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Is it unreasonable to double your investment year over year? | Not at all impossible. What you need is Fundamental Analysis and Relationship with your investment. If you are just buying shares - not sure you can have those. I will provide examples from my personal experience: My mother has barely high school education. When she saw house and land prices in Bulgaria, she thought i... |
valuing options | Below I will try to explain two most common Binomial Option Pricing Models (BOPM) used. First of all, BOPM splits time to expiry into N equal sub-periods and assumes that in each period the underlying security price may rise or fall by a known proportion, so the value of an option in any sub-period is a function of its... |
How much do large sell orders affect stock price? | Most of the investors who have large holdings in a particular stock have pretty good exit strategies for those positions to ensure they are getting the best price they can by selling gradually into the volume over time. Putting a single large block of stock up for sale is problematic for one simple reason: Let's say yo... |
Company stock listed in multiple exchanges? | listed simultaneously in New York, London, and maybe even some Asian markets - is this correct? If the exchanges are not connected, then in primary market the shares are listed. On other exchanges, the "Depository Receipts" are listed. i.e. the Company will keep say 100,000 shares with the primary stock exchange / depo... |
Why do Americans have to file taxes, even if their only source of income is from a regular job? | A couple things. First of all, most people's MAIN source of income is from their job, but they have others, such as bank interest, stock dividends, etc. So that income has to be reported with their wage income. The second thing is that most people have deductions NOT connected with their job. These deductions reduce in... |
What kind news or information would make the price of a stock go up? | There is a highly related question which is much easier to answer: what normally value-increasing news about a company would cause that company to fall in value in the public stock market? By answering that, we can answer your question by proxy. The answer to that question being: anything that makes investors believe t... |
What does it mean that stocks are “memoryless”? | @jidugger mostly got it right. It basically mean that past performance of a stock, or a basket of stocks, are not at all useful when trying to predict its future. There is no proven correlation between past and future performance. If there was such a correlation, that was "proven" or known, then investors would quickly... |
What ETF best tracks the price of gasoline, or else crude oil? | There is no ETF that closely tracks oil or gasoline. This is because all existing oil and gasoline ETFs hold futures contracts or other derivatives. Storing the oil and gasoline would be prohibitively costly. Futures contracts are prone to contango and backwardation, sometimes resulting in large deviations from the pri... |
What one bit of financial advice do you wish you could've given yourself five years ago? | Get an advanced degree. This should increase your earning power. Also learn how to use a computer, this should also tend to increase your earning power. |
Can you use external money to pay trading commissions in tax-free and tax-deferred accounts? | According to Publication 590, broker's commissions for stock transactions within an IRA cannot be paid in addition to the IRA contribution(s), but they are deductible as part of the contribution, or add to the basis if you are making a nondeductible contribution to a Traditional IRA. (Top of Page 10, and Page 12, colum... |
Is selling put options an advisable strategy for a retiree to generate stable income? | I am close to retirement and sell cash secured puts and covered calls on a regular basis. I make 15 % plus per year from the puts. Less risky than buying stocks, which I also do. Riskier than bonds, but several times the income. Example: I owned 4,000 shares of XYZ, which I bought last year at 6.50 and was at 7.70 ... |
Choosing the “right” NAPFA advisor, and whether fees are fair, etc.? | Usually your best bet for this sort of thing is to look for referrals from people you trust. If you have a lawyer or other trusted advisor, ask them. |
How much of my capital should I spend on subscribing to a stock research company? | You should spend zero on your stock research company. If the management of the company actually had persistent skill in picking stocks, they would not be peddling their knowledge to the retail market for a few hundred dollars. They would rake in millions and billions by running a huge hedge fund and buy themselves a ... |
If a stock doesn't pay dividends, then why is the stock worth anything? | Shareholders can [often] vote for management to pay dividends Shareholders are sticking around if they feel the company will be more valuable in the future, and if the company is a target for being bought out. Greater fool theory |
How can a 529 plan help me save for my child's college education? | If you're ready to start a 529 account, it makes a big difference which state you choose (some states have excessive fees). It doesn't have to be your own state, but some states give you tax incentives to stay in-state. What you need to do is check out Clark Howard's 529 Guide and check to see if your state is in the... |
Are variable rate loans ever a good idea? | It is often the case (more commonly in countries other than the USA) that a fixed-term loan has an early redemption penalty, because the lender themselves will incur a cost for settling the loan early, while a variable-rate loan does not. If this is the situation and you think you might want to pay off the loan early, ... |
For a mortgage down-payment, what percentage is sensible? | I am currently in the process of purchasing a house. I am only putting 5% down. I see that some are saying that the traditional 20% down is the way to go. I am a first time homebuyer, and unfortunately we no longer live in the world where 20% down is mandatory, which is part of the reason why housing prices are so high... |
Understanding the symbols next to the Ticker | I don't understand what the D, to the right of APPLE INC, means. This means the graph below is for the "D". There is selection at top and you can change this to Minutes [5,20,60,etc], Day, Week [W], Month [M] I'm not understanding how it can say BATS when in actuality AAPL is listed on the NASDAQ. Do all exchanges have... |
Is expense to freelancers tax deductible? | Yes, legitimate, documented, expenses are written off against that income. |
Does it make sense to buy a house in my situation? | Short answer: NO. Do NOT buy a house. Houses are a "luxury" good (see Why is a house not an investment?). Although the experience of the early 2000s seemed to convince most people otherwise, houses are not an investment. Historically, it has usually been cheaper to rent, because owning a house has non-pecuniary ben... |
If USA defaults on its debt, will the T bond holder get back his money | The only party that can pay back a government bond is the government that issued it itself. In the case of Argentina, US vulture funds have won cases against it, but it has yet to pay. The best one can do to collect is to sue in a jurisdiction that permits and hope to seize the defaulted government's assets held in su... |
How much money should I lock up in my savings account? | No, don't bother. You need to decide what you are saving for, and how much risk you are prepared to take. It would make sense if you wanted the money only in x years, and couldn't afford to lose say 20% or more if the stock market crashed the day before you needed the cash. Typically if you are about to retire and bu... |
Are Credit Cards a service to banks? | Credit cards are a golden goose for banks, as they get to issue high-interest loans and simultaneously generate alot of fee income. Debit cards aren't quite as good, but they still generate substantial fee income -- ~2% of every credit/non-PIN debit transaction goes to the bank and credit card network. Credit histories... |
Finding a good small business CPA? | I have had better experiences with accountants in smaller towns. It seems they are used to working with small businesses and their reputation is very important to them. |
What is the smartest thing to do in case of a stock market crash | I suggest to just invest in index funds, these are low risk with high reward stocks that can survive even the worst of stock crashes but are still extremely profitable when the stock market is booming |
Basic finance: what should everyone know? | The statement "Finance is something all adults need to deal with but almost nobody learns in school." hurts me. However I have to disagree, as a finance student, I feel like everyone around me is sound in finance and competition in the finance market is so stiff that I have a hard time even finding a paid internship ri... |
Am I understanding buying options on stock correctly | Here is a quick and dirty explanation of options. In a nutshell, you pay a certain amount to buy a contract that gives you the right, but not the obligation, to buy or sell a stock at a predetermined price at some date in the future. They come in a few flavors: I'll give you $100 if you let me buy 10,000 shares of XYZ... |
How do I interpret this analysis from Second Opinion? | This is analyst speak for "the stock isn't going anywhere anytime soon". Remember these guys are offering advice to the entire universe in a few lines, so the advice gets fortune cookie-like. When I look at these things, I care more about when the analyst changes their opinion more than what the opinion is. If you real... |
Why is property investment good if properties de-valuate over time? | There are many different reasons to buy property and it's important to make a distinction between commercial and residential property. Historically owning property has been part of the American dream, for multiple reasons. But to answer your questions, value is not based on the age of the building (however it can be i... |
Can I get my property taxes lowered? | The question is whether the assessment is in line with surrounding homes. If my 1500 sq ft house on 1/4 acre is assessed far higher than a similar sized house/land nearby, I'd have a case. +/- 10% can be for age/quality, but 25% or more, I'd investigate. mhoran is right, values for different purposes need not align. A ... |
Why would people sell a stock below the current price? | Occassionaly a trader will make a blatant mistake. A customer calls to buy 100 shares at $10, and the trader by mistake enters "10 shares at $100". You get one very happy seller :-) In the USA, it doesn't happen often for sales, because if the trader offers to sell 10 shares at $100, there will be nobody accepting the ... |
Why should we expect stocks to go up in the long term? | The last 300 years of civilization have been amazingly atypical. We have experienced industrial revolution after industrial revolution. Economic revolutions that would have changed the world in 1000 AD show up as noise. Coal, Canal, Rail, Trade, Electricity, Refrigeration, Oil, Gas, Nuclear, Assembly Line, Vacuum Tub... |
What determines a tax resident in Florida | I think the 60 days/year come from the IRS tax residency determination, which isn't a Florida law but applies to all the states. Have a look at the "substantial presence" paragraph to see where the 60 days are coming from. |
Is this mortgage advice good, or is it hooey? | This doesn't say the whole story (like the length of the HELOC). if you have 15 years left on a mortgage and "refinance" into a 30 year HELOC then yes, your payments maybe 20% lower, but you add 15 years to pay it off. Just remember that interest occurs daily on what you owe. If you move 100K of debt from 5% mortgage ... |
Simplifying money management | Track your spending and expected income -- on paper, or with a personal-finance program. If you know how much is committed, you know how much is available. Trivial with checks, requires a bit more discipline with credit cards. |
Are buying and selling futures based on objective data? | If you hold a future plus enough cash collateral it is economically equivalent to owning the underlying asset or shorting the underlying asset. In general financial assets such as stock indices have a positive expected return - that's the main difference between investing and gambling. There's nothing that special abou... |
Should the price of fuel in Australia at this point be so high? | (disclaimer: I don't answer specifically about Australia) As long as people don't question car usage and urban sprawl, and thus are willing to pay a premium for being stuck in traffic jams every working day, I don't see any reason why fuel producers wouldn't increase their prices. Given increasing demand from China and... |
Does a restaurant have to pay tax on a discount? | I owned a restaurant for over 5 years. Sales tax was only collected on POST discount price, though every state that collects sales tax may have different laws regarding collection. For example, when a customer used a gift certificate, that did NOT reduce the amount that tax was collected on. Why? Because the restaurant... |
Buy index mutual fund or build my own? | Go with a Vanguard ETF. I had a lengthy discussion with a successful broker who runs a firm in Chicago. He boiled all of finance down to Vanguard ETF and start saving with a roth IRA. 20 years of psychology research shows that there's a .01 correlation (that's 1/100 of 1%) of stock/mutual fund performance to predictio... |
Paying Off Principal of Home vs. Investing In Mutual Fund | I was going to ask, "Do you feel lucky, punk?" but then it occurred to me that the film this quote came from, Dirty Harry, starring Clint Eastwood, is 43 years old. And yet, the question remains. The stock market, as measured by the S&P has returned 9.67% compounded over the last 100 years. But with a standard deviat... |
Why does gold have value? | Gold has value because for the most of the history of mankind's use of money, Gold and Silver have repeatedly been chosen by free markets as the best form of money. Gold is durable, portable, homogeneous, fungible, divisible, rare, and recognizable. Until 1971, most of the world's currencies were backed by Gold. In ... |
Direct Registration System vs Brokerage Firm | You'll need to talk to your broker about registering positions you already hold. I would personally expect this will cost you a not-insignificant fee. And I don't think you'll be able to do this on any shares held in a tax-advantaged account. That said, I'd recommend you go to the Investors sections of the company's ... |
How can Schwab afford to refund all my ATM fees? | Schwab is a highly diversified operation and has a multitude of revenue streams. Schwab obviously thinks it can make more off you than you will cost in ATM fees and it's probably safe to assume most Schwab clients use more services than the ATM card. It's not worthwhile to discuss the accounting of ATM/Debit/Credit ca... |
Where can I buy European-style options? | On the US markets, most index options are European style. Most stock and ETF options are, as you noted, American style. |
What emergencies could justify a highly liquid emergency fund? | Weather events and aging infrastructure. Cash will buy gasoline, food and water when there is no power or telephone connectivity to process ATMs and credit cards. |
I'm only spending roughly half of what I earn; should I spend more? | The suggestions towards retirement and emergency savings outlined by the other posters are absolute must-dos. The donations towards charitable causes are also extremely valuable considerations. If you are concerned about your savings, consider making some goals. If you plan on staying in an area long term (at least f... |
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... |
30% share in business | Keep in mind a good lawyer will have the contract cover the five D's: Its really best to lay these things out ahead of time. I watched, first hand, two friends start a business. When they were broke and struggling the worked very well together. Then the money started rolling in. Despite exceeding their dreams they ... |
Are traders 100% responsible for a stock's price changes? | When people talk about "the price" of a stock, they usually mean one of the following: Last price: The price at which a trade most recently took place. If someone sold (and someone else bought) shares of XYZ for $20 each, then until another trade occurs, the last price of the stock will be quoted at $20. Bid price: T... |
Who can truly afford luxury cars? | In many (most?) cases, luxury cars are leased rather than purchased, so the payments on even an expensive car might not be as high as you'd expect. For simplicity, take a $100,000 car. If you were to buy that in cash or do a standard five-year auto loan, that would be incredibly expensive for all but the wealthiest of ... |
Why do consultants or contractors make more money than employees? | The benefits and taxes thing, in my opinion is the biggie. Most people don't realize that the cost to the company for a full-time employee with benefits can be 2x or even 3x the amount they see in their paycheck. Health plans are extremely expensive. Even if you are having money taken from your check for health insura... |
What are reasons a company would want to be listed on one exchange vs. another? | Listing on NYSE has more associated overhead costs than listing on NASDAQ. In the case of young technology companies, this makes NASDAQ a more attractive option. Perhaps the most important factor is that NYSE requires that a company has an independent compensation committee and an independent nominating committee whil... |
How to calculate years until financial independence? | In this equation the withdrawal rate is the percent you must pull from your savings to meet your expenses. For example if your savings is $100,000 and you need $10,000 annually for your living expenses then your withdrawal rate would be 10% (where 10k is 10% of 100k). To complete this formula, you need to know how muc... |
Relation between interest rates and currency for a nation | What you are asking about is called Interest Rate Parity. Or for a longer explanation the article Interest Rate Parity at Wikipedia. If the US has a rate of say zero, and the rate in Elbonia is 10%, one believes that in a year the exchange rate will be shifted by 10%, i.e. it will take 1.1 unit of their currency to ge... |
Mortgage vs. Cash for U.S. home buy now | Buying now with a mortgage gets you: Waiting to buy with all cash gets you: These are also some of the pros or cons for the rent or buy dilemma that Paul mentioned in comments to the OP. This is a very complex, multi-faceted question, that would not respond well to being put into any equation or financial model. Most p... |
Buy/Selling prices at the stock exchange represent someone Selling/Buying at that price? | You don't see Buying and Selling. You see Bid and Ask. Best Bid--Highest Price someone is willing to pay to buy a stock. Best Ask - Lowest price someone is willing to accept to sell a stock. As for your second question, if you can look up Accumulation/Distribution Algorithm and Iceberg Order, you will get basic idea. |
Is it worth investing in Index Fund, Bond Index Fund and Gold at the same time? | Index funds can be a very good way to get into the stock market. It's a lot easier, and cheaper, to buy a few shares of an index fund than it is to buy a few shares in hundreds of different companies. An index fund will also generally charge lower fees than an "actively managed" mutual fund, where the manager tries to ... |
I earn $75K, have $30K in savings, no debt, rent from my parents who are losing their home. Should I buy a home now or save? | To be honest, if it's a home all of you share you should try and save the home for your parents. your 26, you will have plenty of time to make 30k again. Having a home headquarters will bring some security to the family. Not only that your parents are old now, it could be hard for them to get another home. They have sa... |
Investment Options for 14-year old? | When I was about your age I had the same kind of situation. I asked my bank about possible options and one of them was a guaranteed reserve. You lock the money away for a certain amount of years and you get a guaranteed amount of interest on it. I don't know what the current rate is at the moment so you'll have to ask ... |
Is a fixed-price natural gas or electricity contract likely to save money? | I have some numbers to share that may help. I've been tracking my home's natural gas consumption in a spreadsheet for years. Much of that time I'd only been interested in the quantity used – to measure my home's efficiency after certain upgrades – but in 2006 I also started tracking the "Gas Supply Charge" costs from... |
Does the Black-Scholes Model apply to American Style options? | A minor tangent. One can claim the S&P has a mean return of say 10%, and standard deviation of say 14% or so, but when you run with that, you find that the actual returns aren't such a great fit to the standard bell curve. Market anomalies producing the "100-year flood" far more often than predicted over even a 20 year... |
Do the tax consequences make it worth it for me to hold ESPP stock? | Your gain is $1408. The difference between 32% of your gain and 15% of your gain is $236.36 or $1.60 per share. If you sell now, you have $3957.44 after taxes. Forget about the ESPP for a moment. Are you be willing to wager $4000 on the proposition that your company's stock price won't go down more than $1.60 or so ov... |
Pay off credit card debt or earn employer 401(k) match? | For easy math, say you are in the 25% tax bracket. A thousand deposited dollars is $750 out of your pocket, but $2000 after the match. Now, you say you want to take the $750 and pay down the card. If you wait a year (at 20%) you'll owe $900, but have access to borrow a full $1000, at a low rate, 4% or so. The payment ... |
Lump sum annuity distribution — do I owe estate tax? | If you are the beneficiary of an annuity, you might receive a single-sum distribution when the annuity owner dies. The amount of this death benefit might be the current cash value of the annuity or some other amount based upon contract riders that the owner purchased. The tax on death benefits depends on a number of fa... |
Why is the volume highest at the beginning and end of a trading day? | While volume per trade is higher at the open and to a lesser extent at the close, the overall volume is actually lower, on average. Bid ask spreads are widest at the open and to a lesser extent at the close. Generally, bid ask spreads are inversely proportional to overall volumes. Why this is the case hasn't been suffi... |
Ex-dividend date and time zones | Ex-Date is a function of the exchange, as well as the dividend. Consider Deutsche Bank AG, DB on the NYSE, DKR on Xetra. For a given dividend, each exchange sets the ex-date for trades on that exchange. (See http://www.sec.gov/answers/dividen.htm for a description of how it works in the US; other exchanges/countries a... |
Automatic transaction on credit card to stay active | credit cards are almost never closed for inactivity. i have had dozens of cards innactive for years on end, and only one was ever closed on me for inactivity. i would bet a single 1$ transaction per calendar year would keep all your cards open. as such, you could forget automating the process and just spend 20 minutes... |
Potential phishing scam? | Call your bank and inquire if they send out the kinds of notices like the one you received. Don't call the number in the message, because if it is a scam, you're calling the scammers themselves, more than likely. Be very cautious about this situation, and if your bank is local then it might not hurt to pay a visit to ... |
How to invest with a low net worth | I'm of the opinion that speculating is for young people like you, because they can afford to lose it all. Avoiding losses becomes necessary once you have to sustain a family, and manage a somewhat large retirement funds. Even if you lose all your money when speculating, you'll probably be better off later, because you ... |
How do historically low interest rates affect real estate prices? | Interest rates do generally affect house prices but other factors do too, especially the unemployment rate. However, everything else being equal, when interest rates drop, it makes the borrowing of money cheaper so tends to stimulate the economy and the housing market, increasing the demand for houses and generally cau... |
How to distinguish gift from payment for the service? | Generally, a one time thing is considered a gift. For the donor this is obviously not a deductible expense, except for some specific cases (for example promotional gifts under $25 to vendors can be deducted, if you're a business, or charitable contributions to a recognized charity). However, if this is a regular practi... |
What is the correct answer for percent change when the start amount is zero dollars $0? | I'd personally display "n/a" The only other answer that makes sense to me other is "infinity" (phone keyboard doesn't allow me to input the symbol). This would at least allow you to show direction by using positive and negative infinity and mathematical as the the initial value approaches zero the percentage change ap... |
Why do I see multiple trades of very small quantities? | Probing for hidden limit orders usually involves sending the orders and then cancelling them before they get filled if they don't get filled. With trades actually going through multiple times for small amounts it looks more like a VWAP strategy where the trader is feeding small volumes into the market as part of a larg... |
How much should I be contributing to my 401k given my employer's contribution? | Contribute as much as you can. When do you want to retire and how much income do you think you'll need? A $1M portfolio yielding 5% will yield $50,000/year. Do some research about how to build a portfolio... this site is a good start, but check out books on retirement planning and magazines like Money and Kiplinger. I... |
Should I start investing in property with $10,000 deposit and $35,000 annual wage | I would strongly, strongly advise against it. Others here are answering the question of, having decided to invest in property, how one ought to ensure that one invests in the right property. What has not really been discussed here is the issue of diversification. There are a number of serious risks to property investme... |
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... |
Understanding the phrase “afford to lose” better | It's a phrase that has no meaning out of context. When I go to Las Vegas (I don't go, but if I did) I would treat what I took as money I plan to lose. When I trade stock options and buy puts or calls, I view it as a calculated risk, with a far greater than zero chance of having the trade show zero in time. A single ... |
What is a subsidy? | Subsidy usually means gratuitous financial support. For example, if for whatever reason you live much below the living average paying utility services in full might be too expensive - you'll be out of money before you even think of buying food and basic clothes. Yet it's clear that once can't live in a city without uti... |
Value of tokens bought at an older price | You will make a profit in nominal dollars (or nominal units of whatever currency you used to buy the token). Whether you'll make a profit in real dollars depends on inflation, and in practice whether it would be possible to sell your existing tokens to someone else for the new price. Suppose when the price was 50 U (5... |
How much money should I lock up in my savings account? | Edited answer, given that I didn't address the emergency fund aspect originally: None. You've said you don't feel comfortable locking it away where you wouldn't be able to get to it in an emergency. If you don't like locking it away, the answer to "How much money should I lock up in my savings account?" is none. On a m... |
Should I put more money down on one property and pay it off sooner or hold on to the cash? | I would go with the 2nd option (put down as little as possible) with a small caveat: avoid the mortgage insurance if you can and put down 20%. Holding your rental property(ies)'s mortgage has some benefits: You can write off the mortgage interest. In Canada you cannot write off the mortgage interest from your primary ... |
Query regarding international transaction between governments | For the US government, they've just credited Person B with a Million USD and haven't gained anything (afterall, those digits are intangible and don't really have a value, IMO). Two flaws in this reasoning: The US government didn't do anything. The receiving bank credited the recipient. If the digits are intangible, suc... |
Formula for recalculation of a bad loan, i.e. where payments were missed? | It sounds like there are no provisions in the loan document for how to proceed in this case. I would view this as creating a brand new loan. The amount owed is going to be (Principal remaining + interest from 2 years + penalties). If you created a new loan for 13 years, that would not be how I would expect a lender ... |
Is it common in the US not to pay medical bills? | While it is not common, it is also not "uncommon." A subtle distinction. If you are poor, you almost certainly get some kind of government assistance (not even talking about Obamacare or Trumpcare, but just general assistance.) If you are middle class or rich, that is where you get hit the most. They seem to realize ... |
Buying International Stock | For example, if the Dow, S&P 500, NASDAQ are all down does that necessarily mean the Canadian stock will get negatively impacted? Or is it primarily impacted by the Canadian market? The TWMJF stock makes up a very small part of the Canadian market so it affects the overall market, but this doesn't mean that the overall... |
Placing limit order and stop loss on same stock at same time | Although this is possible with many brokers, it's not advisable. In many cases you may end up with both trades executed at the same time. This is because during the opening, the stock might spike up or down heavily, bid/ask spread widens, and both of your orders would get picked up, resulting in an instant loss. Your b... |
Working on a tax free island to make money? | If you're an American, and willing to give up citizenship, good luck to you. Otherwise, Uncle Sam still wants his due -- Americans are responsible for paying taxes on income earned anywhere on earth, regardless of their residence. |
Totally new to finance, economy, where should I start? | A couple of good books I enjoyed and found very understandable (regarding the stock market): As for investment information you can get lost for days in Investopedia. Start in the stock section and click around. The tutorials here (free) give a good introduction to different financial topics. Regarding theoretical know... |
What's the minimum revenue an LLC must make in Florida or NY states? | Depends on the State. In California, for example, you pay a franchise tax of $800 every year just for having LLC, and in addition to that - income tax on gross revenue. But in other States (like Wyoming, for example) there's no taxes at all, only registration fees (which may still amount to ~$100-300 a year). IRS doesn... |
Which dividend bearing stock should be chosen by price? | Don't ever quantify a stock's preference/performance just based on the dividend it is paying out Volatility defined by movements in the the stock's price, affected by factors embedded in the stock e.g. the corporation, the business it is in, the economy, the management etc etc. Apple wasn't paying dividends but people ... |
Does SIPC protect securities purchased in foreign exchanges? | I'll give it a shot, even though you don't seem to be responding to my comment. SIPC insures against fraud or abuse of its members. If you purchased a stock through a SIPC member broker and it was held in trust by a SIPC member, you're covered by its protection. Where you purchased the stock - doesn't matter. There are... |
What's the best way to make money from a market correction? | If you are sure you are right, you should sell stock short. Then, after the market drop occurs, close out your position and buy stock, selling it once the stock has risen to the level you expect. Be warned, though. Short selling has a lot of risk. If you are wrong, you could quite easily lose all $80,000 or even substa... |
Credit card closed. Effect on credit score (USA) | You need to find out if the credit card has been reporting these failed automated payments as late or missed payments to your credit report. To do this, go to annualcreditreport.com (the official site to get your free credit reports) and request your report from all three bureaus. If you see late or missing payments re... |
In a competitive market, why is movie theater popcorn expensive? | It's called extracting consumer surplus. Basically I have a bunch of movie goers (who have paid a lot for their tickets). Some of them don't like popcorn, and some do. Of the people in the latter group, there are some who are willing to pay a lot for it. That's partly because I have a select group (rich movie goers) an... |
How to calculate how far a shorted stock's price can rise before broker issues a margin call? | When margin is calculated as the equity percentage of an account, the point at which a broker will forcibly liquidate is typically called "maintenance margin". In the US, this is 25% for equities. To calculate the price at which this will occur, the initial and maintenance margin must be known. The formula for a long ... |
Where can I lookup accurate current exchange rates for consumers? | What you see on XE, is the rate at which it is being traded in the market. What you receive from a broker is the rate minus a fee, for the service being provided. You can check what rates are available for visa and mastercard on the following websites. Visa rates Mastercard rates I want to shop in the currency that wi... |
What percentage of my money should I invest outside my country? | Your definition of 'outside your country' might need some redefinition, as there are three different things going on here . . . Your financial adviser appears to be highlighting the currency risk associated with point three. However, consider these risk scenarios . . . A) Your country enters a period of severe financia... |
Why is Insider Trading Illegal? | I'm surprised at the tone of the answers to this question! Trading with insider information is corruption and encourages fraud. As in many areas, there's an ethical line where behavior the gap between "ok" and "illegal" or unethical is thin. The classic local government insider information example is when the local cou... |
How can I tell if this internet sales manager is telling me the real “true cost” of a new car to the dealer | Consumer Reports offers a service that can tell you detailed actual cost to a dealer for a specific model and accessories -- real cost after rebates, not just invoice price. It costs a bit to order these reports, but if you are serious about buying a new car they are a highly recommended tool -- cu is independent and w... |
Why will the bank only loan us 80% of the value of our fully paid for home? | Banks and lenders have become a bit more conservative since the housing crisis. 80% is a typical limit. The reason is to minimize the lender's risk if declining property values would put the borrower upside-down on the loan. http://www.bankrate.com/finance/home-equity/how-much-equity-can-you-cash-out-of-home.aspx |
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