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What did John Templeton mean when he said that the four most dangerous words in investing are: ‘this time it’s different'? | Essentially, he means "one ignores history at their own peril". We often hear people arguing that "the old rules no longer apply". Whether it be to valuations, borrowing, or any of the other common metrics, to ignore the lessons of the past is to invite disaster. History shows us that major crises in the markets usu... |
If I own x% of company A, and A buys company B, do I own x% of B? | No, thanks to the principle of corporate personhood. The legal entity (company C) is the owner and parent of the private company (sub S). You and C are separate legal entities, as are C and S. This principle helps to legally insulate the parties for purposes such as liability, torts, taxes, and so forth. If company ... |
Theory/Strategy for pricing by volume | Actually, the rate of change could be more or less constant, but you might have a minimum price that represents your fixed costs. So you might sell a milligram for $1 (which is ridiculous in terms of per-unit pricing) to cover fixed costs, and add $0.50/lb for each step in size to cover variable costs (cost of raw mat... |
Margin Calculations Question | The setup is a purchase of 200 shares at $40 with a cash deposit of $4000 and margin loan of $4000 which a year later grew to $4240. With a margin requirement of 30%, the loan can be 70% or a total stock value of $6057. 1) $30.29 2) -24.3% (The stock fell to $30.29 from $40) 3) -54.6% (Your $4000 fell to $1817) |
Why is the highest quintile the only quintile whose wealth exceeds its income? | I think you came up with a worthy Masters/PhD research project, it is a great question. This is in Australia so it is difficult for me to have complete perspective. However, I can speak about the US of A. To your first point relatively few people inherit their wealth. According to a brief web search about 38% of bill... |
What is the difference between a structured collar and a normal collar in finance? | Let's start with a definition: A Collar is a protective strategy for a position in the underlying instrument created by purchasing a put and selling a call to partially pay for the put option purchased or vice versa. Based on that definition, there are two different types of collars. Each is a combination of two simple... |
Is it mandatory to report Capital Loss on line 21 of Schedule D? | On line 21 of Schedule D, you write the smaller of So, in your case, since your Line 16 shows a loss of more than $3000 on Line 21, you write 3000 on Line 21 (the parentheses indicating that is it a negative number are already included on the form). Also, you write (3000) on Form 1040 Line 13. The rest of the loss is a... |
If gold's price implodes then what goes up? | It seems that you're interested in an asset which you can hold that would go up when the gold price went down. It seems like a good place to start would be an index fund, which invests in the general stock market. When the gold market falls, this would mainly affect gold mining companies. These do not make up a sizable... |
Is it a good idea to teach children that work is linearly related to income? | Completely linear? We don't do that. Our daughter has a fixed allowance, and we expect a certain amount of help around the house as being part of the family. We don't make any explicit ties between the two, and we don't seem to have any problems. We bought an eBay lot of Polly Pockets and divided them up into $5 bags... |
Are cashiers required to check a credit card for a signature in the U.S.? | Working retail myself, I do not accept an unsigned card without verification. If I received one I would ask for ID and verify the photo with the Name. I would also let the buyer know it was unsigned and remind them that anyone finding it can sign it and use the card without issue. Putting on the back of the card "SEE ... |
How does giving to charity work? | If you don't have much money, and more important, don't itemize, donations are strictly between you and your karma. If you itemize (from a combination of mortgage interest, property tax, and state tax), by donating used goods, you can get some return on your taxes, and feel good about yourself. When I donate at charit... |
Selecting between investment vehicles for income | It sounds like you are interested in investing in the stock market but you don't want to take too much risk. Investing in an Index EFT will provide some diversification and can be less risky than investing in individual stocks, however with potentially lower returns. If you want to invest your money, the first thing yo... |
What are my chances at getting a mortgage with Terrible credit but High income | The bottom line, is that you are doing the right thing now: correcting your past indiscretions. Get those collections taken care of, then start saving for a down payment. Of course, during this time, you should pay your bills early or on time. During that time your credit will improve dramatically. I bet that this w... |
Credit rating in Germany | The SCHUFA explicitly says on their website that their scoring system is a secret. However, if your goal is to be credit-worthy for example to get financing for a house or a car or whatever, just pay any loans and your credit card back on time and you'll be fine. There is no need to build a credit history. I just got a... |
What can I take from learning that a company's directors are buying or selling shares? | You can learn very little from it. Company directories are often given share options or shares as a bonus, and because of that they are unlikely to buy shares. When they sell shares, you'll hear people shouting "so-and-so sold his or her shares, they must know something bad about the company". The truth is that you ca... |
Professional tax for employees - startup in India | The tax is depended upon state where you are registered and the salary paid. More here If you employ contract you need not pay tax. |
Why does Charles Schwab have a Mandatory Settlement Period after selling stocks? | Simple Schwaab does not have actually your securities they have leased them out and have to borrow them back. all assets are linked with derivatives now. They show on the balance sheet but have to be untangled. Thats why the market drops disproportionally fast to the actual number of shares sold. |
What exactly is a “bad,” “standard,” or “good” annual raise? If I am told a hard percentage and don't get it, should I look elsewhere? | You are not actually entitled to any raise at all, unless you had something contractually (legally binding) which made that so. I'm answering this from the UK, but it has been common practice for people over the last 10 years or so to receive no yearly raise, in some sectors. This is what I would consider a bad raise -... |
Why are typical 401(k) plan fund choices so awful? | The managers of the 401(k) have to make their money somewhere. Either they'll make it from the employer, or from the employees via the expense ratio. If it's the employer setting up the plan, I can bet whose interest he'll be looking after. Regarding your last comment, I'd recommend looking outside your 401(k) for in... |
What are some sources of information on dividend schedules and amounts? | I second the Yahoo! Finance key stats suggestion, but I like Morningstar even better: http://quote.morningstar.com/stock/s.aspx?t=roic They show projected yield, based on the most recent dividend; the declared and ex-dividend dates, and the declared amount; and a table of the last handful of dividend payments. Back to ... |
Do developed country equities have a higher return than emerging market equities, when measured in the latter currency? | First of all, the answer to your question depends on your starting dates and ending dates. So developed markets returns are higher over one period, and emerging markets returns over other periods. So far, there does not appear to be a systematic tilt in favor of one or the other. The reasons are as you said. Emerging m... |
How do I manage my portfolio as stock evaluation criteria evolve? | If your criteria has changed but some of your existing holdings don't meet your new criteria you should eventually liquidate them, because they are not part of your new strategy. However, you don't want to just liquidate them right now if they are currently performing quite well (share price currently uptrending). One... |
Does the IRS reprieve those who have to commute for work? | No. Regular W2 employees cannot deduct housing or transportation costs related to their employment. However, in the US, many employers offer Parking and/or Transit FSA programs which are usually collectively referred to a Commuter Benefits FSA programs, this is particularly common among larger employers with locatio... |
Income Tax and Investments | The $50k is subject to the appropriate income taxes, which may include FICA taxes including the employer share if you are self employed. The after tax money can then be invested with the amount invested being the cost basis (I.e., if you invest $40k you will have a cost basis of $40k). In future years you will have ta... |
Is it worth buying real estate just to safely invest money? | The main point to consider is that your payments toward your own home replace your rent. Any house or apartment you buy will have changes in value; the value is generally going slowly up, but there is a lot of noise, and you may be in a low phase at any time, and for a long time. So seeing it as an investment is not an... |
What does it mean “sell on ask” , “sell on bid” in stocks? | Honestly, I wonder if the other answerers aren't overthinking it. Their answers are detailed and correct, but what your coach may be saying is this: When you have bought a stock, on cash or margin, and you are watching it rise you are evaluating when you sell on the price of the stock you are seeing. In reality, you sh... |
What happens to people without any retirement savings? | Social security was created with just such people in mind. It's a meager living, but it is an income stream that can be supplemented by Walmart greeter income. It probably isn't so dire that it leads to homelessness, but it might mean not having some of the other comforts that we take for granted. |
What to do with small dividends in brokerage account? | Assuming you have no new cash to add to your account as gyurisc has suggested, I wouldn't sweat the small amounts – it doesn't hurt to have a little cash sit idle, even if you want to theoretically be fully invested (the wisdom of doing that, or not, perhaps worthy of another question :-) If you try too hard to invest ... |
Hearing much about Dave Ramsey. Which of his works is best in describing his “philosophy” about money? | Actually, Trent Hamm of The Simple Dollar, wrote a "book club" series that basically reads like cliff notes for Dave's The Total Money Makeover starting with this blog post. So that might be a really good place to start. Also of note is Trent's Article "Five Ways I Disagree With Dave Ramsey". |
How should I deal with my long term gain this year? | Long term capital gains are taxed at 15% this year, so the most you stand to save is $150. I wouldn't sell anything at a loss just to offset that, unless you planned on selling anyways. A few reasons: The Long term capital gains rate will go up to 20% next year, so your losses will be "worth more" next year than this ... |
Should I Use an Investment Professional? | People ... are nearly twice as likely to ... feel confident Great, confidence is amazing. That and $5 will buy you a cup of coffee. 44% [who hired a pro] have $100K or more [vs.] 9% of DIYers There's no way to examine these numbers without a link to the source, but it stands to reason that if you have a plan that you'r... |
How to handle taxes related to affiliate marketing? | Is it right that I request form W-9 or form W-8BEN (for non U.S. citizens) from the affiliate users before sending them payments? Not just OK. Required. I know that I have to send form 1099, but I don't know where does this form should go to. Should I send it to the IRS or the affiliate user or both? Both. There'... |
In which country can I set up a small company so that I pay a lower rate of corporate tax? | There are countries out there that are known as tax havens, where they offer companies low or no taxes on earned revenue. I haven't looked into this in over a decade, but recall that countries like the Cayman Islands, Switzerland, Ireland, and Nauru, to name a few fit that tag. But like bstpierre stated, there's a reas... |
Investing small amounts at regular intervals while minimizing fees? | I am not sure whether this hold in all countries, but at least in the Netherlands my bank allows for investment in funds without charging transaction costs. The downside is that these funds charge an annual fee of about 1%, but for the amounts you are talking about this definitely sounds more attractive than the altern... |
Should I purchase a whole life insurance policy? (I am close to retirement) | I'll start by saying that if this is being explored to scratch a specific itch you have then great, if this was a cold call it's probably safe to ignore it. Certain whole life products (they vary in quality by carrier) can make sense for very high earners who are looking for additional tax preferred places to store mon... |
Connection between gambling and trading on stock/options/Forex markets | I think that the answer by @jkuz is good. I'd add that the there's a mathematically precise difference: Gambling games are typically "zero-sum" games, which means that every dollar won by one person is lost by another. (If there's a "house" taking a cut then it's worse than zero-sum, but let's ignore that for the mom... |
What are the advantages/disadvantages of a self-directed IRA? | This type of account will sell you just enough rope to hang yourself. Gold is at $1400 or so. Were you around when it first hit $800 in '79/'80? I was. No one was saying "sell" only forecasts of $2000. If you bought and held, you've still not broken even to inflation let alone simple market returns. |
What is inflation? | I've seen a lot of long and complicated answers here so here is my simple and short answer: Let's say the economy consists of: 10 apples and 10$. Then an apple costs 1$. If you print 10$ more you have: 10 apples and 20$. Then an apple costs 2$. That is it! It's not what Kenshin said: Over time, prices go up! However I... |
How might trading volume affect future share price? | There is no direct relationship between volume and stock price. High volume indicates how much stock is changing hands. That can be because people are enthusiastically buying OR enthusiastically selling... and their reasons for doing so may not agree with your own sense of the future value of the stock. Higher volume m... |
First 401K portfolio with high expense ratios - which funds to pick? (24yo) | If it was me, I would withdraw money from savings and be debt free today. I would then pour the $500 into building back your savings. Then of course, never again carry a balance on your CC. At your age MSFRX is a losing game. You can handle the volatility of better performing funds, I would have zero in there. If ... |
How do I invest in the S&P 500? | Buy the ETF with ticker "SPY". This will give you exposure to exactly the S&P 500 stocks, This is similar to the mutual fund suggestion by Ben Miller, except that the ETF has several advantages over mutual funds, especially as regards taxes. You can find information on the difference between ETF and mutual fund in o... |
Is it necessary to pay tax if someone lends me money to put into my mortgage? | I can't vouch for Australian law, but in the US there is actually a recognized mechanism for "in-family loans" which ensures that it's all fully documented for tax purposes, including filing it as an official second mortgage. (Just did that recently in my own family, which is why I'm aware of it.) We're required to cha... |
Why government bonds fluctuate so much, even though interest rates don't change that often? | Long term gov't bonds fluctuate in price with a seemingly small interest rate fluctuation because many years of cash inflows are discounted at low rates. This phenomenon is dulled in a high interest rate environment. For example, just the principal repayment is worth ~1/3, P * 1/(1+4%)^30, what it will be in 30 years ... |
What does a Dividend “will not be quoted ex” mean? | One occastion where "will not be quoted ex" is used is when a corporate action is occurring such as a spin-off. In such a case, the rights to, and the spin-off itself may be quoted separately on the home country exchange. However, if the company is based abroad, it may not be worth the expense for them to have an add... |
Pros and cons of investing in a cheaper vs expensive index funds that track the same index | As has been pointed out, one isn't cheaper than the other. One may have a lower price per share than the other, but that's not the same thing. Let's pretend that the total market valuation of all the stocks within the index was $10,000,000. (Look, I said let's pretend.) You want to invest $1,000. For the time being, le... |
What is the “Bernanke Twist” and “Operation Twist”? What exactly does it do? | To understand the Twist, you need to understand what the Yield Curve is. You must also understand that the price of debt is inverse to the interest rate. So when the price of bonds (or notes or bills) rises, that means the current price goes up, and the yield to maturity has gone down. Currently (Early 2012) the shor... |
What does “Income generated in the U.S.” mean? | It means you must pay federal (and possibly state) tax on any income you produce in America -- including Internet and mail-order sales. Tax treaties may keep you from having to pay tax on it again in your own country, or may not. |
Is sales tax for online purchases based on billing- or shipping address? | From Amazon's Site: "If an item is subject to sales tax in the state to which the order is shipped, tax is generally calculated on the total selling price of each individual item." I'm going to trust a company of this size has this correct. Shipping address. |
Upward Spike in US Treasuries despite S&P Downgrade in August 2011 | US government bonds are where money goes when the markets are turbulent and investors are fleeing from risk, and that applies even if the risk is a downgrade of the US credit rating, because there's simply nowhere else to put your money if you're in search of safety. Most AAA-rated governments have good credit ratings ... |
I cosigned for a friend who is not paying the payment | I am not sure how anyone is answering this unless they know what the loan was for. For instance if it is for a house you can put a lien on the house. If it is for the car in most states you can take over ownership of it. Point being is that you need to go after the asset. If there is no asset you need to go after... |
I don't live in America. How can I buy IPO stock of newly listed companies in the United States? | First thing to consider is that getting your hands on an IPO is very difficult unless you have some serious clout. This might help a bit in that department (http://www.sec.gov/answers/ipoelig.htm) However, assuming you accept all that risk and requirements, YES - you can buy stocks of any kind in the US even if you are... |
What should I do with $4,000 cash and High Interest Debt? | If your credit is good, you should immediately attempt to refinance your high rate credit cards by transferring the balance to credit cards with lower interest rates.You might want to check at your local credit union, credit unions can offer great rates. Use the $4000 to pay off whatever is left on the high rate cards.... |
Should you co-sign a personal loan for a friend/family member? Why/why not? | My thoughts on loaning money to friends or family are outlined pretty extensively here, but cosigning on a loan is a different matter. It is almost never a good idea to do this (I say "almost" only because I dislike absolutes). Here are the reasons why: Now, all that said, if my sister or parents were dying of cancer... |
Do credit checks affect credit scores? | There are two types of credit checks. First is the hard pull which is typically done when you apply for a credit line. The lender will hard pull your file and make his/her decision based on that. This affects your score negatively. You might lose few points for one hard inquiry. Second type is soft pull, which is done ... |
How are people able to spend more than what they make, without going into debt? | Rich people use debt for various reasons. The question should not assume that billionaires don't use debt. They also pay lower interest rates on that debt because they have enough collateral that their debt is safer than a typical mortgage. Many rich people will use interest only mortgages on their primary residences s... |
Are services provided to Google employees taxed as income or in any way? | Is this right? The example is slightly off. Google would be running a cafeteria that can be subsidized. Employees pay an amount to buy food. Not every one spends the same amount or eats the same amount of food. If someone doesn't use cafeteria; he doesn't get more money. For example, suppose John Doe makes $100,000 a y... |
Are services provided to Google employees taxed as income or in any way? | Companies often provide cafeteria, or catering services, to employees tax-free at subsidized rates. I'll use "cafeteria" as an illustration. The IRS says that in order to avoid lunch being taxed as income, the employees must pay the "direct costs" of the lunch, food and labor. In addition to those costs, cafeterias add... |
Is there a term for total money owed to you? | Is there a word for that $20k owed? Trade Receivables, Accounts Receivables, or just Receivables Is there a different word for that $30k "hypothetical" total? Current Assets (Includes Inventory and other short term assets) |
Why is a stock that pays a dividend preferrable to one that doesn't? | One reason to prefer a dividend-paying stock is when you don't plan to reinvest the dividends. For example, if you're retired and living off the income from your investments, a dividend-paying stock can give you a relatively stable income. |
Why is the buy price different from the sell price of a stock? [duplicate] | This is called the Ask-Bid Spread. The difference varies based on the liquidly of the asset. The more liquid or the higher the volume of trades for the asset then the smaller the spread is. The spread goes to the broker to pay for some of the cost of the trade. My guess is that when there is a higher volume of shares b... |
Is this mortgage advice good, or is it hooey? | Sounds fishy - taking out more debt to pay the main mortgage down faster? There are a couple of issues I can see: I would think that a much more sensible strategy with a lot less risk is to save up extra cash and send your lender a check every quarter or six months. |
How to calculate the value of a bond that is priced to yield X% | The idea is correct; the details are a little off. You need to apply it to the actual cash flow the bond would create. The best advice I can give you is to draw a time-line diagram. Then you would see that you receive £35 in 6 months, £35 in 12 months, £35 in 18 months, and £1035 in 24 months. Use the method you've p... |
Market Hours and Valuations | Stock values are generally reflective of a company's overall potential; and to some extent investor confidence in the prospect of a continued growth of that potential. Sales over such a short period of time such as a single weekend do not noticeably impact a stock's valuation. A stock's value has more to do with wheth... |
Does wash sale apply if I buy stock on 2 two different dates and sell it later | Is wash rule applicable for this? No - because you made a gain on the sale. You paid $13,500 for the stock and sold it for $14,250. The wash rule prevents you from claiming a loss if you buy the same stock again within 30 days. You have no loss to claim, so the rule does not apply. |
Determining amount of inflation between two dates | You want percent change between the two numbers listed under whatever heading you'll be using in the CPI. As an example, you'd probably want to use the All Items heading listed here on Page 4 of the August 2016 CPI tables as 240.853, and from August 2015 was listed as 238.316. Percent change is So 1.06% inflation fro... |
Is Amazon's offer of a $50 gift card a scam? | It's not a scam. They just want you to be an Amazon customer for many years and you'll be advertising Amazon to anyone who sees your credit card. $50 is known as the cost of "customer acquisition" and it is a very good deal for someone who may become a Prime member and spend $1000s a year on Amazon. |
Do rental car agencies sell their cars at a time when it is risky for the purchaser? | Many Web sites and articles warn against buying former rental cars, because people renting these cars often mistreat them. Many of those are also written by unqualified individuals for publication on blog farms and encourage all sorts of odious financial practices. That's not even considering the interests of who is pa... |
How much does a landlord pay in taxes? | I use a spreadsheet for that. I provide house value, land value, closing/fix-up costs, mortgage rate and years, tax bracket, city tax rate, insurance cost, and rental income. Sections of the spreadsheet compute (in obvious ways) the values used for the following tables: First I look at monthly cash flow (earnings/c... |
How is someone tax exempt at Walmart in Canada? | Note that folks may also be shopping for supplies for a nonprofit tax-exempt organization. I made such a purchase a few weeks ago. Whatever the legal basis of the exception, you need to be able to prove to the store that you have it. If you can't, they must collect the tax. |
Should market based health insurance premiums be factored into 6 months emergency fund savings? | Yes, you should budget some amount of your emergency fund for healthcare expenses. How much you budget is really dependent on your particular anticipated costs. Be aware that health insurance likely costs significantly more than your employer charges you for access to its plan. Since healthcare reform mandated guaran... |
Why will the bank only loan us 80% of the value of our fully paid for home? | Imagine the bank loaning 100% of the sum of money you needed to buy a house, if the valuation of the house decreases to 90% of the original price after 3 months, would it be unfair for them to ask them for 10% of the original price from you immediately? I suppose the rationale for loaning 80% is so that you will fork o... |
Why trade futures if you have options | Yes, from the point-of-view to the end speculator/investor in stocks, it is ludicrous to take on liabilities when you don't have to. That's why single-stock options are far more liquid than single-stock futures. However, if you are a farmer with a huge mortgage depending upon the chaos of agricultural markets which ar... |
ADR vs Ordinary shares | There are basically two different markets for ADRs and ordinary shares. 1) The American market, 2) the "local" market. The following is not true for most stocks in "developed" markets. But it is often true that the American market (for ADRs) is far more liquid than the local market for ordinary shares of a developing c... |
Is it worth working at home to earn money? Can I earn more money working at home? | I think the right question you should ask yourself is: Can i work at home? is it possible? do I have a calm, private place at home to work from? what will be the motivation while working from? If you got answers to these questions, you will find if you can get money from home or not, because any place you can do work f... |
How can foreign investor (residing outside US) invest in US company stocks? | As other people have said they should register with a broker in the country they reside in that can deal in US stocks, then fill out a W8-BEN form. I have personally done this as I am from the Uk, it's not a very complicated process. I would assume that most US brokers don't allow foreign customers due to the person ha... |
First concrete steps for retirement planning when one partner is resistant | You can take a queue from any sales opportunity and position it in ways that will still appeal to someone who intends to continue working perpetually. Here are some of the points I would make: 401k matching funds are free money that you will have access to in ~20 years whether you retire or not. Long-term savings that ... |
Can value from labor provided to oneself be taxed? | The basis of the home is the cost of land and material. That's it. Your time isn't added to basis. No different than if you spend 1000 hours in a soup kitchen. You deduct miles for your car and expenses you can document but you can't deduct your time. Over 2 years, you could have a gain up to $500K per married couple... |
Why is property investment good if properties de-valuate over time? | As some others have pointed out, it's key to remember the difference in market value and accounting value. To simplify things, book value is the only item that specifically depreciates... it happens in the world of accounting to try to time "when did I use a long term asset?" with "when did I obtain value from that as... |
In which situations is it better to consider a loan instead of paying cash? | Your practice of waiting until you can pay cash is a good one. It will certainly prevent you from getting into debt! Now, to be clear, your question puts a credit card in the same category as a loan, but it doesn't have to be. You could use a credit card almost like cash, if you are careful. I'm not familiar with the s... |
How does the Pension system work in Poland? | Pretty simple actually. This is a state-run defined benefit plan, where the benefit is calculated based on the length of the employment and the contributed amounts. This is what in the US is known as the Social Security. This is a defined contribution plan, where the employee can chose the level of risk based on certa... |
Obtaining California SOS number for out-of-state LLC | SOS stands for Secretary of State. The California Department of State handles the business entities registration, and the website is here. See "Forms" in the navigation menu on the left. Specifically, you'll be looking for LLC-5. |
Line of credit for investment | What you are describing is called a Home Equity Line of Credit (HELOC). While the strategy you are describing is not impossible it would raise the amount of debt in your name and reduce your borrowing potential. A recent HELOC used to finance the down payment on a second property risks sending a signal of bad financial... |
Why do stock prices of retailers not surge during the holidays? | Excellent question for a six year old! Actually, a good question for a 20 year old! One explanation is a bit more complicated. Your son thinks that after the Christmas season the company is worth more. For example, they might have turned $10 million of goods into $20 million of cash, which increases their assets by $1... |
How should I be contributing to my 401(k), traditional or Roth? | I wrote a brilliant guest post at Don't Mess With Taxes, titled Roth IRAs and Your Retirement Income. (Note - this article now reflects 2012 rates. Just updated) Simply put, it's an ongoing question of whether your taxes will be higher now than at any point in the future. If you are in the 25% bracket now, it would tak... |
Does being on the board of a bankruptcy-declaring company affect my credit rating? | The answer to your question is governed by the structure of the company and your ownership or lack thereof in the business. Australian business can be structured the same way U.S. ones are, as a sole proprietorship, partnership, LLC, or company. If you are only on the board and have no equity, you cannot be affected.... |
Do the proceeds from selling an option immediately convert to buying power in a margin account? | I'd say yes, and hope that my anecdotal evidence serves as proof. My IRA is not a margin account. It can't be. I attempt to create a covered call, buying a stock at say $20, and selling a call for $4, for net $16 cost. The account only had $1610 at the time, and the trades go through just fine. Yes, I needed to enter ... |
Why is gold not a good investment? | Gold since the ancient time ( at least when it was founded) has kept its value. for example the french franc currency was considered valuable in the years 1400~ but in 1641 lost its value. However who owned Gold back then still got value. The advantage of having gold is you can convert it to cash easily in the world. ... |
Borrowed shares how are they tracked? | Brokerage firms are required to report the number of shares being shorted. This information is reported to the exchange (NYSE of NASDAQ) and is made public. Most financial sites indicate the number of shares being shorted for a particular stock. The image below from Yahoo finance shows 3.29 million shares of CMG wer... |
How much of each stock do index funds hold? | In general, the goal of an S&P 500 index fund is to replicate the performance of the S&P 500 Index. To do this, the fund will buy the same stocks in the same proportions as the weighting of the Index. The S&P 500 Index is free-float capitalization weighted. This means that the higher capitalization stocks (based on p... |
How do you save money on clothes and shoes for your family? | I speak as a person without kids, but I'll give this a shot anyway, using my memory of the perspective I had when I was a kid. My advice is, if the kids are young enough to not care much, don't be afraid of the thrift store. My parents got a bunch of clothes from the thrift store as I was growing up (around elementar... |
Weekly budgets based on (a variable) monthly budget | Try reading about budgeting. Make a list of all income coming in and all expenses going out. Eliminate any unnecessary expenses and try to increase income, which could include a part-time second job. Try to always put a portion of the income away as savings - try 10%, but if this is too hard to start with try saving ... |
Should I refi a rental property to reduce income tax from positive cash flow and use the equity pulled out to fund an annuity? | You need to do a bit more research and as @littleadv often wisely advises, consult a professional, in this case a tax layer or CPA. You are not allowed to just pull money out of a property and write off the interest. From Deducting Mortgage Interest FAQs If you own rental property and borrow against it to buy a home, ... |
How to automate the tracking of ratios and other values for a set of stocks or ETFs? | Spreadsheets need not be static, they can pull data from the web. This article describes the method you seek. |
What is Bearish Bar Reversal? | What it is trying to describe is the psychology around the current price of the stock. In candlestick charts for example, if you get what is called a Bearish Engulfing Candle (where the open is higher than the previous day's close and the close is lower than the previous day's open) at the top of an uptrend, this coul... |
How many warrants do I need to exercise to get a stock? | No, you trade the warrant and the warrant price of $11.50 for one stock. The warrant is a little like an option, but with a longer term. If you buy a IPOA.WS warrant then that warrant gives you the option to buy one share of class A stock at $11.50 at a future date. If in the future, the stock is worth $20, then you m... |
How do multi-currency bank accounts work? What is the advantage? | Today typically a Business needs to hold accounts in more than one currency. Banks in certain countries are offering what is called a dual currency account. It is essentially 2 accounts with same account number but different currency. So One can have an account number say 123456 and have it in say AUD and USD. So the b... |
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... |
What forms do I need to fill out for a super basic LLC closing? | If it is a sole proprietorship and you didn't make another mistake by explicitly asking the IRS to treat it as a corporation - there are no IRS forms to fill. You'll need to dissolve the LLC with your State, though, check the State's department of State/Corporations (depending on the State, the names of the department... |
Does the rise in ACA premiums affect employer-provided health insurance premiums? | There are a lot of moving parts, individual premiums and annual increases have little to do with employer premiums and annual increases and vice versa. Most people think of XYZ insurer as a single company with a single pool of insured folks. This common knowledge isn't accurate. Insurers pool their business segments... |
How can I find ISIN numbers for stock options? | Go to http://www.isincodes.net/, and enter your data. For example entering Alphabet gives you the ISIN US02079K1079 (for standard US shares). If you want to understand the number format (and build them yourself), check wikipedia: https://en.wikipedia.org/wiki/International_Securities_Identification_Number |
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