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Bed and Breakfast, Same Day Capital Gains UK | The 'same day rule' in the UK is a rule for matching purposes only. It says that sales on any day are matched firstly with purchases made on the same day for the purposes of ascertaining any gain/loss. Hence the phrase 'bed-and-breakfast' ('b&b') when you wish to crystalise a gain (that is within the exempt amount) an... |
How can I investigate historical effect of Rebalancing on Return and Standard Deviation? | To answer your question directly.. you can investigate by using google or other means to look up research done in this area. There's been a bunch of it Here's an example of search terms that returns a wealth of information. effect+of+periodic+rebalancing+on+portfolio+return I'd especially look for stuff that appears ... |
Can I pay a loan under someone else's name? (assume the dispenser of the loan is malicious) | I don't think there's anything to worry about. TFS doesn't really care who's paying, as long as the loan is being paid as agreed. Of course you're helping your dad's credit history and not your own, but I doubt TFS would give back money just because it came from your bank account. A business may claim a payment wasn'... |
Why is it not a requirement for companies to pay dividends? | The shareholders have a claim on the profits, but they may prefer that claim to be exercised in ways other than dividend payments. For example, they may want the company to invest all of its profits in growth, or they may want it to buy back shares to increase the value of the remaining shares, especially since dividen... |
Deceived by car salesman | The only thing that is important here is the documentation you and your daughter signed. If that documentation states that you were a co-signer and that your daughter was the primary on the loan, and then if the loan is not being reported in your daughter's name, you have a cause for action. If, however, the documentat... |
Determine share price from S-1 for company that was bought before going public | To add to @keshlam's answer slightly a stock's price is made up of several components: the only one of these that is known even remotely accurately at any time is the book value on the day that the accounts are prepared. Even completed cashflows after the books have been prepared contain some slight unknowns as they m... |
Is 401k as good as it sounds given the way it is taxed? | Your analysis is not comparing apples to apples which is why it looks like investing money in a non-qualified account is better than a 401k (traditional or Roth). For the non-qual you are using post tax dollars (money that has already been taxed). Now on top of that original tax you are also going to pay capital gains... |
Is it sensible to keep savings in a foreign currency? | would you say it's advisable to keep some of cash savings in a foreign currency? This is primarily opinion based. Given that we live in a world rife with geopolitical risks such as Brexit and potential EU breakup There is no way to predict what will happen in such large events. For example if one keeps funds outside o... |
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. |
Does an option trading below parity always indicate an arbitrage opportunity? | In the equity world, if a stock trades at 110 and is going to pay a dividend of 10 in a few days, an option expiring after the ex date would take the dividend into account and would trade as if the stock were trading at 100. (Negative) interest rates may also lead to a similar effect. In the commodity world the cost of... |
Why are people from UAE and Dubai so rich? | They aren't all rich on average. And oil and gas is actually now only about 25% of the economy in the UAE (incredibly!). There are good reasons why it felt that way, though: The UAE and a number of other oil-rich nations all realize that they need to diversify away from oil revenues. International investment and touris... |
How to spend more? (AKA, how to avoid being a miser) | here is what I have learned with multiple close encounters with bankruptcies: ask yourself.. what if I save vs what if I spend? say you like a new shirt.. ask yourself what can you do saving $40 vs rewarding yourself/your well wishers right away? you will end up spending. just like you the other person needs money. he/... |
How to do thorough research into a company to better understand whether to buy stock? | So, first -- good job on making a thorough checklist of things to look into. And onto your questions -- is this a worthwhile process? Even independent of specific investing goals, learning how to research is valuable. If you decided to forgo investing in stocks directly, and chose to only invest in index funds, the sam... |
Can I write off time I spent working on my business? | To expand a little on what littleadv said, you can only deduct what something cost you. Even if you had done volunteer work for a charity as a sole prop you could only deduct your actual costs. If you paid an employee to do charity work or to learn something related to the business that would be deductible as a normal ... |
How to avoid maintenance fee when balance drops below minimum? | Looks like you have three options: Outside of this you might need to look for a different type of account. Hope that helps. |
Tax intricacies of MLP in a Roth IRA | You seem to have it right. Unless you have a big position, having MLP shares in your IRA will not cause you any tax hassles. Your IRA will get a Schedule K from the MPL (which may be mailed to you), but you won't need to do anything with that unless you're over the UBI limit. Last I checked, that was $1000, and you ... |
What is the P/E ratio for a company with negative earnings? | Usually their PE ratio will just be listed as 0 or blank. Though I've always wondered why they don't just list the negative PE as from a straight math standpoint it makes sense. PE while it can be a useful barometer for a company, but certainly does not tell you everything. A company could have negative earnings for ... |
Primary residence converted to a rental property & tax implications | Schedule E is the form you'll use. It lists nearly all deductions you can take for a rental. TurboTax Deluxe will handle it and it includes State Filing. |
How much cash on hand should one have? | Less than 2 1/2% of all US currency actually exists. The rest is digital entries. In a financial crisis you'll need lots of rare cash. Twenty dollar bills are the best choice. Stash as many as you can afford to. Best to stash in a anchored security safe. And for goodness sakes, don't tell anyone. |
Titles, Financing and Insurance. How do they work? | There is nothing illegal about a vehicle being in one person's name and someone else using it. An illegal straw purchase usually applies to something where, for example, the purchaser is trying to avoid a background check (as with firearms) or is trying to hide assets, so they use someone else to make the purchase on... |
Why is tax loss harvesting helpful for passive investing? | I wrote a detailed article on Tax Loss Harvesting to show the impact on returns. For my example, I showed a person in the 15% bracket. In years with no loss, they trade to capture gains at 0% long term rate, thus bumping their basis up. In years with losses, they tax harvest for a 15% effective 'rebate' on that loss. ... |
How do I refinance a car loan into someone else's name so it can be their car? | Your first step is to talk to the current lender and ask about refinancing in the other person's name. The lender is free to say no, and if they think the other person is unlikely to pay it back, they won't refinance. If you're in this situation because the other person didn't qualify for a loan in the first place, the... |
In double entry book-keeping, how should I record writing of a check? | I have no idea what the traditional accounting way of dealing with this might be; but does your accounts package has the concept of subaccounts within a bank account? If so, to me it would make sense that when a cheque is written, you move money in the accounts package from the bank account to a subaccount named 'Cheq... |
How can I figure out how a stock's price would change after I buy shares? | It is unlikely that buying 100 shares will have any effect on a stock's price, unless the stock's average trading volume is incredibly low. That being said, no matter how many share you buy, there's no way to know what the impact on the price will be, because that's only one factor in how shares are priced. If anyone... |
Book or web site resources for an absolute beginner to learn about stocks and investing? | If you just want to save for retirement, start with a financial planning book, like this one: http://www.amazon.com/Smart-Simple-Financial-Strategies-People/dp/0743269942 and here's my editorial on the investing part: http://blog.ometer.com/2010/11/10/take-risks-in-life-for-savings-choose-a-balanced-fund/ If you're thi... |
Can Mutual Funds Invest In the Start Up Market? | Bloomberg suggests that two Fidelity funds hold preferred shares of Snapchat Inc.. Preferred shares hold more in common with bonds than with ordinary stock as they pay a fixed dividend, have lower liquidity, and don't have voting rights. Because of this lower liquidity they are not usually offered for sale on the marke... |
Can you recommend some good websites/brokers for buying/selling stocks in India? | Most of the Indian Brokers started offering API's to retail client these days. And NSE Exchange also supports algo trading at retail level. Currently two levels of API are offered. 1)Semi-automatic or one touch trading (Retail Traders) 2)Fully Automatic ( Dealers) I had tested the API with a discount broker www.tradeji... |
What to do with $50,000? | Considered a down payment on a house? Some illiquid assets? Otherwise you are doing 'responsible' get rich slow (read: get rich old) type things. And this question only invites opinion based answer. You tried futures and don't want to take that kind of risk again with your $50,000, so thats that |
Giving kids annual tax free gift of $28,000 | If the child is a dependent the question is moot. It is accepted that the parent will pay for some, most, or all of the tuition. There is no tax issue for a current student. The payment of tuition helps them qualify as a dependent. There is no need to transfer the money to the child's account; it can be sent directly t... |
Why would a stock opening price differ from the offering price? | The opening price is derived from new information received. It reflects the current state of the market. Opening Price Deviation (from Investopedia): Investor expectation can be changed by corporate announcements or other events that make the news. Corporations typically make news-worthy announcements that may have... |
which types of investments should be choosen for 401k at early 20's? | If you don't want to pay much attention to your investments, target date funds -- assuming you find one (like Vanguard's) with no management fees beyond those acquired from the underlying funds -- are usually a great choice: when the target date is far off, they invest almost entirely (usually 90% or so) in (mutual fun... |
Contract job (hourly rate) as a 1099: How much would I be making after taxes? | In addition to taking into account your deductions, as mentioned by @bstpierre, you also need to account for vacation, and other time off such as sick days. You also need to estimate what percentage of the year you expect to be working and pro-rate your salary accordingly. For example it is not uncommon to use 40 week... |
Buying shares in a company after you quit | Insider trading is when you buy or sell an investment based on material, non-public information that gives you an unfair advantage over the rest of traders in that market. Working for a company is one way that you might have such information, but whether it is insider trading is not contingent on you working there. Yo... |
How does one interpret financial data for stocks listed on multiple exchanges? | First and foremost you need to be aware of what you are comparing. In this case, HSBC as traded on the NYSE exchange is not common shares, but an ADR (American Depository Receipt) with a 5:1 ratio from the actual shares. So for most intents and purposes owning one ADR is like owning five common shares. But for special ... |
Why YTM is higher than current yield in discount bond | Say you buy a bond that currently costs $950, and matures in one year, at $1000 face value. It has one coupon ($50 interest payment) left. The coupon, $50, is 50/950 or 5.26%, but you get the face value, $1000, for an additional $50 return. This is why the yield to maturity is higher than current yield. If the maturity... |
Is it a bet on price fluctuations and against the house? | The answer depends on the specific instrument to which you are referring. It is possible to make straight bets that are cash-settled and in which the underlying commodity or instrument will never be bought or sold. It is also possible to have such a contract be settled in the underlying (if the cash value is appropria... |
Are Investment Research websites worth their premiums? | Anyone who claims they can consistently beat the market and asks you to pay them to tell you how is a liar. This cannot be done, as the market adjusts itself. There's nothing they could possibly learn that analysts and institutional investors don't already know. They earn their money through the subscription fees, not ... |
Will progressively investing with moderate-to-high risk help secure a future? | I always thought high-risk investing is hit or miss, but this is working out very well with the stocks I've chosen High risk investing IS hit and miss. We are in an historic bull market. Do not pat yourself on the back too hard, the bear can be around any corner and your high risk strategy will then be put to the te... |
Mutual Fund with Dividends | There are two independent sets of terms we need to define in order to answer your question. I am trying to understand the difference between Value, Blend, and Growth These are different categories of mutual funds: Value: discounted or undervalued stocks. This is often measured by a difference between the stock's price... |
The Benefits/Disadvantages of using a credit card | Credit card interest rates are obscene. Try to find some other kind of loan for the furnishings; if you put things on the card, try to pay them off as quickly as possible. I should say that for most people I do recommend having a credit card. Hotels, car rental agencies, and a fair number of other businesses expect to ... |
How can a school club collect money using credit cards? | You should check with the Office of Student Affairs (or equivalent) at your University to see if you can accept Credit Cards. Many will only allow you to accept student organization dues paid in cash, check, or money order. Many universities will also provide your organization with basic operating funds, if you request... |
I have more than $250,000 in a US Bank account… mistake? | First, what's the reason? Why do you have that much in cash at all - are you concerned about market volatility, are you planning to buy a house, do you have tens of millions of dollars and this is your slush fund? Are you a house flipper and this is part of business for you? If you need the money for short term use - ... |
Why do Americans have to file taxes, even if their only source of income is from a regular job? | There are a few reasons: 1) Deductions and credits. We have a lot of them. While I suppose we could pass this information on to our employers for them to file, why would we want to? That just unnecessarily adds a middle-man as well as sharing potentially private information more than it needs to be shared. This is the ... |
Calculating pay off for credit card with multiple APRs | The first thing you need to do is look at your terms and conditions of your credit card, or ask your bank, how they will apply the payments. As Dilip notes in his answer, in the US, they will likely apply the minimum payment to the lower rate balance, and then must apply the rest above the minimum to the higher rate b... |
Should I sell my stocks when the stock hits a 52-week high in order to “Buy Low, Sell High”? | One possibility is to lock in gains by selling, where a selling price can attempt to be optimized by initiating a trailing stop loss order. You'll have to look at the pros and cons of that kind of order to see if it is right for you. Another possibility is to begin hedging with options contracts, if that security is op... |
Mortgage refinancing | If you selected a mortgage that allows additional payments to be credited against the principal rather than as early payment of normal installments, them yes, doing so will reduce the actual cost of the loan. You may have to explicitly instruct the bank to use the money this way each time, if prepay is their default as... |
Purpose of having good credit when you are well-off? | Credit scores, or at least components of them, can sometimes factor into how much you pay for car insurance. Source: Consumer Reports: How a Credit Score Increases your Premium |
Using 2 different social security numbers | Social security number should only be needed for things that involve tax withholding or tax payment. Your bank or investment broker, and your employer, need it so they can report your earnings. You need it when filing tax forms. Other than those, nobody should really be asking you for it. The gym had absolutely no goo... |
Should I stockpile nickels? | The collectible value of coins will probably increase with the underlying metal value. I'd collect coins for that reason and because I enjoy collecting them. I wouldn't recommend buying bags of rolled nickels or anything though. |
A University student wondering if investing in stocks is a good idea? | The power of compounding interest and returns is an amazing thing. Start educating yourself about investing, and do it -- there are great Q&As on this site, numerous books (I recommend "The Intelligent Investor", tools for small investors (like Sharebuilder.com) and other resources out there to get you started. Your p... |
Understanding the T + 3 settlement days rule | For margin, it is correct that these rules do not apply. The real problem becomes day trading funding when one is just starting out, broker specific minimums. Options settle in T+1. One thing to note: if Canada is anything like the US, US options may not be available within Canadian borders. Foreign derivatives are u... |
Historical share price at exact day and time | An alternative to paying thousands of dollars for historical prices by the minute: Subscribe to real time data for as low as USD$1.5/month from your broker, then browse the chart. |
How should minor children be listed as IRA beneficiaries? | First - for anyone else reading - An IRA that has no beneficiary listed on the account itself passes through the will, and this eliminates the opportunity to take withdrawals over the beneficiaries' lifetimes. There's a five year distribution requirement. Also, with a proper beneficiary set up on the IRA account the wi... |
Why do interest rates increase or decrease? | My answer is specific to the US because you mentioned the Federal Reserve, but a similar system is in place in most countries. Do interest rates increase based on what the market is doing, or do they solely increase based on what the Federal Reserve sets them at? There are actually two rates in question here; the Wikip... |
Why does a stock price drop as soon an I purchase several thousand shares at market price? | You say: Every time it seems the share price dips. Does it? Have you collected the data? It may just be that you are remembering the events that seem most painful at the time. To move the market with your trade you need to be dealing in a large amount of shares. Unless the stock is illiquid (e.g most VCT in the U... |
Is Bitcoin a commodity or a currency [duplicate] | Its neither. Its a scam. there's no value underlying it, and it has proven to be the most speculative and untrustworthy investment there is. The scam works like a pyramid scam, so the more people come later on the more people who came in earlier on gain, so that is why you see so much hype around it encouraged and fuel... |
Why does an option lose time value faster as it approaches expiry | Here's another attempt at explanation: it's basically because parabolas are flat at the bottom. Let me explain. As you might know, the variance of the log stock price in Black Scholes is vol^2 * T, in other words, variance of the log stock price is linear in time to expiry. Now, that means that the standard deviation ... |
What are the financial advantages of living in Switzerland? | Companies, especially big ones, find in Switzerland a business-friendly environment and often benefit from a special tax regime. Don't mix the companies interests with yours. |
Is it wise to invest in a stock with a large Div yield? | IMO, what it seems like you've done is nothing more than having screened out a company worth further investigation. The next step would be a thorough analysis of the company's past financials and current statements to arrive at your own opinion / forecast of the immediate and far future of the company's prospects. Typ... |
A calculator that takes into account portfolio rebalancing? | My answer is Microsoft Excel. Google "VBA for dummies" (seriously) and find out if your brokerage offers an 'API'. With a brief understanding of coding you can get a spreadsheet that is live connected to your brokers data stream. Say you have a spreadsheet with the 1990 value of each in the first two columns (cells ... |
What does a CFP do? | CFP stands for "Certified Financial Planner", and is a certification administered by the CFP board (a non-government non-profit entity). This has nothing to do with insurance, and CFP are not insurance agents. Many States require insurance agents to be explicitly licensed by the State as such, and only licensed insuran... |
What happens to personal data I disclose for joining an employee stock plan? | You aren't getting a straight answer because nobody knows why those regulations are the way they are. Everyone has to give this information to open the brokerage account or for any access to the US financial system whether it is with a bank account, or a brokerage account. Everyone also typically gives this information... |
Why does selling and then rebuying stock not lead to free money? | The main thing you're missing is that while you bear all the costs of manipulating the market, you have no special ability to capture the profits yourself. You make money by buying low and selling high. But if you want to push the price up, you have to keep buying even though the price is getting high. So you are buyin... |
Stock Options for a company bought out in cash and stock | There is no chance the deal will complete before option expiration. Humana stock will open Monday close to the $235 buyout price, and the options will reflect that value. $40 plus a bit of time value, but with just 2 weeks to expiration, not much. |
Company A is buying company B, what happens to the stock? | I think the correct statement is that Expedia wants to buy Orbitz for $12/share. The market price is $11, which means there is somebody willing to sell for that price. But you can't say that a stock price of $11 means that everybody is willing to sell for that price. And Expedia is unlikely to bid $12/share for just 40... |
Why do put option prices go higher when the underlying stock tanks (drops)? | Options pricing is based on the gap between strike and the current market, and volatility. That's why the VIX, a commonly accepted volatility index, is actually just a weighted blend of S&P 500 future options prices. A general rise in the price of options indicates people don't know whether it will go up or down next,... |
My investment account is increasingly and significantly underperforming vs. the S&P 500. What should I do? | absolutely $SPY ETF is the way to go if your point of comparison is the S&P and you want to do low maintenance. |
Finding a good small business CPA? | Check your local better business bureau. They can tell you who is in business, who's bonded, and who has had a lot of complaints levied against them for shoddy practices. |
Is it worth it to reconcile my checking/savings accounts every month? | Sounds like you are reconciling more than once a month. I like to say I glance at all my statements, but these days I just look at the final balance and call it good. If a transaction shows up by mistake, I would find it in a couple of days because of how often I update my Quicken and Mint.com |
Mortgage or not? | In addition to the other answers, I think you would also need to account for the increased utility and maintenance costs on the more expensive house. Typically it is recommended to budget 1% to 4% the cost of the home per year for routine maintenance. While it likely won't cost that much every year, you will have those... |
Does payment in goods count as “income” for tax purposes? | The IRS defines income quite specifically. On the topic What is Taxable and Nontaxable Income, they note: You can receive income in the form of money, property, or services. This section discusses many kinds of income that are taxable or nontaxable. It includes discussions on employee wages and fringe benefits, and inc... |
Pattern Day Trade Rule | I would suggest following your quote and having a read of the web page supplied, that buys then sells or sells short then buys (the same security on the same day) four or more times in five business days, ... So it is a two way transaction that counts as 'one'. |
If an option's price is 100% made up of its intrinsic value, is there a way to guarantee a non-loss while having a chance at a profit? | Yes, one such strategy is dividend arbitrage using stock and in the money options. You have to find out which option is the most mispriced before the ex-dividend date. |
Why are American Express cards are not as popular as Visa or MasterCard? | Those extra treat points have to come from somewhere, and they come from American Express charging merchants a higher percentage than Visa or Mastercard. So it's less attractive for those merchants to accept it. |
What to do with your savings in Japan | Been here in Japan 12 years mate, and you're right, the investment options here suck. Be very wary of them, they will take all your money in outrageous fees--3% in and 3% out of some "investment" options. It's a scam. Send the money back home and manage it there. I recommend setting up a Vanguard account back in the UK... |
How can I pay for school to finish my degree when I can't get a student loan and have bad credit? | a) Talk to the financial aid counselors at your school. There's a very good chance they have at least a partial solution for you. Let them know your dependency status has changed (if it has). I declared myself to be financially independent from my parents (I really was) and qualified for more aide. b) How much austerit... |
Tenant wants to pay rent with EFT | What you've described is the norm in Australia, where it's rare for anyone under sixty to use cheques. Assuming they're transferring the funds using internet banking, I would have the following suggestions: You make it clear that the the funds must reach your account by the due date for rent. It is their (the tenant's)... |
What intrinsic, non-monetary value does gold have as a commodity? | This site shows a list of (mostly) industrial uses of gold: http://geology.com/minerals/gold/uses-of-gold.shtml If you ignore the first two uses, jewelry and coinage, there remains aerospace, computers, electronics, dentistry and medicine. It's worth noting that gold comes in the same chemical family as both copper an... |
How you make decision on a stock purchase after fundamental analysis? | The degrees to which a positive is positive and a negative is negative are up to you. There is no correct answer. A couple points of caution: |
Should I open a Roth IRA or invest in the S&P 500? | Your question indicates confusion regarding what an Individual Retirement Account (whether Roth or Traditional) is vs. the S&P 500, which is nothing but a list of stocks. IOW, it's perfectly reasonable to open a Roth IRA, put your $3000 in it, and then use that money to buy a mutual fund or ETF which tracks the S&P 500... |
As an investing novice, what to do with my money? | A lot of people on here will likely disagree with me and this opinion. In my opinion the answer lies in your own motives and intentions. If you'd like to be more cognizant of the market, I'd just dive in and buy a few companies you like. Many people will say you shouldn't pick your own stocks, you should buy an in... |
Shares - Query about RSI (Relative Strength Index) | Well that will depend on the time frame you are looking at it. You can't compare the RSI on a five minute chart to the RSI on a daily chart. The minute chart would represent the momentum of very small trends whilst the daily chart would represent the momentum of much larger trends. On the daily chart the shares might b... |
What is the difference between state pension plans and defined contribution plans? | The specific "State Pension" plan you have linked to is provided by the government of the U.K. to workers resident there. More generally speaking, many countries provide some kind of basic worker's pension (or "social security") to residents. In the United States, it is called (surprise!) "Social Security", and in Can... |
What are dividends, when are they paid, and how do they affect my position? | Dividends can also be automatically reinvested in your stock holding through a DRIP plan (see the wikipedia link for further details, wiki_DRIP). Rather than receiving the dividend money, you "buy" additional stock shares your with dividend money. The value in the DRIP strategy is twofold. 1) your number of shares incr... |
Is it a wise decision to sell my ESPP stock based on this situation? | ESPP tax treatment is complicated. If you received a discount on the purchase of your stock, that discount is taxable as ordinary income when you sell the stock. Any profit about the market value when the stock was purchased is taxed based upon the holding period of the stock. If you have held the stock less than a y... |
How do 'payday money' stores fund their 'buy now, pay later' loans? | Payday loan companies basically are banks (although they are incredibly terrible ones). Banks make money in two ways: (1) They charge fees for services they provide (bank account fees, etc.); and (2) The interest rate differential: They borrow money from individuals and corporations (your savings account is essentiall... |
Buying and selling the same stock | No, you can not cheat the IRS. This question is also based on the assumption that the stock will return to $1 which isn't always a safe assumption and that it will continue to cycle like that repeatedly which is also likely a false assumption. |
Why are stocks having less institutional investors a “good thing”? | It's not necessarily bad but it can cause the stock price to become a lot more volatile. Depends on which side of the bet you're on ;) Suppose a hedge fund manager thinks a company is poorly run. He may buy a ton of shares so that he can get rid of the current CEO and replace it with his/her own. For the hedge fund and... |
In your 20s how much money should you have and how to properly use & manage it? | You need a budget. You need to know how much you make and how much you spend. How much you earn and what you choose to spend you money on is your choice. You have your own tolerance for risk and your own taste and style, so lifestyle and what you own isn't something that we can answer. The key to your budget is to re... |
Interest payments for leveraged positions | I think to some extent you may be confusing the terms margin and leverage. From Investopedia Two concepts that are important to traders are margin and leverage. Margin is a loan extended by your broker that allows you to leverage the funds and securities in your account to enter larger trades. In order to use margin, y... |
What are the key facts to research before buying shares of a company? | I have my "safe" money in index funds but like to dabble in individual stocks. My criteria and thought process are usually like this, let's use SBUX as an example: Understand what the company does. Also paraphrased as "buy what you know". A profitable/growing business doesn't need to be complicated. Open stores. Sell c... |
How do ETF fees get applied? | The ETF price quoted on the stock exchange is in principle not referenced to NAV. The fund administrator will calculate and publish the NAV net of all fees, but the ETF price you see is determined by the market just like for any other security. Having said that, the market will not normally deviate greatly from the NA... |
Exposure to Irish Housing Market | I was in a similar situation, and used FX trading to hedge against currency fluctuations. I bought the "new" currency when the PPP implied valuation of my "old" currency was high, and was able to protect quite a bit of purchasing power that I would have lost without the hedge. Unfortunately you get taxed for the "gain"... |
Why do companies have a fiscal year different from the calendar year? | I know some companies or entities have large incomes or expenses at certain times of the year, and like to close their books after these large events. For example where I work, the primary seasonal income comes after summer, so our fiscal year ends at the last days of October. This gives the accountants enough time ... |
What should I do with the stock from my Employee Stock Purchase Plan? | Split the difference. Max it out, sell half immediately and wait a year or more for the rest. Or keep a third... whatever works for your risk tolerance. A perfectly diversified portfolio with $0 in it is still worth $0. |
Why should I trust investment banks' ratings? | In theory, GS has a Chinese Wall between the department which issued the advice and any departments which may profit from such advice. This would take away some of your distrust, except for the fact that GS did violate these rules in the past (see the answer from user10665). You're wondering about the timing, prior to ... |
Given a certain yearly savings, how much can I spend on a capital improvement? NPV of future cash flow | For this, the internal rate of return is preferred. In short, all cash flows need to be discounted to the present and set equal to 0 so that an implied rate of return can be calculated. You could try to work this out by hand, but it's practically hopeless because of solving for roots of the implied rate of return which... |
Why is it rational to pay out a dividend? | Paying out dividends and financing new projects with debt also lessens the agency problem. The consequences of a failed project are greater when debt is used, so the manager now has a greater incentive to see that the project is a success. This, in addition to the paid divided is a benefit to the shareholder. If equity... |
Loan math problem | The price inflation isn't a percentage, it's a fixed amount. If the dealer adds $R to the price of both the trade-in and the purchased car, then everyone ends up with the right amount of money in their pockets. So your formula should be: D + T + R = 0.1 * (P + R) |
Creating a Limited company while still fully employed | I was just thinking ahead, can I apply for Limited company now, while fully time employed, and not take any business until I get a contract. Yes. You can open as many companies you want(assuming you are sane). There is no legal provisions regarding who can open a company. What happens if I create a company and it has... |
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