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Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If I get cash compensation for my stocks (following a merger for example) does that qualify for capital gains tax? ### Answer: In the US this is considered a sale, and the proceeds will be taxed as if...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How does one typically exit (close out) a large, in-the-money long put option position? ### Answer: The question is, how do I exit? I can't really sell the puts because there isn't enough open inter...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How does one typically exit (close out) a large, in-the-money long put option position? ### Answer: While open interest usually correlates to volume, the mark of liquidity is the bid ask spread. Even ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How does one typically exit (close out) a large, in-the-money long put option position? ### Answer: You are long the puts. By exercising them you force the underlying stock to be bought from you at yo...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Options strategy - When stocks go opposite of your purchase? ### Answer: If you buy a call, that's because you expect that the stock will go up. If it does not go up, then forget about buying more cal...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Options strategy - When stocks go opposite of your purchase? ### Answer: I would make a change to the answer from olchauvin: If you buy a call, that's because you expect that the value of call options...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Options strategy - When stocks go opposite of your purchase? ### Answer: Robert is right saying that options' prices are affected by implied volatility but is wrong saying that you have to look at the...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Options strategy - When stocks go opposite of your purchase? ### Answer: I cannot believe noone mentioned this so far: Every decision you make is independent from previous decisions (that is, if you o...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What am I actually buying when trading in CFDs ### Answer: The economic effect of a CFD from your point of view is very close to the effect of owning the stock. If the stock goes up, you make money. I...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What am I actually buying when trading in CFDs ### Answer: The product itself is a derivative as it derives its value from another stock or commodity. It's similar to a US option, which offers (in th...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What am I actually buying when trading in CFDs ### Answer: CFDs (Contracts for Difference) are basically a contract between you and the broker on the difference in price of the underlying between the ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can I trade more than 4 stocks per week equally split between two brokers without “pattern day trading” problems? ### Answer: Yes, this is a way to avoid the pattern day trader regulation. The only do...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can I trade more than 4 stocks per week equally split between two brokers without “pattern day trading” problems? ### Answer: No, if your brokers find out about this, even though it is unlikely, you w...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can written options be exercised against you prior to expiry when they become “in-the-money”? ### Answer: Yes, if it's an American style option. American style options may be exercised at any time pri...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: how can a US citizen buy foreign stocks? ### Answer: it looks like using an ADR is the way to go here. michelin has an ADR listed OTC as MGDDY. since it is an ADR it is technically a US company that ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: how can a US citizen buy foreign stocks? ### Answer: For question #1, at least some US-based online brokers do permit direct purchases of stocks on foreign exchanges. Depending on your circumstances, ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Advantages/disadvantages of buying stocks on dips vs buying outright? ### Answer: If your stock is rising and you want to buy on a dip, the best way to do this is by looking at the chart and incorpora...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Advantages/disadvantages of buying stocks on dips vs buying outright? ### Answer: Dollar-Cost averaging will allow you to reduce your risk while the stock prices falls provided: You must invest a fixe...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How does investing in commodities/futures vary from stocks? ### Answer: As Dilip has pointed out in the comment, investing in commodities is to either delivery or Buy. Lets say you entered into buying...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How are long term capital gains taxes calculated? ### Answer: You pay taxes on capital gains when you realize your gains by selling the investment property. Also, in the US, taxes on capital gains ar...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How are long term capital gains taxes calculated? ### Answer: Capital gains taxes for a year are calculated on sales of assets that take place during that year. So if you sell some stock in 2016, you...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Should an ADR that is being delisted be sold off? ### Answer: I'm a bit out of my element here, but my guess is the right way to think about this is: knowing what you do now about the underlying compa...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If I have $1000 to invest in penny stocks online, should I diversify risk and invest in many of them or should I invest in just in one? ### Answer: I am voting you up because this is a legitimate ques...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If I have $1000 to invest in penny stocks online, should I diversify risk and invest in many of them or should I invest in just in one? ### Answer: If you want to put in $1000 into penny stocks, I wou...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If I have $1000 to invest in penny stocks online, should I diversify risk and invest in many of them or should I invest in just in one? ### Answer: There's a grey area where investing and speculating ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If I have $1000 to invest in penny stocks online, should I diversify risk and invest in many of them or should I invest in just in one? ### Answer: I've never invested in penny stocks. My #1 investing...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If I have $1000 to invest in penny stocks online, should I diversify risk and invest in many of them or should I invest in just in one? ### Answer: These stocks have no value to them, are just waiting...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Capital Gains Tax - Does this apply only to the actual “gains” or to the entire amount of my sale? ### Answer: You normally only pay taxes on the difference between the sale price and the cost basis o...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Capital Gains Tax - Does this apply only to the actual “gains” or to the entire amount of my sale? ### Answer: Assuming you bought the stocks with after-tax money, you only pay tax on the difference. ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What are my investment options in Australia? ### Answer: If you want higher returns you may have to take on more risk. From lowest returns (and usually lower risk) to higher returns (and usually highe...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: When I calculate “internal rate of return (IRR)”, should I include cash balance? ### Answer: Both are correct depending on what you are really trying to evaluate. If you only want to understand how th...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: On what quantity the Dividend is given in India? ### Answer: So My question is if I purchased the shares on 03-08-15 then will I get the dividend? Yes if you purchase on 3-Aug, the shares will actuall...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: On what quantity the Dividend is given in India? ### Answer: In India, the amount of dividend you get is based on the face value of the stock. If the stock's face value is Rs. 10 and the company annou...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is trading stocks easier than trading commodities? ### Answer: There are a number of ways trading stocks is easier than commodities: But the main and most important reason is that over long periods st...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is trading stocks easier than trading commodities? ### Answer: Its the relative leverage available to retail traders between the two. In the US one can trade equities with 2:1 leverage while with com...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is trading stocks easier than trading commodities? ### Answer: One reason why you may have gotten this advice is that stocks have an expected real return over time, while commodities do not. Therefore...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is trading stocks easier than trading commodities? ### Answer: I would not argue if its more difficult, its different, and it much depends what kind of stocks you refer to, i take large caps as exampl...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What explains the enormous increase in gold price in the early 21st century? ### Answer: Since 2007 the world has seen a period of striking economic and financial volatility featuring the deepest rec...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Stocks in India, what is the best way to get money to US ### Answer: From India Point of view; someone may put the US point of view ... As an NRI you are not supposed to hold an Ordinary Demat Account...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Stocks in India, what is the best way to get money to US ### Answer: Convert the money into United States Dollars, put it in an NRE account in India and get 5% per annum for the USD. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How will the after market affect the open of the market tomorrow? ### Answer: In general a stock can open at absolutely any price with no regard for the closing price or after hours price the previous...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How is a stop order price different from an ask price ### Answer: Stop order is triggered when the market reaches the price you set. Until then - its not on the books. Your understanding is wrong in t...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Balance sheet, Net Increase ### Answer: The changes to Equity given are: Since the total change is 42,500, the difference would be change in Retained Earnings (net income), so net income is ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Transferred Stocks in 1993, sold 2017 taxes ### Answer: Assuming the stock was worth more at the time she gave it to you than when she bought it, the cost basis would be the amount that she bought it ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does a bid and ask price exist for indices like the S&P500? ### Answer: The equation you show is correct, you've simply pointed out that you understand that you buy at the 'ask' price, and later sell ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does a bid and ask price exist for indices like the S&P500? ### Answer: You can trade an index by using a Contract For Difference, or CFD. Various brokers offer this method and the spreads are quite l...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does a bid and ask price exist for indices like the S&P500? ### Answer: Bid and ask prices of stocks change not just daily, but continuously. They are, as the names suggest, what price people are ask...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What are overnight fees? [duplicate] ### Answer: From the etoro website: In the financial trading industry, rollover is the interest paid or earned for holding currency overnight. Each currency has an...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why liquidity implies tight spread and low slippage ### Answer: Consider the case where a stock has low volume. If the stock normally has a few hundred shares trade each minute and you want to buy 10...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why liquidity implies tight spread and low slippage ### Answer: Theoretically, it's a question of rate of return. If a desired or acceptable rate of return for market makers' capital is X, and X is de...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why liquidity implies tight spread and low slippage ### Answer: You have just answered your question in the last sentence of your question: More volume just means more people are interested in the st...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: ETF vs Mutual Fund: How to decide which to use for investing in a popular index? ### Answer: The factors to consider: ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: ETF vs Mutual Fund: How to decide which to use for investing in a popular index? ### Answer: What is your time horizon? Over long horizons, you absolutely want to minimise the expense ratio – a seemin...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: ETF vs Mutual Fund: How to decide which to use for investing in a popular index? ### Answer: If you just want to track an index, then ETFs are, generally speaking, the better way. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to manage currency risk in international investing ### Answer: Let's make a few assumptions: You have several ways of achieving (almost) that, in ascending complexity: Note that each alternative w...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What is the best way to invest in US stocks from India? ### Answer: Quite a few stock broker in India offer to trade in US markets via tie-up brokers in US. As an Indian citizen, there are limits as t...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it possible to see option prices from the past? ### Answer: Yes, past option prices are available for many options, but as far as I know not for free. You can get them from, for example, OptionMet...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Who Bought A Large Number Of Shares? ### Answer: Schedule 13D (or the abbreviated version, schedule 13G) would be the most likely place to find this info. When a person or group of persons acquires be...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Who Bought A Large Number Of Shares? ### Answer: The reality that the share price did not move shows that there is nothing nefarious going on. It is most likely some mutual fund offloading their posi...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Who Bought A Large Number Of Shares? ### Answer: SEC forms are required when declaring insider activity. An insider is defined by the SEC to be a person or entity which (i) beneficially owns 10% or m...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Could an ex-employee of a company find themself stranded with shares they cannot sell (and a tax bill)? ### Answer: they are entirely free to do whatever they want with the shares. In particular, they...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Could an ex-employee of a company find themself stranded with shares they cannot sell (and a tax bill)? ### Answer: It would take an unusual situation. They exercise certain types of option, which c...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Purchasing options between the bid and ask prices, or even at the bid price or below? ### Answer: I understand the question, I think. The tough thing is that trades over the next brief time are random...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Purchasing options between the bid and ask prices, or even at the bid price or below? ### Answer: Yes, almost always. I trade some of the most illiquid single stock options, and I would be absolutely ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Purchasing options between the bid and ask prices, or even at the bid price or below? ### Answer: People must simply be willing to match your orders if they know about it. You can sniff orders out if ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Purchasing options between the bid and ask prices, or even at the bid price or below? ### Answer: I frequently do this on NADEX, selling out-of-the-money binary calls. NADEX is highly illiquid, and t...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Purchasing options between the bid and ask prices, or even at the bid price or below? ### Answer: This sometimes happens to me. It depends on how liquid the option is. Normally what I see happening is...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do I get rid of worthless penny stocks if there is no volume (so market/limit orders don't work) and my broker won't buy them from me? ### Answer: Your broker should be able to answer this. Many b...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do I get rid of worthless penny stocks if there is no volume (so market/limit orders don't work) and my broker won't buy them from me? ### Answer: I dug up an old article on Motley Fool and one ap...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do I get rid of worthless penny stocks if there is no volume (so market/limit orders don't work) and my broker won't buy them from me? ### Answer: Merrill charges $500 flat fee to (I assume purcha...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What are my risks of early assignment? ### Answer: One reason this happens is due to dividends. If the dividend amount is greater than the time value left on a call, it can make sense to exercise earl...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What are my risks of early assignment? ### Answer: The put vs call assignment risk, is actually the reverse: in-the-money calls are more likely to be exercised early than puts. Exercising a call locks...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Good/Bad idea to have an ETF that encompasses another ### Answer: Let's simplify things by assuming you only own 2 stocks. By owning VOO and VTI, you're overweight on large- and mid-cap stocks relativ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Good/Bad idea to have an ETF that encompasses another ### Answer: You are overthinking it. Yes there is overlap between them, and you want to understand how much overlap there is so you don't end up w...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What margin is required to initiate and maintain a short sale ### Answer: Depends on the stock involved, but for the most part brokerages allow you gain entry at 50%, meaning you can short twice the c...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can a retail trader do bid-ask spread scalping through algo-trading? ### Answer: In US public stock markets there is no difference between the actions individual retail traders are "permitted" to take...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Settlement of Shares Underlying a Covered Call Option ### Answer: It's a covered call. When I want to create a covered call position, I don't need to wait before the stock transaction settles. I ente...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How Technical Analysts react to non-market hours effects ### Answer: You can't. Even as a technical trader you should know what events are coming up and be prepared. You can't prepare for everything b...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is there a list of OTC stocks being added to the major exchanges? ### Answer: Check your broker's IPO list. Adding a new stock to a stock exchange is called "Initial Public Offering" (IPO), and most b...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is there a list of OTC stocks being added to the major exchanges? ### Answer: Reuters has a service you can subscribe to that will give you lots of Financial information that is not readily available ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Which forex brokerage should I choose if I want to fund my account with over a million dollars? ### Answer: Oanda.com is a very respectable broker. They don't offer ridiculous leverage options of 200...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Which forex brokerage should I choose if I want to fund my account with over a million dollars? ### Answer: With your experience, I think you'd agree that trading over a standardized, regulated excha...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does it mean when someone says “FTSE closed at xxx today” ### Answer: FTSE is an index catering to the London stock exchange. It is a Capitalization-Weighted Index of 100 companies listed on th...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does it mean when someone says “FTSE closed at xxx today” ### Answer: It's sort of the sum of stock prices, but bigger companies are weighed more heavily. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Bid-ask price Question ### Answer: (12 * 100) * 1.01 = 1212 Assuming the $12 ask can absorb your whole 100 share order. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it legal to not get a 1099-b until March 15? ### Answer: If one looks at the "Guide to Information Returns" in the Form 1099 General Instructions (the instructions that the IRS provides to companie...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it legal to not get a 1099-b until March 15? ### Answer: The deadline to mail is February 15. However, if the form is being prepared by a middleman (i.e. Wells Fargo) then they have until March 15t...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Market index analysis and techniques ### Answer: Volume and prices are affected together by how folks feel about the stock; there is no direct relationship between them. There are no simple analysis ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can a Company which is listed at OTC and TSX considered to be serious? ### Answer: The assumption that companies listed OTC are not serious is far from the truth. Many companies on the OTC are just st...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Market percentage growth per timeframe ### Answer: What you are looking for is an indicator called the "Rate of Change (Price)". It provides a rolling % change in the price over the period you have ch...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Asset classes: Is a Guaranteed Investment Certificate (GIC) considered a bond? ### Answer: There is a third type of asset that a GIC falls into: Cash. So while it does share some characteristics of a ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Asset classes: Is a Guaranteed Investment Certificate (GIC) considered a bond? ### Answer: Instead of "stocks" I would refer to that asset class as "equity." Instead of bonds, I would refer to that a...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it a bet on price fluctuations and against the house? ### Answer: The answer depends on the specific instrument to which you are referring. It is possible to make straight bets that are cash-settle...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are there any ETFs that follow the “Dogs of the Dow” allocation? ### Answer: Google is your friend. If you buy me a beer, I might be as well. By the way DOD is the ticker. Dogs of the Dow ETF ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Oil Price forcasting ### Answer: The Oil futures are exactly that. They are people forecasting the price of oil at a point of time in the future where they are willing to buy oil at that price. That ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Oil Price forcasting ### Answer: In layman's terms, oil on the commodities market has a "spot price" and a "future price". The spot price is what the last guy paid to buy a barrel of oil right now (an...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Oil Price forcasting ### Answer: If past is prologue, I'd say $20, give or take, inflation adjusted of course. http://www.antagoniste.net/WP-Uploads/2007/01/oil_prices_1861_2006.jpg If supplies are at...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Value of put if underlying stays below strike? ### Answer: The value at expiration does not depend on the price path for a plain vanilla European or American option. At expiration, the value would sim...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Value of put if underlying stays below strike? ### Answer: $15 - $5 = $10 How did you possibly buy a put for less than the intrinsic value of the option, at $8.25 So we can infer that you would have h...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How can I find a list of self-select stocks & shares ISA providers? ### Answer: I can't provide a list, but when I took out my Stocks and Shares, I extensively researched for a good, cheap, flexible ...