Question stringlengths 14 166 | Answer stringlengths 3 17k |
|---|---|
How is gold shared in worldwide economies? | You might want to read about about the Coase Theorem. "In law and economics, the Coase theorem, attributed to Ronald Coase, describes the economic efficiency of an economic allocation or outcome in the presence of externalities. The theorem states that if trade in an externality is possible and there are no transactio... |
Is there a simple strategy of selling stock over a period of time? | The best strategy for RSU's, specifically, is to sell them as they vest. Usually, vesting is not all in one day, but rather spread over a period of time, which assures that you won't sell in one extremely unfortunate day when the stock dipped. For regular investments, there are two strategies I personally would follow:... |
First time homeowner and getting a mortgage? | I second the suggestions for your local credit union and asking co-workers who might also be in the process of a home purchase. Additionally, you want to educate yourself as much as possible so that you can ask questions about the calculations responsible for the differences. I got different values starting from the va... |
Should you diversify your bond investments across many foreign countries? | Adding international bonds to an individual investor's portfolio is a controversial subject. On top of the standard risks of bonds you are adding country specific risk, currency risk and diversifying your individual company risk. In theory many of these risks should be rewarded but the data are noisy at best and addi... |
At what percentage drop should you buy to average down | TL;DR; There is no silver bullet. You have to decide how much to invest and when on your own. Averaging down definition: DEFINITION of 'Average Down' The process of buying additional shares in a company at lower prices than you originally purchased. This brings the average price you've paid for all your shares down. B... |
Why does short selling require borrowing? | You can't make money on the way down if it was your money that bought the shares when the market was up. When you sell short, borrowing lets you tap into the value without paying for it. That way, when the price (hopefully) drops you profit from the difference. In your example, if you hadn't paid the £20 in the first ... |
How to take advantage of home appreciation | Assuming "take advantage" means continue to build wealth, as opposed to blow it all on a fancy holiday... Downgrade As you already note, you could downgrade/downsize. This could happen via moving to a smaller house in the same area, or moving to an area where the cost of buying is less. HELOC Take out a Home Equity L... |
Checking the math on a Truth-in-Lending Disclosure | As your question is written now, it looks like you have a typo. Your stated APR is 5.542% = 0.05542, not 0.005542 as you've written. I ran the numbers that you gave (accounting for the typo) through the formula at Wikipedia and got $849.2528 / month, which will round to $849.25 for most payments. That doesn't match ... |
What's the best way to manage all the 401K accounts I've accumulated from my past jobs? | Open an investment account on your own and have them roll the old 401K accounts into either a ROTH or traditional IRA. Do not leave them in old 401k accounts and definitely don't roll them into your new employer's 401K. Why? Well, as great as 401K accounts are, there is one thing that employers rarely mention and the 4... |
Is CLM a stock or an ETF? | Ask your trading site for their definition of "ETF". The term itself is overloaded/ambiguous. Consider: If "ETF" is interpreted liberally, then any fund that trades on a [stock] exchange is an exchange-traded fund. i.e. the most literal meaning implied by the acronym itself. Whereas, if "ETF" is interpreted more narrow... |
Can I buy only 4 shares of a company? | Simple answer: Yes A better question to ask might be "Should I invest all my savings to buy 4 shares of a single stock." My answer to that would be "probably not". If this is your first venture into the world of owning publicly traded companies, then you're better off starting with some sort of mutual fund or ETF. Thi... |
Invest in ESPP Single Stock or General Market | Other than the guaranteed 5% bonus (assuming you sell it right away), no benefits. Keep in mind that the price from which the discount is calculated is not necessarily the market price at the date of the ESPP purchase, so the actual discount may be more than 5% (depending on the volatility of the stock - much more). |
Should I use Mint.com? Is it secure / trusted? [duplicate] | So could someone working at your bank directly. Of at your HR department at work. Most of the wait staff at the restaurant I ate at technically had access to my credit card and could steal money. While you are at work, someone could break into your house and steal your stuff too. The point is, Mint and everything el... |
Debit cards as bad as credit cards? | Using cash instead of a debit card lets you see in real time how much cash you have left and where it's going. It's a lot "harder" to see the cash disappear from your wallet than it is to swipe the plastic (whether it's a debit or credit card). Using cash is a way to keep the funds in check and to keep spending withi... |
Why would I vote for an increase in the number of authorized shares? | As a common shareholder, why would I want to approve an increase in the number of authorized shares?" Because it could increase the value of your existing shares. Companies sell new shares to raise capital, and they use capital to (among other things) expand. If Whole Foods issues new shares and uses the capital to ope... |
Work on the side for my wife's company | Depending on how much freelance work we're talking about you could set up a limited company, with you and your wife as directors. By invoicing all your work through the limited company (which could have many other benefits for you, an accountant/advisor would... well, advise...) it's the company earning the money, not ... |
Investor returns from crowdfunding | Crowdfunding can be a legitimate means of funding very small startups. It is an innovative, but obviously risky, method of raising small amounts of money. As such it is now regulated by the SEC under "Regulation Crowdfunding" They have published guides for these types of business startups to help them with required dis... |
Can I prove having savings without giving out the account number? | Have you been rejected from a rental for a specific reason (leading to this question)? Landlords are in the business of exchanging space for regular payments with no drama. Anything they ask in an application should be something to minimize the risk of drama. The "happy path" optimistic goal is that you pay your re... |
Can I transfer my Employee Stock Purchase Plan assets to a different broker? | I have an ESPP with E*Trade; you can transfer stock like that via a physical (paper) asset-transfer form. Look for one of those, and if you can't find it, call your brokerage (or email / whatever). You own the shares, so you can generally do what you want with them. Just be very careful about recording all the purchase... |
Is there a Canadian credit card which shows holds? | As for PC Mastercard like stated by @nullability, VISA Desjardins list the "Pending Authorizations" almost instantly (the time it's take to get back home) in AccesD (Their Web portal for managing accounts). |
The doctor didn't charge the health insurance in time, am I liable? | The hospital likely has a contract with your insurance company which makes them obligated to bill the insurance before billing you! I had a similar occurrence that was thrown out when my insurance company provided a copy of a contract with the hospital to the judge. So if there is an agreement they must file with the i... |
Need something more basic than a financial advisor or planner | You know how when people called in on the Car Talk radio show (Click and Clack, I miss those guys), and while the caller asked a question about his car, really he needed marital advice? And the hosts would pounce on the part about the disagreement with family member and provide an unexpected answer ("Yeah, the trick to... |
Why doesn't Graham consider gold as an investment? | During Graham's career, gold and currency were the same thing because of the gold standard. Graham did not advise investing in currencies, only in bonds and stocks, the latter only for intelligent speculation. Graham died a couple of years after Nixon closed the gold window, ending the gold standard. Gold may be thoug... |
Shorting stocks: Indicators that a stock will drop? | First, it's much safer to be shorting stocks over $5 than stocks under $5. I use 3 indicators to show that a stock has topped out and about to drop. Key is the timing cause the initial drop is often the biggest. More close you get in at the top, the higher the risk. Using 1D Charts ONLY: - MACD Indicator: I use the... |
Non Qualifying Stock Option offered by employer | A little terminology: Grant: you get a "gift" with strings attached. "Grant" refers to the plan (legal contract) under which you get the stock options. Vesting: these are the strings attached to the grant. As long as you're employed by the company, your options will vest every quarter, proportionally. You'll become an ... |
Books, Videos, Tutorials to learn about different investment options in the financial domain | Investopedia does have tutorials about investments in different asset classes. Have you read them ? If you had heard of CFA, you can read their material if you can get hold of it or register for CFA. Their material is quite extensive and primarily designed for newbies. This is one helluva book and advice coming from ... |
Moving Coin Collection to Stapled Coin Pockets | I would be wary of having coins in containers with cardboard. Ideally you want the coins to be in an airtight envelope made of plastic to minimize any chance of oxidation or reaction with chemicals in the air. Cheap, retail coins like you would find in a Whitman collection are not generally going to hold value well. So... |
Tracking the Madrid Interbank Offered Rate (MIBOR) and the Euro Interbank Offered Rate (EURIBOR) | You can find both here: http://www.bde.es/tipos/tipose.htm |
Higher returns from international markets? | Tricky question, basically, you just want to first spread risk around, and then seek abnormal returns after you understand what portions of your portfolio are influenced by (and understand your own investment goals) For a relevant timely example: the German stock exchange and it's equity prices are reaching all time hi... |
Why do stock prices of retailers not surge during the holidays? | Systemic and well know patterns in sales are priced in to the security. Typically companies with very cyclical earnings like this will issue guidance of earnings per share within a range. These expected earnings are priced in before the earnings are actually booked. If a company meets these expectations the stock wi... |
Tracking down stocks I own | My best answer is to simply fish out that old email account. DumbCoder makes a good point - the company whose shares you own can probably figure out what brokerage firm is holding the shares, but it'd take a lot on their end. Honestly you're better off just hitting up random brokerage firms until you find the right one... |
How do I treat the income from an ESPP I sold now that I am a non-resident alien? | That's a tricky question and you should consult a tax professional that specializes on taxation of non-resident aliens and foreign expats. You should also consider the provisions of the tax treaty, if your country has one with the US. I would suggest you not to seek a "free advice" on internet forums, as the costs of m... |
give free budgeting advice | They've asked you, so your advice is welcome. That's your main concern, really. I'd also ask them how much, and what kind of advice. Do they want you to point them to good websites? On what subjects? Or do they want more personal advice and have you to look over their bank accounts and credit card statements, provi... |
Can I open a Demat account in India from abroad? | You need 2 things One a Demat Account and second a Broker Account. If you need to trade online, then an agreement [Power of Attorney] between Your Saving Bank Account, the Demat Account and the Trading Account. So there are quite a few forms that need signature and proof of identify. Physical presence is required. |
Should we prepay our private student loans, given our particular profile? | Just for another opinion, radio host Clark Howard would suggest killing the private student loans as quickly as possible. The only reason is the industry around private student loans has fewer rules as to how they interact with you, and they have historically been very unpleasant if you have to deal with them in bad f... |
what would you do with $100K saving? | The real answer is "Why do you want to waste a windfall chasing quick returns?" Instead, use this windfall to improve your financial situation, and maybe boost you toward financial independence, or at least a secure retirement. In simplest terms, forget the short term, go for long term. Whatever you do, avoid lifest... |
What is a stock split (reverse split)? | It was actually a reverse split meaning that every 10 shares you had became 1 share and the price should be 10x higher. - Citigroup in reverse split The chart just accounts for the split. The big dip is Googles way of showing from what price it split from. If you remember before the split the stock was trading around $... |
What is the maximum number of options I can buy if the price is $0.01? | Options trading at $.01 have the same position limits as other options. Self regulatory organizations set the position limits for options which can be 250,000 contracts on one side of the book, as an example. Weeklies that are expiring soon have lots of liquidity while trading at $0.01, you can see this in Bank of Amer... |
For somebody that travels the same route over and over again, what are some ways to save on airfare? | I remember when humorist Dave Barry discussed some guy who invented the software that guaranteed that no two airline passengers ever paid the same fare. As with much of Dave Barry's stuff, it has way too much truth in it. Research when the best time frame to buy your tickets is. It varies wildly with time of day, tim... |
Can I register for VAT to claim back VAT without selling VAT applicable goods? (UK) | As far as I know any business can register for VAT regardless of the nature of the business. If all the goods you sell (or services you provide) are VAT-exempt or zero-rated then you will get refunds from HMRC on VAT your business pays. Any business whose non-VAT exempt turnover (which would include zero-rated goods a... |
Using financial news releases to trade stocks? | Yes, there are very lucrative opportunities available by using financial news releases. A lot of times other people just aren't looking in less popular markets, or you may observe the news source before other people realize it, or may interpret the news differently than the other market participants. There is also the ... |
Why don't banks print their own paper money / bank notes? | Who says they don't? In the United Kingdom the Bank of England and the Bank of Scotland print the money. In some other countries (like Hong Kong, Israel, and the US) commercial banks were issuing the currency at some point of time, but now the governments do that. The problem with commercial banks issuing currency is t... |
Is there any online personal finance software without online banking? | PocketSmith is another tool you might like to consider. No personal banking details are required, but you can upload your transactions in a variety of formats. Pocketsmith is interesting because it really focus on your future cash flow, and the main feature of the interface is around having a calendar(s) where you easi... |
What does dividends passed mean in terms of stock? | A "covenant" is a solemn promise to engage in or refrain from a specified action. Every company must do a balancing act while declaring the dividends in terms of companies interest (can it use the surplus cash to generate more revenue) to shareholders' interests, giving back to them the profits that due. Many countries... |
Cannot get a mortgage because I work through a recruiter | They are looking at your work history to see that you have maintained a similar level of income for a period of time, and that you have a reasonable expectation to continue that for the foreseeable future. They are looking to make a commitment for 15-30 years. They see the short term contract, and have no confidence in... |
What if I sell an stock that is going to give an stock dividend after the ex-date but before the payable date | I know that in the case of cash dividends I will get the dividend as long as I bought the stock before the ex-date but what happens in the case of an stock dividend? This is same as cash dividends. You would receive the additional stock. |
If Bernie Madoff had invested in Berkshire Hathaway, would the ponzi actually have succeeded? | I could be wrong, but I doubt that Bernie started out with any intention of defrauding anyone, really. I suspect it began the first time he hit a quarter when his returns were lower than everyone else's, or at least not as high as he'd promised his investors they'd be, so he fudged the numbers and lied to get past the... |
How big of a mortgage can I realistically afford? | My primary concerns. There seems to still be a fair bit of distressed property (forclosures etc) on the market at current, which might well keep prices down for the next year or so that it takes to finish flushing that stuff out of the market. The gist I get from most experts/pundits is that There will be good deals a... |
Question about ex-dividend date timing | Here is the definition of Ex-dividend date from the SEC: Once the company sets the record date, the stock exchanges or the National Association of Securities Dealers, Inc. fix the ex-dividend date. The ex-dividend date is normally set for stocks two business days before the record date. If you purchase a stock on its e... |
Retirement & asset allocation of $30K for 30 year old single guy | I would definitely recommend putting some of this in an IRA. You can't put all $30K in an IRA immediately though, as the contribution limit is $5500/year for 2014, but until April 15 you can still contribute $5500 for 2013 as well. At your income level I would absolutely recommend a Roth IRA, as your income will very l... |
When should I start saving/investing for my retirement? | Does you job offer a retirement plan? (401k, SIMPLE, etc) Does your employer offer a match on contributions? Typically an employer will match what you put in, up to a certain percentage (e.g. 3%). So, say you contribute 3% of your paycheck into your retirement plan. If your employer mathes that, you've effectively co... |
Is there a way to open a U.S. bank account for my LLC remotely? | Yes, it is possible. Although there may be red tape for a business account, Alliant Credit Union offers completely online signup and their representatives are reachable by email. You'll probably need to send in the LLC articles this way http://www.alliantcu.com/checking-accounts.html (as pointed out by @littleadv this... |
Pay off credit cards in one lump sum, or spread over a few months? | Should I allow the credit cards to be paid out of escrow in one lump sum? Or should I take the cash and pay the cards down over a few months. I have heard that it is better for your credit score to pay them down over time. Will it make much of a difference? Will the money you save by increasing your credit score ... |
Different ways of looking at P/E Ratio vs EPS | all other things being equal if you have two stocks, both with a P/E of 2, and one has an EPS of 5 whereas the other has an EPS of 10 is the latter a better purchase? What this really boils down to is the number of shares a company has outstanding. Given the same earnings & P/E, a company with fewer shares will ha... |
Covered call when stock position is at a loss | If your shares get called on stock at a price below what you paid for the stock, your gain or loss depends on what premium you got for the options you sold. "can I deliver shares at that assigned strike using margin or additional capital if I have it? Can the broker just take care of it and let me collect the time pre... |
CFD market makers: How is the price coupled to the underlying security? | CFD providers typically offer CFDs to investors using either the direct market access (DMA) model or the market maker (MM) model. Direct Market Access The DMA model gives you access to trade the Underlying instrument on the relevant Exchange from which the CFD is then derived. All CFD Transactions under the DMA model h... |
Definition of equity | The word equity always refers to the ownership of something, whether it be a company or a home. The wikipedia article is differentiating companies by how they raised money for operations. Equity companies, by their definition are those that sold an interest in the company in exchange for capital. Debt based companies, ... |
Can I rely on my home equity to finance large home repairs? | Personally, I'd use my emergency fund first. It is unlikely (though possible, of course) that I will entirely lose my income at the same time I need to replace my roof or my furnace. I'd rather pay my emergency fund back with installment payments than pay off a HELOC to my bank. The lost interest on my emergency fund, ... |
Why do governments borrow money instead of printing it? | My answer is that when confronted with the obvious, the most common human reaction is to seek reasons for it, because things have to be right. They have to have a reason. We don't like it when things suck. So when finding out that you are being ripped off every day of your life, your reaction is "There must be a logic... |
Legitimate unclaimed property that doesn't appear in any state directory? | You can't blame companies like 'Legal Claimant Services' for making a profit by providing this service. That is capitalism and it is the way of the world. It is just like any other business you can do yourself - from making dinner to cutting your own grass. If you choose to do it yourself, you save money but you also ... |
Would it make sense to take a loan from a relative to pay off student loans? | I will start with the assumption that you will never have any late payments and will fully pay off the loan. This may be a big assumption, but if you can't assume that, then you wouldn't have asked the question in the first place. The answer depends on your income: You should calculate how much student loan interest yo... |
Where can I find accurate historical distribution data for mutual funds? | In the case of a specific fund, I'd be tempted to get get an annual report that would disclose distribution data going back up to 5 years. The "View prospectus and reports" would be the link on the site to note and use that to get to the PDF of the report to get the data that was filed with the SEC as that is likely w... |
Where can I invest for the Short Term and protect against Inflation? | Your goals are mutually exclusive. You cannot both earn a return that will outpace inflation while simultaneously having zero-risk of losing money, at least not in the 2011 market. In 2008, a 5+% CD would have been a good choice. Here's a potential compromise... sacrifice some immediate liquidity for more earnings. Sa... |
What is the easiest way to back-test index funds and ETFs? | I'd start with a Google search for "best backtesting tools." Does your online brokerage offer anything? You already understand that the data is the important part. The good stuff isn't free. But yeah, if you have some money to spend you can get more than enough data to completely overwhelm you. :) |
How can the ROE on a stock be more than 100%? | A company's Return on Equity (ROE) is its net income divided by its shareholder's equity. The shareholder's equity is the difference between total assets and total liabilities, and is not dependent on the stock price. What it takes to have a ROE over 100% is to have the income be greater than the equity. This might h... |
Should I “hedge” my IRA portfolio with a life cycle / target date mutual fund? | I like that you are hedging ONLY the Roth IRA - more than likely you will not touch that until retirement. Looking at fees, I noticed Vanguard Target retirement funds are .17% - 0.19% expense ratios, versus 0.04 - 0.14% for their Small/Mid/Large cap stocks. |
Corporate Finance | If it's raising $25 million with a debt to equity ratio of 50% then it's raising $8.33 million of debt and $16.67 million of equity. You've priced it as if it were raising $25 million of debt and $25 million of equity, which would be raising $50 million with a debt to equity ratio of 100%. |
What can I replace Microsoft Money with, now that MS has abandoned it? | I use GnuCash which I really like. However, I've never used any other personal finance software so I can't really compare. Before GnuCash, I used an Excel spreadsheet which works fine for very basic finances. Pros Cons |
Understanding stock market terminology | Opening - is the price at which the first trade gets executed at the start of the trading day (or trading period). High - is the highest price the stock is traded at during the day (or trading period). Low - is the lowest price the stock is traded at during the day (or trading period). Closing - is the price at which t... |
What should I look at before investing in a start-up? | Here are the basic questions I usually ask any new business startup: Do these numbers/answers seem reasonable to you and is some benchmark available that allows you to see how likely this is? Remember, particularly in Internet-based advertising ventures, the client may be indirect. The person who clicks on a Google ... |
Advice for opening an IRA as a newbie | First, a Roth is funded with post tax money. The Roth IRA deposit will not offset any tax obligation you might have. The IRA is not an investment, it's an account with a specific set of tax rules that apply to it. If you don't have a brokerage account, I'd suggest you consider a broker that has an office nearby. Schwa... |
Free “Rich Dad” education, with “free gift”: Is it legitimate, or is it a sales ploy? | Robert Kiyosaki's is basically a get-rich quick author. But to answer your question: It is a sales pitch in disguise. See Marketplace's report on a Kiyosaki seminar, which reveals that the free work shop is a sales pitch for a 3-day work shop which costs several hundred dollars. And the 3-day workshop is a sales pitc... |
Filing personal with 1099s versus business s-corp? | Depends whom the 1099 was issued to. If it was issued to your corporation - then its your corporation's income, not yours. Why would it go to your tax return? Your corporation and you are two separate legal entities. You will have to file the 1120S, whether you have corporate income or not, it has to be filed each year... |
How can I save money on a gym / fitness membership? New Year's Resolution is to get in shape - but on the cheap! | The gym I used to use was around £35-40 a month, its quite a big whack but if you think about it; its pretty good value for money. That includes gym use, swimming pool use, and most classes Paying for a gym session is around £6 a go, so if you do that 3 times a week, then make use of the other facilities like swimming ... |
Strange values in ARM.L price data 1998-2000 from Yahoo | This is just a shot in the dark but it could be intermarket data. If the stock is interlisted and traded on another market exchange that day then the Yahoo Finance data feed might have picked up the data from another market. You'd have to ask Yahoo to explain and they'd have to check their data. |
Should you diversify your bond investments across many foreign countries? | The Vanguard Emerging Market Bond Index has a SEC yield of 4.62%, an expense ratio of 0.34%, a purchase fee of 0.75%, and an average duration of 6.7 years. The Vanguard Emerging Market Bond Index only invests in US Dollar denominated securities, so it is not exposed to currency risk. The US Intermediate Term Bond Ind... |
Are distributions from an S corp taxable as long term capital gains? | If you have an S-Corp with several shareholders - you probably also have a tax adviser who suggested using S-Corp to begin with. You're probably best off asking that adviser about this issue. If you decided to use S-Corp for multiple shareholders without a professional guiding you, you should probably start looking fo... |
Company stock listed in multiple exchanges? | It doesn't matter which exchange a share was purchased through (or if it was even purchased on an exchange at all--physical share certificates can be bought and sold outside of any exchange). A share is a share, and any share available for purchase in New York is available to be purchased in London. Buying all of a com... |
Stock grant, taxes, and the IRS | If you have a one-time event, you are allowed to make a single estimated payment for that quarter on Form 1040-ES. People seem to fear that if they make one such payment they will need to do it forevermore, and that is not true. The IRS instructions do kind of read that way, but that's because most people who make es... |
Starting with Stocks or Forex? | I would advise against both, at least in the way you are discussing it. You seem to be talking about day-trading (speculating) in either stock or currency markets. This seems ill-advised. In each trade, one of three things will happen. You will end up ahead and the person you buy from/sell to will end up behind. You wi... |
What ETF or other security tracks closest to 30 year mortgage rates? | TBF - Proshares short 20+ Year Treasury The TBF fund is designed to track (hopefully) 100 percent of the inverse daily returns of the Barclays Capital 20+ Year U.S. Treasury Index. there's some risk of tracking error, and also a compounding effect if it's down several days in a row. (invest with care) There's also... |
IRS “convenience of the employer” test when employee lives far from the office | I'm not a tax professional, but as I understand it, you are not expected to commute from San Francisco to Boston. :) If your employer has not provided you with an external office, then yes, you have very likely met the "convenience of the employer" test. However, to take the home office deduction, there are many requi... |
Does the currency exchange rate contain any additional information at all? | Relative changes in rates are significant. Why? Exchange rates encourage cross-border trade. For example, I live in an area that is now popular with Canadian tourists, mostly due to the favorable exchange rates. Changes in exchange rates between trading partners can affect trade balance as well. The US "strong dollar"... |
How bad is it to have a lot of credit available but not used? | Unless you have a history of over-using credit (i.e. you've gotten yourself into debt trouble), then I think that the banker is giving you bad advice in telling you to get your own credit limit reduced. Having more credit available to you that is left unused will make your utilization ratio lower, which is generally b... |
When the market price for a stock is below a tender offer's price, is it free money (riskless) to buy shares & tender them? | That price is the post-tender price, which already reflects arbitrage. It's less than $65 on the market because that's the highest offer out there and the market price reflects the risk that the $65 will not be paid. It also reflects the time value of money until the cash is disbursed (including blows to liquidity). ... |
Multi-user, non-US personal finance and budget software | My wife and I have been ridiculously happy with YNAB. It's not "online," but syncs across our phones & computers using Dropbox. It supposedly supports different locales and currencies, but I have never needed to try that out. |
Does financing a portfolio on margin affect the variance of a portfolio? | Financing a portfolio with debt (on margin) leads to higher variance. That's the WHOLE POINT. Let's say it's 50-50. On the downside, with 100% equity, you can never lose more than your whole equity. But if you have assets of 100, of which 50% is equity and 50% is debt, your losses can be greater than 50%, which is to ... |
Bonus issue - Increasing share capital | This is what is called "stock dividend". In essence the company is doing a split, the difference is in financial accounting and shouldn't concern you much as an individual investor. "Fully paid up", in this context, probably means "unconditioned", aka fully vested. |
What is a decent rate of return for investing in the markets? | What do you think is a reasonable rate of return? A reasonable rate really breaks down into three things: opportunity cost, what you need, and risk appetite. Opportunity cost comes into play because whatever returns you make should at least exceed, after expenses, the next best option. Typically the "next best option"... |
Should I Pay Off my Student Loan Debts First or Invest in an Index Fund? | Pay off the debt first. Life circumstances change without notice, and starting any stage of life with a debt puts you at a disadvantage. Luckily, your debt is small. Please also consider accumulating a 6 month emergency fund before making investments. This will further protect you when life hands you a curveball. |
Why does the share price tend to fall if a company's profits decrease, yet remain positive? | Let's say you see a café. You're looking to buy a café so you walk into one and ask the manager how much profit he makes in a year. He says $N and you walk out and think to yourself, "I'd be willing to pay $500,000 for this café." You arrange to meet again to discuss purchasing the business (and he's looking for someon... |
Monthly money transfers from US to Puerto Rico | Puerto Rico: Last I checked, the Puerto Rico banking system wasn't materially different than working within the US - though some Continental US banks exclude US Territories like Guam and Puerto Rico or charge more when dealing with them. I'm not certain as to why. However, most banks don't see them any differently than... |
As an investor what are side effects of Quantitative Easing in US and in EU? | Well if your looking to explain inflation to children, I would use this example. Take two fruits they like IE: Apples and Oranges. Give them both 2 of each. Ask them how many of your apples would you give for 1 orange and how many apples would you want to get 1 orange(most likely they will say 1). Now give them 5 more ... |
Can I register for VAT to claim back VAT without selling VAT applicable goods? (UK) | You cannot "claim back" VAT. What happens is that if you sell goods with VAT and charge customers VAT, you would have to send that VAT straight to HMRC, but if your business itself paid VAT, then you already paid VAT, so you have to send less. As an example, if you send an invoice for £10,000 plus £2,000 VAT, and you ... |
What US tax laws apply to a 13 year old game developer? | After doing a little research, I was actually surprised to find many internet resources on this topic (including sites from Intuit) gave entirely incorrect information. The information that follows is quoted directly from IRS Publication 929, rules for dependents First, I will assume that you are not living on your own... |
What does it mean when someone says “FTSE closed at xxx today” | FTSE is an index catering to the London stock exchange. It is a Capitalization-Weighted Index of 100 companies listed on the London Stock Exchange with the highest market capitalization . When somebody says FTSE closed at 6440, it basically means at the end of the day, the index calculated using the day end market ca... |
What does “no adjustments” mean? | Typically that applies if the broker Form 1099-B reports an incorrect basis to the IRS. If the Form 1099-B shows incorrect basis relative to your records, then you can use 8949, column (g) to report the correct basis. The 8949 Instructions provide a brief example. http://www.irs.gov/pub/irs-prior/i8949--2013.pdf Alth... |
Can increasing my tax withholding from my full-time job cover FICA taxes for my freelance work? | Technically you owe 'self-employment' taxes not FICA taxes because they are imposed under a different law, SECA. However, since SE taxes are by design exactly the same rates as combining the two halves of FICA (employer and employee) it is quite reasonable to treat them as equivalent. SE taxes (and income tax also) are... |
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... |
How to calculate Price/Earnings - Price/Sales - Price/Free Cash Flow for given stock | To calculate you take the Price and divide it by the Earnings, or by the Sales, or by the Free Cash Flow. Most of these calculations are done for you on a lot of finance sites if the data is available. Such sites as Yahoo Finance and Google Finance as well as my personal favorite: Morningstar |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.