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Is it financially advantageous and safe to rent out my personal car? | The moment that you start to rent your car to strangers you are talking about using your car as a business. Will it be financially advantageous? If you can convince somebody to rent your vehicle for more than your required monthly payments then it might be. Of course you have to determine what would be the true cost of... |
Why would you sell your bonds? | Investment strategies abound. Bonds can be part of useful passive investment strategy but more active investors may develop a good number of reasons why buying and selling bonds on the short term. A few examples: Also, note that there is no guarantee in bonds as you imply by likening it to a "guaranteed stock dividend"... |
Is the I.T. function in banking considered to be on the expense side, as opposed to revenue side? | This depends entirely on the kind of "IT" you're doing. A couple of examples to illuminate how wide the term is: To answer your core question: look beyond the title ("IT"), to the function you're providing to the bank, and ask if / how that function can generate money for the bank for better income possibilities; if th... |
How to find trailing 5-year stock returns for 1980s? | I dont know if this data is available for the 1980s, but this response to an old question of mine discusses how you can pull stock related information from google or yahoo finance over a certain period of time. You could do this in excel or google spreadsheet and see if you could get the data you're looking for. Quote... |
Will I get a tax form for sale of direct purchased stock (US)? | I think I found the answer, at least in my specific case. From the heading "Questar/Dominion Resources Merger" in this linked website: Q: When will I receive tax forms showing the stock and dividend payments? A: You can expect a Form 1099-B in early February 2017 showing the amount associated with payment of your sha... |
How does stabilization work during an IPO? | There are no "rules" about how the price should act after an IPO, so there are no guarantee that a "pop" would appear at the opening day. But when an IPO is done, it's typically underpriced. On average, the shares are 10% up at the end of the first day after the IPO (I don't have the source that, I just remember that f... |
How do I interpret these income tax numbers for Chinese public company Dangdang Inc. (DANG)? | It was not taxed in the previous years because it wasn't in profit. The amount for 2010 is more due to accounting treatment, on account of "Deferred Domestic Income Tax". The figures are at http://data.cnbc.com/quotes/DANG/tab/7.2 You can search for a better understanding of Deferred Domestic Income Tax, a brief explan... |
Tax whilst starting a business in full time employment | With a limited company, you'll have to pay yourself a salary through PAYE. With income from your other job taking you over the higher-rate threshold, you should inform HMRC of this and get a tax code of DO for the second job, meaning 40% tax (and also both employer's and employee's National Insurance) will be deducted ... |
How does a brokerage firm work? | Brokerages offer you the convenience of buying and selling financial products. They are usually not exchanges themselves, but they can be. Typically there is an exchange and the broker sends orders to that exchange. The main benefit that brokers offer is a simpler commission structure. Not all brokers have their own li... |
How to systematically find sideways stocks? | You can likely use bollinger band values to programmatically recognize sideways trending stocks. Bollinger band averages expand during periods of volatility and then converge on the matched prices the longer there is little volatility in the asset prices. Also, look at the bollinger band formula to see if you can glean... |
What happens if a Financial Services Company/Stockbroker goes into administration in the UK? | Although I posted this question more than a year ago, I subsequently read information which may be of use as an answer, specifically regarding Pritchard Stockbrokers in the UK several years ago, in which the FSCS stepped in to compensate investors, as detailed in the following: http://www.fscs.org.uk/what-we-cover/ques... |
Do I have to pay a capital gains tax if I rebuy different stocks? | Probably. It sounds like you're looking for a 1031-exchange for stocks and bonds. From the wikipedia page for 1031-exchanges: To qualify for Section 1031 of the Internal Revenue Code, the properties exchanged must be held for productive use in a trade or business or for investment. Stocks, bonds, and other properties... |
Are there “buy and hold” passively managed funds? | Passive implies following an index. Your question seems to ask about a hypothetical fund that starts, say, as an S&P fund, but as the index is adjusted, the old stocks stay in the fund. Sounds simple enough, but over time, the fund's performance will diverge from the index. The slight potential gain from lack of cap ga... |
What considerations are there for making investments on behalf of a friend? | Pool their money into my own brokerage account and simply split the gains/losses proportional to the amount of money that we've each contributed to the account. I'm wary of this approach due to the tax implications and perhaps other legal issues so I'd appreciate community insight here. You're right to be wary. Y... |
If a stock doesn't pay dividends, then why is the stock worth anything? | It seems to me that your main question here is about why a stock is worth anything at all, why it has any intrinsic value, and that the only way you could imagine a stock having value is if it pays a dividend, as though that's what you're buying in that case. Others have answered why a company may or may not pay a div... |
Do stock option prices predicate the underlying stock's movement? | Options are an indication what a particular segment of the market (those who deal a lot in options) think will happen. (and just because people think that, doesn't mean it will) Bearing in mind however that people writing covered-calls may due so simply as part of a strategy to mitigate downside risk at the expense of... |
How to know which companies enter the stock market? | For months prior to going public a company has to file financial documents with the SEC. These are available to the public at www.sec.gov on their Edgar database. For instance, Eagleline is listed as potentially IPOing next week. You can find out all the details of any IPO including correspondence between the company a... |
A University student wondering if investing in stocks is a good idea? | Contrary to most other advise given here, I'd recommend (in your situation) not to invest in stock (yet). There are some 'hidden' cost to investing that will eat your profit and in the end, that's why you are investing. Banks will charge for buying, selling and maintaining stock as well as for cashing dividends. Depend... |
If I exercise underwater ISOs, can I claim a loss? | No, because you didn't lose anything. When you exercise ISO "at loss" you're buying stock without a discount, that's it. |
ETF vs Mutual Fund: How to decide which to use for investing in a popular index? | What is your time horizon? Over long horizons, you absolutely want to minimise the expense ratio – a seemingly puny 2% fee p.a. can cost you a third of your savings over 35 years. Over short horizons, the cost of trading in and trading out might matter more. A mutual fund might be front-loaded, i.e. charge a fixed init... |
My bank wants to lower my credit limit on my credit card. Will this impact me negatively? | No, it will have no negative impact on getting a mortgage. You are building up a history with regular payments and are not carrying a balance on the card each month. Your ability to get a mortgage will ultimately be based on other things. Money Saving Expert has a good guide on what will affect your credit score. A fur... |
What are useful indexes for rapid evaluation of country investment risk? | Rather than using the Human Development Index or Ease of Doing Business, if you primary purpose is for investments, you need to consider the Country rating provided by various agencies like These would tell as to how good the country is for investment in general. Just to highlight a difference, China may not fare very... |
Legal restrictions for EU-foreigners to setup bank account in Czech republic | It depends on what exactly do you mean by "seat of residence". That term has different meanings (legally) in different countries and different contexts. If you're foreigner (even from within the EU), any czech bank will most likely ask you to provide a residence permit. Here are some details: http://www.mvcr.cz/mvcren/... |
Negative properties of continuously compounded returns | What you're missing is the continuous compounding computation doesn't work that way. If you compound over n periods of time and a rate of return of r, the formula is e^(r*n), as you have to multiply the returns together with a mulitplicative base of 1. Otherwise consider what 0 does to your formula. If I get a zero ... |
Are prepayment penalties for mortgages normal? | It used to be much more common, particularly for sub-prime loans. If you do run into someone offering a loan with a prepayment penalty, you should certainly consider other options. |
Using 2 different social security numbers | Social security number should only be needed for things that involve tax withholding or tax payment. Your bank or investment broker, and your employer, need it so they can report your earnings. You need it when filing tax forms. Other than those, nobody should really be asking you for it. The gym had absolutely no goo... |
How do I explain why debt on debt is bad to my brother? | I wouldn't try to tell him what he should do, nor would I provide any financial assistance. Invite him over and tell him how a Dave Ramsey book changed your life or something so that you aren't the one telling him what to do. People in fundamentally and persistently bad situations are like people with addiction problem... |
Clarify on some Stocks Terminology | Volume is measured in the number of shares traded in a given day, week, month, etc. This means that it's not necessarily a directly-comparable measure between stocks, as there's a large difference between 1 million shares traded of a $1 stock ($1 million total) and 1 million shares traded of a $1000 stock ($1 billion t... |
How do stocks like INL (traded in Frankfurt) work? | They don't have to track each other, it could just be listed on more than one exchange. The price on one exchange does not have to match or track the price on the other exchange. This is actually quite common, as many companies are listed on two or more exchanges around the world. |
Do I even need credit cards? | The key part of your question is the "so far". So you didn't need a credit card today, or yesterday, or last month - great! But what about tomorrow? The time may come when you really need to spend a little more than you have, and a credit card will let you do that, at a very modest cost if you pay it off promptly (n... |
Can capital expenses for volunteer purposes be deducted from income? | Costs for home / small business equipment under US$10,000 don't have to be capitalized. They can be expensed (that is, claimed as an expense all in one year.) Unless this printer is one of those behemoths that collates, folds, staples, and mails medium-sized booklets, it cost less than that. Keep track of your costs.... |
Is it worth trying to find a better minimum down payment for a first time home buyer? | When I first purchased my home six years ago, I was able to get into a Bank of America First Time Homebuyer program that required no down payment and no PMI. While I hope you find a lower initial payment, the banks have tightened their requirements so that buyers have "more skin in the game" so to speak. Exotic loan op... |
Investing in income stocks for dividends - worth it? | To answer your question: yes, it's often "worth it" to have investments that produce income. Do a Google search for "income vs growth investing" and you'll get a sense for two different approaches to investing in equities. In a nutshell: "growth" stocks (think Netflix, etc) don't pay dividends but are poised to appreci... |
Which credit card is friendliest to merchants? | Please don't waste any more time feeling bad for merchants for the charges they incur. I don't know who supported the lobby for this rule, but issuers no longer can demand that merchants accept all transactions (even the unprofitable ones). I discussed this at length on my blog. Merchants accept credit cards for one r... |
How will I pay for college? | First, it's clear from your story that you very likely should be able to receive some financial aid. That may be in the form of loans or, better, grants in which you just get free money to attend college. For example, a Pell grant. You won't get all you'd need for a free ride this way, but you can really make a dent... |
Would betting on fallen (blue chip) stocks be a good strategy? | You can't do this automatically; you want to understand whether the drop is from a short-term high. is likely to be a short-term low, or reflects an actual change in how folks expect the company to do in the future. Having said that, some people do favor a strategy which resembles this, betting on what are known as "th... |
If accepting more than $10K in cash for a used boat, should I worry about counterfeiting? | The only issue I can see is that the stranger is looking to undervalue their purchase to save money on taxes/registration (if applicable in your state). Buying items with cash such as cars, boats, etc in the used market isn't all that uncommon* - I've done it several times (though not at the 10k mark, more along about ... |
Buying a multi-family home to rent part and live in the rest | A professional home inspection will clue you in on any problems you might be buying, so it's important in any real estate transaction. If the seller finances the loan, you need a lawyer. It might be a nice opportunity - being in the right place at the right time. You just have to investigate all angles. |
Is Amazon's offer of a $50 gift card a scam? | Every financial services company (and cellphone provider, cable and broadband provider, private energy supplier, and so on and so forth - it's turtles all the way down in a market economy) spends "something" to acquire a new customer. Paying attractive college students minimum wage to hand out brochures and branded fi... |
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... |
What options do I have at 26 years old, with 1.2 million USD? | You need to find a fiduciary advisor pronto. Yes, you are getting a large amount of money, but you'll probably have to deal with higher than average health expenses and lower earning potential for years to come. You need to make sure the $1.2 million lasts you, and for that you need professional advice, not something y... |
How can a 'saver' maintain or increase wealth in low interest rate economy? | I think this is a good question with no single right answer. For a conservative investor, possible responses to low rates would be: Probably the best response is somewhere in the middle: consider riskier investments for a part of your portfolio, but still hold on to some cash, and in any case do not expect great resul... |
Over how much time should I dollar-cost-average my bonus from cash into mutual funds? | I'm staring at this chart and asking myself, How long a period is enough to have an average I'd be happy with regardless of the direction the market goes? 3 years? 4 years? Clearly, a lump sum investment risks a 2000 buy at 1500. Not good. Honestly, I love the question, and find it interesting, but there's likely no e... |
Why would people sell a stock below the current price? | People in this case, are large institutional investors. The "bid ask" spread is for "small traders" like yourself. It is put out by the so-called specialists (or "market makers") and is typically good for hundreds or thousands of shares at a time. Normally, 2 points on a 50 stock is a wide spread, and the market maker ... |
Under specific conditions can I write off Spotify or other streaming audio services? | Nice try. No. If you were in the music industry, you might have a case. Depending on the exact job, certain things related to music would be a business expense. I don't see how this would pass an audit as it really is unrelated to the work you do. |
How much should a new graduate with new job put towards a car? | What are your goals in life? If one of them is to appear wealthy then buying a high price import is a great place to start. You certainly have the salary for it (congratulations BTW). If one of your goals is to build wealth, then why not buy a ~5000 to ~6000 car and have a goal to zero out that student loan by the e... |
I'm 23 and was given $50k. What should I do? | I would advise against "wasting" this rare opportunity on mundane things, like by paying off debts or buying toys - You can always pay those from your wages. Plus, you'll inevitably accumulate new debts over time, so debt repayment is an ongoing concern. This large pile of cash allows you to do things you can't ordinar... |
Does the P/E ratio not apply to bond ETFs? | How would you compute the earnings for governments that are some of the main issuers of bonds and debt? When governments run deficits they would have a negative earnings ratio that makes the calculation quite hard to evaluate. |
Unemployment Insurance Through Options | This is a snapshot of the Jan '17 puts for XBI, the biotech index. The current price is $65.73. You can see that even the puts far out of the money are costly. The $40 put, if you get a fill at $3, means a 10X return if the index drops to $10. A 70X return for a mild, cyclic, drop isn't likely to happen. Sharing yout... |
Why is it that stock prices for a company seem to go up after a layoff? | As others have pointed out, there are often many factors that are contributing to a stock's movement other than the latest news. In particular, the overall market sentiment and price movement very often is the primary driver in any stock's change on a given day. But in this case, I'd say your anecdotal observation i... |
How can one protect oneself from a dividend stock with decreasing price? | An alternative options strategy to minimize loss of investment capital is to buy a put, near the money around your original buy price, with a premium less than the total dividend. The value of the put will increase if the stock price falls quickly. Likely, a large portion of your dividend will go towards paying the opt... |
Someone asks you to co-sign a loan. How to reject & say “no” nicely or politely? | This is a real difficult situation and I think the correct way to proceed here is to be honest and straightforward. |
Why do US retirement funds typically have way more US assets than international assets? | You need growth in your retirement fund. Sad to say but the broad U.S. marks still has better growth perspective than the emerging markets. Look at China they are only at 6.7% growth for next year the same as this year. Russia's economy is shrinking. These are the other two super powers of 2015. The USA is still the b... |
How to find cheaper alternatives to a traditional home telephone line? | How low you can reduce your costs does depend on your calling pattern. How many minutes per month you call locally; call long distance; call internationally; and how many minutes you receive calls for. If all these figures are low, you can be better off with a pay-per-minute service, if any of the outbound figures ar... |
What headaches will I have switching from Quicken to GnuCash? | Instead of gnucash i suggest you to use kmymoney. It's easier |
Best way to buy Japanese yen for travel? | I already commented the best existing answers, however let me note a couple of other things. Some of my friends in the past have wanted to do one of the following: |
Selling stocks - capital gains | In the US you specify explicitly what stocks you're selling. Brokers now are required to keep track of cost basis and report it to the IRS on the 1099-B, so you have to tell the broker which position it is that you're closing. Usually, the default is FIFO (i.e.: when you sell, you're assumed to be closing the oldest po... |
Why are fund managers' average/minimum purchase price from form 13F the same? | The GuruFocus Link is just reporting the high and low price of the quarter. Price Range (Average) – The estimated trade prices. The average price is calculated from the time weighted average during the period. If no price range is shown, the trade prices are estimated trade prices, which are more accurate estima... |
Should a retail trader choose a broker with access to dark pools | That's like a car dealer advertising their "huge access" to Chevrolet. All brokers utilize dark pools nowadays, either their own or one belonging to a larger financial institution. Why? Because that's a primary source of broker income. Example: Under current US regulations the broker is under no obligation to pass ... |
How to buy stock on the Toronto Stock Exchange? | While most all Canadian brokers allow us access to all the US stocks, the reverse is not true. But some US brokers DO allow trading on foreign exchanges. (e.g. Interactive Brokers at which I have an account). You have to look and be prepared to switch brokers. Americans cannot use Canadian brokers (and vice versa). ... |
What happens to my savings if my country defaults or restructures its debt? | First question: Any, probably all, of the above. Second question: The risk is that the currency will become worth less, or even worthless. Most will resort to the printing press (inflation) which will tank the currency's purchasing power. A different currency will have the same problem, but possibly less so than yo... |
Why would you ever turn down a raise in salary? | I recently rejected an offer at a different firm that would have provided a 14k yearly increase. The reason for the rejection was because I would have had to give up two work from home days, my commute would have been about an hour and half each way, I would have lost about 14 extra days of PTO and holiday pay, and the... |
Data source for historical intra-day bid/ask price data for stocks? | FreeStockCharts.com keeps some intra-day trading history. You have to create an account to look up individual stocks. Once you create a free account you can get intra-day trading history for the last month (Hourly for past month, 15 minutes for past week, 1 minute for past day). Going back past one month and it only... |
How does investing in commodities/futures vary from stocks? | As Dilip has pointed out in the comment, investing in commodities is to either delivery or Buy. Lets say you entered into buying "X" quantities of Soybeans in November, contract is entered into May. In November, if the price is higher than what you purchased for, you can easily sell this, and make money. If in November... |
Can saving/investing 15% of your income starting age 25, likely make you a millionaire? | If by being a millionaire you mean dollar millionaire then I doubt that it is really that easy in Pakistani context. At present the exchange rate is 107 Pakistani rupees per US dollar so even with this exchange rate, to have a million US dollars means having 107 million rupees of wealth. Now with this maths in mind you... |
Can my employer limit my maximum 401k contribution amount (below the IRS limit)? | My old company did this and set a limit at 13 percent which for me kept me well below putting the max into 401k. One had to make 120 - 130k to hit the irs max at 13 percent. So any explanation that the limit restricts high wage earner is BS. This limit restricts all low wage earners as their 13 percent max will be l... |
What are the fundamental levels that makes a Stock Ideal? (either to sell or buy) | for buying: High PE, low debt, discount = win. a company with high debt (in relation to revenues and cash on hand) will have to pay interest and pay off the debt, stunting their growth. and just like a normal person, will barely be able to pay their bills and keep borrowing and might go bankrupt determining discount is... |
Why do some people say a house “not an investment”? | When I purchased my house I struggled with this same idea. I felt sick to my stomach signing a contract stating how much money I now owe a bank. However, the lawyer I was using put it in terms that eased the nausea a little (I still hate owing that much money - but it's a little more palatable). His words, paraphra... |
Previous owner of my home wants to buy it back but the property's value is less than my loan… what to do? | I would not trust Zillow for an appraisal. The numbers I see on there vary a lot from real prices. I'm not sure I'd get a full appraisal either, as that means you "know" the value of the house and may be obliged to reveal it. I'd ask for the loan amount and see what the previous owner says. |
How to choose a company for an IRA? | I use TIAA-Cref for my 403(b) and Fidelity for my solo 401(k) and IRAs. I have previously used Vanguard and have also used other discount brokers for my IRA. All of these companies will charge you nothing for an IRA, so there's really no point in comparing cost in that respect. They are all the "cheapest" in this res... |
What to do with an expensive, upside-down car loan? | You could do a voluntary repossession. While a repossession never looks good on your credit a voluntary repossession is slightly better. A good friend of mine had a situation like this about 11 years ago. She was in an accident didn't have replacement coverage insurance and was left with a large chunk of debt on a wre... |
Investing in dividend-yielding stocks with money borrowed from margin account? | My gut is to say that any time there seems to be easy money to be made, the opportunity would fade as everyone jumped on it. Let me ask you - why do you think these stocks are priced to yield 7-9%? The DVY yields 3.41% as of Aug 30,'12. The high yielding stocks you discovered may very well be hidden gems. Or they may ... |
Personal finance management: precise or approximately? | Here is what we do. We use YNAB to do our budgeting and track our expenses. Anything that gets paid electronically is tracked to the penny. It really needs to be, because you want your transaction records to match your bank's transaction records. However, for cash spending, we only count the paper money, not the coi... |
Corporate Coverdell ESA Tax Liability | Not sure how authoritative it is, but according to this site, yes: Can a corporation, partnership or other non-living entity make the contribution to an ESA? Yes. The tax law does not restrict the ability to make contributions to living individuals. Corporations and other entities may make contributions without regard ... |
What prevents investors from buying high yield stocks and selling them as soon as their dividend is paid out? | The rest of the market knows when the dividends are paid out, and that will be reflected naturally in the share price. That's why there is no way to consistently beat the market. Because the market is other human beings, who's sum of knowledge is greater than any individual. Everything in the stock market boils down to... |
How can I find if I can buy shares of a specific company? | A company whose stock is available for sale to the public is called a publicly-held or publicly-traded company. A public company's stock is sold on a stock exchange, and anyone with money can buy shares through a stock broker. This contrasts with a privately-held company, in which the shares are not traded on a stock ... |
Is there a reason to buy a 0% yield bond? | No, there isn't. There are a number of reasons that institutions buy these bonds but as an individual you're likely better off in a low-yield cash account. By contrast, there would be a reason to hold a low-yield (non-zero) bond rather than an alternative low-yield product. |
Electric car lease or buy? | I have coworker who reported that he leased a Nissan Leaf from 2013-2016 and was offered $4000 off the contracted purchase price at the end of the lease due to a glut of other lessees turning in for a lease on the newest model with greater range. It's not clear that this experience will be repeated by others three yea... |
$65000/year or $2500 every two weeks: If I claim 3 exemptions instead of zero, how much would my take home pay be? | I use paycheckcity.com and first punch in my paycheck and make sure it calculates within a few pennies the value of my actual paycheck. Then I fiddle with withholding values, etc. to see the effect of change. It has been very effective for me over the years. |
How to rescue my money from negative interest? | How about placing the money in a safety deposit box at the same bank? This will probably work out cheaper than the loss due to negative rates. Although, I'm quite sure the banks won't like this idea. |
How Do I Fix Excess Contribution Withdrawl | You didn't have a situation of "excess contribution". If you have proof that someone in Fidelity actually told you what you said, you might try to recover some of your losses through a lawsuit. However, their first (and main) defense would be that they're not in the business of providing tax advice, and it is your prob... |
ESPP advantages and disadvantages | The answer is simple. If your employer is offering you a discount, that is free money. You always take free money, always. |
What is the purpose of endorsing a check? | Paper trail of who did the deposit. Less significant for a personal account, but a bigger deal for accounts that are used by multiple people (e.g. a corporate checking account). |
Why do deep in the money options trade below their intrinsic value? | You made 94$ on an investment of 554.80 *100 = 55480$ for an approx holding period of 1 year. So the % return is ~0.16%, which is not much better than the short term us treasury rate. The current 1 year treasury rate is 0.27%: http://ycharts.com/indicators/1_year_treasury_rate So yes, you have a risk free portfolio, so... |
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... |
What is a good price to “Roll” a Covered Call? | There is no reason to roll an option if the current market value is lower than the strike sold. Out-of-the-money strikes (as is the $12 strike) are all time value which is decaying constantly and that is to our advantage. If share price remains below the strike, the option will expire worthless, you will still have you... |
Why real estate investments are compared via “cap rate”? | Cap rate includes any interest on the mortgage and not the repayments of the mortgage. Cap rate represents the net income which is the gross rent minus all costs, including the interest on the loan. Mortgage repayments form part of your cash flow calculations not your return calculations. ROI is a calculation which wor... |
ACH processing time of day | Each bank is different, so your question needs to be more specific. For instance, I believe Paypal and Chase settles at 7pm EST on business days. Bank of America at 5PM. |
Pay team mates out of revenues on my name | Can I deduct the money that I giving to my team mates from the taxes that I pay? If yes, how should I record the transaction? Why? Why are you giving money to your team mates? That's the most important question, and any answer without taking this into account is not full. You would probably have to talk to a professi... |
What is the meaning of “short selling” or “going short” a stock? | The 'normal' series of events when trading a stock is to buy it, time passes, then you sell it. If you believe the stock will drop in price, you can reverse the order, selling shares, waiting for the price drop, then buying them back. During that time you own say, -100 shares, and are 'short' those shares. |
Investing small amounts at regular intervals while minimizing fees? | I was going to comment on the commission-free ETF answer, which I agree with, but I don't have enough reputation. TD Ameritrade has a list of commission-free ETFs and has no minimum deposit required to open an account. Another idea is to keep gifts in cash until a certain threshold is reached. For instance, $100 for bi... |
What to sell when your financial needs change, stocks or bonds? | You have to understand what risk is and how much risk you want to take on, and weight your portfolio accordingly. I think your 80/20 split based on wrong assumptions is the wrong way to look at it. It sounds like your risk appetite has changed. Risk is deviation from expected, so risk is not bad, and you can have cas... |
How do I explain why debt on debt is bad to my brother? | How about doing some calculations and show him how much he is paying for things he is buying on credit.Mix in some big and small purchases to show how silly it is on both. Some examples: What really made the debt issue hit home for me (no pun intended) was when I bought my first house and read the truth in lending disc... |
How can I invest in an index fund but screen out (remove) certain categories of socially irresponsible investments? | I think the answer to your question is no, in theory. By screening out funds, you must actively manage the investments. To then try to ensure you track the index closely enough, you have to do further management. Either you spend your own time to do this or you pay someone else. This is ok, but it seems contrary to th... |
Why are prices in EUR for consumer items often the same number as original USD price, but the GBP price applies the actual exchange rate? | The simplest answer would be: Because they can. Why charge less for something if people will pay more? One example are Apple products. While there the price number is not exactly the same in EUR and USD, they are so close that, effectively, the EUR product is more expensive. Many things go into a price. There might be ... |
Are bonds really a recession proof investment? | That depends on how you're investing in them. Trading bonds is (arguably) riskier than trading stocks (because it has a lot of the same risks associated with stocks plus interest rate and inflation risk). That's true whether it's a recession or not. Holding bonds to maturity may or may not be recession-proof (or, perha... |
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). |
Why can't you just have someone invest for you and split the profits (and losses) with him? | This means that if your capital under my management ends up turning a profit, I will keep half of those profits, but if I lose you money, I will cover half those losses. The bold part is where you lose me. This absolutely exists with the exception of the loss insurance. It just requires a lot more than the general ret... |
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... |
How credible is Stansberry's video “End of America”? | I listened to about 15 minutes of the video, but then I read your other link, which gives a much better summary. This guy is an idiot. Just consider this statement: "If everyone was taxed at 100%, it wouldn't be enough to balance the federal budget." This is true to some extent. It wouldn't be enough to balance the fed... |
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