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Are there any investment strategies which take advantage of an in-the-money option price that incorporates no “time value”? | It depends on the volatility of the underlying stock. But for "normal" levels of volatility, the real value of that option is probably $3.50! Rough estimates of the value of the option depending on volatility levels: Bottom line: unless this is a super volatile stock, it is trading at $3.50 for a reason. More generally... |
What size “nest egg” should my husband and I have, and by what age? | I would focus first on maxing out your RRSPs (or 401k) each year, and once you've done that, try to put another 10% of your income away into unregistered long term growth savings. Let's say you're 30 and you've been doing that since you graduated 7 years ago, and maybe you averaged 8% p.a. return and an average of $50k... |
Self employed, putting away tax money | Hearing somewhere is a level or two worse than "my friend told me." You need to do some planning to forecast your full year income and tax bill. In general, you should be filing a quarterly form and tax payment. You'll still reconcile the year with an April filing, but if you are looking to save up to pay a huge bill ... |
Do I need to own all the funds my target-date funds owns to mimic it? | If you read Joel Greenblatt's The Little Book That Beats the Market, he says: Owning two stocks eliminates 46% of the non market risk of owning just one stock. This risk is reduced by 72% with 4 stocks, by 81% with 8 stocks, by 93% with 16 stocks, by 96% with 32 stocks, and by 99% with 500 stocks. Conclusion: After... |
College student lacking investment experience: How to begin investing money? | If you have wage income that is reported on a W2 form, you can contribute the maximum of your wages, what you can afford, or $5500 in a Roth IRA. One advantage of this is that the nominal amounts you contribute can always be removed without tax consequences, so a Roth IRA can be a deep emergency fund (i.e., if the ch... |
What causes a stock to drop in price? | A rising tide lifts all ships Most (but not all) stocks trend along with the general market. Some trend right along with the market (and have a beta at, or very near, one) some follow the Market, but are less sensitive (having a beta of less than one). Some are hypersensitive (and would have a beta of greater than o... |
How to pay bills for one month while waiting for new job? | What is my best course of action, trying to minimize future debt? Minimizing expenses is the best thing you can do. The first step to financial independence is making do with less. Assuming I receive this $3500, am I better off using the bulk to pay off my credit cards, or should I keep as much cash available as I can?... |
Are AAA private-sector corporate bonds safer than government bonds? | Haven't there been examples of governments defaulting, delaying payment and imposing haircuts on investors? Greece and Argentina come to mind. Quite a few Govt have defaulted in the past or were very of default or crisis. Most 3rd world countries or developing countries have under gone stress at some point. Greece was ... |
Form 1040 - where to place my stipend? | If you're correct that it's not taxable because it's non-taxable reimbursement (which is supported by your W-2), then it should not go on your 1040 at all. If it is taxable, then it really should have appeared on your W-2 and would probably end up on Line 7 of your Form 1040. |
Thrift Saving Plan (TSP) Share Price Charts | The recommended way to track TSP funds in online portfolio tools is to track the underlying index and know that the results are pretty close. Not a perfect solution: :( Source including suggested ETFs: http://finance.yahoo.com/news/breaking-down-tsp-investment-funds-194600393.html Related, but not exactly what you ar... |
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... |
If one owns 75% of company shares, does that mean that he would have to take upon himself 75% of the company's expenses? | I think you're looking at the picture in an odd way. When each of you made your initial investments and determined what portions you owned, that gave the company capital that they could use to finance its operations. In return, you are entitled to the future profits of the company (in proportion to your ownership). Any... |
How many days do I have to hold a stock before it is considered a capital gain by the CRA? | You don't have to wait. If you sell your shares now, your gain can be considered a capital gain for income tax purposes. Unlike in the United States, Canada does not distinguish between short-term vs. long-term gains where you'd pay different rates on each type of gain. Whether you buy and sell a stock within minutes... |
I spend too much money. How can I get on the path to a frugal lifestyle? | As others have said, doing a monthly budget is a great idea. I tried the tracking expenses method for years and it got me nowhere, I think for these reasons: If budgeting isn't your cup of tea, try the "pay yourself first" method. Here, as soon as you get a paycheck take some substantial portion immediately and use i... |
Why would I want a diversified portfolio, versus throwing my investments into an index fund? | Index funds are well-known to give the best long-term investment. Not exactly. Indexes give the best long term performance when compared to actively managing investments directly in the underlying stocks. That is, if you compare an S&P500 index to trying to pick stocks that are part of it, you're more likely to succeed... |
How can you possibly lose on investments in stocks? | Easiest thing ever. In fact, 99% of people are loosing money. If you perform worse then 10% annually in cash (average over 5-10 years), then you better never even think about trading/investing. Most people are sitting at 0%..-5% annually. They win some, loose some, and are being outrun by inflation and commissions. In ... |
Most important skills needed to select profitable stocks | You would appear to be a swing trader, like myself. I have been trading futures and futures options for 29 years, and have both made and lost a lot of money in that time. My trades last hours, to days, to at most a few weeks. From my experience, the most important skills are: 1) Money management - keeping trade size sm... |
How can a U.S. citizen open a bank account in Europe? | Each country will have different rules. I can only speak about the Netherlands. There, there are two options as a resident to open an account. You needed a BSN (Dutch ID number) or a strong reference from an international company sponsoring your residence there at a bank branch that dealt frequently with foreign cust... |
How much is an asset producing $X/month is worth? | The simplest way is just to compute how much money you'd have to have invested elsewhere to provide a comparable return. For example, if you assume a safe interest rate of 2.3% per year, you would need to have about $520,000 to get $1,000/month. |
How to calculate Stamp duty of North Territory in Australia? | The formula is actually as follows: (0.06571441 * V^2) + 15 * V, where V is the value divided by 1,000 which gives us AU$ 23,929 You find the same value using the calculator you linked to if you select "Investment" instead of "Primary Residence" or uncheck "I am a first home buyer" Edit: I don't know how they determin... |
What can cause rent prices to fall? | The buy-to-rent investment bubble created (in some markets) a large number of new housing starts often exceeding the available demand. Since people were investing in the capital gain, they didn't mind whether a place was rented or not. Many places stood empty at the prices investors wished to charge. In the UK where ... |
Dividend yeild per unit | I am also confused by what he says. The DJIA has not been at 900 for decades. However a $36 dividend is 4% per unit if you get $9 per unit per quarter. 2/3 of 4% is 6%,so that is inside his 7.5% to 5.5%. How much you have in dividend paying stocks vs. Bonds most often is a function of your age. For example, I have hear... |
Exposure to Irish Housing Market | There contracts called an FX Forwards where you can get a feel for what the market thinks an exchange rate will be in the future. Now exchange rates are notoriously uncertain, but it is worth noting that at current prices market believes your Krona will be worth only 0.0003 Euro less three years from now than it is wo... |
I'm thinking of getting a new car … why shouldn't I LEASE one? | Also consider how cars fare under your ownership: Does your current car... If any of the answers to these questions are "Yes", you're probably going to get hosed with fees when you return the car. |
What should my finances look like at 18? | I was in a similar situation at age 18/19, but not making quite as much money. I maxed out an IRA and bought savings bonds, although rates were decent then. I did flitter away about half of what I earned, which in retrospect was probably dumb. But I had a good time! |
Corporate Coverdell ESA Tax Liability | Not sure how authoritative it is, but according to this site, yes: Can a corporation, partnership or other non-living entity make the contribution to an ESA? Yes. The tax law does not restrict the ability to make contributions to living individuals. Corporations and other entities may make contributions without regard ... |
Didn't apply for credit card but got an application denied letter? | fine because the application was declined anyway. No it isn't fine. Credit card applications generally need a hard pull, so get it rectified. Firstly check if an application was really made on your behalf. Some companies use this ploy to pull you into a scheme of making you apply for a credit card. Secondly call up the... |
Can you buy out a pink sheet listed company by purchasing all of the oustanding shares? | Depends on the structure of the company and what shares are outstanding. If the pink sheet stock has no voting power then buying all that stock doesn't get you any control at all. On the other hand, if the outstanding shares only represent 20% of the company's overall shares, then buying all the shares isn't likely e... |
Combined annual contribution limits for individuals [duplicate] | Your contribution limit to a 401(k) is $18,000. Your employer is allowed to contribute to your 401(k), usually a "matching contribution". That matching contribution comes from your employer, so is not subject to your personal contribution limit. A contribution to a regular 401(k) is typically made with pre-tax money ... |
Best way to start investing, for a young person just starting their career? | Adding to the very good advises above - Concentrate on costs related to investment activity. Note all expenses and costs that you pay. Keep it low. |
If I want a Credit Card offered through a different Credit Union should I slowly transition my banking to that CU? | I don't have an account with either of those CUs, but I do have membership at 2 different CUs. If they accept credit card payments online via transfer from another institution, there's no reason to move your money, unless there are other benefits (higher interest rates). All the CUs would likely require is membership ... |
Debt collector has wrong person and is contacting my employer | Use with moderation. Powerful stuff. Your caller could be an offshore scammer too. Summarizing from http://www.creditinfocenter.com/rebuild/debt-validation.shtml: You can dispute the debt, and demand that the collector give you the name and address of the original creditor and show that it isn't past the statute of lim... |
How to share income after marriage and kids? | The bottom line is choosing the right partner. If your partner works as hard as you do, than everything should be split, irregardless of who makes more. Unfortunately, my bf, now by separated husband, borrowed money from me before we were married. I saw a lack of work ethic in him from the beginning, loved him anyway a... |
Should I fund a move by borrowing or selling other property assets? | that would deprive me of the rental income from the property. Yes, but you'd gain by not paying the interest on your other mortgage. So your net loss (or gain) is the rental income minus the interest you're paying on your home. From a cash flow perspective, you'd gain the difference between the rental income and your... |
How to calculate years until financial independence? | The definition I use for financial independence is 99% confidence that, at a specific estimated spending rate per year (allowing for estimated inflation, and budgeting for likely medical emergencies, and taxes on taxable investments), the money will outlast me. This translates to needing an average annual return on inv... |
If the co-signer on my car loan dies, can the family take the car from me like they're threatening to? | The lead story here is you owe $12,000 on a car worth $6000!! That is an appalling situation and worth a lot to get out of it. ($6000, or a great deal more if the car is out of warranty and you are at risk of a major repair too.) I'm sorry if it feels like the payments you've made so far are wasted; often the number... |
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... |
Is Cost of Living overstated? | New York City is high cost-of-living, and I have absolutely no clue why people live there. It's a tough place, and the taxes are oppressive. People buy a studio apartment for $150,000 that has 175 square feet (that's not a typo) plus a $700/month maintenance fee that continues after the mortgage is paid off. And tha... |
How should I handle taxes for Minecraft server donations? | First to clear a few things up. It is definitely not a gift. The people are sending you money only because you are providing them with a service. And for tax purposes, it is not a "Donation". It has nothing to do with the fact that you are soliciting the donation, as charitable organizations solicit donations all t... |
What size “nest egg” should my husband and I have, and by what age? | There's a bit of working backwards that's required. This is a summary of a spreadsheet I wrote which helps to get to the answer. What you see here is that at age 25, one might have saved about a half year's salary, assuming they worked 5 years. The numbers grow exponentially to at 65, about 15 years salary saved. Thi... |
Is there any instance where less leverage will get you a better return on a rental property? | leverage amplifies gains and losses, when returns are positive leverage makes them more positive, but when returns are negative leverage makes them more negative. since most investments have a positive return in "the long run", leverage is generally considered a good idea for long term illiquid investments like real es... |
Are PINs always needed for paying with card? | Chip and Pin cards are popular in Europe, however in the US we don't have them. Visa/MC and Amex can issue chip and pin cards but no merchants or machines are set up here to take them. Only certain countries in Europe use them and since you could possibly have a US visitor or a non-chip and pin person using your mach... |
Does the stock market create any sort of value? | It's not a ponzi scheme, and it does create value. I think you are confusing "creating value" and "producing something". The stock market does create value, but not in the same way as Toyota creates value by making a car. The stock market does not produce anything. The main way money enters the stock market is through ... |
Paying taxes on dividends even though your capital gains were $0? | In the US, and in most other countries, dividends are considered income when paid, and capital gains/losses are considered income/loss when realized. This is called, in accounting, "recognition". We recognize income when cash reaches our pocket, for tax purposes. So for dividends - it is when they're paid, and for gain... |
Is a naked put really that risky | So, yes, you may be having the inevitable epiphany where you realize that options can synthetically replicate the same risk profile of owning stock outright. Allowing you to manipulate risk and circumvent margin requirement differences amongst asset classes. Naked short puts are analogous to a covered call, but may hav... |
What is an “at close order” in the stock market? | Usually backtests for (long-term) strategies are evaluated on a end-of-day basis where you only consider close prices. If your strategy performs well in these backtests, hopes are that if you use a market-on-close (MOC) order your performance will not diverge too much from the backtest. The fact that it won't diverge m... |
Should you keep your stocks if you are too late to sell? | The stock price is not only based on the general market trend and the stock's current profitability and prospects, but is also based on prediction of how the stock's prospects might change in the future. In almost every case, there are professional investors analysing the stock's future prospects and considering whethe... |
What are the pros and cons of buying an item on installments with zero percent interest? | If (and only if) there is a zero interest installment plan available, technically the only uncontrollable risk is that there will likely be a hard inquiry on your credit report which may or may not also have a corresponding debt obligation attached to it. (Personally, I recently signed up for one such plan with Google ... |
Why doesn’t every company and individual use tax-havens to pay less taxes? | However, if you are employed by a company that exists in a tax haven and your services are provided to an employer by that tax haven company, it is the tax haven company that gets paid, not you. Under various schemes that company need not pay you at all. For example it may make you a loan which is not taxed (ie you don... |
Feasibility of using long term pattern on short term investments | When structures recur at different scales, they're called "fractals", and there is something called the "fractal markets hypothesis" which attempts to analyse stock market movements as fractals and in terms of (related) chaos theory. Whether you can profit from it I have no idea. If it was easy, everyone would be doin... |
Having a separate bank account for business/investing, but not a “business account?” | Having a separate checking account for the business makes sense. It simplifies documenting your income/expenses. You can "explain" every dollar entering and exiting the account without having to remember that some of them were for non-business items. My credit union allowed me to have a 2nd checking account and allowed... |
How to maximize small business 401k contribution? | I would hire an accountant to help set this up, given the sums of money involved. $53,000 would be the minimum amount of compensation needed to maximize the 401k. The total limit of contributions is the lesser of: 100% of the participant's compensation, or $53,000 ($59,000 including catch-up contributions) for 2015 an... |
How do you translate a per year salary into a part-time per hour job? | As an easy and rough rule of thumb, a job for $55,000 per year is $55 per hour as a contractor. That's roughly twice the hourly rate. In return, the company gets the rate to vary your hours or cease your employment with less financial, legal or managerial overhead than a full time employee. You have less stability, l... |
Does gold's value decrease over time due to the fact that it is being continuously mined? | Does gold's value decrease over time due to the fact that it is being continuously mined? Remember that demand increases and decreases - we've had seven years or so of strong demand increase and the corresponding price increase suggests there is a lack of gold coming into the market rather than too much. Also, bear in ... |
what is a mortgage gift exchange? | I'm guessing since I don't know the term, but it sounds like you're asking about the technique whereby a loan is used to gather multiple years' gift allowance into a single up-front transfer. For the subsequent N years, the giver pays the installments on the loan for the recipient, at a yearly amount small enough to av... |
Is there any real purpose in purchasing bonds? | Here are my reasons as to why bonds are considered to be a reasonable investment. While it is true that, on average over a sufficiently long period of time, stocks do have a high expected return, it is important to realize that bonds are a different type of financial instrument that stocks, and have features that are a... |
Reporting financial gains from my online store | As a new (very!) small business, the IRS has lots of advice and information for you. Start at https://www.irs.gov/businesses/small-businesses-self-employed and be sure you have several pots of coffee or other appropriate aid against somnolence. By default a single-member LLC is 'disregarded' for tax purposes (at least... |
Does high frequency trading provide economic value? | You pointed out that HFT does not create ipods are mine minerals. Neither does human trading. HFT is a proxy for human trading. Although the computer is executing trades automatically based on an algorithm, it is still using money from a human being's account so the trading is still being done with someone's money. F... |
The doctor didn't charge the health insurance in time, am I liable? | If you read all that paperwork they made you fill out at the emergency room, there is probably something in there explicitly stating that you owe any bills you rack up regardless of what happens with the insurance company. They generally have a disclaimer that filing for you with your insurance company is a courtesy se... |
Are Certificates of Deposit worth it compared to investing in the stock market? | Growth is how well the investment will grow on average. In the long term, this is a sure thing. Volatility is how much the value will jerk up and down in the short term. Do you want both... Or neither? When are you going to use the money? If it's IRA money you can't touch for 30 years, it really ought to be in th... |
Does dollar cost averaging really work? | If you define dollar cost cost averaging as investing a specific dollar amount over a certain fixed time frame then it does not work statistically better than any other strategy for getting that money in the market. (IE Aunt Ruth wants to invest $60,000 in the stock market and does it $5000 a month for a year.) It wil... |
Can one get a house mortgage without buying a house? | I've never heard of a loan product like that. Yes, if they keep the funds in an account, it is no risk to the bank, but they would essentially need to go through the loan process twice for the same loan: when you pick a house, they need to reevaluate everything, along with appraising and approving the house. Even if y... |
How much does it cost to build a subdivision of houses on a large plot of land? | The basic answer is that you are comparing apples and oranges. On the one hand, you are considering a case where someone buys a single already-built house. On the other hand, you are considering a case where someone buys a large piece of land, builds 10 houses, and (presumably) sells or rents the 9 they're not living... |
Can saving/investing 15% of your income starting age 25, likely make you a millionaire? | It depends on how much you save, how much your savings earns each year. You can model it with a very simple spreadsheet: Formula view: You can change this simple model with any other assumptions you wish to make and model. This spreadsheet presumes that you only make $50,000/year, never get a raise, that your saving... |
Why ever use a market order? | The original poster's concern is valid. Sometimes, market orders do get executed at seemingly ridiculous prices. In addition to Victor's reasons for using a market order, sometimes a seller does not care how low the price is. For example, after a company goes broke, its stock continues to trade for a while. This all... |
Is it better to buy a computer on my credit card, or on credit from the computer store? | Since you have a credit card, I recommend you use it for the purchase. It gets you two things at the very least: Gets the purchases reported as credit utilization. If you handle that correctly, you can improve your score Most card vendors give free extended warranty and return policies that a retailer or manufacturer d... |
Is this Employee Stock Purchase Plan worth it when adding my student loan into the equation? | It's 5% free money, if you believe the company's stock is fairly valued and likely to grow and/or return reasonable dividends until you're ready to sell it. There's usually a minimum holding period of a few months to a year before these discounted shares can be sold; take that into account |
Using Marine Traffic (AIS) to make stock picks? | You can. Speculating on marine traffic is more closely tied to oil trades and ocean shipping container rates, than trades on any particular companies. But companies heavily tied to ocean shipping can be ripe for speculation. The baltic dry index is created for this analytical purpose, and that information can be used a... |
How to calculate how far a shorted stock's price can rise before broker issues a margin call? | When margin is calculated as the equity percentage of an account, the point at which a broker will forcibly liquidate is typically called "maintenance margin". In the US, this is 25% for equities. To calculate the price at which this will occur, the initial and maintenance margin must be known. The formula for a long ... |
Typical return for an IRA? How can I assess if my returns were decent? | There is no typical return for an IRA. Understand that an IRA is not an investment type, it is just an account that gets special tax treatment by the Federal Government. The money in the IRA could be invested in almost anything including Gold, Stocks, Bonds, Cash, CDs, etc. So the question as phrased isn't exactly mean... |
Is there a benefit, long term, to life insurance for a youngish, debt, and dependent free person? | If there are no dependents, there is no need for life insurance. You mention getting insurance when it is not needed, to protect you against some future risk. If you have a policy and a disease crops up that would normally make you un-insurable, you can keep your insurance for the rest of the term. The cost for this w... |
Why do some companies offer 401k retirement plans? | I agree with the other answers that it is a benefit, but wanted to add another explanation for this: Also, why a company would prefer matching someone's contributions (and given him or her additional free money) instead of just offering a simple raise? In addition to a match being a benefit that is part of your tot... |
Why is the stock market price for a share always higher than the earnings per share? | Think about the implications if the world worked as your question implies that it "should": A $15 share of stock would return you (at least) $15 after 3 months, plus another $15 after 6 months, plus another after 9 and 12 months. This would have returned to you $60 over the year that you owned it (plus you still own ... |
How do I apply for a mortgage after a cash closing on a property? | Is she correct in that you generally can't even apply until the cash transaction is complete? Probably. How can you commit to mortgage something you do not own? Makes sense for them to wait not even until the transaction is complete - but until the transaction is recorded. Is 45 days reasonable to complete the financ... |
What determines deal price on stock exchange? [duplicate] | Price is decided by what shares are offered at what prices and who blinks first. The buyer and seller are both trying to find the best offer, for their definition of best, within the constraints then have set on their bid or ask. The seller will sell to the highest bid they can get that they consider acceptable. The b... |
What does this diagram from Robert Kiyosaki about corporations mean? | It looks like RK is encouraging tax fraud. Suggesting that one have their business cover personal expenses sounds like the advice that got Leona Helmsley in hot water. |
Home (re)Finance and Providing Additional Information | I have never had a lender ask my budget, only my income, savings, credit rating and value of the collateral. That's considered adequate info to estimate risk for most ordinary loans. Yes, they may want the income proven by evidence from your employer or via a copy of your tax returns. They don't care what you buy as lo... |
Can my federal adjusted gross income differ by $1 between my federal and state returns? | No, you don't. Rounding errors happen, and if there's no change in the actual tax there's no reason to amend. If all the income was properly reported and the tax was properly calculated - no-one cares if it was rounded up or down on one of the lines. Note for the next time though: Not sure about New York, but Federal t... |
Comparing/reviewing personal health insurance plans for the self-employed | I was in your situation a few years ago and I discovered something that worked perfectly for me - a local health insurance broker. I met with her, discussed my needs, reviewed the options with her, then acted. She received a commission from the insurer, so it cost me nothing. I would certainly follow a similar approach... |
Tenant wants to pay rent with EFT | You could setup a Ally account to use solely for this. There is no minimum, no opening balance requirement, and you can do up to 6 transfers a month for free. This would partition your money from other accounts, while giving you the flexibility to move it to other accounts with ease. |
MasterCard won't disclose who leaked my credit card details | Others have already commented on the impact of anything which dissuades merchants from raising possible breaches, so I won't dwell on that. Maybe we need stronger legislation, maybe we don't, but it doesn't change today's answer. Often it works the other way around to what you might expect - rather than the merchant no... |
How can I calculate the volatility(standard deviation) of a stock price? and/or ROI (return on investment) of a stock? | ROI and volatility should be calculated over a representative period of time, for example 3 or 5 years, depending on data availability. The ROI is simple, for example, over 5 years:- For the 5 year annualised volatility you can refer to the ESMA SRRI methodology. Box 1 (page 3) m is the annualisation factor. Stock vo... |
Roth IRA - Vanguard or Fidelity? If a college student had to pick one? | Well, a couple things to keep in mind: Even if you have enough to meet the minimum initial amount, you need to have at least that much income in the year you make the contribution. You'll probably be best served saving up in a savings account so that by the time you have an income (and can thus make contributions), you... |
Can I lose more on Forex than I deposit? | If you don't use leverage you can't lose more than you invested because you "play" with your own money. But even with leverage when you reach a certain limit (maintenance margin) you will receive a margin call from your broker to add more funds to your account. If you don't comply with this (meaning you don't add funds... |
Can I deduct personal loans or use them as tax “write offs?” | You will have to write it off as an offset of capital gains or as bad debt against personal income, limited to $3k/ yr. Write off 3k this year, 2k next. Here's the tax code, you'll need to file a form 8949, link below. https://www.irs.gov/taxtopics/tc450/tc453 So, this requires that it is a loan, acknowledged by both y... |
What is the relationship between the earnings of a company and its stock price? | You would think that share prices is just a reflection of how well the company is doing but that is not always the case. Sometimes it reflects the investor confidence in the company more than the mere performance. So for instance if some oil company causes some natural disaster by letting one of there oil tankers crash... |
How to calculate the standard deviation of stock returns? | For implied volatility it is okey to use Black and scholes but what to do with the historical volatility which carry the effect of past prices as a predictor of future prices.And then precisely the conditional historical volatility.i suggest that you must go with the process like, for stock returns 1) first download s... |
On what dates do the U.S. and Canada release their respective federal budgets? | In the US there is no set date. If all goes well there are multiple dates of importance. If it doesn't go well the budget process also may include continuing resolutions, shutdowns, and sequestrations. |
Are the sellers selling pre-IPO shares over these websites legitimate or fake? | I think you're right that these sites look so unprofessional that they aren't likely to be legitimate. However, even a very legitimate-looking site might be a fake designed to separate you from your money. There is an entire underground industry devoted to this kind of fakery and some of them are adept at what they do... |
I cosigned on a house for my brother | This is why we tell people not to co-sign unless they are able and willing to risk that money becoming a gift... or are able and willing to treat it as business rather than family. Unfortunately that advice is a bit late now to help you. When you cosigned, you promised the bank that you would make any payments he didn'... |
What should I consider when I try to invest my money today for a larger immediate income stream that will secure my retirement? | TL:DR: You should read something like The Little Book of Common Sense Investing, and read some of the popular questions on this site. The main message that you will get from that research is that there is an inescapable connection between risk and reward, or to put it another way, volatility and reward. Things like gov... |
What is the purpose of endorsing a check? | So the bank can (theoretically) compare that signature to the ID you provide, showing that the names and signatures match and that you are the person to whom the check was written. |
Why would someone buy a way out-of-the-money call option that's expiring soon? | I suggest you look at many stocks' price history, especially around earnings announcements. It's certainly a gamble. But an 8 to 10% move on a surprise earning announcement isn't unheard of. If you look at the current price, the strike price, and the return that you'd get for just exceeding the strike by one dollar, yo... |
Who receives the money when one company buys another? | It's tempting to think of a corporation as a real thing, because in many respects it seems to be. But it isn't a corporeal thing (despite the root word of the name). It may own corporeal things, and employ corporeal people, but it is not itself a real thing. Borrowing heavily from Prof Joseph Heath: It might be better ... |
What percentage of my stock portfolio should be international (non-US) stocks? | Rephrasing your question: Am I diversified if I have more than 50% US stocks? I would say that you can certainly be diversified and have more than 50% of your portfolio invested in US Stocks. I view the amount of international stocks (non-US) as a risk choice. My observations have been that my international stocks... |
Individual Investor Safe Reinvest Gains Strategy? | Your idea is a good one, but, as usual, the devil is in the details, and implementation might not be as easy as you think. The comments on the question have pointed out your Steps 2 and 4 are not necessarily the best way of doing things, and that perhaps keeping the principal amount invested in the same fund instea... |
Boyfriend is coowner of a house with his sister, he wants to sell but she doesn't | He needs to go see a lawyer to find out what all his options are, and the consequences of any of them. Then he needs to get help extricating himself from this situation, in whatever fashion he chooses: buyout, giveaway, what have you. This situation involves property, which involves money, so definitely get professiona... |
Why doesn't Japan just divide the Yen by 100? | Some answers already informed about denomination. There are currencies, doing the cut off of two digits, for example the french franc. See http://en.wikipedia.org/wiki/French_franc#New_franc When you look to old french movies, they often talked about 'old franc' when talking about values (at least in French original, ... |
Risk of buying stock | When you buy shares, you are literally buying a share of the company. You become a part-owner of it. Companies are not required to pay dividends in any given year. It's up to them to decide each year how much to pay out. The value of the shares goes up and down depending on how much the markets consider the company i... |
Shouldn't a Roth IRA accumulate more than 1 cent of interest per month? | Terminology aside. Your gains for this year in a mutual fund do seem low. These are things that can be quickly, and precisely answered through a conversation with your broker. You can request info on the performance of the fund you are invested in from the broker. They are required to disclose this information to yo... |
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