data is showing: a) trades on the primary-listed exchange; or b) trades made at any venue. Also, the trade condition codes are important. Only certain trade condition codes contribute towards the d... |
Credit and Debit | It took me a while to understand the concept, so I'll break it down as best as I can. There are three parts to the accounting equation: Assets = Liabilities + Owner's Equity We'll look at this in two ways 1. As a business owner you invest (say) 10,000 USD into your bank. The entry would be: Debit: Assets: Cash for 1... |
Diversification reduces risk, but does this base on the assumption that expected return of each asset is always in proportion to its risk? | If you have 100% of your money in one security that is inherently more risky than splitting your money 50/50 between two securities, regardless of the purported riskiness of the two securities. The calculations people use to justify their particular breed of diversification may carry some assumptions related risk/rewar... |
Emulating a 'long straddle' without buying or selling Options? | Based on what you wrote, you would be better off with no position to start, and then enter a buy stop 10% above the market, and a sell stop 10% below the market, both to open positions depending on which way the market moves. If the market doesn't move that 10%, you stay flat. However, a long option straddle position r... |
Are my parents ripping me off with this deal that doesn't allow me to build my equity in my home? | Yes, you are getting shafted. In the end, you will have paid the full price of the condo, but still own only 25% of it. Your parents' stake in the home should decrease as you repay the loan. The way it is now, they're getting 75% of your condo for free! |
In what state should I register my web-based LLC? | In this case not only that you must register in California (either as domestic, or as foreign if you decided to form elsewhere), you'll also be on the hook for back-taxes if you didn't do it from the start. FTB is notorious for going after out-of-state LLCs that Californians open in other States trying to avoid the $80... |
Can signing up at optoutprescreen.com improve my credit score? | Some credit checks are ignored as part of the scoring process. Some companies will pull your info, to make sure you haven't become a risk. Others will inquire before they send you an offer. Since you didn't initiate the inquiry it can't impact your score. |
Should I consider my investment in a total stock market fund “diverse”? | Typically investing in only two securities is not a good idea when trying to spread risk. Even though you are in the VTI which is spread out over a large amount of securites it should in theory reduce portfolio beta to zero, or in this case as close to it as possible. The VTI however has a beta of 1.03 as of close toda... |
Need to change cash to cashier's check without bank account (Just arrived to the US) | the easiest thing would be to go to walmart and stock up on 1000$ money orders paying a 70 cents fee for each. your landlord would almost certainly accept money orders, but double check first just in case. i say stock up because you can't get a money order for more than 1000$ and they usually won't let you buy more tha... |
Why would a person not want to purchase a Personal Liability (Umbrella) insurance policy? | You only need umbrella policy for large amounts of liability protection (I think they usually start with $1M). So if you don't have and don't expect to have assets at such a high value - why would you need the insurance? Your homeowners/renters/car/travel insurance should be enough, and you still need to have those for... |
US Stock Market - volume based real-time alert | TdAmeritrade offers this service for free using 3rd party company markit. From markit's site, below is their guarantee. http://www.markit.com/product/markit-on-demand Markit On Demand delivers an average of two million alerts per day through various technology platforms and via multiple channels, including email, ... |
What are some sources of information on dividend schedules and amounts? | I second the Yahoo! Finance key stats suggestion, but I like Morningstar even better: http://quote.morningstar.com/stock/s.aspx?t=roic They show projected yield, based on the most recent dividend; the declared and ex-dividend dates, and the declared amount; and a table of the last handful of dividend payments. Back to ... |
What prevents interest rates from rising? | Interest rates are market driven. They tend to be based on the prime rate set by the federal reserve bank because of the tremendous lending capacity of that institution and that other loan originators will often fund their own lending (at least in part) with fed loans. However, there is no mandatory link between the fe... |
hardship withdrawal | Gaining traction is your first priority. WARNING: as @JosephZambrano explains in his answer the tax penalty for withdrawing from a 401(k) can easily exceed the APR of the credit card making it a very bad strategy. Consult in-depth with a financial advisor to see before taking that path. As @JoeTaxpayer has noted a loa... |
Is there data and proof that a diversified portfolio can generate higher returns than the S&P 500 Index? | Stocks, Bonds, Bills, and Lottery Tickets notes the work of Fama and French who researched the idea of a small-cap premium along with a value premium that may be useful to note in terms of what has outperformed if one looks from 1926 to present. Slice and dice would also be another article about an approach that over w... |
Why do investors buy stock that had appreciated? | A few reasons. First, it's hard to buy a stock that has never gone up, and isn't necessarily wise to do so. Even if you just wait for a stock go down, what if you wait and it goes up two dollars, then drops 10 cents? Has it gone up or down? When should you buy it? In general, your idea is correct, the higher the pr... |
Advice for opening an IRA as a newbie | As other people have indicated, traditional IRAs are tax deductable for a particular year. Please note, though, that traditional IRAs are tax deferred (not tax-free) accounts, meaning that you'll have to pay taxes on any money you take out later regardless of why you're making the withdrawal. (A lot of people mistakenl... |
Any reason to keep IRAs separate? | Once upon a time, money rolled over from a 401k or 403b plan into an IRA could not be rolled into another 401k or 403b unless the IRA account was properly titled as a Rollover IRA (instead of Traditional IRA - Roth IRAs were still in the future) and the money kept separate (not commingled) with contributions to Traditi... |
IRA contributions in a bear (bad) market: Should I build up cash savings instead? | You should consider dollar cost averaging your investments. Retirement account is perfect for that - it's long term with periodic deposits. Overall, by investing in stocks now for a long term, you'll benefit more because the stocks are at their low(er) point. |
what is the meaning of allowing FDI in Insurance and pension funds | Insurance in India is offered by Private companies as well [ICICI, Maxbupa, SBI, Max and tons of other companies]. These are priavte companies, as Insurance sectors one has to look for long term stability, not everyone can just open an Insurance company, there are certain capital requirements. Initially the sharehold... |
Should I pay more than 20% down on a home? | Leverage increase returns, but also risks, ie, the least you can pay, the greater the opportunity to profit, but also the greater the chance you will be underwater. Leverage is given by the value of your asset (the house) over the equity you put down. So, for example, if the house is worth 100k and you put down 20k, th... |
I am Brasilian resident, how to buy shares on NYSE? | There are ETFs listed on the Brazilian stock market. Specifically there is one for S&P500 - SPXI11, which might fulfill your requirements, though as one commenter has observed, it doesn't answer your original question. |
How can I investigate historical effect of Rebalancing on Return and Standard Deviation? | Do not reinvent the wheel! Historical data about stock market returns and standard deviations suffer from number of issues such as past-filling and mostly survivorship bias -- that the current answers do not consider at all. I suggest to read the paper "A Century of Global Stock Markets" by Philippe Jorion (UC Irvine) ... |
Is there a term for the risk of investing in an asset with a positive but inferior return? | In my opinion the risk is about the lost opportunity cost. You can find a lot of articles about it on the net. In big shortcut opportunity cost takes place each time you have to choose between two or more options and the tradeoff effect have its price. It is defined as value of best alternative solution. Quite good def... |
Dividend Yield | The S&P 500 is an index, you can't buy shares of an index, but you can find index funds to invest in. Each company in that fund that pays dividends will do so on their own schedule, and the fund you've invested in will either distribute dividends or accumulate them (re-invest), this is pre-defined, not something they'd... |
Is there a good options strategy that has a fairly low risk? | You may look into covered calls. In short, selling the option instead of buying it ... playing the house. One can do this on the "buying side" too, e.g. let's say you like company XYZ. If you sell the put, and it goes up, you make money. If XYZ goes down by expiration, you still made the money on the put, and now ... |
In the US, does getting a loan with a cosigner, help your credit rating? | It all comes down to how the loan itself is structured and reported - the exact details of how they run the loan paperwork, and how/if they report the activity on the loan to one of the credit bureaus (and which one they report to). It can go generally one of three ways: A) The loan company reports the status to a cre... |
Why would people sell a stock below the current price? | This happens on dark pools quite often. If I am a large institutional investor with tens of millions of shares, I may want to unload slowly and limit the adverse affects on the price of the stock. Dark pools offer anonymity and have buyers / sellers that can handle large volume. In the case of a day trader, they often... |
Stock trading models that use fundamental analysis, e.g. PEG ratios? | Maria, there are a few questions I think you must consider when considering this problem. Do fundamental or technical strategies provide meaningful information? Are the signals they produce actionable? In my experience, and many quantitative traders will probably say similar things, technical analysis is unlikely to pr... |
Is investing in an ETF generally your best option after establishing a Roth IRA? | It's hard to know what to tell you without knowing income, age, marital status, etc., so I'll give some general comments. ETFs come in all varieties. Some have more volatility than others. It all depends on what types of assets are in the fund. Right now it's tough to outpace inflation in an investment that's "safe" ... |
Are Chase credit cards commonly accepted for purchases? | If you read the fine print in the Pricing & Terms section of that card, you'll see: By becoming a Visa Business Card cardmember, you agree that the card is being used only for business purposes and that the card is being issued to a public or private company including a sole proprietor or employees or contractors of an... |
Credit card transactions for personal finances | Other responses have focused on getting you software to use, but I'd like to attempt your literal question: how are such transactions managed in systems that handle them? I will answer for "double entry" bookkeeping software such as Quicken or GnuCash (my choice). (Disclaimer: I Am Not An Accountant and accountants wil... |
Does anyone offer no interest loans? | This is very much possible and happens quite a lot. In the US, for example, promotional offers by credit card companies where you pay no interest on the balance for a certain period are a very common thing. The lender gains a new customer on such a loan, and usually earns money from the spending via the merchant fees (... |
Is investing in housing considered an adequate hedge against inflation? | Becoming a landlord is a pretty roundabout way to hedge against inflation. Why don't you research TIPs (Treasury Inflation Protected Securities (?)) Over the very long term, a house will just about match inflation, but no more. I observe that it (median home price) has remarkably tight correlation to the mortgage one c... |
Can I cover a short sale with the stock I already own? | Yes you can. This is known as a short selling against the box. In the old days, this was used to delay a taxable event. You could lock in a gain without triggering a taxable event. Any loss on one side of the box would be offset by a loss on the other side, and vice versa. However, the IRS clamped down on this, an... |
Why is financial data of some public companies not available on Yahoo Finance? | http://www.pacificrubiales.com/investor-relations/reports.html does have financial reports on their website for the example you list. There is the potential for some data to not be easily imported into a format that Yahoo! Finance uses would be my guess for why some data may be missing though an alternative explanatio... |
Can I place a stock limit order to buy above the current price? Can I place a stock limit order to sell below the current price? | You are better off just placing a market order if you want to buy or sell straight away and avoid the queues. A market order will guarantee the purchase or sale of your shares, but it won't guarantee the price. |
Is sales tax for online purchases based on billing- or shipping address? | Apparently it's based on either the address of the seller or vendor or your shipping address; from the AccurateTax.com blog post Destination and Origin Based Sales Tax: ... a few states have laws that are origin-based, where products that are shipped to the customer are taxed based on the location of the business itsel... |
What factors should I consider in picking a bond? | just pick a good bond and invest all your money there (since they're fairly low risk) No. That is basically throwing away your money and why would you do that. And who told you they are low risk. That is a very wrong premise. What factors should I consider in picking a bond and how would they weigh against each other? ... |
Short selling - lender's motivation | Oftentimes, the lender (the owner of the security) is not explicitly involved in the lending transaction. Let's say the broker is holding a long-term position of 1MM shares from Client A. It is common for Client A's agreement with Broker A to include a clause that allows the broker to lend out the 1MM shares for its ow... |
What's the difference between Buy and Sell price on the stock exchange [duplicate] | The Bid price is simply the highest buy price currently being offered and the Ask price simply the lowest sell price being offered. The list of Bid and Ask prices is called the market depth. When the Bid and Ask prices match then a sale goes through. When looking to sell you would generally look at both the Bid and Ask... |
Do overall 401(k) contribution limits sum across employers? | Let me first start off by saying that you need to be careful with an S-Corp and defined contribution plans. You might want to consider an LLC or some other entity form, depending on your state and other factors. You should read this entire page on the irs site: S-Corp Retirement Plan FAQ, but here is a small clip: Co... |
Why does an option lose time value faster as it approaches expiry | Not cumulative volatility. It's cumulative probability density. Time value isn't linear because PDFs (probability distribution function) aren't linear. It's a type of distribution e.g. "bell-curves") These distributions are based on empirical data i.e. what we observe. BSM i.e. Black-Scholes-Merton includes the factors... |
Options vs Stocks which is more profitable | As already noted, options contain inherent leverage (a multiplier on the profit or loss). The amount of "leverage" is dictated primarily by both the options strike relative to the current share price and the time remaining to expiration. Options are a far more difficult investment than stocks because they require that ... |
How can risk-reward relationship exist, since the losses due to the risk should offset the reward? | Risk in finance is defined as standard deviation of returns. This is a measure of size of your returns, both negative and positive. Since the mean return is positive (at least for the stock market and fixed income), if you double the standard deviation your mean return also doubles along with it. In this way you are co... |
Magazine subscription leads to unauthorized recurring payment | In 2010, the Restore Online Shoppers' Confidence Act was passed, which prohibited certain activities, most of which had to do with online sites sharing your CC info with third parties. However, the final part of the act deals with "negative option" marketing, which is basically what you're describing - "We will charge... |
How much time would I have to spend trading to turn a profit? | It depends on how you define trading. If you're looking at day-trading, where you're probably going to be in a highly-leveraged position for minutes or hours, the automated traders are probably going to kill you. But, if you have a handful (less than a dozen) equities, and spend about an hour or so every week conduct... |
What options do I have at 26 years old, with 1.2 million USD? | You need to find a fiduciary advisor pronto. Yes, you are getting a large amount of money, but you'll probably have to deal with higher than average health expenses and lower earning potential for years to come. You need to make sure the $1.2 million lasts you, and for that you need professional advice, not something y... |
How do I explain why debt on debt is bad to my brother? | Two suggestions: I don't know if you have them in South Africa, but here we have some TV reality shows where a credit consultant visits a family that is deeply in debt and advises them on how to get out of it. The advice isn't very sophisticated, but it does show the personal impact on a family and what is likely to ha... |
super confused about bid and ask size. help | yes you are right as per my understanding while doing trade you must consider fol (specially for starters like me) The volume of the stock you are trading in should be high enough to keep you secure for quick in and out Whenever the bid volume is more than the ask volume the prices will move up and vice versa. to give ... |
How do I establish the cost basis of shares bought in an employee stock purchase program? | A public company should have a link for investor relations, which should help provide a trail of basis if this is a matter of company buyout, takeover, etc. This gets you close, but if you don't have an exact date, it will just be close, not exact. One clean way out of this, assuming the goal is to get rid of the sto... |
Getting Cash from Credit Card without Fees | This was actually (sort of) possible a few years ago. The US Mint, trying to encourage use of dollar coins, would sell the coins to customers for face value and no shipping. Many people did exactly what you are proposing: bought hundreds/thousands of dollars worth of coins with credit cards, reaped the rewards, deposit... |
How do currency markets work? What factors are behind why currencies go up or down? | According to Soros in "The Alchemy of Finance", exchange rates fluctuations are mostly influenced by: (sorry I do not have the quote here, and I am paraphrasing from the top of my head what I read about a week ago). I mention his point of view as he is one of the most successful hedge fund manager ever, proved his skil... |
Is it legal if I'm managing my family's entire wealth? | Aside from the fact that there are massive problems with taxes, liability, fiduciary responsibility, and (assuming you're accepting any sort of compensation at all) licensing. The mere fact that you're asking this question indicates that you're probably not suitably qualified to handle this for others. Why not have som... |
What is the name of inverse of synergy? (finance) | You could call it "multiple streams of income" a la Robert Allen and others. Or you could call it "Do once, sell many" or something like that. |
Is this mortgage advice good, or is it hooey? | Sounds fishy - taking out more debt to pay the main mortgage down faster? There are a couple of issues I can see: I would think that a much more sensible strategy with a lot less risk is to save up extra cash and send your lender a check every quarter or six months. |
Do rental car agencies sell their cars at a time when it is risky for the purchaser? | Many Web sites and articles warn against buying former rental cars, because people renting these cars often mistreat them. Many of those are also written by unqualified individuals for publication on blog farms and encourage all sorts of odious financial practices. That's not even considering the interests of who is pa... |
What does an x% inflation rate actually mean? | Inflation is an attempt to measure how much less money is worth. It is a weighted average of some bundle of goods and services price's increase. Money's value is in what you can exchange it for, so higher prices means money is worth less. Monthly inflation is quoted either as "a year, ending on that month" or "since t... |
Should I file taxes or Incorperate a personal project? | Normally, incorporation is for liability reasons. Just file your taxes as a business. This just means adding a T2125 to your personal return. There's no registering, that's for GST if over a certain threshold. There's even a section in the instructions for internet businesses. http://www.cra-arc.gc.ca/E/pub/tg/t4002... |
How can I get a wholesaler ID number? | Seems like it's more dependent on who you want to be your supplier. The times I've been involved in requesting this, each company had its own application form. They usually need proof of business activity, which gets back to SpecKK's answer. |
Does a 1045 exchange require any filing prior to that years tax return? | When you get into reading Revenue Rulings and Treasury Regulations - I'd suggest hiring a professional to do that for you. Especially since you also need to assure that the new stock does indeed qualify as QSBS. However, from the revenue ruling you quoted it doesn't sound like there's any other requirement other than r... |
I've got $100K to invest over the next 2 to 7 years. What are some good options? | One of the things I would suggest looking into is peer-to-peer lending. I do lendingclub.com, but with a lot less money, and have only done it a short period of time. Still my return is about 13%. In your case you would probably have to commit to about 3.5 years to invest your money. Buy 3 year notes, and as they ar... |
What is the meaning of Equal Housing Lender? Do non-banks need to display it? | At the top result of the Google search, on the Google results page it's sumarized as applicable to every lender participating in FDIC: The terms equal housing lender and equal opportunity lender are synonymous and refer to all banks insured by the Federal Deposit Insurance Corporation in the United States. Such banks a... |
Life insurance policy | First off, I would question why do you need a LI policy? While you may be single are you supporting anyone? If not, and you have some money saved to cover a funeral; or, your next of kin would be able to pay for final expenses then you probably don't have a need. In, general, LI is a bad investment vehicle. I do n... |
devastated with our retirement money that we have left | I'm going to discuss this, in general, as specific investment advice isn't allowed here. What type of account is the $60K in now? I mean - Is it in a 401(k), IRA or regular account/CD/money market? You are still working? Does your company offer any kind of matched 401(k)? If so, take advantage of that right up the lev... |
Since many brokers disallow investors from shorting sub-$5 stocks, why don't all companies split their stock until it is sub-$5 | A stock split can force short sellers of penny stocks to cover their shorts and cauuse the price to appreciate. Example: Someone shorts a worthless pump and dump stock, 10,000 shares at .50. They have to put up $25,000.00 in margin ($2.50 per share for stocks under $2.50). The company announces a 3 to 1 split. Now... |
Does this sound like a great idea regarding being a landlord and starting a real estate empire? | This is a well worn path and not a bad idea. There are quite a few pitfalls but there are a lot of resources to learn for other people's mistakes. Having a plan and doing your research should help you avoid most of them. Here is some general advice to help get you started on the right foot. Know the market you are i... |
How does a online only bank protect itself against fraud? | @ Daniel Anderson shared interesting insights. In my research I learned a few things Some interesting data on fraud trends AFP Payments Fraud and Control Survey 2016 As a consumer, at the very least I'd improve awareness of I'd also learn about basic types of fraud And for the techies out there, I'd recommend learning... |
static data for mutual funds/hedge funds | It's not really my field, but I believe it's all the information that doesn't change (i.e. isn't "real-time") about the business of hedge funds. For example, this site quotes: The product maintains comprehensive static data records including assets, depositories, accounts, settlement instructions and a wide rang... |
Are reimbursements from company taxable,and do I need to deduct them? | I'm assuming that you're in the US. In that case, the answer is that it depends on how your company set up its reimbursement plan. The IRS recognizes "accountable" and "nonaccountable" plans. Accountable plans have to meet certain requirements. Anything else is nonaccountable. If you are reimbursed according to an... |
Deal with stock PSEC | It looks like it has to deal with an expiration of rights as a taxable event. I found this link via google, which states that Not only does the PSEC shareholder have a TAXABLE EVENT, but he has TWO taxable events. The net effect of these two taxable events has DIFFERENT CONSEQUENCES for DIFFERENT SHAREHOLDERS depe... |
Why are “random” deposits bad? | Random deposits are a bit like playing the lotery - especially if one is frequently chasing "hot tips". You might make it big, but the odds are vastly against you. "Random" deposits into various investments won't be optimal, because such "random" decisions will not be properly diversified and balanced. Various invest... |
Pay for a cheap car or take out a loan? | You may not have a good choice until you start that job. $2,000 is awfully low for a car, so it could be very risky. But you may not be able to get a loan until you start the new job. I would talk to a bank or credit union to get an idea of how much, if anything, you could borrow at this time. If you have a letter offe... |
In India, what is the difference between Dividend and Growth mutual fund types? | A growth fund is looking to invest in stocks that will appreciate in stock price over time as the companies grow revenues and market share. A dividend fund is looking to invest in stocks of companies that pay dividends per share. These may also be called "income" funds. In general, growth stocks tend to be younger com... |
W2 vs 1099 Employee status | In general What does this mean? Assume 10 holidays and 2 weeks of vacation. So you will report to the office for 240 days (48 weeks * 5 days a week). If you are a w2 they will pay you for 260 days (52 weeks * 5 days a week). At $48 per hour you will be paid: 260*8*48 or $99,840. As a 1099 you will be paid 240*8*50 or... |
Margin Calculations Question | The setup is a purchase of 200 shares at $40 with a cash deposit of $4000 and margin loan of $4000 which a year later grew to $4240. With a margin requirement of 30%, the loan can be 70% or a total stock value of $6057. 1) $30.29 2) -24.3% (The stock fell to $30.29 from $40) 3) -54.6% (Your $4000 fell to $1817) |
Does Robinhood calculate fees and taxes over the total gain/loss or per-transaction? | I don't see a tag for United States, so I'm having to assume this is US taxes. It doesn't matter what app you use, IRS trades are all calculated the same. First, you have to report each trade on a 8949 and from that the totals go into a schedule D. Short term trades are stocks that you've kept exactly one year or les... |
Confused about employee stock options: How do I afford these? | ISOs (incentive stock options) can be closed out in a cashless transaction. Say the first round vests, 25,000 shares. The stock is worth $7 but your option is to buy at $5 as you say. The broker executes and sells, you get $50,000, with no up front money. Edit based on comment below - you know they vest over 4 years, ... |
What capital gains taxes do I owe on stock sales in India? | Long term: Assuming you sold stock ABC through a registered stock exchange, e.g., the Bombay Stock Exchange or the National Stock Exchange of India, and you paid the Securities Transaction Tax (STT), you don't owe any other taxes on the long term capital gain of INR 100. If you buy stock BCD afterwards, this doesn't af... |
Are variable rate loans ever a good idea? | The earlier you are in your career, the more willing you should be to take a better opportunity even if it has a short-term financial cost. You go to college even if McDonald's has an opening. After college you may take an entry level job with better long-term prospects even if a higher paying job is available. You ... |
What are some good, easy to use personal finance software? [UK] | My Finances is a personal finance app for iPhone and iPad. The app uses iCloud to sync the data between your devices if you want to. Otherwise the data is only local and won't be synced to any server. Spoiler: I'm the developer and my opinion may be biased. |
What's the point of Ford loosening financing requirements? | The article states their reasons pretty clearly, and indicates that some people won't qualify under the new requirements that would have previously, they're not courting people with bad credit, they're just looking beyond credit score at other factors. They aren't opening floodgates for anyone with a pulse to get a car... |
When (if) I should consider cashing in (selling) shares to realize capital gains? | In a perfect world of random stock returns (with a drift) there is no reason to "take profit" by exiting a position because there is no reason to think price appreciation will be followed by decline. In our imperfect world, there are many rules of thumb that occasionally work but if any one of them works consistently... |
Are REIT worth it and is it a good option to generate passive income for a while? | In financial markets, the gains you can expect to make (whether in the form of dividends or capital gains) correspond to the risks you are bearing. There are a variety of REITs but you can expect to make only as much money in them as you bear risk (meaning you can also lose a lot of money in the ones that earn a lot).... |
Should I sell a 2nd home, or rent it out? | If you can generate a higher ROI by renting than by cashing out and investing, then you should rent it out. Please consider your risk tolerance as well. It's always a personal decision whether to assume higher risk for a higher return. |
Is foreign stock considered more risky than local stock and why? | Foreign stocks have two extra sources of risk attached to them; exchange rate and political. Exchange rate risk is obvious; if I buy a stock in a foreign currency and there is a currency movement that makes that investment worth less I lose money no matter what the stock does. This can be offset using exchange rate sw... |
Tax treatment of a boxed trade? | Here's how capital gains are totaled: Long and Short Term. Capital gains and losses are either long-term or short-term. It depends on how long the taxpayer holds the property. If the taxpayer holds it for one year or less, the gain or loss is short-term. Net Capital Gain. If a taxpayer’s long-term gains are more... |
How can I get a home loan within 2 years of bankruptcy? | There are a few loan programs that grant exceptions to bankruptcy requirements in the event of extenuating circumstances that can be proven to be outside of your control (i.e. massive medical bills that you used bankruptcy to settle, etc.) however, in order to make the case for this exemption, you would need to make a ... |
Auto loan and student loan balance | So, in general, pay to the higher interest rate. Some contrived reasons you would want to pay your auto loan more could be: |
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