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What happened when the dot com bubble burst? | Well basically a lot of dot-com companies that had no real plans for having actual profit's, self-destructed. I had worked for a company called VarsityOnline.com which was depending on endless money from investor's, and had never really made any kind of profit, for which it had ample opportunity. People lost sight of r... |
Why do 10 year-old luxury cars lose so much value? | There is usually a bunch of reasons for this, some psychological and some entirely practical. Let's start with the latter: If I wanted an older luxobarge, I'd buy something from the early to mid 1990s in good condition. These cars tend to be a little less complex and thus a little easier to repair, plus you can find th... |
Is compounding interest on investments a myth? | So my Question is this, in reality is investment in equities like the stock market even remotely resemble the type of growth one would expect if investing the same money in an account with compounding interest? Generally no as there is a great deal of volatility when it comes to investing in stocks that isn't wel... |
How long do wire transfers take? | The experience I have with wire transfers is from Australia to the US. These transfers can take up to 5 business dates (i.e. a whole week including the non-business days of the weekend). I would have thought intra-European transfers would be quicker, given how behind most US (regional) banks are in their electronic tra... |
Equity market inflow meaning | Inflows to the US equity market can come from a variety of sources; for instance: You were paid a year-end bonus and decided to invest it in US equities instead of foreign equities, bonds, savings or debt reduction. You sold foreign equities, bonds, or other non-US equities and decided to invest in US equities. You dec... |
Should I try to hedge my emergency savings against currency and political concerns? | First thing is that your English is pretty damn good. You should be proud. There are certainly adult native speakers, here in the US, that cannot write as well. I like your ambition, that you are looking to save money and improve yourself. I like that you want to move your funds into a more stable currency. What is... |
Advice for college student: Should I hire a financial adviser or just invest in index funds? | Two things to consider: When it comes to advice, don't be "Penny wise and Pound foolish". It is an ongoing debate whether active management vs passive indexes are a better choice, and I am sure others can give good arguments for both sides. I look at it as you are paying for advice. If your adviser will teach you about... |
Does investing money in other currencies help pad losses in case of a stock market crash? | If the equity market in the USA crashed, its very likely equity markets everywhere else would crash. The USA has a high number of the world's largest businesses and there are correlations between equity markets. So you need to think of equities as a global asset class, not regional. Your question is then a question abo... |
Why Gamma is highest for an option that is at the money | Yes, you've got it right. The change in price is less meaningful as the instrument is further from the price of the underlying. As the delta moves less, the gamma is much less. Gamma is to delta as acceleration is to speed. Speed is movement relative to X, and acceleration is rate of change in speed. Delta is movem... |
How can I find a list of self-select stocks & shares ISA providers? | Try fool.co.uk for getting more information about ISAs: Everything You Need To Know About ISAs |
Received an unexpected cashiers check for over $2K from another state - is this some scam? | It is likely a scam. In fact the whole mystery shopping "job" may be a scam. There is a Snopes page about cashier's check scams, as well as a US government page which specifically mentions mystery shopping as a scam angle. As for how the scam works, from the occ.gov site I just linked: However, cashier’s checks latel... |
What variety of hedges are there against index funds of U.S. based stocks? | The only way to hedge a position is to take on a countervailing position with a higher multiplier as any counter position such as a 1:1 inverse ETF will merely cancel out the ETF it is meant to hedge yielding a negative return roughly in the amount of fees & slippage. For true risk-aversion, continually selling the sho... |
Multiple mortgage pre-approvals and effects on credit score | Johnny. I recently bought my first home as well, and I have worked in the credit business (not mortgage), so I think I can answer some of your questions. Disclaimer first that I'm in NY, and home buying does vary from state to state. In my experience, pre-qual is not too different from pre-approval. Neither represen... |
Net loss not distributed by mutual funds to their shareholders? | When you invest (say $1000) in (say 100 shares) of a mutual fund at $10 per share, and the price of the shares changes, you do not have a capital gain or loss, and you do not have to declare anything to the IRS or make any entry on any line on Form 1040 or tell anyone else about it either. You can brag about it at par... |
Are stories of turning a few thousands into millions by trading stocks real? | you'll need 25k to start or 2k in multiple accounts, that way you have access to margin, and don't have to worry about Pattern day trading limits. Be right more than you are wrong. Go up look for 3x potential up vs down risk. Compound daily. you can't double a penny every day every day for a month it becomes to diffic... |
1040 Schedule A Un-Reimbursed Business Expense Reporting | It would be unusual but it is possible that the expenses could be very high compared to your income. The IRS in pub 529 explains the deduction. You can deduct only unreimbursed employee expenses that are: Paid or incurred during your tax year, For carrying on your trade or business of being an employee, and Ordinary an... |
Are Certificates of Deposit worth it compared to investing in the stock market? | Of course CDs are worth it compared to the stock market. In fact, most institutional investors are envious of the CDs you have access to as an individual investor that are unavailable to them. You just need to be competent enough to shop around for the best rates and understand your time horizon. There are several conc... |
Canceling credit cards - insurance rate increase? | The comments section to Dilip's reply is overflowing. First - the OP (Graphth) is correct in that credit scoring has become a game. A series of data points that predicts default probability, but of course, offers little chance to explain why you applied for 3 loans (all refinancing to save money on home or rentals) go... |
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... |
How common are stock/scrip dividends (as opposed to cash dividends) in US equity markets? | There's not usually a point to issuing new stock as a dividend, because if you issue new stock, it dilutes the existing shareholders by the exact same amount as the dividend: so now they have a few more shares, great, but they're worth the exact same amount. (This assumes that all stockholders are equal. If there are m... |
Will ADR owner enjoy same benefit as common shares holders | One other issue you may face is when the company announces poor financial results and begins to tank, you will not be able to sell until the US market open and could incur a lot of pain. |
Do I need to pay tax on the amount of savings I have in the bank? | In India, assuming that you have already paid relevant [Income/Capital gains] tax and then deposited the funds into your Bank [Savings or Current] Account; there is NO INCOME tax payable for amount. Any interest earned on this amount is taxable as per Income Tax rules and would be taxed at your income slabs. Wealth... |
Where to start with personal finance? | This Stack Exchange site is a nice place to find answers and ask questions. Good start! Moving away from the recursive answer... Simply distilling personal finance down to "I have money, I'll need money in the future, what do I do", an easily digestible book with how-to, multi-step guidelines is "I Will Teach You To Be... |
Do I pay a zero % loan before another to clear both loans faster? | While, from a money-saving standpoint, the obviously-right course of action is to make only the minimum payment on the 0% loan, there are potentially legal reasons to try to pay off a car loan early. With a mortgage, you are the legal owner of the property and any action by the lender beyond imposing fees (e.g. foreclo... |
Would it make sense to take a loan from a relative to pay off student loans? | I will start with the assumption that you will never have any late payments and will fully pay off the loan. This may be a big assumption, but if you can't assume that, then you wouldn't have asked the question in the first place. The answer depends on your income: You should calculate how much student loan interest yo... |
What can cause rent prices to fall? | In the US, the government effectively sets a price floor for rents with a concept called "prevailing rent" for government subsidy. Even the crappiest, minimally compliant hovel is ultimately worth whatever the government will issue housing vouchers for. Rent can and does fluctuate for the higher end of the market. Basi... |
Freelancer in India working for Swiss Company | I have some more inputs to investigate: India has dual tax avoidance treaty signed with european countries so that NRIs dont pay tax in both countries. Please check if India has some agreement with Swiss Also for freelance job that is delivered from India, u need to make sure where you have to pay taxes as you are stil... |
First time home buyer. How to negotiate price? | Often, if your realtor and the selling realtor know each other, your realtor will "discover" what price the seller really wants. (Don't worry about how this is done. There will be no evidence it occurred!) Your realtor will then drop hints that you should aim for that price to ensure the deal goes smoothly. That sounds... |
Typically how many digits are in a cheque number? | Checks are normally numbered sequentially, to keep them unique for record-keeping purposes. The check number takes as many digits as it takes, depending on how long the account has been open and thus how many checks have been written. The most recent check I looked at had a four-digit number, but as has been pointed o... |
What are the ramifications of lawsuits over “breaches of fiduciary duty” for the average shareholder? | As an investor, I try to interpret the suits as an attempt to in some way influence the actions of the company - and not, usually, as a serious legal threat (or as likely to lead to serious legal consequences). My (shallow) understanding (as a non-lawyer) is that the requirements for a lawsuit to be filed as class-acti... |
Ways to get individual securities from ETF's | Assuming that the ETF is tracking an index, is there a reason for not looking at using details on the index? Typically the exact constituents of an index are proprietary, and companies will not publish them publicly without a license. S&P is the heavyweight in this area, and the exact details of the constituents at a... |
Ray Dalio - All Weather Portfolio | Making these difficult portfolio decisions for you is the point of Target-Date Retirement Funds. You pick a date at which you're going to start needing to withdraw the money, and the company managing the fund slowly turns down the aggressiveness of the fund as the target date approaches. Typically you would pick the ... |
Why is stock dilution legal? | Alot of these answers have focused on the dilution aspect, but from a purely legal aspect, there are usually corporate bylaws that spell out what kind of vote and percentage of votes is needed to take this type of action. If all other holders of stock voted to do this, so 90% for, and you didn't, so 10% against, it's ... |
Impact of RMD on credit worthiness | I feel like this has nothing to do with income, and as such RMDs will not really help or harm you. After a person passes, credit card companies are unlikely to collect any outstanding balance. Debts cannot be inherited, however, assets can be made to stand for debts. Many assets pass to heirs without the probate proc... |
What is the purpose of property tax? | Property taxes cover more items than have already been mentioned. As an example, my property tax bill lists the following items: county general purpose, community college, police, police, headquarters, fire prevention, environmental bonds, sewage, town general purpose, highway department, building & zoning, town light... |
Historical Stock Prices of delisted company [duplicate] | You need a source of delisted historical data. Such data is typically only available from paid sources. According to my records, Lawson Software Inc listed on the NASDAQ on 7 Dec 2001 and delisted on 6 Jul 2011. Its final traded price was $11.23. It was taken over by Infor who bid $11.25 per share. Source: Symbol LWS... |
Should I use my non-tax advantaged investment account to pay off debt? | Paying off debts will reduce your monthly obligation to creditors (less risk) and also remove the possibility of foreclosure / repossession / lawsuit if you ever lost access to income (less risk). Risk is an important part of the equation that can get overlooked. It sounds like pulling that money out of the market wi... |
Are cashiers required to check a credit card for a signature in the U.S.? | I'm not sure if they're required to do so, but I have been neglecting to sign my cards for some time now. If they do check, that triggers an ID check, where they'll find my signature. I know of at least one person that writes "see ID" instead of signing their cards. He began that practice over 10 years ago. |
What is the valuation of a company based on? | It's safe to say that for mature companies, with profits that have been steady, and steadily growing, that a multiple of earnings can come into play. It's not identical between companies or even industries, but for consumer staples, for instance, you'll see a clustering around a certain P/E. On the other hand, there a... |
Paid cash for a car, but dealer wants to change price | I've been an F&I Manager at a new car dealership for over ten years, and I can tell you this with absolute certainty, your deal is final. There is no legal obligation for you whatsoever. I see this post is a few weeks old so I am sure by now you already know this to be true, but for future reference in case someone in ... |
Why do people buy new cars they can not afford? | The car you dream of might not be available in your local used car market. Or if it is, there might be something wrong with it. Here are some reasons that a person might want to buy a new car. Basically, if you have a picture in your mind of what your next car should look like, it is easier to shop for a new car: New... |
What is the preferred way to finance home improvements when preparing to sell your house? | In planning to buy a house, and sort out how to handle the costs of some initial renovations, I've been considering using Lowes and Home Depot credit cards (hopefully this will count differently than the typical credit cards I think you're referring to): http://www.homedepot.com/webapp/wcs/stores/servlet/ContentView?pn... |
Is it a bet on price fluctuations and against the house? | The answer depends on the specific instrument to which you are referring. It is possible to make straight bets that are cash-settled and in which the underlying commodity or instrument will never be bought or sold. It is also possible to have such a contract be settled in the underlying (if the cash value is appropria... |
At what age should I start or stop saving money? | It's nearly always a good idea to save for your future, if you don't already have sufficient funds to see out the rest of your days. The hardest part of the saving decision is knowing exactly what portion of your funds to save. If we save too aggressively, we risk having an adverse impact on our everyday life and, of c... |
How did I end up with a fraction of a share? | It's not that uncommon but it doesn't usually come from standard purchases. Investopedia explains: Definition of 'Fractional Share' A share of equity that is less than one full share. Fractional shares usually come about from stock splits, dividend reinvestment plans (DRIPs) and similar corporate actions. Normally, fr... |
Is there any truth to the saying '99% of the world's millionaires have become rich by doing real estate'? | Most millionaires became millionaires by being very frugal and living well below their means, all the time. |
Understanding the phrase “afford to lose” better | The advice to "Only invest what you can afford to lose" is good advice. Most people should have several pots of money: Checking to pay your bills; short term savings; emergency fund; college fund; retirement. When you think about investing that is the funds that have along lead time: college and retirement. It is never... |
How can I avoid international wire fees or currency transfer fees? | Be aware that ATM withdrawals often generate hidden fees, which are not obviously declared. Many banks operate e.g. with a currency exchange fee, giving you an exchange rate some 1-2% lower than actually applicable. If you withdraw larger amounts, such a currency exchange fee easily adds up to what you would have paid ... |
S Corp with Straddles Income | If this activity were to generate let's say 100K of profit, and the other corporate activities also generate 100K of revenue, are there any issues tax-wise I need to be concerned about? Yes. Having 25% or more of passive income in 3 consecutive years will invalidate your S-Corp status and you'll revert to C-Corp. C... |
What should I do with $4,000 cash and High Interest Debt? | When paying off multiple debts there is a protocol that many support. Payoff your debts according to the snowball method. The snowball method proposes that you make minimum payments on all debts except the smallest one. Payoff the smallest debt as quickly as possible. As smaller debts are paid off, that makes one less ... |
How to do thorough research into a company to better understand whether to buy stock? | So, first -- good job on making a thorough checklist of things to look into. And onto your questions -- is this a worthwhile process? Even independent of specific investing goals, learning how to research is valuable. If you decided to forgo investing in stocks directly, and chose to only invest in index funds, the sam... |
Price movement behaviour before earnings announcements | This depends entirely on what the market guesses the news will be and how much of that guess has already been factored into the price. There is no general answer beyond that. Note that this explains the apparently paradoxical responses where a stock good down on good news (the market expected better) or up on bad news... |
What is the minimum lot size (number of shares) for the London Stock Exchange? | Good question! It seems to me that there is no minimum order size for shares trading on the LSE. Please note, I couldn't find an definite answer, but: According to the "International Order Book" document (see: http://www.londonstockexchange.com/traders-and-brokers/rules-regulations/change-and-updates/stock-exchange-not... |
Why do consultants or contractors make more money than employees? | In addition to the other answers, consultants and contractors face a real risk (though admittedly small) of not getting paid. The more short-term the gigs are, the higher the risk of not getting paid for a particular job. As an employee, there are laws to ensure that you get your paycheck. As a contractor, you're just ... |
Tax exemptions for US stocks held in a Candian account | The dividend tax credit is not applicable to foreign dividend income, so you would be taxed fully on every dollar of that income. When you sell a stock, there will be a capital gain or capital loss depending on if it gained or lost value, after accounting for the Adjusted Cost Base. You only pay income tax on half of t... |
Are stock index fund likely to keep being a reliable long-term investment option? | When you are putting your money in an index fund, you are not betting your performance against other asset classes but rather against competing investments withing the SAME asset class. The index fund always wins due to two factors: diversity, and lower cost. The lower cost attribute is essentially where you get your ... |
When and how should I pay taxes on ForEx trades? | Legally speaking, when you convert that bit-coin onto something else, the Israeli Tax Authority will look into the value of that something else, compare it to the original value of the previous something else you used to buy bit-coins (USD, in your example), and charge you capital gain taxes for the difference. Accordi... |
Looking for advice on rental property | You say that one property is 65% of the value of the two properties and the other is 35%. But how much of that do the two of you actually own? If you have co-signed mortgages on both properties, then your equity is going to be lower. If you sold both properties, then your take away would be just half of that equity.... |
How to handle missing W2 from failed direct deposit only company? | Yes, there's a way. I actually wrote a blog post about it. Its a new service from the IRS which allows you pulling your account online. IRS also has an instruction page just for this case here. |
What is the best way to invest in gold as a hedge against inflation without having to hold physical gold? | Definitely look at CEF. They have tax advantages over GLD and SLV, and have been around for 50 years, and are a Canadian company. They hold their gold in 5 distributed vaults. Apparently tax advantage comes because with GLD, if you supposedly approach them with enough money, you can take out a "bar of gold". Just o... |
Company asking for card details to refund over email | Definitely push for a check, they may not do anything nefarious with your credit card number however someone else may be able to read the email before it gets to its final destination. It's never safe to give out credit card number in a less than secure interface. Also, if this is a well known company, then the person ... |
Why are stocks having less institutional investors a “good thing”? | Its pretty much always a positive to have large institutional investors. Here's a few cases where I can see an argument against large institutional investors: In recent years, we've seen corporate raiders and institutional investors that tend to influence management in ways that are focused on short term gain. They'll ... |
Do I need to own all the funds my target-date funds owns to mimic it? | The goal of the single-fund with a retirement date is that they do the rebalancing for you. They have some set of magic ratios (specific to each fund) that go something like this: Note: I completely made up those numbers and asset mix. When you invest in the "Mutual-Fund Super Account 2025 fund" you get the benefit t... |
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. |
What is the correct way to report a tender offer fee on my taxes? | Using a different cost basis than your broker's reporting is NOT a problem. You need to keep your own records to account for this difference. Among the other many legitimate reasons to adjust your cost basis, the most popular is when you have two brokerage accounts and sell an asset in one then buy in another. This is ... |
2 houses 450k each or one 800k? | Having someone else paying you rent is always going to be the better deal financially. The question is, what does $450k buy in the neighborhood in which you want to live, vs $800k? I'm going to assume you can afford either option (buying a $450k home and not selling, or an $800k home and selling your current one) wheth... |
What taxes are assessed on distributions of an inherited IRA? | Distributions from an inherited IRA will be taxed as ordinary income and there are required minimum distributions for the inherited account. Assuming you were 55 at the time of your mother's death, your life expectancy according to the IRS is 29.6 years. Your required yearly distributions on $200,000 would be roughly $... |
Is investing in housing considered an adequate hedge against inflation? | Becoming a landlord is a pretty roundabout way to hedge against inflation. Why don't you research TIPs (Treasury Inflation Protected Securities (?)) Over the very long term, a house will just about match inflation, but no more. I observe that it (median home price) has remarkably tight correlation to the mortgage one c... |
How and why does the exchange rate of a currency change almost everyday? | It's simply supply and demand. First, demand: If you're an importer trying to buy from overseas, you'll need foreign currency, maybe Euros. Or if you want to make a trip to Europe you'll need to buy Euros. Or if you're a speculator and think the USD will fall in value, you'll probably buy Euros. Unless there's som... |
Why isn't money spent on necessities deductible from your taxes? | Law is a mass of special cases, informed by but not driven by some general principles. Tax law likewise. Don't try to make it make sense; you will only confuse yourself. Not all "necessities" are deductable, only those which someone has explicitly passed a law to make deductable. |
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 risky are penny stocks? | Consider firstly that they're penny stocks for a reason - the company just isn't worth much. Yes, it could take off but this happenstance is rarer than you think. Next, there is the problem of how you'd find out what the good stocks to invest in are. Here in the UK, reliable news about stocks outside the FTSE indexes (... |
Section 179 vs depreciation of laptop | The CPA's mention of $2,500 is probably referring to the recently increased de minimis safe harbor under the final tangible property regulations (used to be $500) without an applicable financial statement. The IRS will not challenge your choice of expense or capitalization on amounts on or below $2500 if you elect the ... |
The doctor didn't charge the health insurance in time, am I liable? | I was in a similar situation years back and I refused to pay the bill. My point of view was that I provided the hospital with all information needed to submit the claim in a timely matter and that I should not be held responsible for their failure to do so. In the end they waived the charges. So while technically I mig... |
Would you withdraw your money from your bank if you thought it was going under? | To the average consumer, the financial health of a bank is completely irrelevant. The FDIC's job is to make it that way. Even if a bank does go under, the FDIC is very good at making sure there is little/no interruption in service. Usually, another bank just takes over the asset of the failing bank, and you don't ev... |
Option trading: High dollar value stock option and equity exposure | You're forgetting the fundamental issue, that you never have to actually exercise the options you buy. You can either sell them to someone else or, if they're out of the money, let them expire and take the loss. It isn't uncommon at all for people to buy both a put and call option (this is a "straddle" when the strike... |
What do people mean when they talk about the central bank providing “cheap money”? What are the implications for the stock market? | Companies with existing borrowings (where borrowings are on variable interest rates) or in the case with fixed interest rates - companies that get new borrowings - would pay less interest on these borrowings, so their cost will go down and profits up, making them more attractive to investors. So, in general lower inte... |
How secure is my 403(b)? Can its assets be “raided”? | I assume you get your information from somewhere where they don't report the truth. I'm sorry if mentioning Fox News offended you, it was not my intention. But the way the question is phrased suggests that you know nothing about what "pension" means. So let me explain. 403(b) is not a pension account. Pension account i... |
Where should I park my money if I'm pessimistic about the economy and I think there will be high inflation? | For diversification against local currency's inflation, you have fundamentally 3 options: Depending on how sure you are on your prediction, and what amount of money you're willing to bet to "short the country", you might also consider a mix of approaches from the above. Good luck. |
Strategies for putting away money for a child's future (college, etc.)? | I know this is a little off the wall but I bought a rental property for my son's tuition. The tenants pay down the mortgage for the next 12 years and it (hopefully) also appreciates in value. Worst case scenario is I come out with a rental and a kid with no education. He doesn't go then there's no skin off my back. |
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. |
How much money do I need to have saved up for retirement? | One opinion related to savings is to save 30% of your take home salary every month, split the amount into two parts depending on your age (29) one part would be 30% of 30% and another 70% of 30%. Take the 70% and buy blue chip stock and take the 30% and buy govt. bonds. Each 10 years adjust the percentages at 40, 40% o... |
Is it ok to have multiple life time free credit cards? | Do you need it? It doesn't sound like it - you seem to be able to manage with just the cards you have. Will it hurt anything? Probably not either, unless it entices you to spend more than you make. Another downside might be that you would spend more than you normally would just to have activity on every card. So all ... |
How to find a reputable company to help sell a timeshare? | You own something with very little market value - even if you paid a large price for it initially. Your cost to sell may be more than the price you get. Like any other item that has limited resale value, your best option may be to donate it. A quick Google search will turn up some options. This will likely be less hass... |
What are good games to play to teach young children about saving money? | I've found that good old fashioned "Monopoly" teaches children about cash flow, mortgaging properties, and paying income taxes. |
Are there contracts for fixed pay vs. fixed pay rates? | Software Contractors are not employees of the company that is procuring the software. Software Contractors necessarily work for another legal business entity. There is a business to business relationship between the procurer of the software and the entity producing the software. Therefore, the company procuring the sof... |
What are the alternatives to compound interest for a Muslim? | Because so many businesses make some money through some form of compound interest, like a business that saves its earnings in a business account that pays interest, it heavily depends on how strict you interpret this law. Some Muslims I know interpret it to mean directly and indirectly, while for some it's just direct... |
Who performs the blocking on a Visa card? | The request to block the money is made by the Party who sells the product. Based on this request the Bank blocks the funds. Subsequently the Party who sold the product makes a charge against this block. Just to give an easy example; So in the online train booking there are multiple messages sent between the Bank and SN... |
What is the meaning of “writing put options”? | Suppose you're writing a put with a strike price of 80. Say the share's(underlying asset) price goes down to 70. So the holder of the put will exercise the option. Ie he has a 'right to sell' a share worth 70 for rs 80. Whereas a put option writer has an 'obligation to buy' at rs 80 a share trading at rs 70. Always thi... |
Should I sell my stocks when the stock hits a 52-week high in order to “Buy Low, Sell High”? | Obviously a stock that's hit a high is profit waiting to be taken, be safe, take the money, Sell Sell Sell!! Ah.. but wait, they say "run your winners, cut your losers", so here this stock is a winner... keep on to it, Hold Hold Hold!!!!! Of course, if you're holding, then you think it's going to return even higher....... |
Where to start with personal finance in Canada? | There are some great answers on this site similar to what you asked, with either a non-jurisdictional or a US-centric focus. I would read those answers as well to give yourself more points of view on early investing. There are a few differences between Canada and the US from an investing perspective that you should als... |
Which U.S. online discount broker is the best value for money? | If you have at least $25,000, Wells Fargo is the place to be, as you get 100 free trades per account. I have three investment accounts with them and get 100 free trades in each a year, though I only ever actually use 10-20. i can't vouch for their phone service as I've never needed it, but free is very hard to beat in ... |
What are the downsides that prevent more people from working in high-income countries, and then retiring in low-income (and cost of living) ones? | One thing not mentioned is that in so called third world countries, a lot of "stuff" isn't actually less expensive. Food is almost always less expensive, housing is often less expensive, but cars, fuel, computers, smartphones, electronics, brand name clothing, shoes, cosmetics, tools, art supplies, internet service, b... |
2008-2009 Stock Market Crash — what caused the second drop? | Ultimately no one really knows what causes the markets to rise and fall beyond supply and demand. If more people want to buy then sell, prices go up. And if more people want to sell, prices go down. The news channels will often try to attribute a specific reason to the price move, but that is largely just guess work to... |
How to convince someone they're too risk averse or conservative with investments? | Remind him that, over the long-term, investing in safe-only assets may actually be more risky than investing in stocks. Over the long-term, stocks have always outperformed almost every other asset class, and they are a rather inflation-proof investment. Dollars are not "safe"; due to inflation, currency exchange, etc.,... |
Consolidate my debt? Higher APR, but what does that actually mean? | No, it means that each year (Annual Payment Rate) you are accruing interest at 29.8%. If your principal is $10,000, that means you are gaining $3,000 of debt per year in addition to this, excluding payments you make/interest on interest. |
Are distributions from an S corp taxable as long term capital gains? | If you have an S-Corp with several shareholders - you probably also have a tax adviser who suggested using S-Corp to begin with. You're probably best off asking that adviser about this issue. If you decided to use S-Corp for multiple shareholders without a professional guiding you, you should probably start looking fo... |
Transferred Stocks in 1993, sold 2017 taxes | Assuming the stock was worth more at the time she gave it to you than when she bought it, the cost basis would be the amount that she bought it for. You would then pay tax on the increase in value from that time. Generally it's better to inherit assets than receive them as gifts, since the cost basis of inherited asse... |
Negatives to increased credit card spending limit? [duplicate] | The only drawback is if you spend more than you can with the new limit and end up having to pay interest if you can't pay the balance in full. Other than that, there are no drawbacks to getting a credit increase. On the flip side, it's actually good for you. It shows that the banks trust you with more credit, and it a... |
Working abroad in Australia, what is involved financially and administratively? | If you think there is no complication in your application and you can easily satisfy all criteria you can do the process yourself without using any agent and save few thousand dollars. I have done myself. Another cost Chris forgot to mention is the medical examination cost which is mandatory. If your certificates and d... |
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