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Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why does selling and then rebuying stock not lead to free money? ### Answer: There are a few people that do this for a living. They are called "market makers" or "specialists" in a particular stock. F...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why does selling and then rebuying stock not lead to free money? ### Answer: I think the simple answer to your question is: Yes, when you sell, that drives down the price. But it's not like you sell, ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why does selling and then rebuying stock not lead to free money? ### Answer: The main thing you're missing is that while you bear all the costs of manipulating the market, you have no special ability ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Buying International Stock ### Answer: For example, if the Dow, S&P 500, NASDAQ are all down does that necessarily mean the Canadian stock will get negatively impacted? Or is it primarily impacted by ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why is a stock trade flat on large volume? ### Answer: Large volume just means a lot of market participants believe they know where the stock price will be (after some amount of time). The fact that ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to reconcile performance with dividends? ### Answer: You didn't identify the fund but here is the most obvious way: Some of the stocks they owned could had dividends. Therefore they would have had...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to reconcile performance with dividends? ### Answer: The same as you would for an individual stock. A stock starts the year at $100, and has $4 in dividends over the year, why would the fact the t...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to reconcile performance with dividends? ### Answer: Just look at the published annualized returns, which are inclusive of distributions and fees. From the Vanguard website: Average annual returns...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can you short a stock before the ex-div. date to make a profit? ### Answer: When you short a stock and the stock goes ex-div. you have to pay out an amount equal to the dividend. So in your example, G...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can you short a stock before the ex-div. date to make a profit? ### Answer: I am relative newbie in the financial market trading and as I understand it, the response from Victor is accurate in respect...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Investing in the stock market during periods of high inflation ### Answer: The relation between inflation and stock (or economic) performance is not well-understood. Decades ago, economists thought i...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Investing in the stock market during periods of high inflation ### Answer: The answer would depend on the equities held. Some can weather inflation better than others (such as companies that have soli...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Deciding between Employee Stock Option and Restricted Stock ### Answer: There's no best strategy. Options are just pieces of paper, and if the stock price goes below the strike price - they're worthle...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Where can I buy preferred stocks as opposed to common stocks? ### Answer: Preferred stock is traded on the market, so you can just buy it like any other. The symbol for a preferred stock is the ticker...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How Is the Price of a Stock Determined? [duplicate] ### Answer: The market price of a stock is based on nothing at all more than what two parties were last willing to transact for it. The stock has a ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does it mean “sell on ask” , “sell on bid” in stocks? ### Answer: Bid and ask prices are the reigning highest buy price and lowest sell price in the market which doesn't mean one must only buy/se...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does it mean “sell on ask” , “sell on bid” in stocks? ### Answer: It's good to ask this question, because this is one of the fundamental dichotomies in market microstructure. At any time T for ea...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does it mean “sell on ask” , “sell on bid” in stocks? ### Answer: Honestly, I wonder if the other answerers aren't overthinking it. Their answers are detailed and correct, but what your coach may...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why is volatility in a positive direction clubbed in the same risk category as volatility in a negative direction? ### Answer: Mostly, when an equity's price rises, its statistical and implied volatil...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: how stock market sale work? ### Answer: As stock prices have declined, the net worth of people has come down. Imagine owning a million shares of a stock worth $100/share. This is worth $100,000,000. ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Growth rate plus dividend yieid total? ### Answer: In my mind its not the same. If growth is stock value then this is incorrect because of compound interest in stock price. $100 stock price after on...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Growth rate plus dividend yieid total? ### Answer: Avoiding the complexities of tax [dividends likely taxed the year they are received, barring special tax accounts which many countries implement in f...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Growth rate plus dividend yieid total? ### Answer: The sum of the dividend yield plus capital growth is called total return. In your examples, you get to a total return of 7% through several different...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How much do big firms and investors affect the stock market? ### Answer: It's not either or. Much of the time the value of the stock has some tangible relation to the financial prospects of the compa...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How much do big firms and investors affect the stock market? ### Answer: The price of a company's stock at any given moment is established by a ratio of buyers to sellers. When the sellers outnumber ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Understanding a Trailing Limit if Touched Order ### Answer: I don't think user4358's explanation is correct. A trailing LIT Sell Order adjusts downwards, i.e. if you place the order with an Aux price...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Understanding a Trailing Limit if Touched Order ### Answer: This is rather simple if you understand a trailing limit order but to be sure I am going to explain a limit, trailing limit, and trailing LI...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Where does the stock go in a collapse? ### Answer: Just before a crash or at the start of the crash most of the smart money would have gotten out, the remaining technical traders would be out by the t...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Where does the stock go in a collapse? ### Answer: If we can agree that 2010 was closer to the low of 2009 than 2007 then the rich did all the buying while the super-rich did all the selling. http://w...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Which type of stock order would I use to sell a stock that hits a price or drops below it? ### Answer: A trailing stop will sell X shares at some percentage below the current market price. Putting in...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Company stock listed in multiple exchanges? ### Answer: If a company's shares trade in multiple exchanges, the prices in every exchange are very near to each other, otherwise you could earn money by d...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Company stock listed in multiple exchanges? ### Answer: It doesn't matter which exchange a share was purchased through (or if it was even purchased on an exchange at all--physical share certificates c...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Company stock listed in multiple exchanges? ### Answer: Keep in mind that the exchanges do not hold, buy, or sell the stock - people (or funds) do. All the exchange does is facilitate the sale of sto...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Company stock listed in multiple exchanges? ### Answer: listed simultaneously in New York, London, and maybe even some Asian markets - is this correct? If the exchanges are not connected, then in prim...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Beginner questions about stock market ### Answer: First, welcome to Money.SE. If you are interested in saving and investing, this is a great site to visit. Please take the tour and just start to read ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Beginner questions about stock market ### Answer: In the US, and I suspect in most of the developed world, one major point of a corporation is limited liability. The stockholders are not on the hook ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Beginner questions about stock market ### Answer: 1st question: If I bought 1 percent share of company X, but unfortunately it closed down because of some reason as it was 1 million in debt. Since...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Beginner questions about stock market ### Answer: If I bought 1 percent share of company X, Most countries company X, is treated as a separate legal entity than individual. So max loss is what you hav...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Do corporate stock splits negate share repurchase programs? ### Answer: No, I think you are misunderstanding the Math. Stock splits are a way to control relatively where the price per share can be for...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Do corporate stock splits negate share repurchase programs? ### Answer: Companies do both quite often. They have opposite effects on the share price, but not on the total value to the shareholders. ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can you buy out a pink sheet listed company by purchasing all of the oustanding shares? ### Answer: Depends on the structure of the company and what shares are outstanding. If the pink sheet stock ha...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can you buy out a pink sheet listed company by purchasing all of the oustanding shares? ### Answer: Sure. No-one promises that all the outstanding stocks are ever for sale, but if you get them all - y...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can you buy out a pink sheet listed company by purchasing all of the oustanding shares? ### Answer: I suggest you contact head of the company your are interested in, ask if he or she owns a controllin...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: When a stock price goes down, does the money just disappears into thin air? ### Answer: Yes and no. There is no actual money involved - just assumed value. Imagine you own a picture that you painted y...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: When a stock price goes down, does the money just disappears into thin air? ### Answer: At any given time there are buy orders and there are sell orders. Typically there is a little bit of space betw...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: When a stock price goes down, does the money just disappears into thin air? ### Answer: Cash changes hands when you buy or sell the stock. While you own the stock, you own it, not cash, so there is no...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: When a stock price goes down, does the money just disappears into thin air? ### Answer: You buy a $100k sport car, but don't buy any insurance. You take a curve too fast and jump out just in time to s...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: When a stock price goes down, does the money just disappears into thin air? ### Answer: In short, thanks to the answers and comments posted so far. No actual money is magically disappeared when the s...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: When a stock price goes down, does the money just disappears into thin air? ### Answer: Price and value are two different things. Price is determined by supply and demand. Value does affect the demand...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Execute or trade an options contract? ### Answer: Your math shows that you bought an 'at the money' option for .35 and when the stock is $1 above the strike, your $35 (options trade as a contract for ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Execute or trade an options contract? ### Answer: Here is the answer for #3 from my brokerage: Your math is correct. Typically, option traders never take delivery of the stock simply to then turn arou...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: When do I sell a stock that I hold as a long-term position? ### Answer: The psychology of investing is fascinating. I buy a stock that's out of favor at $10, and sell half at a 400% profit, $50/share....
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: When do I sell a stock that I hold as a long-term position? ### Answer: This answer relies on why you are holding shares of a company in the first place. So let's address that: So does this mean you w...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: When do I sell a stock that I hold as a long-term position? ### Answer: If you are already invested in a particular stock, I like JoeTaxpayer's answer. Think about it as if you are re-buying the stock...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: When do I sell a stock that I hold as a long-term position? ### Answer: For what it's worth -- and I realize this isn't directly an answer to the question -- one of the advantages of sticking with mut...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How long can a company keep the money raised from IPO of its stocks? ### Answer: Is it correct that there is no limit on the length of the time that the company can keep the money raised from IPO of i...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How long can a company keep the money raised from IPO of its stocks? ### Answer: Yes, that is correct. There is no limit. An initial public offering of common stock by a company means that these shar...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How long can a company keep the money raised from IPO of its stocks? ### Answer: You realize that most of the money raised through the IPO process doesn't go into the company's bank account? Those sha...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can someone explain a stock's “bid” vs. “ask” price relative to “current” price? ### Answer: The current stock price you're referring to is actually the price of the last trade. It is a historical pr...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can someone explain a stock's “bid” vs. “ask” price relative to “current” price? ### Answer: Both prices are quotes on a single share of stock. The bid price is what buyers are willing to pay for it. ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can someone explain a stock's “bid” vs. “ask” price relative to “current” price? ### Answer: As others have stated, the current price is simply the last price at which the security traded. For any giv...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would we need a “stop-limit order” for selling? ### Answer: If one wants to have a bound on the loss percentages that are acceptable, this is would be a way to enforce that. For example, suppose s...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would we need a “stop-limit order” for selling? ### Answer: One practical application would be to protect yourself from a "flash crash" type scenario where a stock suddenly plunges down to a penny...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would we need a “stop-limit order” for selling? ### Answer: An important thing that many people fail to realize is that the number of shares outstanding in a stock, times the current market price ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is stock in a private corporation taxable? ### Answer: This stock is the same as any other, but you need to keep clear in your head that you and your company are now different entities. You (the pers...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does “no adjustments” mean? ### Answer: Typically that applies if the broker Form 1099-B reports an incorrect basis to the IRS. If the Form 1099-B shows incorrect basis relative to your records,...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does “no adjustments” mean? ### Answer: In addition to the adjustment type in NL7's answer, there are a host of others. If there are any adjustments, form 8949 is required, if not, the gains can...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does buying and selling a stock OR holding onto it make a company look better? ### Answer: Not sure I fully understand your question but my take on it is this: There a lot of people out there that adm...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does buying and selling a stock OR holding onto it make a company look better? ### Answer: Share prices change (or not) when shares are bought and sold. Unless he's sitting on a large percentage of th...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does buying and selling a stock OR holding onto it make a company look better? ### Answer: I have watched the ticker when I have made a transaction. About ¼ of the time my buy (or sell) actually moves...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What is the buy-hold-sell indication based on? ### Answer: The indication is based on the average Buy-Hold-Sell rating of a group of fundamental analysts. The individual analysts provide a Buy, Hold o...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What is the buy-hold-sell indication based on? ### Answer: To dig a little deeper, a number of analysts within (and without) Reuters are polled for their views on individual stocks and markets on buy-...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What is the buy-hold-sell indication based on? ### Answer: It is simply an average of what each analyst covering that stock are recommending, and since they usually only recommend Hold or Buy (rarely ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does bull/bear market actually make a difference? ### Answer: Who are the losers going to be? If you can tell me for certain which firms will do worst in a bear market and can time it so that this inf...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does bull/bear market actually make a difference? ### Answer: To short: Of course, you may always buy some index correlated ETF that eliminates the above. They use stock futures on the index, and you...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does bull/bear market actually make a difference? ### Answer: The main difference between a bull market and a bear market is due the "the leverage effect". http://www.princeton.edu/~yacine/leverage.pd...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does bull/bear market actually make a difference? ### Answer: If you know what you are doing, bear markets offer fantastic trading opportunities. I'm a futures and futures options trader, and am equal...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does the term “match the market” mean? ### Answer: If your returns match the market, that means their rate of return is the same as the market in question. If your returns beat the market, that m...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does the term “match the market” mean? ### Answer: From Investopedia: "Beating the market" is a difficult phrase to analyze. It can be used to refer to two different situations: 1) An investor...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does the term “match the market” mean? ### Answer: There was a time when everyone felt their goal was to beat the respective index they followed. But of course, in aggregate, that's a mathematica...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: A-B-C Class Shares: What's the difference? ### Answer: In most cases, the other classes of shares are preferred stock (example, JPM-F). Preferred stock usually pays higher dividends and shareholders g...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: A-B-C Class Shares: What's the difference? ### Answer: Classes of shares are not necessarily standardized. Some share classes have preference above others in the event of a liquidation. Some share cla...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Job Offer - Explain Stock Options [US] ### Answer: An option is a financial instrument instrument that gives you the right, but not the obligation, to do some transaction in the future at a given pric...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Job Offer - Explain Stock Options [US] ### Answer: Its important that you carefully read the agreement, if you accept the job. The options agreement will usually specify the vesting schedule, the stri...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Job Offer - Explain Stock Options [US] ### Answer: There are a few other items that you should be aware of when getting options: The strike price is usually determined by an independent valuation of t...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Job Offer - Explain Stock Options [US] ### Answer: Since the 2 existing answers addressed the question as asked. Let me offer a warning. You have 10,000 options at $1. You've worked four years and the...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Selling put and call Loss Scenario Examples ### Answer: The question you are asking concerns the exercise of a short option position. The other replies do not appear to address this situation. Suppos...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Selling put and call Loss Scenario Examples ### Answer: Here's a simple example for a put, from both sides. Assume XYZ stock trades at $200 right now. Let's say John writes a $190 out of the money pu...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Selling put and call Loss Scenario Examples ### Answer: See how you can only make the premium amount but your risk is the same as holding the stock when writing a put option. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can I calculate stock value with Williams%R if I know the last set? ### Answer: William %R is a momentum indicator used for measuring overbought and oversold levels, it is not used to predict the pric...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Best Time to buy a stock in a day ### Answer: The best time to buy a stock is the time of day when the stock price is lowest! Obviously you learned nothing from that sentence, but unfortunately you w...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Best Time to buy a stock in a day ### Answer: You can't predict when to buy a stock during the day to guarantee not having a loss for the day. In the short run stock prices are really pretty random. ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Best Time to buy a stock in a day ### Answer: One of the biggest laws in economics is that if an opportunity is very profitable and is very easily exploitable even by complete beginners, then it will...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Best Time to buy a stock in a day ### Answer: The best thing to do is not worry about what time is best to buy but put in a conditional order before the market opens. If your conditions are met durin...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Best Time to buy a stock in a day ### Answer: Buy it at the close. That way you won't lose money (even if marked to market) on the day. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Best Time to buy a stock in a day ### Answer: You want to buy when the stock market is at an all-time low for that day. Unfortunately, you don't know the lowest time until the end of the day, and the...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to know which companies enter the stock market? ### Answer: Market Watch has an IPO calender with details of upcoming IPOs that should provide most of the information you need. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to know which companies enter the stock market? ### Answer: NASDAQ provides a very good IPO calendar as well for US listings. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to know which companies enter the stock market? ### Answer: 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.g...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to know which companies enter the stock market? ### Answer: Thanks to the other answers, I now know what to google for. Frankfurt Stock Exchange: http://en.boerse-frankfurt.de/equities/newissues ...