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Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited. | what are the downsides of rolling credit card debt in this fashion | Assuming you can get keep getting credit cards like this forever, you open yourself up to risk in short term losses. Stock/bond prices fluctuate. If you need to pay the money back for some reason (at the end of the 15 months) your investment may be less than the 5,000 you started with. |
Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering | what are the downsides of rolling credit card debt in this fashion | Awesome, you are a math guy. Very good for you. In theory, what you are proposing, should work out great as the math works out great. However have you taken a economics or finance coursework? The math that they do in these class will leave a most math guys uncomfortable with the imprecision even when one is comfort... |
Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open. | For a car loan, how much should I get preapproved for? | —they will pull your credit report and perform a "hard inquiry" on your file. This means the inquiry will be noted in your credit report and count against you, slightly. This is perfectly normal. Just don't apply too many times too soon or it can begin to add up. They will want proof of your income by asking for recent... |
Share your insights or perspective on the financial matter presented in the input. | 0% APR first 12 months on new credit card. Can I exceed that 30% rule of thumb and not hurt my credit score? | Your utilization ratio history is irrelevant to its impact on your credit score. If you run up 80% of your utilization In January, then pay it back to 10% in March, your score in March will reflect the new reduced ratio with no memory of the 80% utilization last month. With that said, don't go around overspending just... |
Offer your thoughts or opinion on the input financial query or topic using your financial background. | 0% APR first 12 months on new credit card. Can I exceed that 30% rule of thumb and not hurt my credit score? | I cannot stress this enough, so I'll just repeat it: Don't plan your finances around your credit score. Don't even think about your credit score at all. Plan a budget an stick to it. Make sure you include short and long term savings in your budget. Pay your bills on time. Use credit responsibly. Do all of these ... |
Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited. | Where to borrow money between college graduation and employment? | You have a few options, none of which are trade off free: Apply for a credit card, and live off of that. Here, of course, you will go into debt, and there are minimums to pay. But, it will tide you over. In any case, you are getting unsecured credit, so your rates will probably be very, very high. You don't want t... |
Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering | Where to borrow money between college graduation and employment? | You have asked about getting a loan, the issue is that you don't have collateral to offer up in exchange for the loan, you also don't have a regular source of income. Getting a low level job, even one not related to your major will provide income. Getting a not-so-perfect job related to your major will allow your to su... |
Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open. | Can mortgage insurance replace PMI? | PMI IS Mortgage insurance. It stands for "Private Mortgage Insurance". This guy is just trying to get you to buy it from him instead of whoever you have it with now. Your lender would always be on the policy since it is an insurance policy they hold (and you pay for) that protects them from you defaulting on the loan.... |
Share your insights or perspective on the financial matter presented in the input. | Timing between loans and applying for a new credit card | There were several areas where the mortgage and car loan have affected your credit. The mortgage had the following impacts, The car loan (purchased shortly after the house) had the following impacts, You did not mention your payment history, but since you had an 800 prior to the house purchase, we can assume that your... |
Offer your thoughts or opinion on the input financial query or topic using your financial background. | Get car loan w/ part time job as student with no credit, no-cosigner but no expenses | Instead of going to the dealership and not knowing if you will be able to get a loan or what the interest rate might be, go to a local credit union or bank first, before you go car shopping, and talk to them about what you would need for your loan. If you can get approval for a loan first, then you will know how much ... |
Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited. | Get car loan w/ part time job as student with no credit, no-cosigner but no expenses | Ben already covered most of this in his answer, but I want to emphasize the most important part of getting a loan with limited credit history. Go into a credit union or community bank and talk to the loan officer there in person. Ask for recommendations on how much they would lend based on your income to get the best i... |
Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering | What do I need to consider when refinancing one home to pay the down-payment of another? | What kind of financial analysis would make you comfortable about this decision? The HELOC and ARM are the biggest red flags to me in your current situation. While I don't expect interest rates to skyrocket in the near future, they introduce an interest rate risk that is easy to get rid of. Getting rid of the HELOC an... |
Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open. | What do I need to consider when refinancing one home to pay the down-payment of another? | and I need to upgrade my current home to a larger, longer-term property Would selling your current home give you (at least) a 20% DP on the new home? Take additional cash out of the refinance of the first home to accelerate saving Dittoing D Stanley, that makes no sense. Purchase and move to a second property of greate... |
Share your insights or perspective on the financial matter presented in the input. | Tax treatment of renovation costs and mortgage interest on a second house | Should I treat this house as a second home or a rental property on my 2015 taxes? If it was not rented out or available for rent then you could treat it as your second home. But if it was available for rent (i.e.: you started advertising, you hired a property manager, or made any other step towards renting it out), but... |
Offer your thoughts or opinion on the input financial query or topic using your financial background. | Rent or buy with 0 down | Whether or not you choose to buy is a complicated question. I will answer as "what you should consider/think about" as I don't think "What should I do" is on topic. First off, renting tends to look expensive compared to mortgages until you factor in the other costs that are included in your rent. Property taxes. Thes... |
Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited. | Rent or buy with 0 down | In the situation you describe, I would strongly consider purchasing. Before purchasing, I would do the following: Think about your goals. Work with good people. Set a budget. Be able to handle surprises. If buying a home makes sense, you can do the following after buying: |
Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering | Non-owner car insurance and registration | this is a bit unusual, but not unheard of. i have known more than one car whose owner was not its driver. besides the obvious risk that the legal owner of the car will repossess it, this seems fairly safe. your insurance should cover any financial liability that you incur during an accident. even if the car is repos... |
Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open. | Stocks and bonds have yields, but what is a yield? | For bonds bought at par (the face value of the bond, like buying a CD for $1000) the payment it makes is the same as yield. You pay $1000 and get say, $40 per year or 4%. If you buy it for more or less than that $1000, say $900, there's some math (not for me, I use a finance calculator) to tell you your return taking t... |
Share your insights or perspective on the financial matter presented in the input. | Stocks and bonds have yields, but what is a yield? | Yield can be thought of as the interest rate you would receive from that investment in the form of a dividend for stocks or interest payments on a bond. The yield takes into account the anticipated amount to be received per share/unit per year and the current price of the investment. Of course, the yield is not a gu... |
Offer your thoughts or opinion on the input financial query or topic using your financial background. | Is there such a thing as “stock insurance”? | Yes, you can insure against the fall in price of stock by purchasing a put option. You pay for a put and if the price of the share falls below the "strike price" of the put, then you can exercise the put. On exercise, the person who sold you the put contract agrees to buy the stock for the strike price, even though t... |
Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited. | Is there such a thing as “stock insurance”? | Put options are basically this. Buying a put option gives you the right but not the obligation to sell the underlying security at a certain date for a fixed price, no matter its current market value at that time. However, markets are largely effective, and the price of put options is such that if you bought them to cov... |
Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering | Is there such a thing as “stock insurance”? | First off, the jargon you are looking for is a hedge. A hedge is "an investment position intended to offset potential losses/gains that may be incurred by a companion investment" (http://en.wikipedia.org/wiki/Hedge_(finance)) The other answers which point out that put options are frequently used as a hedge are correct.... |
Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open. | Is there such a thing as “stock insurance”? | Not that I am aware. If you are trying to mitigate losses from stock purchases, you may want to consider stock mutual funds. This is why single stocks can be extremely risky. |
Share your insights or perspective on the financial matter presented in the input. | Do my 401k/Roth accounts benefit from compounding? | You buy a share of something for $100. It goes up by 10% over a year, and you now have $110 in value. It goes up by 10% next year and you now have $121. That original $10 increase was compounded even though you're not earning interest because the gains are measured as a percentage. If, instead, you'd only invested ... |
Offer your thoughts or opinion on the input financial query or topic using your financial background. | Do my 401k/Roth accounts benefit from compounding? | During the course of the year, the S&P individual stocks will have some dividends. Not every last stock but a good number of them. Enough that the average dividend for the S&P has been about 2% recently. So if the S&P index goes up, say 10%, an S&P fund should go up closer to 12%. For a fund holder, you'd normally see... |
Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited. | Do my 401k/Roth accounts benefit from compounding? | You might be confusing two different things. An advantage of investing over a long term is the compounding of returns. Those returns can be interest, dividends, or capital gains. The mix between them depends on what you invest it and how you invest in it. This advantage applies whether your investment is in a taxabl... |
Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering | Do my 401k/Roth accounts benefit from compounding? | Sure, stocks don't pay interest. I just looked up the word "compound" in a couple of dictionaries and the relevant definition in all of them just mentioned interest and not growth in the value of stock. So it may be technically inaccurate to talk about "compound growth" of a stock. I'll yield to someone more knowledgea... |
Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open. | The Big Short - shorting vs CDS | To be able to truly short something you technically need to be able to borrow the security so you can sell it. There needs to be a system for borrowing in place to be able to do this which is very robust for large U.S. stocks but doesn't exist for CDOs mainly due to the complex legal structures around them. However,... |
Share your insights or perspective on the financial matter presented in the input. | Transfer from credit to debit | I've called both BofA and Amex Customer Support, and they couldn't help. That's because you cannot. Debit card is tied to your checking account, so you can do a cash advance from your AMEX and deposit it to your BOA checking account. It will then be available to use with your debit card. |
Offer your thoughts or opinion on the input financial query or topic using your financial background. | Transfer from credit to debit | The new information helps a little, but you're still stuck as far as doing exactly what you asked. The question that you really should be asking is "How do I deposit money into my BofA checking account from Italy?" If you can figure that out, then the whole part about your father's AmEx card really becomes irrelevant... |
Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited. | Transfer from credit to debit | As other answers and comments suggest you are trying to do something... odd to say the least. No one wants to use a credit card to finance a checking/current account because you are creating a debt on that credit card (unless you are in the odd situation where the card is in credit) that will immediately start accruing... |
Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering | Transfer from credit to debit | As revised, the answer is still that you're asking the wrong question. If your father wants to make money available on your debit card, all he has to do is deposit the money into your checking account. Where he gets that money from -- as an AmEx casH advance, by selling your bicycle for you, or simply out of one of hi... |
Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open. | How come I can't sell short certain stocks? My broker says “no shares are available” | In finance, short selling (also known as shorting or going short) is the practice of selling assets, usually securities, that have been borrowed from a third party (usually a broker) with the intention of buying identical assets back at a later date to return to the lender. Remember your broker has to borrow it from so... |
Share your insights or perspective on the financial matter presented in the input. | How come I can't sell short certain stocks? My broker says “no shares are available” | Shorts are difficult because you have to find someone to lend the stock to you. In contrast, put options don't require that. They also have some nice properties like you're only out the contract price. The options chain for BSFT will give you an idea of where the market is. Keep in mind that BSFT only IPO'd last year ... |
Offer your thoughts or opinion on the input financial query or topic using your financial background. | How come I can't sell short certain stocks? My broker says “no shares are available” | You can't short a stock unless there is someone willing and able to "lend" shares to you. And there are several reasons why that might not be the case. First, BSFT is a "new" stock, which means that NO ONE has held it very long. It's much easier to short IBM or Exxon Mobil, where there are some long-term holders who wo... |
Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited. | Are there statistics showing percentage of online brokerage customers that are actually making a profit trading forex/futures/options? | Finding statistics is exceedingly hard, because the majority of traders lose money. That is, not only they don't "beat the markets", not only they don't "beat the benchmark" (S&P 500 being used a lot as reference): they just lose money. Finding exact numbers, quality statistics and so on is very difficult. Finding rece... |
Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering | Are there statistics showing percentage of online brokerage customers that are actually making a profit trading forex/futures/options? | Interactive Brokers advertises the percent of profitable forex accounts for its own customers and for competitors. They say they have 46.9% profitable accounts which is higher than the other brokers listed. It's hard to say exactly how this data was compiled- but I think the main takeaway is that if a broker actually a... |
Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open. | Are there statistics showing percentage of online brokerage customers that are actually making a profit trading forex/futures/options? | It looks like these types of companies have to disclose the health of their accounts to CFTC (Commodity Futures Trading Commission). That is the gist I get at least from this article about the traders that lost money due to the Swiss removing the franc’s cap against the euro. The article says about the U.S. retail FORE... |
Share your insights or perspective on the financial matter presented in the input. | Why does a ETN that is supposed to track Crude Oil like UWTI show constant decline every year? And am I an idiot for investing in it? | After looking at both S&P GSCI Crude Oil Index Excess Return (INDEXSP:SPGSCLP) and CS VS 3x LC ETN NYSEARCA: UWTI they seem to track well (using Google Finance). I'm not seeing where your statement this ETN loses whether oil is gaining or not holds true. Both have posted a year-over-year loss. In the past year the ... |
Offer your thoughts or opinion on the input financial query or topic using your financial background. | Why does a ETN that is supposed to track Crude Oil like UWTI show constant decline every year? And am I an idiot for investing in it? | This security looks like it will require patience for it to pay off. The 200 day moving average looks as if it will soon cross over the 20 day moving average. When that happens the security can be said to be in a bull run. http://stockcharts.com/h-sc/ui?s=UWTI&p=D&yr=1&mn=6&dy=0&id=p10888728027 However, this is just s... |
Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited. | Is it better to pay an insurance deductible, or get an upgrade? | You asked for simple, and I promise you this is... it just looks a bit math-heavy to start with because we have to handle a couple of different scenarios. Bear with me :) I find the best way to deal with these kinds of questions is to put together a "Total cost" for each option, for a sensible amount of time, and see w... |
Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering | Is it better to pay an insurance deductible, or get an upgrade? | If you repair your phone, when your current balance is paid off, could you get the same coverage for less money? Or would your monthly payment remain the same regardless? That would be the easiest comparison to make. ie: Pay an extra $49 to have the phone replaced [ie: the cost of using the insurance program for $149,... |
Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open. | Is it better to pay an insurance deductible, or get an upgrade? | I would go for the upgrade and cancel the insurance. It's been 5 years since I left the post paid subsidized phone world and I'm WAY better off. I use ATT GoPhone and I buy my phones in cash. If I shatter my phone, I replace the screen or simply buy a new one. Sites like swappa.com make buying and selling phones a b... |
Share your insights or perspective on the financial matter presented in the input. | Is it better to pay an insurance deductible, or get an upgrade? | I think you have a few choices that cannot be described by math alone: Repair current phone: 149 Replace current phone with new model from carrier: 100 + cost of new phone Replace current phone with new model on payment plan from carrier: 100 + cost of new phone + finance charge (could be zero or cleverly hidden). Y... |
Offer your thoughts or opinion on the input financial query or topic using your financial background. | Is it better to pay an insurance deductible, or get an upgrade? | I'm going to guess you're on Verizon and your wife has an iPhone. I just went through this exact same situation with my mom's phone last week. When you're off contract with Verizon you're saving $25/month on your plan (at least, I am), so staying off contract is big. If you do the monthly payment you're paying full ret... |
Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited. | Is it better to buy a computer on my credit card, or on credit from the computer store? | Using your credit card: Applying for a store credit card: In general it is far better to not buy bigger items like a computer until you can pay cash, or pay for it on credit card (to get reward points) and then pay off the card the next month so you don't pay interest. |
Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering | Is it better to buy a computer on my credit card, or on credit from the computer store? | Since you have a credit card, I recommend you use it for the purchase. It gets you two things at the very least: Gets the purchases reported as credit utilization. If you handle that correctly, you can improve your score Most card vendors give free extended warranty and return policies that a retailer or manufacturer d... |
Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open. | Is it better to buy a computer on my credit card, or on credit from the computer store? | As far as the money goes, it all comes down to the terms. What is going to cost you the least? Look for hidden fees and costs with the store credit. You will need to read the fine print of the credit agreement some automatically sign you up for a service that will cost you extra money every month. Compare what the... |
Share your insights or perspective on the financial matter presented in the input. | Is it better to buy a computer on my credit card, or on credit from the computer store? | The downside of the store card is that the "deal" for using the card is typically 6-12 months of "no payments" or "no interest". In reality, the "deal" is deferred payments/interest. The problem is, if you miss any payment, or fail to pay the computer off in full, you'll have to pay for the accrued interest -- at a rat... |
Offer your thoughts or opinion on the input financial query or topic using your financial background. | Is it better to buy a computer on my credit card, or on credit from the computer store? | In my experience dealing with credit cards and store cards, you may find that the store card is much more flexible than the credit card in terms of the enforcement of the card agreement. For instance, I've missed payments on credit cards and only been 1 day late and saw a rate increase, but on a store card when the sa... |
Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited. | Is it better to buy a computer on my credit card, or on credit from the computer store? | you should pay cash. always pay cash or debit card. never use credits unless absolutely required. if you so poor that you need credit card you must reduce your costs! don't buy anything except food, start making money, then you will buy everything! and you should buy cheapest food now |
Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering | Split buying a house 3 ways. How do I approach this? | Get everything in writing. That includes ownership %, money in, money out, who is allowed to use the place, how much they need to pay the other partners, who pays for repairs, whether to provide 'friends and family' discounts, who is allowed to sell, what happens if someone dies, how is the mortgage set up, what to do ... |
Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open. | Split buying a house 3 ways. How do I approach this? | I would second the advice to not do this. Real estate ownership is complex to begin with, involving a constant stream of maintenance, financing, and other decisions. It is difficult enough to do for a single individual or a family as a unit (a couple), but at least spouses are forced to compromise. Friends are not, an... |
Share your insights or perspective on the financial matter presented in the input. | Is it a good idea to get a mortgage when buying a house, for credit reasons? | It may or may not be a good idea to borrow money from your family; there are many factors to consider here, not the least of which is what you would do if you got in serious financial trouble and couldn't make your scheduled payments on the loan. Would you arrange with them to sell the property ASAP? Or could they easi... |
Offer your thoughts or opinion on the input financial query or topic using your financial background. | Is it a good idea to get a mortgage when buying a house, for credit reasons? | I would go with the family route if I was you. And i think many other people would if they were fortunate to have such a great option. This will allow you to move faster when your trying to buy a new house because you can easily get a mortage if you see a stellar deal. Also you can establish credit in much cheaper way... |
Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited. | Stock market order execution | I used to work on the software in the front office (and a bit of the middle office) of a brokerage firm. This page describes the process pretty well. Basically there are three parts: So to your question: how does an order get executed? ETFs work the same since they are effectively shares of a mutual fund's assets. True... |
Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering | Stock market order execution | When you are placing an order with an online broker you should already know what exchange or exchanges that stock trades on. For example if you look up under Yahoo Finance: Notice how News Corp is traded both on the ASX and the Nasdaq. The difference is the shares traded on the ASX have the extension .AX, that is how y... |
Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open. | Discount Rate vs. IRR | The IRR is the Discount Rate r* that makes Net Present Value NPV(r*)==0. What this boils down to is two ways of making the same kind of profitability calculation. You can choose a project with NPV(10%)>0, or you can choose based on IRR>10%, and the idea is you get to the same set of projects. That's if everything is ... |
Share your insights or perspective on the financial matter presented in the input. | How does investment into a private company work? | To me this sounds like a transaction, where E already owns a company worth 400k and can therefore pocket the money from D and give D 25% of the profits every year. There is nothing objective (like a piece of paper) that states the company is worth 400K. It is all about perceived value. Some investors may think it is wo... |
Offer your thoughts or opinion on the input financial query or topic using your financial background. | How does investment into a private company work? | Each company has X shares valued at $Y/share. When deals like "Dragon's Den" in Canada and Britain or "Shark Tank" in the US are done, this is where the company is issuing shares valued at $z total to the investor so that the company has the funds to do whatever it was that they came to the show to get funding to do, t... |
Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited. | How does investment into a private company work? | However what actually appears to happen is that the 100k is invested into the company to fund some growth plan. So is it actually the case that E's company is worth 400k only AFTER the transaction? Is the 100k added to the balance sheet as cash and would the other 300k be listed as an IP asset? The investor gets 25% of... |
Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering | Why would a company like Apple be buying back its own shares? | A Breakdown of Stock Buy Backs has this bottom line on it: Are share buybacks good or bad? As is so often the case in finance, the question may not have a definitive answer. If a stock is undervalued and a buyback truly represents the best possible investment for a company, the buyback - and its effects - can be viewed... |
Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open. | Why would a company like Apple be buying back its own shares? | I think JB King's answer is interesting from the point of view of "is this good for me" but the OP's question boils down to "why would a company do this?" The company buys back shares when it thinks it will better position the company financially. A Simple Scenario: If Company A wants to open a new store, for example, ... |
Share your insights or perspective on the financial matter presented in the input. | Are 'no interest if paid in in x months' credit cards worth it? | You can't buy it outright. You can't take the time to save up. if the remaining choice is between a card that charges from day one, and a card with this kind of grace period, the grace card is the better choice. Plan wisely, pay it in full before that rate starts to be charged. One additional note - There are two group... |
Offer your thoughts or opinion on the input financial query or topic using your financial background. | Are 'no interest if paid in in x months' credit cards worth it? | It has been reported in consumer media (for example Clark Howard's radio program) that the "no interest for 12 months" contracts could trick you with the terms and the dates on the contract. Just as an example: You borrow $1000 on 12/1/2013, same as cash for 12 months. The contract will state the due date very clearly... |
Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited. | Are 'no interest if paid in in x months' credit cards worth it? | I too am a full-monthly-statement-balance payer and I received a balance transfer offer from my credit-card company. This one was quite different from many others that I have read about on this forum. I could do a balance transfer for any amount up to $X from another credit card, or use the enclosed "checks" to pay so... |
Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering | Are 'no interest if paid in in x months' credit cards worth it? | No, because of the balance transfer fees, which could be 4%. Unless of course you get a deal for 12 months of no payment, and you pay it back in 12 months, in which case a 4% annual interest rate is much less than a loan! At that point you are gambling that you will be responsible with the payments, and the card compan... |
Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open. | Why are stocks having less institutional investors a “good thing”? | Institutional investors are the "elephant" in the room. When they "sneeze," everyone else "catches cold." They're fine, if they're buying after YOU do. They're not bad, if you want to buy after they sell en masse. But when you read about moves of 10 percent, 15 percent or more in a single day, it's because a bunch of i... |
Share your insights or perspective on the financial matter presented in the input. | Why are stocks having less institutional investors a “good thing”? | It's not necessarily bad but it can cause the stock price to become a lot more volatile. Depends on which side of the bet you're on ;) Suppose a hedge fund manager thinks a company is poorly run. He may buy a ton of shares so that he can get rid of the current CEO and replace it with his/her own. For the hedge fund and... |
Offer your thoughts or opinion on the input financial query or topic using your financial background. | 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 ... |
Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited. | Why are stocks having less institutional investors a “good thing”? | Because someone smarter than you by 50 IQ points (a quant) will depart their larger position long before you have a chance to see it coming. Your stop losses are useless as the market will open with the issue below your sell price. Your trade even if place at the same mine would settle after theirs. don't piss in the t... |
Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering | Why are stocks having less institutional investors a “good thing”? | Let’s turn this round. Now what if the only people willing to own part of company are doing it due to the expectation that they will make money in the short term form the company…. |
Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open. | Why are stocks having less institutional investors a “good thing”? | Generally speaking, having more institutional investors is a good sign. Of course there are many types of institutions. Normally we are thinking of mutual funds, pension funds, endowments, and hedge funds. They may not all have the same implications. Hedge funds, in particular, are out to make a buck with very littl... |
Share your insights or perspective on the financial matter presented in the input. | What are the usual terms of a “rent with an option to buy” situation? | Things I would specifically draw your attention to: the contract typically allows for an "option" to purchase; it does not typically compel purchase, although this is seen the purchase price is negotiated before anything gets signed the option to buy is typically available to the renter for the period of the lease cont... |
Offer your thoughts or opinion on the input financial query or topic using your financial background. | What are the usual terms of a “rent with an option to buy” situation? | In most cases an rent with option to buy is structured as follows: The renter/buyer will place a deposit/premium (not the same as a security deposit) that purchases the option( the right ) to buy the home at a future date at a specific price. The renter / buyer will often pay extra rent in addition to market rent. Man... |
Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited. | What are the usual terms of a “rent with an option to buy” situation? | The typical deal would be a premium to the normal rent, say $1200 instead of $1000, in return he has the option to buy the house at a fixed price by the end of the agreement term. |
Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering | What are the usual terms of a “rent with an option to buy” situation? | While the other people have tried to answer your question as thoroughly as possible, I fear they are entirely incorrect in answering your question itself as it stands. The answer is that there are no usual terms. There are a handful of different options coming out now for this exact scheme. Examples include the UK Gove... |
Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open. | Harmony Gold Mining Company is listed on the NYSE and JSE at different prices? | The quotes on JSE are for 100 share lots. The quotes on NYSE are for single shares. That still leaves some price difference, but much less than you calculated. (EDIT: Equivalently, the price is quoted in 1/100th of a Rand. The Reuter's listing makes this explicit since the price is listed as ZAc rather than ZAR. ht... |
Share your insights or perspective on the financial matter presented in the input. | Harmony Gold Mining Company is listed on the NYSE and JSE at different prices? | On NYSE it isn't the equity which is listed but is an ADR(American Depositary Receipt). Source A negotiable certificate issued by a U.S. bank representing a specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange. ADRs are denominated in U.S. dollars, with the underlying security ... |
Offer your thoughts or opinion on the input financial query or topic using your financial background. | Why can't house prices be out of tune with salaries | Your friends are overlooking a couple of problems with house prices and salaries being out of whack: Home 'equity' is a paper gain unless you realize it by selling the house. If you don't, but use the 'home ATM', all you're doing is piling up more debt that's secured on an asset that has downside risk. Ask anybody who'... |
Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited. | Why can't house prices be out of tune with salaries | Indefinitely is easy to answer. Assume that the average house currently costs four times the average salary, and that house prices rise 1% faster than salaries indefinitely. Then in only 1,000 years' time, the average house will cost around 84,000 times the average salary. In 10,000 years, it will be 6.5*10E43 times th... |
Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering | Why can't house prices be out of tune with salaries | Those folks should be introduced to some real estate folks I know, they'd get along famously, being as how they still think it's 2007. The amount of housing out there requires that a large market of consumers is available to purchase them. If housing prices rose infinitely ahead of salaries, the market for potential bu... |
Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open. | Why can't house prices be out of tune with salaries | Here's another way to think about. Let's assume it is 2011 and we have a married couple who are 25 and make a combined salary of $50,000/yr net. A suitable first house in their area is $300,000, six times their annual net salary. Assuming they could scrimp so that 1/2 of take-home went toward saving for their home, ... |
Share your insights or perspective on the financial matter presented in the input. | Why can't house prices be out of tune with salaries | They can't keep rising with respect to people's income because eventually you run out of buyers. If there's roughly one house for every five people, then you'd better make sure that the price you set to sell your house is affordable to people in the upper fifth of income scales, or else you are mathematically guarantee... |
Offer your thoughts or opinion on the input financial query or topic using your financial background. | Why can't house prices be out of tune with salaries | The three basic needs are food, clothing, and shelter. Housing falls into the third category. Because it is "basic," housing takes up a large part of one's disposable income. The rule of thumb is that you shouldn't spend more than 25% of your income on rent or mortgages. And that is income BEFORE taxes. Anything much m... |
Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited. | Why can't house prices be out of tune with salaries | The big problem with your argument is the 10% per year figure, because in the long term (especially if adjusted for inflation) the prices have not been going up nearly that fast. Here is a site with some nice graphs for prices over the last 40 years, and it's pretty clear to see that pretty much just what you were talk... |
Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering | Why can't house prices be out of tune with salaries | There's a few things going on here. If we fixed rates (and terms) over time we'd expect a pretty tight chart of home prices to income, almost lockstep. Add a layer of growth above that in boom times due to the wealth effect (when stocks are way up, we have extra money to blow on bigger houses) and the opposite when mar... |
Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open. | Why can't house prices be out of tune with salaries | I'd suggest changing the subject when your friends talk about real estate to save your sanity and friendship. There's a difference between "belief" and "knowledge". Arguing with a believer isn't a very productive course of action, and will ultimately poison the friendship. Reality is a harsh mistress. |
Share your insights or perspective on the financial matter presented in the input. | What fees should I expect when buying and/or selling a house? | Typical costs to buy might include: One piece of advice if you've never bought, fixing problems with a house always seems to cost more than the discount in price due to the problems. Say the house needs a 15K new kitchen it seems like it will be just 7K cheaper than a house with a good kitchen, that kind of thing. Care... |
Offer your thoughts or opinion on the input financial query or topic using your financial background. | I have made all the payments on a car I cosigned. Do I have to fight for possession of the vehicle? | Ordinarily a cosigner does not appear on the car's title (thus, no ownership at all in the vehicle), but they are guaranteeing payment of the loan if the primary borrower does not make the payment. You have essentially two options: Stop making payments for him. If he does not make them, the car will be repossessed and... |
Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited. | Do there exist any wikipedia type sites for evaluating financial service providers? | It is always a good idea if you are worried about customer service and hidden gotchas to visit http://getsatisfaction.com - they operate as an independent complaint board for many companies. http://getsatisfaction.com/bankofamerica for example alerts you to many problems with using BofA. In addition, googling for commo... |
Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering | Do there exist any wikipedia type sites for evaluating financial service providers? | Excellent question. I'm not aware of one. I was going to say "go visit some personal finance blogs" but then I remembered that I write on one, and that I often get a commission if I talk about online accounts, so unless something is really bad I'm not going to post on it because I want to make money, not chase it away... |
Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open. | What does the average log-return value of a stock mean? | Probably the best way to investigate this is to look at an example. First, as the commenters above have already said, the log-return from one period is log(price at time t/price at time t-1) which is approximately equal to the percentage change in the price from time t-1 to time t, provided that this percentage change ... |
Share your insights or perspective on the financial matter presented in the input. | What does the average log-return value of a stock mean? | Log-returns are very commonly used in financial maths, especially quantitative finance. The important property is that they're symmetrical around 0 with respect to addition. This property makes it possible to talk about an average return. For instance, if a stock goes down 20% over a period of time, it has to gain 25%... |
Offer your thoughts or opinion on the input financial query or topic using your financial background. | What does the average log-return value of a stock mean? | Knowing the log return is useful - the log return can help you to work out the annual return over the period it was estimated - and this should be comparable between stocks. One should just be careful with the calculation so that allowance for dividends is made sensibly. |
Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited. | What to do with $50,000? | Here is some good advice, read your UCO prospectus. It seems to hold 20% of it's value ($600MM out of $3B) via 13800 of the Apr 21st 2015 contracts. (expiring in 30 days) Those will be rolled very quickly into the May contracts at a significant loss of NAV. (based on current oil futures chains) Meaning if crude o... |
Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering | What to do with $50,000? | Considered a down payment on a house? Some illiquid assets? Otherwise you are doing 'responsible' get rich slow (read: get rich old) type things. And this question only invites opinion based answer. You tried futures and don't want to take that kind of risk again with your $50,000, so thats that |
Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open. | What to do with $50,000? | Before anything else, pay down any debt at higher interest rates. Best guaranteed return on investment you can get. What do you plan to use the money for, when, with how much advance planning? How risk-tolerant are you, and how patient are you ? Would you see a dip in an asset's value as lost money or a buying opportun... |
Share your insights or perspective on the financial matter presented in the input. | How accurate is Implied Volatility in predicting future moves? | Historical volatility of a stock is going to be based on past performance, basically its current trend. That can be useful, but really is no indication of how it will perform in the future. Especially with a big swing in the market. Now if you're talking about implied volatility (IV) of an options contract, that's a ... |
Offer your thoughts or opinion on the input financial query or topic using your financial background. | How accurate is Implied Volatility in predicting future moves? | A change in implied volatility tells us something about what investors are thinking (or fearing) about the volatility going forward for the life of the associated option contracts (which may be short or long-lived). IV does a good job of summarizing the information available to investors, which includes information ab... |
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