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How can you possibly lose on investments in stocks? | For whatever it's worth. Judging from the comments in the other answers, I think everyone is addressing your question, "How can you possibly lose money," there are a lot of ways to possibly lose money in the stock market. Here are my thoughts. This is a chart of the S&P 500 from about 1996 to about 2012. At the to... |
total of all dividend payments for a particular company | No - there are additional factors involved. Note that the shares on issue of a company can change for various reasons (such as conversion/redemption of convertible securities, vesting of restricted employee shares, conversion of employee options, employee stock purchase programs, share placements, buybacks, mergers, ri... |
Why do stores and manufacturers use mail in rebates? A scam, or is there a way to use them effectively? | There are many reasons, some already covered by other answers. I have a blog post on the issue here, and I'll summarize: |
Personal credit card for business expenses | If you are just starting out, I would say there is no disadvantage to using a personal card for business expenses. In fact, the advantage of doing so is that the consumer protections are better on personal cards than on business cards. One possible advantage to business credit cards, is that many (but not all) will no... |
What is a “fiat” currency? Are there other types of currency? | fiat in Latin means "let it be" or "let it happen" - as in "fiat lux!" meaning "let there be light!". Thus, fiat money means money that are created by the government decree - they would be random worthless pieces of paper otherwise, so the government says "let this paper be worth $100" and it becomes $100. Non-fiat mon... |
Buying a home without a Real Estate Agent - Who should I get to do the paperwork? | Save yourself a lot of trouble you both agree on a Real Estate Attorney to prepare all the paperwork (ie. contract) and conduct the closing for or with the Title Company. Then you both split the normal costs of the transaction. (Real simple professionally handled and you both save the 6%) |
Should I charge my children interest when they borrow money? | Going from personal experience, my parents let my brother and me borrow money from them all the time. However there was always some noteworthy things to take into account. As an example, I borrowed a large sum of money on my student loan (we will just say it was $50,000). I had saved nearly $30,000 on my own and my par... |
What is the pitfall of using the Smith maneuver | The catch is that you're doing a form of leveraged investing. In other words, you're gambling on the stock market using money that you've borrowed. While it's not as dangerous as say, getting money from a loan shark to play blackjack in Vegas, there is always the chance that markets can collapse and your investment's v... |
Why would someone want to sell call options? | Covered calls, that is where the writer owns the underlying security, aren't the only type of calls one can write. Writing "uncovered calls," wherein one does NOT own the underlying, are a way to profit from a price drop. For example, write the call for a $5 premium, then when the underlying price drops, buy it back fo... |
Does the USA have a Gold reserve? | The United States is no longer on a gold standard, and the value of its currency is solely founded on the productivity of its economy. So I don't think there's any practical reason for the United States government to explicitly sell off a lot of gold to force the price to crash. In fact I would expect that the price of... |
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... |
Investment for beginners in the United Kingdom | Before jumping into stock trading, do try Mutual Funds and Index funds, That should give you some good overview of the equity markets. Further, do read up on building a balanced portfolio to suit your need and risk apetite. This would help you decide on Govt. bonds and other debt instruments. |
How to safely earn interest on business profits (UK) | Deposit it in a business savings account. The following below show you some options you can choose from. Next you can invest it in the market i.e. shares, bonds etc. If you have a more risky side, can go for peer to peer lending. If you are feeling really lucky and want to invest in the long term, then buy a property a... |
Buying a home - brokerage fee | That sounds like a particularly egregious version of exclusivity. However, the way that you could handle that is to include a "contingency" in your purchase agreement stating that your offer is contingent upon the seller paying the brokerage fee. The argument against this, and something your broker might use to encoura... |
FICA was not withheld from my paycheck | According to this section in Publication 15: Collecting underwithheld taxes from employees. If you withheld no income, social security, or Medicare taxes or less than the correct amount from an employee's wages, you can make it up from later pay to that employee. But you’re the one who owes the underpayment. ... |
Primerica: All it claims to be? | I was a Primerica representative, left to be on my own, and then returned. Insurance is one matter that depends on the individual. Some do not need it. For example, when I was an independent agent with an independent marketing organization (IMO) (oh yes! multi-level is everywhere, dont kid yourself) I had an upline as... |
How is not paying off mortgage better in normal circumstances? | Lets do the math, using your numbers. We start off with $100K, a desire to buy a house and invest, and 30 years to do it. Scenario #1 We buy a house for $100K mortgage at 5% interest over 30 years. Monthly payment ends up being $536.82/month. We then take the $100K we still have and invest it in stocks, earning an ave... |
Does SIPC protect securities purchased in foreign exchanges? | I'll give it a shot, even though you don't seem to be responding to my comment. SIPC insures against fraud or abuse of its members. If you purchased a stock through a SIPC member broker and it was held in trust by a SIPC member, you're covered by its protection. Where you purchased the stock - doesn't matter. There are... |
What is the Difference between Life Insurance and ULIP? | ULIP insurance plan ULIP is Unit Linked Insurance Plan. The premium you pay, a small part goes towards covering life insurance. The Balance is invested into Stock Markets. Most ULIP would give you an option to choose from Debt Funds [100% safe buy low returns 5-7%] or Equity [High Risks, Returns can be around 15%]. Or ... |
Understanding summary of brokerage account value, cash balance, buying power? | Here you go: I'll leave the last question as an exercise to the reader. |
What exactly is the interest rate that the Fed is going to adjust? | Federal Funds Rate The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution overnight. The federal funds rate is generally only applicable to the most creditworthy institutions when they borrow and lend overnight funds to each other. The federal... |
What exactly is a “bad,” “standard,” or “good” annual raise? If I am told a hard percentage and don't get it, should I look elsewhere? | You are not actually entitled to any raise at all, unless you had something contractually (legally binding) which made that so. I'm answering this from the UK, but it has been common practice for people over the last 10 years or so to receive no yearly raise, in some sectors. This is what I would consider a bad raise -... |
Is there a candlestick pattern that guarantees any kind of future profit? | I love technical analysis, and use candlesticks as part of my technical analysis system for trading mutual funds in my 401K. However, I would never use a candlestick chart on its own. I use combination of candlesticks, 2 different EMAs, MACD, bollinger bands, RSI and hand drawn trend lines that I constantly tweak. Th... |
Which dividend bearing stock should be chosen by price? | Price doesn't mean anything. Price is simply total value (market capitalization) divided by number of shares. Make sure you consider historical dividends when hunting for big yields. It's very possible that the data you're pulling is only the annualized yield on the most recent dividend payment. Typically dividends a... |
What risks are there acting as a broker between PayPal and electronic bank transfers? | This is definitely a scam. I had a friend sign up for a very similar offer and what they did was send a fake check and then asked to transfer the same amount to them. So now you just send them a couple grand and you're holding a fake check. |
How do 401k handle rate of return | A 401(k) is an investment just like any other investment. You generally get two types of return lumped into that number, but there can be more and you should read your funds prospectus carefully. If you aren't investing in direct companies, you're using mutual funds for instance, then you should read the funds prospect... |
When is the best time to put a large amount of assets in the stock market? | Trying to "time the market" is usually a bad idea. People who do this every day for a living have a hard time doing that, and I'm guessing you don't have that kind of time and knowledge. So that leaves you with your first and third options, commonly called lump-sum and dollar cost averaging respectively. Which one t... |
Why is auto insurance ridiculously overpriced for those who drive few miles? | because it cost the insurer more, obviously. while this sounds snarky, it's important to realize that actual insurance companies set their insurance rates based on actual historical costs. for some reason people who report low miles have cost the company more dollars per reported mile than people who report high miles.... |
Missing 401(k) dividends | Your investment is probably in a Collective Investment Trust. These are not mutual funds, and are not publicly traded. I.e. they are private to plan participants in your company. Because of this, they are not required* to distribute dividends like mutual funds. Instead, they will reinvest dividends automatically, incre... |
Co-signer deceased | People act like lawsuits are the end of the world, her suing shouldn't be considered a threat, it should be considered the accurate course of action to resolve contractual obligations. Of course, it would be convenient if she did nothing at all! If you believe her real goal is to "get it off her credit", then have her... |
Should the price of fuel in Australia at this point be so high? | Fuel prices are regulated in most countires. The way its regulated differs. Essentially the idea is once the retail prices are up, they are normally kept that level so that a buffer profit is built, now if the fuel prices increase beyond the retail price can still be kept same using the buffer built up. |
Strategies for saving and investing in multiple foreign currencies | Evaluating the value of currencies is always difficult because you are usually at the mercy of a central bank that can print new currency on a whim. I am trying to diversify my currency holdings but it is difficult to open foreign bank accounts without actually being in the foreign country. Any ideas here? You don't i... |
Hypothetical: can taxes ever cause a net loss on otherwise-profitable stocks? | The original post's $16 has two errors: Here is the first scenario: . Tax Liability($) on Net . Cash # of Price Paper Realized Value Time: ($) Shares ($/sh) Profits Profits ($) 1. Start with: ... |
How can I check my credit score? | Assuming you are asking about a credit score in the United States, the following applies. To find out your FICO score, navigate to AnnualCreditReport, the official site to help consumers receive their credit report from each of the three organizations providing these scores - Equifax, Experian, and TransUnion. You are... |
Why would you elect to apply a refund to next year's tax bill? | Not a financially sound decision in my humble opinion. Basically, you are prepaying your taxes and the only reason you want to do that is if you don't have the discipine to save that money for when it is time to pay next year (assuming you will have to). |
How to start personal finances? | There are many paths to success, but they all begin with education. You made the first big step just by visiting here. We have 17,000 questions, arranged by tag so you can view those on a given topic. You can sort by votes to see the ones that have the best member acceptance. I'll agree with Ben that one of the best o... |
How to file tax for the sale of stocks from form 1099B? | You report each position separately. You do this on form 8949. 7 positions is nothing, it will take you 5 minutes. There's a tip on form 8949 that says this, though: For Part I (short term transactions): Note. You may aggregate all short-term transactions reported on Form(s) 1099-B showing basis was reported to the ... |
What should I be doing to protect myself from identity theft? | I've received letters notifying me of data breaches in the past. In the end, I've never signed up for the offered protection service, figuring if "they" can hack Target or ADP or the IRS, they can hack anybody, like... Equifax. And now Equifax has been hacked. My family's Social Security Numbers were stolen from a ho... |
Insurance company sent me huge check instead of pharmacy. Now what? | Checks are awesome things in that, even if it gets lost the money doesn't change hands until the check is cashed. I would highly recommend NOT signing a check over and putting it in the mail though. Essentially putting your signature on it is saying yes, pay to whomever. Theoretically acceptable, rarely a good idea. Ca... |
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... |
Exchange rate $ ETF,s | Your assumption that funds sold in GBP trade in GBP is incorrect. In general funds purchase their constituent stocks in the fund currency which may be different to the subscription currency. Where the subscription currency is different from the fund currency subscriptions are converted into the fund currency before the... |
Investment strategies for young adults with entrepreneurial leanings? | Diversity of risk is always a good idea. The cheapest equity-based investment (in terms of management costs) is some form of tracker or indexed fund. They're relatively low risk and worth putting in a fixed amount for long-term investment. I agree with Ngu Soon Hui, you're going to need a lot of cash if you decide to... |
What is considered high or low when talking about volume? | The daily Volume is usually compared to the average daily volume over the past 50 days for a stock. High volume is usually considered to be 2 or more times the average daily volume over the last 50 days for that stock, however some traders might set the crireia to be 3x or 4x the ADV for confirmation of a particular p... |
Should I have a higher credit limit on my credit card? | I'm the contrarian on this forum. Since you asked a "should I ..." question, I'm free to answer "No, you shouldn't increase your limit. Instead, you should close it out". A credit card is a money pump - it pumps money from your account to the bank's profit margins. When I look at my furniture and the bank's furniture, ... |
Should the poor consider investing as a means to becoming rich? | Investments earn income relative to the principal amounts invested. If you do not have much to invest, then the only way to 'get rich' by investing is to take gambles. And those gambles are more likely to fail than succeed. The simplest way for someone without a high amount of 'capital' [funds available to invest] to b... |
Is there an advantage to keeping a liquid emergency fund if one also has an untapped line of credit? | Why can't you have both? If you do have both credit and an emergency fund, and an emergency occurs, you can draw from the line of credit first. Having debt + cash is a much more stable situation than having neither, because then you have the option to use the cash to pay off the debt, or use the cash to pay other expen... |
financial institution wants share member break down for single member LLC | What exactly would the financial institution need to see to make them comfortable with these regulations The LLC Operating Agreement. The OA should specify the member's allocation of equity, assets, income and loss, and of course - managerial powers and signature authorities. In your case - it should say that the LLC... |
What emergencies could justify a highly liquid emergency fund? | First of all, a person that relies on their ability to tap a line of credit to cover an emergency isn't generally the kind of person that has investments they can cash out to cover the debt. That being said, my personal reasons for having a liquid emergency fund revolve around bank errors and identify theft. I used to ... |
trailing stop loss in slow price decline | The price doesn't have to drop 5% in one go to activate your order. The trailing aspect simply means your sell trigger price will increase if the current value increases (it will never decrease). |
Insurance company sent me huge check instead of pharmacy. Now what? | The insurance company issued the check. I'd contact the insurance company to have the current check voided and a new one issued to the pharmacy. |
Can you explain this options calls & puts quote table to me? | (Note: I am omitting the currency units. While I strongly suspect it's US$ I don't know from the chart. The system works the same no matter what the currency.) A call or a put is the right to sell (put) or buy (call) shares at a certain price on a certain day. This is why you see a whole range of prices. Not all pos... |
Why do banks finance shared construction as mortgages instead of financing it directly and selling the apartments in a building? | Assumption - you live in a country like Australia, which has "recourse" mortgages. If you buy the apartment and take out a mortgage, the bank doesn't care too much if your apartment gets built or not. If the construction fails, you still owe the bank the money. |
If I send money to someone on student visa in USA, will he need to pay taxes on that? | If i am not wrong, any business activities such should be declared on Year End Tax filing. If your friend is going to own that website either it is commercial or nonprofit, he has to declare in the year end taxation. |
Why would my job recruiter want me to form an LLC? | This is pretty normal. I am in the UK and currently doing the exact same thing. As some answers state there is additional tax law called IR35. But thats all it is, an additional tax law that may be applicable to your situation (it very well may not). It is all perfectly legal and common (all my university friends no... |
Why are interest rates on saving accounts so low in USA and Europe? | Banks in general will keep saving rates as low as possible especially if there is a surplus of funds or alternative access for funding as in the case of the Fed in the USA. Generally speaking, why would bank pay you a high interest rate when they cannot generate any income from your money? Usually we will expect to see... |
Is it a good practice to keep salary account and savings account separate? | In the United States, savings accounts generally have higher interest rates than checking or money market accounts. Part of this is the government restriction on the number of automated transactions per month that can be done on a savings account: this is supposed to allow banks to lengthen the time frame of the cash ... |
Is it a good idea to rebalance without withdrawing money? | Yes, rebalancing with new money avoids capital gains taxes and loads (although if you're financially literate enough to be thinking about rebalancing techniques, I'm surprised to hear that you're invested in funds with loads). On the other hand, if it's taking you years to rebalance, then: (a) you are not rebalancing a... |
Would investing equally in all 30 companies which comprise the DJIA net the same performance as the DJIA? | DJIA is a price weighted index (as in the amount of each component company is weighted by its price) and the constituents change occasionally (51 times so far). With these two effects you would not get anything like the same return by equally weighting your holdings and would have to rebalance every so often. Note that... |
Filing a corporation tax return online? | When in doubt, you should always seek the advice of a professional tax preparer or your accountant. (Many agents/accountants will gladly review your tax preparations to ensure you haven't missed something. That's quicker and cheaper than paying them to do it all.) Having said that... This Illinois resource has detailed... |
Why would a company care about the price of its own shares in the stock market? | Investors are typically a part of the board of directors of the company. Because of their ownership in the company, they have a vested interest in its stock price. The same is true for management also in cases where they hold a certain percentage of equity in the company. Their incentives also get aligned to the stock ... |
What to ask Warren Buffet at the Berkshire Hathaway shareholder meeting? | I would be curious how he balanced having two female life partners at once. Not sure I would ask that at the shareholder meeting though ;) |
Vanguard Mutual Funds — Diversification vs Share Class | There's really no right or wrong answer here because you'll be fine either way. If you've investing amounts in the low 5 figures you're likely just getting started, and if your asset allocation is not optimal it's not that big a deal because you have a long time horizon to adjust it, and the expense ratio differences h... |
Do I purchase stocks or not? | You didn't give enough information. What is your goal? What is your financial situation? A discount to buy company stock can seem very tempting. I was tempted by it myself, gee, almost 20 years ago. I still own some of the stock. But I held mutual funds first. There are two disadvantages that have disuaded me fr... |
Why does a company's stock price affect its ability to raise debt? | As JB hints, it is likely due to superior or improving, fundamentals. If the fundamentals of a company improve then its ability to repay loans improves. If its ability to repay improves then more sources of cash become willing to lend to the company. Also if fundamentals are improving then more sources are willing to b... |
Super-generic mutual fund type | If you are looking for an index index fund, I know vanguard offers their Star fund which invests in 11 other funds of theirs and is diversified across stocks, bonds, and short term investments. |
How exactly does dealing in stock make me money? | You can make money via stocks in two primary ways: Note that there's no guarantee of either. So it may very well not make you money. |
Analyze stock value | It seems like you want to compare the company's values not necessarily the stock price. Why not get the total outstanding shares and the stock price, generate the market cap. Then you could compare changes to market cap rather than just share price. |
Will my current employer find out if I have a sole proprietarship/corporation? | Some governments offer business information search for corporations in their jurisdiction. The search results may show the director information for the company. If this information is made publicly available, keep in mind there are websites that make money from indexing publicly available information to show in Googl... |
Invest in (say, index funds) vs spending all money on home? | Here in the UK, the rule of thumb is to keep a lot of equity in your home if you can. I assume here that you have a lot of savings you're considering using. If you only have say 10% of the house price you wouldn't actually have a lot of choice in the matter, the mortgage lender will penalise you heavily for low deposit... |
What are the ins/outs of writing equipment purchases off as business expenses in a home based business? | Most items used in business have to be depreciated; you get to deduct a small fraction of the cost each year depending on the lifetime of the item as per IRS rules. That is, you cannot assume a one-year life for an electronic item even if it will be obsolete in three months. Some items can be expensed; you get to ded... |
Dividend vs Growth Stocks for young investors | The key is to look at total return, that is dividend yields plus capital growth. Some stocks have yields of 5%-7%, and no growth. In that case, you get the dividends, and not a whole lot more. These are called dividend stocks. Other stocks pay no dividends. But if they can grow at 15%-20% a year or more, you're fine.Th... |
why do I need an emergency fund if I already have investments? | You're absolutely correct. If you have maxed out your retirement investment vehicles and have some additional investments in a regular taxable account, you can certainly use that as an emergency source of funds without much downside. (You can borrow from many retirement account but there are downsides.) Sure, you risk ... |
How much life insurance do I need? | One simple calculation to determine your life insurance need: D.I.M.E. method D: Debt All your car loan balances, credit card balances, student loans, business loans, etc. I: Income Your annual income times 10 (for 10 years of income replacement). M: Mortgage Your home mortgage balance. E: Education Your children's edu... |
Carry-forward of individual losses, with late-filed past taxes [US] | Is Jim right to be worries? Yes, since the statute of limitations for refunds for 2012 is close and he might lose any tax refunds he might be entitled to for that year. Also, the pattern itself may raise some flags of suspicion and trigger audits, both because of such a variance in income and because of the medical exp... |
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... |
What dictates the costs of creating an options contract? (Commissions breakdown) | I'm not positive my answer is complete, but from information on my broker's website, the following fees apply to a US option trade (which I assume you're concerned with given fee in dollars and the mention of the Options Clearing Corporation): They have more detail for other countries -- see https://www.interactivebrok... |
US Tax Form 1040EZ: Do I enter ALL income or ONLY income specified in W-2 forms? | Yes, you need to include income from your freelance work on your tax return. In the eyes of the IRS, this is self-employment income from your sole-proprietorship business. The reason you don't see it mentioned in the 1040EZ instructions is that you can't use the 1040EZ form if you have self-employment income. You'll ... |
What purchases, not counting real estate, will help me increase my cash flow? | Mutual funds can be relatively low risk and a good starting point. Really it depends on you. What are your goals? This is a pretty open ended question. These can all be low risk and provide some return. Note "Less Knowledge" is never a good qualifier for an investment. Your money is your business and you are entitled... |
Roth IRA all in one fund, or not? [duplicate] | First, you should diversify your portfolio. If your entire portfolio is in the Roth IRA, then you should eventually diversify that. However, if you have an IRA and a 401k, then it's perfectly fine for the IRA to be in a single fund. For example, I used my IRA to buy a riskier REIT that my 401k doesn't support. Sec... |
How can I improve my credit score if I am not paying bills or rent? | One of the other things you could do to improve your score would be along the lines of what Pete said in his answer, but using the current financial climate to your advantage. I'm not sure what interest rates are available to you in the UK, but I currently have 4 lines of credit aside from my house. One is a credit car... |
Should I invest in a Health Insurance +1 policy from my Employer? | If I read your figures correctly, then the cost difference is negligible. ($1.84 difference) The main determining factor, I'd think, would be the coverage. Do you get more, or less, coverage now than you would if you went together on the same plan? You'd both be covered, but what is the cap? Plans, and employer contr... |
Is there any instance where less leverage will get you a better return on a rental property? | I would say that you should keep in mind one simple idea. Leverage was the principal reason for the 2008 financial meltdown. For a great explanation on this, I would HIGHLY recommend Michael Lewis' book, "The Big Short," which does an excellent job in spelling out the case against being highly leveraged. As Dale M. p... |
What are some valuable sources for investment experience, when there is very little to no money to start with? | Fake stock market trading may teach you about trading, which isn't necessarily the same thing as investing. I think you need to understand how things work and how to read financial news and statistics before you start trading. Otherwise, you're just going to get frustrated when you mysteriously win and lose funny money... |
Overnight charges for brokers holding stocks? | If you are trading CFDs, which are usually traded on margin, you will usually be charged an overnight financing fee for long positions held overnight and you will receive an overnight financing credit for short positions held overnight. Most CFD brokers will have their overnight financing rates set at + or - 2.5% or 3%... |
Would it make sense to buy a rental property as an LLC and not in my own name? | Consider that there are some low-probability, high-impact risk factors involved with property management. For example, an old house has lead paint and may have illegal modifications, unknown to you, that pose some hazard. All of your "pros" are logical, and the cons are relatively minor. Just consult an attorney to loo... |
Calculating profits for a private fund | Thanks for the answer/comments! The time-based method was something we mooted and something I almost went with. But just to wrap this up, the method we settled on was this: Every time there is an entry or exit into the fund, we divvy out any unrealised market profits/losses according to each person's profit share (base... |
15 year mortgage vs 30 year paid off in 15 | Other people have belabored the point that you will get a better rate on a 15 year mortgage, typically around 1.25 % lower. The lower rate makes the 15 year mortgage financially wiser than paying a 30 year mortgage off in 15 years. So go with the 15 year if your income is stable, you will never lose your job, your app... |
Should I trade in a car I own to lower my payments on a new lease? | You need to look at the numbers when you're ready to transact. What your crossover is worth now, what the truck will lease for then, what financing deals may or may not be available will all change. I'm not sure why you've already decided you will lease the truck, perhaps you're planning to take advantage of some kind... |
What is a maximum amount that I can wire transfer out of US? | I can clear the Thailand side for you. These are the sale tax in Thailand: Don't forget to ask your bank in Thailand to issue an (FTFs). This document shows the money originated from abroad (before in came to your Thai account) from outside of Thailand. The land office will ask for the (FTFs). |
What would a stock be worth if dividends did not exist? [duplicate] | Unrealistic assumption, but I'll play along. Ultimately, dividends would exist because some innovative shareholder of some company, at some time, would desire income from their investment and could propose the idea of sharing the profit. Like-minded investors also desiring income could vote for dividends to come into e... |
How to evaluate stocks? e.g. Whether some stock is cheap or expensive? | If you are looking for numerical metrics I think the following are popular: Price/Earnings (P/E) - You mentioned this very popular one in your question. There are different P/E ratios - forward (essentially an estimate of future earnings by management), trailing, etc.. I think of the P/E as a quick way to grade a com... |
A stop order won't be automatically fired in after-hours trading? | Stop orders and stop limit orders typically do not execute during extended hours after the general market session has closed. Stop orders are market orders and market orders especially are not executed during extended hours. Although there are exceptions because a broker can say one thing and do another thing with the ... |
How to calculate PE ratios for indices such as DJIA? | One thing to keep in mind when calculating P/E on an index is that the E (earnings) can be very close to zero. For example, if you had a stock trading at $100 and the earnings per share was $.01, this would result in a P/E of 10,000, which would dominate the P/E you calculate for the index. Of course negative earning... |
Should I open a Roth IRA or invest in the S&P 500? | Anytime you invest in stocks, you do that inside an investment account - such as the type you might open at ETrade, Vanguard, Fidelity or Charles Schwab. Once you have the account and fund it, you can tell the system to invest some/all of your money in When you open your investment account, their first question will... |
Definition of gross income (Arizona state tax filing requirements) | Disclaimer: I am not a tax professional. Please don't rely on this answer in lieu of professional advice. If your sole source of Arizona income is your commercial property, use the number on line 17 of your federal form 1040. This number is derived from your federal Schedule E. If you have multiple properties (or other... |
Advantages of Shareholder over Director in new Company | I know the general principles of acting as a director in a company, and am familiar with the rights of shareholders. In the last ten years or so, I believe Australia has introduced legislation that strongly punishes those directors who do not act in a professional or prudent manner. While I will of course attempt to fu... |
How do I know what loan terms I can qualify for? | You can find out the most money they will loan you for a car loan when you approach your current bank/credit union. They should be willing to layout options based on your income, and credit history. You then have to decide if those terms work for you. There are several dangers with getting loan estimates, they may be w... |
Buying a house, how much should my down payment be? | As observed, there is no answer that will fit all, but below are some considerations: Your monthly requirement is 5000, so you have 3000 left to pay the monthly instalments (EMI). However, if you do pay 3000, you will have no money left for any other activities (holidays etc.) till your EMI is finished Set off a sum, l... |
How much life insurance do I need? | After some thought, I follow Dave Ramsey's advice because it's simple and I can do the math in my head - no online calculator needed. :) You need Life Insurance if someone depends on your income. You can replace your income with a single lump sum of 8-10 times your current income where those who need your income, can... |
Dec 31 accounting for S Corp - what to do with loss? | Conceptually, the entries are: Yes. And since you're the sole owner, your basis will equal to the equity balance on the balance sheet. Keep in mind the book and tax basis will probably be different, so you may want to keep a separate calculation to track the tax basis. There is no journal additional journal entry for... |
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