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How could USA defaulting on its public debt influence the stock/bond market? | This is a speculative question and there's no "correct" answer, but there are definitely some highly likely outcomes. Let's assume that the United States defaults on it's debt. It can be guaranteed that it will lose its AAA rating. Although we don't know what it will drop to, we know it WILL be AA or lower. A triple-A... |
Why would you ever turn down a raise in salary? | It would make sense to refuse a raise when it pushes your effective marginal 'tax' (including reduced benefits) above 100%. The working poor (family of 4, 20K-40K in the US) often face marginal rates above 100% when you consider the phase out of various government benefits (EITC, insurance, housing,etc.) You can see ... |
How do dividends of the underlying security in a security futures contract affect the security futures price? | The price of a future with an underlying that pays dividends is As you can see, since the value of dividends is subtracted from the value of the underlying equity, the future's price is lowered if dividends rise. Compounding that effect with the dividend effect on equity prices, reducing their prices, the future shoul... |
When entering a Futures contract, must the margin deposit be idle or can I profit from it? | In theory, an FCM may accept various types of collateral, including assets such as cash, treasuries, certain stocks, sovereign debt, letters of credit, and (as of 2009, I think,) gold. In practice, most will want you to post cash or cash. Some will take treasuries, but I think you'll generally have a hard time posting ... |
Debt collector has wrong person and is contacting my employer | Request verification in writing of the debt. They are required to provide this by law. Keep this for your records. Send them a notice by certified mail stating that this is not your debt and not to contact you again. Indicate that you will take legal action if they continue to try and collect. Keep a log of if/when th... |
How risky is it to keep my emergency fund in stocks? | Keeping your “big emergency” fund in stocks if you have 12 months income saved is OK. However you should keep your “small emergency” fund in cash. (However I find that even my stock broker accounts have some cash in them, as I like to let the dividends build up enough to make the dealing charges worthwhile. You do... |
Ex-dividend date: How long do I have to hold a stock in order to get the next dividend? | You only have to own it for a day (or rather for some amount of time before the close of trading the day before the ex-dividend date). This is governed by exchange rules based on the date of record and payable date set by the company. You might want to look at this article or this one for more details. It should be d... |
Determining current value for real estate for inheritance purposes | My question is... how is this new value determined? Does it go off of the tax appraised value? The tax assessors values are based on broad averages and are not very useful in determining actual home value. The most defensible valuation outside of a sale is a professional appraisal, real-estate agents may or may not ... |
Reinvesting dividends and capital gains | I'd like to add that many companies offer Divident Re-Investment Plans or DRIPs, which is basically a regular automatic stock purchase program. More info here: http://en.wikipedia.org/wiki/Dividend_reinvestment_plan. While your stock broker may offer dividend reinvestment, this is not the same as a DRIP. DRIPs are offe... |
What would happen if the Euro currency went bust? | Each country would have to go back to its own currency, or the rich countries would just kick the poor ones out of the EU. It would be bad for the poor countries, and the global economy would suffer, but it really wouldn't be a big deal. |
How many days does Bank of America need to clear a bill pay check | My bank's bill payment system saves nothing more than writer's cramp and stamps. When a paper check is required they mail it, but it's drawn on my account just as if I'd written it out by hand and mailed it myself. There is no "temporary account", and at the time of month when I take care of the bills, my balance osc... |
Are there any statistics that support the need for Title Insurance? | There seems to be no such information available. What is available is that number of claims are high and the Title Insurance companies have gone bankrupt as per the wikipedia article In 2003, according to ALTA, the industry paid out about $662 million in claims, about 4.3% percent of the $15.7 billion taken in as premi... |
what is this type of stock trade? | I think that pattern is impossible, since the attempt to apply the second half would seem to prevent executing the first. Could you rewrite that as "After the stock rises to $X, start watching for a drop of $Y from peak price; if/when that happens, sell." Or does that not do what you want? (I'm not going to comment on ... |
How is stock price determined? | You can interpret prices in any way you wish, but the commonly quoted "price" is the last price traded. If your broker routes those orders, unlikely because they will be considered "unfair" and will probably be busted by the exchange, the only way to drive the price to the heights & lows in your example is to have an o... |
Should I open a credit card when I turn 18 just to start a credit score? | I will disagree with the other answers. The idea that there is some to establish a "credit history" is largely a myth propagated by loaners who see it as positive propaganda to increase the numbers of their prospective customers. You will find some people who claim they were rejected for a card because they had no "cre... |
Can I be building a house with the bank forever? | No, you can't do this indefinitely. For one, you can't just take money out as home equity with no strings attached. The cash out is done as a loan (often a HELOC) or second mortgage and you have to make payments. The lender will always make sure you are able to afford the payments. At some point, you won't qualify for ... |
Health insurance deduction on schedule C if also full time employee with w2? | Do you satisfy the necessary criteria listed there? Then why not?... It sounds like you do. |
Can a put option and call option be exercised for the same stock with different strike prices? | You could have both options exercised (and assigned to you) on the same day, but I don't think you could lose money on both on the same day. The reason is that while exercises are immediate, assignments are processed after the markets close at the end of each day. See http://www.888options.com/help/faq/assignment.jsp f... |
Can a CEO short his own company? | If we take only the title of the question "can the CEO short the stock": It was probably different before Enron, but nowadays a CEO can only make planned trades, that is trades that are registered a very long time before, and that cannot be avoided once registered. So the CEO can say "I sell 100,000 shares in exactly s... |
Company wants to sell all of its assets, worth more than share price? | Why is the stock trading at only $5 per share? The share price is the perceived value of the company by people buying and selling the stock. Not the actual value of the company and all its assets. Generally if the company is not doing well, there is a perceived risk that it will burn out the money fast. There is a diff... |
Are there any catches with interest from banks? Is this interest “too good to be true”? | The 1.09% is per year, not per month, so you will be getting about 1K per year just for sitting around on your backside. Some important things. It is almost certain that you can earn a better interest rate elsewhere, if you are prepared to leave your 100K untouched. For example, even in Natwest you can earn 3.2% over t... |
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... |
Should I pay cash or prefer a 0% interest loan for home furnishings? | Read the terms and conditions very carefully. Many zero percent deals have a requirement that you pay back at a certain date, and if you don't, you'll have to pay some enormous percentage. Nobody will remind you of the date, because the lender has the secret hope that you will forget. |
Why are big companies like Apple or Google not included in the Dow Jones Industrial Average (DJIA) index? | Traditionally, the Dow Jones Industrial Average (DJIA) was only comprised of stocks that were traded on the New York Stock exchange. Neither Apple (AAPL) nor Google (GOOG) are traded on the New York Stock Exchange but instead are traded on NASDAQ. All NASDAQ tickers are four characters long and all NYSE tickers are o... |
Put Option Pricing | Standard options are contracts for 100 shares. If the option is for $0.75/share and you are buying the contract for 100 shares the price would be $75 plus commission. Some brokers have mini options available which is a contract for 10 shares. I don't know if all brokers offer this option and it is not available on all ... |
Are buyouts always for higher than the market value of a stock? | Can a company not bargain with a dying company for example and buy a falling stock at lower than market value? Of course. If the shareholders agree to it. But why would they, if the market value is higher, agree to sell to someone who offers less? If there's a compelling reason - it can happen. It might happen during... |
Relative worth of investment versus spending for the economy | I believe you're looking for some sort of formula that will determine how changes in savings, investing, and spending will affect economic growth. If such a formula existed (and worked) then central planning would work since a couple of people could pull some levers to encourage more savings, or more investing, or mor... |
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 ... |
Due Diligence - Dilution? | Publicly traded companies perform dilution via an FPO (Follow-up Public Offer). It is a process similar to IPO, with announcements, prospectus, etc. You will know ahead of time when that happen. Stocks traded OTC are not required to file a lot of regulatory documents that publicly traded stocks are required to file, an... |
For a mortgage down-payment, what percentage is sensible? | I think anything from 10% on demonstrates a reasonable ability to save. I would consider ongoing debt level a better indicator than the size of the down payment. It's been my experience that, without exception, there is a direct correlation between a persons use of revolving credit and their ability to manage their mo... |
What publicly available software do professional stock traders use for stock analysis? | Another one I have seen mentioned used is Equity Feed. It had varies levels of the software depending on the markets you want and can provide level 2 quotes if select that option. http://stockcharts.com/ is also a great tool I see mentioned with lots of free stuff. |
Walking away from an FHA loan | One additional penalty is you will be put on the CAIVRS ("cavers") for your default on the FHA mortgage which will preclude you from FHA financing in the future. When purchasing the multifamily unit it is an FHA requirement that you occupy one of the units. Lastly, I would advise against FHA due to elevated costs. C... |
How do I find the mappings between sedol and isin codes? | There is a relatively straightforward transformation explained on the Wikipedia page here and on the links from that page. Note that this only applies to SEDOLs for instruments listed on the London Stock Exchange (LSE). To convert SEDOL to ISIN you pad leading zeroes onto the SEDOL until you have 9 digits. Then you a... |
Buying a small amount (e.g. $50) of stock via eToro “Social Trading Network” using a “CFD”? | There are some useful answers here, but I don't think any of them are quite sufficient. Yes, there are some risks involved in CFD trading, but I will try and give you information so you can make your own decision. Firstly, Cyprus is part of the EU, which gives it a level of credibility. I'm not saying it's the safest... |
Can I trust the Motley Fool? | Upselling you is how they make money. That's the price of the free content. Test their recommendations. Pretend to buy the stocks they say. How do they do? Do they ever say to sell the stocks after their buy recommendations? There are lots and lots of opinions out there. I doubt people really hear about the good o... |
Credit card closed. Effect on credit score (USA) | As documented in MyFICO (http://www.myfico.com/credit-education/whats-in-your-credit-score/), there are several factors that affect credit scores. Payment history (35%) The first thing any lender wants to know is whether you've paid past credit accounts on time. This is one of the most important factors in a FICO® ... |
Evidence for timing market in the short run? | This is the S&P a bit over 20 years. If you've discovered a way to sell at 1400 in 2000, buy at 800 or so in 2003, sell again, well, you get the idea. There's strong evidence the typical investor hears the S&P is making new highs and rushes in. It's this influx that may send stocks higher from here, until the smart mo... |
Why is being “upside down” on a mortgage so bad? | Sample Numbers: Owe $100k on house. House (after 'crash') valued at: $50K. Reason for consternation: What rational person pays $100k for property that is only worth half that amount? True Story: My neighbor paid almost $250K (a quarter-of-a-million dollars - think about that..) for a house that when he walked (ran!) ... |
Why do stock prices of retailers not surge during the holidays? | If you look at S&P 500's closing price for the first trading day on December and January for the last 20 years, you will see that for 10 of these years, stocks did better overall and for 10 others they did worse. Thus you can see that the price of stocks do no necessarily increase. You can play around with the data her... |
Does a stock really dip in price on the ex-dividend date? And why would it do this? | Suppose the price didn't drop on the ex-dividend date. Then people wanting to make a quick return on their money would buy shares the day before, collect the dividend, and then sell them on the ex-dividend date. But all those people trying to buy on the day before would push the price up, and they would push the price ... |
Are my parents ripping me off with this deal that doesn't allow me to build my equity in my home? | Basically, you have purchased 25% of the condo for $40,000, and your parents bought 75% of the condo for another $115,000. We imagine for a moment that it wasn't you who lived in the condo, but some unrelated person paying rent. You are paying $7,500 a year for tax and fees, plus $6,000 a year, so there is $13,500 lea... |
How does “taking over payments” work? | The phrase doesn't mean anything specifically. Your SO could start paying the payments, but the title and lien would remain in your name. If you wanted to change the title or lien to be in her name, you would have to sell the car to her (sales tax would be involved but the process would be relatively painless). You c... |
Purchase same stock twice | how does the trading company know which one I want to sell? It doesn't need to know. You just sell one. From taxation point of view depending on the country / tax jurisdiction, it can be only be FIFO or specific stock. |
Should I wait to save up 20% downpayment on a 500k condo? | As I've crunched numbers towards what my family could afford for a down payment (in an area with similar housing costs - don't you hate that high cost of living?), I've come up with the following numbers: We may be missing some area of expenses, but in general I think we are being fairly conservative. You should consi... |
Methods for forecasting price? | well there are many papers on power spot price prediction, for example. It depends on what level of methodology you would like to use. Linear regression is one of the basic steps, then you can continue with more advanced options. I'm a phd student studying modelling the energy price (electricity, gas, oil) as stochasti... |
Buying from an aggressive salesperson | This is way too long for a comment, so I am posting this as an answer. My bet is that you're buying a new piano. It is the only instrument that makes sense. The rest of this answer are going to assume this, but this should apply well if you're going after a violin or marimba for example. For those readers that do not k... |
Do budgeting % breakdowns apply globally? | The exact percentages depend on many things, not just location. For example, everyone needs food. If you have a low income, the percentage of your income spent on food would be much higher than for someone that has a high income. Any budgeting guidelines that you find are just a starting point. You need to look at yo... |
What can I do when the trading price of a stock or ETF I want to buy is too high? | If you find a particular stock to be overvalued at $200 for example and a reasonable value at $175, you can place a limit order at the price you want to pay. If/when the stock price falls to your desired purchase price, the transaction takes place. Your broker can explain how long a limit order can stay open. This meth... |
Personal Asset Protection - How to protect asset against a deficiency judgement? | You should talk to a bankruptcy attorney local to you. While bankruptcy laws are federal, there are a variety of local rules. As an example in CA, I've heard of a trustee going after a debtor's IRA account. Retirement accounts are generally off limits, but not always. Additionally, structuring your assets for the pu... |
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... |
Should I take a personal loan for my postgraduate studies? | As mentioned in the comments, there are costs associated with owning & living in an apartment. First you have to pay maintenance charges on a monthly basis and perhaps also property tax. Find out the overall outgoings when you live in that apartment & add the EMI payments to the bank, it should not be way higher than y... |
How much is university projected to cost in Canada in 18 years? | The College Board offers a calculator. (Targeted to US residents; not sure how the figures will differ for Canada and other countries.) Keep in mind that college costs typically increase faster than inflation. When I attended in 2001-2005, my college's tuition costs increases ranged from 4 to 6%. |
Short term investing vs Leaving money alone? | There are three basic concepts finance (as far as I'm concerned). Liquidity is basically an asset's spendability. Assets range in liquidity from cash (very liquid) to real estate (not very liquid). You can spend cash immediately, while real estate must first be converted to cash. Another important concept is your t... |
Rationale behind using 12, 26 and 9 to calculate MACD | The values of 12, 26 and 9 are the typical industry standard setting used with the MACD, however other values can be substituted depending on your trading style and goals. The 26d EMA is considered the long moving average when in this case it is compared to the shorter 12d EMA. If you used a 5d EMA and a 10d EMA then t... |
Can buying REIT's be compared to investing in Real Estate? | well yes but you should also begin to understand the sectoral component of real estate as a market too in that there can be commercial property; industrial property and retail property; each of which is capable of having slightly (tho usually similar of course) different returns, yields, and risks. Whereas you are sa... |
What's the catch in investing in real estate for rent? | There are those who are knowledgable in real estate who offer rules of thumb: Don't pay more that 50X the rent for the house. Here, $972 x 50 is $48600. Assume half the rent goes to expenses. So from $972, you net $486, and after that mortgage, you have $111 in profit. Zillow usually assumes 20% down, here $20K. So you... |
Why does FlagStar Bank harass you about payments within grace period? | They call you because that is their business rules. They want their money, so their system calls you starting on the 5th. Now you have to decide what you should do to stop this. The most obvious is to move the payment date to before the 5th. Yes that does put you at risk if the tenant is late. But since it is only one... |
Switch from DINK to SIWK: How do people afford kids? | How do people do it? Firstly, I'd advise you to explicitly budget all taxes. The reason is because taxes get complicated when you have a child deduction. Not that raising a child is profitable post taxes, but it can change your perspective. SIWKs with high income get by just fine. The rest sacrifice. They buy less hous... |
Getting financial advice: Accountant vs. Investment Adviser vs. Internet/self-taught? | I think the OP is getting lost in designations. Sounds to me that what he wants is a 'financial advisor' not an 'investment advisor'. Does he even have investments? Does he want to be told which securities to buy? Or is he wanting advice on overall savings, insurance, tax-shelters, retirement planning, mortgages, ... |
Mortgage sold to yet another servicer. What are my options? | Your mortgage terms are locked in; the servicer/new owner cannot change the terms without your consent, but the servicer can be more aggressive in taking action (as specified in your mortgage contract) against you. For example, if the mortgage agreement calls for penalties for missing a payment or making it late, you... |
What is a good 5-year plan for a college student with $15k in the bank? | I just checked TCF's rates, and they only pay a miserly rate of 0.25%. Banks like Capital One or Sallie Mae pay about 1.15%, which is more than 4x, though still nothing great. Do you expect to use these funds in 5 years (e.g. for down payment on a house), or could you contribute them to an IRA? |
Where do I-Bonds fit into personal finance plans? | tl,dr: I-bonds do not fit well into most personal finance plans. First the questions (succinct reference): I like your thought process weighing your liquidity and risk versus your return. This is very important. However, I think you might be sidetracked a bit by I-Bonds. I-Bonds are not generally good for personal i... |
How can one get their FICO/credit scores for free? (really free) | I get my credit scores from all three bureaus for free - no gimmick. I use a combination of banks that offer this service to get my scores. I wrote about this sometime back in my blog. For credit report, the only place to go is AnnualCreditReport.com. I space it out so that I get one every 4 months since there is a ... |
The doctor didn't charge the health insurance in time, am I liable? | Here's my thought - call the insurance company back. Ask them to just tell you what the "reasonable and customary" approved payment would be. Offer that exact amount to the hospital, it's what they would have gotten anyway, and you learned a cheap lesson. |
Can I open a Solo 401(k) if I am an independent contractor but also work part-time as an employee? | A Solo 401k plan requires self-employment income; you cannot put wages into it. |
Would I ever need credit card if my debit card is issued by MasterCard/Visa? | Car rental agencies typically accept only credit cards for the rental (you can pay at the end with debit, but the securing during the rental must be a credit card - or a high cash deposit). Hotel advance-bookings - even if many months in the future - will work fine with a credit card, but - as explained by others - on ... |
How can Schwab afford to refund all my ATM fees? | Schwab is a highly diversified operation and has a multitude of revenue streams. Schwab obviously thinks it can make more off you than you will cost in ATM fees and it's probably safe to assume most Schwab clients use more services than the ATM card. It's not worthwhile to discuss the accounting of ATM/Debit/Credit ca... |
Can I buy only 4 shares of a company? | Open an account with a US discount online broker, or with a European broker with access to the US market. I think ETRADE allow non-resident accounts, for instance, amongst others. The brokerage will be about $10, and there is no annual fee. (So you're ~1% down out of the gate, but that's not so much.) Brokers may ... |
Are stocks only listed with one exchange in one place? | Depends. The short answer is yes; HSBC, for instance, based in New York, is listed on both the LSE and NYSE. Toyota's listed on the TSE and NYSE. There are many ways to do this; both of the above examples are the result of a corporation owning a subsidiary in a foreign country by the same name (a holding company), whic... |
What should I do with my paper financial documents? | Here's my approach: As for Google Docs, I think that its safe enough for most people. If you in a profession that was subject to heavy regulatory scrutiny, of if you are cheating on your taxes, I would probably not use a cloud provider. Many providers will provide documents to government agencies without a subpoena or ... |
Has anyone compared an in-person Tax Advisor to software like Turbo Tax? | I did my own taxes previously using both H&R Block Tax Cut and TurboTax. When I had a simple return and was single, it worked great. Once I got married it was a little more complicated. When I started a small side business, I switched to an accountant. He does a great job of adjusting deductions between my wife and... |
Scam or Real: A woman from Facebook apparently needs my bank account to send money | If it's real, it's illegal. She needs someone to be a middle man who transfers money and doesn't ask questions. The list of possible reasons should be plenty obvious and range anywhere from fraud to terrorism. There are thousands of ways to get already transferred money back from your account. If the source of the mon... |
At what point is it most advantageous to cease depositing into a 401k? | The only time to stop saving money for retirement is when you have enough money to retire tomorrow. Not all of your "retirement savings" need to be in a 401k, it is just better if you can. Be sure to get as much as you can from the employer matching program. Unfortunately some employer matching programs discourage you... |
Do I need a business credit card? | I would suggest at least getting a personal card that you only use for business expenses, even if you don't opt for a business card. It makes it very clear that expenses on that card are business expenses, and is just more professional. The same goes for a checking account, if you have one of those. It makes it easi... |
What emergencies could justify a highly liquid emergency fund? | What sort of emergency requires payment up front for which 2-3 days processing of a stock sale would pose a problem? In my case, the sudden and unexpected death of my wife. Back in 2011, my wife was struck and killed in a traffic incident. I had to immediately (not in 2 - 3 days) cover 50% of the entire costs of the fu... |
How can a 529 plan help me save for my child's college education? | If you're ready to start a 529 account, it makes a big difference which state you choose (some states have excessive fees). It doesn't have to be your own state, but some states give you tax incentives to stay in-state. What you need to do is check out Clark Howard's 529 Guide and check to see if your state is in the... |
Reducing taxable income in US in December | Assuming that what you want to do is to counter the capital gains tax on the short term and long term gains, and that doing so will avoid any underpayment penalties, it is relatively simple to do so. Figure out the tax on the capital gains by determining your tax bracket. Lets say 25% short term and 15% long term or (0... |
If there's no volume discount, does buying in bulk still make sense? | As with everything else, it's a question of trade-offs. Pros For Buying In Bulk Cons For Buying In Bulk Inventory cost. You need to purchase more shelving/cupboards to stock the goods. This is a real cost. The psychological effect of having more means you are more likely to use more, thus costing you more. Deflation o... |
Why would a tender offer be less than the market price? | As an addition to Chris Rea's excellent answer, these tender offers are sometimes made specifically to cast doubt on the current market price. For instance, a large public company that contracts with a smaller supplier or service company, also public, might make a tender offer below market price. The market will look a... |
How much time would I have to spend trading to turn a profit? | Sounds like you are a candidate for stock trading simulators. Or just pick stocks and use Yahoo! or Google finance tools to track and see how you do. I wouldn't suggest you put real money into it. You need to learn about research and timing and a bunch of other topics you can learn about here. I personally just stick... |
Mortgage or not? | If you do as you propose you are going to get burned. You need to sell, then start to rent. amongst other things. Since 2008, the economy never "recovered," but was sort of stabilized temporarily like a fighter on the ropes. The economy is beginning to collapse again, and that collapse will accelerate around the Fall. ... |
Pay off debt with RRSPs, or refinance and roll into Mortgage? | I would personally look at consolidating your debt at a lower interest rate by refinancing your mortgage. I would leave any retirement funds alone unless it was absolutely necessary to touch it with no other avenues available. However, once you have consolidated your debt into the mortgage I would pay more than the min... |
Buying a foreclosed property | No, it is not true. It depends on the market, the banks' inventory, the original debt that was owed, etc etc. The banks generally want to recover their money, so in case of underwater properties they may end up hold a property for years until prices bounce back (as it happened during the last crisis when many houses we... |
Would I ever need credit card if my debit card is issued by MasterCard/Visa? | Credit cards are often more fool proof, against over-drawing. Consider Bill has solid cash flow, but most of their money is in his high interest savings account (earning interest) -- an account that doesn't have a card, but is accessible via online banking. Bill keeps enough in the debit (transactions) account for regu... |
Micro-investing: How to effectively invest frequent small amounts of money in equities? | In terms of building the initial investment using some kind of mutual fund, I'd suggest you see my answer to this similar question https://money.stackexchange.com/questions/9943/cheapest-or-free-online-broker-for-beginner For buying individual stocks later, you could look at sharebuilder, or a low cost broker, however ... |
How to account for startup costs for an LLC from personal money? | You don't even need to formally loan the LLC any money. You pay for the setup costs out of pocket, and then once the LLC is formed, you reimburse yourself (just like with an expense report). Essentially you submit an expense report to the LLC for the startup costs, and the LLC pays out a check to you, categorized for t... |
How can I calculate total return of stock with partial sale? | If you just want to know total return, either as dollars or a percentage, just add up the total amount spent on buys and compare this to current value plus money received on sales. In this case, you spent (310 x $3.15 + $19.95) + (277 x $3.54 + $19.95). So your total investment is ... calculator please ... $1996.98. Yo... |
I have $12k in a Chase checking account, but want to start earning interest/saving/investing/etc to make more money. What should I do? | Lets make some assumptions. You are not close to retirement. You have no other debts. You have a job. You have no big need for the money. You should invest that. Do not invest with a bank, they are not as competitive on fees as a brokerage account. You can get specific answers that are different from every person... |
Are lottery tickets ever a wise investment provided the jackpot is large enough? | Others have already explained why lotteries have negative expected value, so in that sense it is never wise to buy a lottery ticket. I will provide an alternative view, that it is not always unwise to buy a lottery ticket even though the expected value of the lottery ticket is lower than its cost (i.e. a loss). The qu... |
Is legal sending dollars to someone in Mexico, and sending them back for profit? | It is certainly legal to transfer money between people, no matter how often, as long as the money is not originally from illegal sources. If you are gaining in the process, you need to pay taxes on your (net) gain, as on any income; but as always, taxed income is still income. Consider the accumulating transaction cost... |
Is there software to buy and sell stocks in real time on very small moves in price? | Note that the pros pay for extremely fast access and are literally fighting over nanoseconds to get every possible advantage. Your system won't come close to that by several orders of magnitude. Consider the implications for the kinds of automated trading you want to perform. (Pico was overstating it. Nano, at the proc... |
Are low commission trading sites safe? | I have used TradeKing for a couple of years now and love it. It really is a great site. They hold an IRA trading account for me and have been helpful in rolling money into that account, and with answering the occasional question. Previously I have used Scottrade and found that TradeKing is a much better value. |
Additional credit card with different limit on same account? | Generally not. Since authorized user cards are the same account and the difference between the two (the original and the AU card) are minimal. Note, there's nothing technically stopping banks from offering this as a feature, two cards do have identifiers that indicate they're separate cards, but the banks concern for ... |
When an insider discloses a stock trade are they required to execute? | They are not required to fulfill the trade that they have intended to execute. They are able to cancel or modify the trade at any point. Example: This is how insiders are able to manipulate the price of shares through there buying and selling intentions. A CEO would be able to disclose a buy order for a month from n... |
valuing options | Below I will try to explain two most common Binomial Option Pricing Models (BOPM) used. First of all, BOPM splits time to expiry into N equal sub-periods and assumes that in each period the underlying security price may rise or fall by a known proportion, so the value of an option in any sub-period is a function of its... |
What should I do with my $10K windfall, given these options? | I've been listening to Dave Ramsey a lot lately, and he encourages (encourage might be too light of a word for him) this priority list for budgeting: I would strongly advise you to tackle this list before you start to think about any sizable "fun" spending. If you don't have #1, set that aside first. The options you m... |
Should I “hedge” my IRA portfolio with a life cycle / target date mutual fund? | First of all, it's great you're now taking full advantage of your employer match – i.e. free money. Next, on the question of the use of a life cycle / target date fund as a "hedge": Life cycle funds were introduced for hands-off, one-stop-shopping investors who don't like a hassle or don't understand. Such funds are g... |
what is a mortgage gift exchange? | The issue is that the lender used two peoples income, debts, and credit history to loan both of you money to purchase a house. The only way to get a person off the loan, is to get a new loan via refinancing. The new loan will then be based on the income, debt, and credit history of one person. There is no paperwork you... |
What is the probabiltiy of being assigned if the call expires in the money | If you are in the money at expiration you are going to get assigned to the person on the other side of the contract. This is an extremely high probability. The only randomness comes from before expiration. Where you may be assigned because a holder exercised the option before expiration, this can unbalance some of your... |
Do I pay a zero % loan before another to clear both loans faster? | See many past answers: you will usually save the most money by paying off the highest-intetest-rate loan first. (Remember to allow for tax effects, if any, when comparing real interest rates.) Some folks are more motivated to simplify their finances than to save money; in that case you might pay off the smallest loan f... |
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