text
stringlengths
146
45.7k
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why ever use a market order? ### Answer: I don't think you're missing anything. Many modern trading systems actually warn you when trying to enter a market order, asking if you are sure that you would...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What are “preferred” stocks? How are they different from normal (common) stocks? ### Answer: It is just a different category of stock issued by a company that gives its owners different treatment when...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What are “preferred” stocks? How are they different from normal (common) stocks? ### Answer: I seem not to be able to comment on the first answer due to reputation, so I'll aim to enhanced the first a...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What are “preferred” stocks? How are they different from normal (common) stocks? ### Answer: I know this has already been answered and I know its frowned upon to dump a link, however, when it comes to...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Could there be an interest for a company to make their Share price fall? ### Answer: I'm sure Nintendo made that statement to stem what will clearly be an upset during the next quarterly report. This...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Could there be an interest for a company to make their Share price fall? ### Answer: Are you really talking about share price, or share value? Because what about stock splits? Market Cap stays the sam...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Could there be an interest for a company to make their Share price fall? ### Answer: Not directly Nintendo, but: A company would want its share price to be high if it wants to sell its stock, e.g. on ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What are non-qualified stock options? ### Answer: Non-qualified stock options are like regular incentive stock options but without the preferential treatments that ISOs get: Companies like to give NQS...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How might trading volume affect future share price? ### Answer: There is no direct relationship between volume and stock price. High volume indicates how much stock is changing hands. That can be beca...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How might trading volume affect future share price? ### Answer: You can't tell for sure. If there was such a technique then everyone would use it and the price would instantly change to reflect the f...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How might trading volume affect future share price? ### Answer: There tends to be high volume around big changes in stock price. The volume of a stock does not remain constant and the term "fat finger...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How might trading volume affect future share price? ### Answer: As said previously, most of the time volume does not affect stock prices, except with penny stocks. These stocks typically have a small ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How might trading volume affect future share price? ### Answer: Volumes are used to predict momentum of movement, not the direction of it. Large trading volumes generally tend to create a price breako...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to trade at Athens Stock Exchange (ASE) ### Answer: Saxo Bank offers direct access to Athens Stock Exchange. Interactive Brokers is your next best bet, and as you probably already noticed, they d...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Income in zero-interest environment ### Answer: Dividends. There are blue chip companies that have paid and raised their dividends for 20 or more years. As an example: Altria (MO). There are also ETFs...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Income in zero-interest environment ### Answer: anything that produces steady income will produce a "real return" (return above inflation) in a zero-interest rate environment: Note, however, that all ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is my employee stock purchase plan a risk free investment? ### Answer: Your maximum risk is 100%. If you buy the stock 15% off and your company goes bankrupt tomorrow, you've lost everything. It also ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is my employee stock purchase plan a risk free investment? ### Answer: There would be small generic risk that the company stock goes down real fast by more than 15% in a specific event to the company ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is my employee stock purchase plan a risk free investment? ### Answer: It's a risk free investment only if you have 100% warranty that you will be able to sell these stocks for a better price than wha...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is my employee stock purchase plan a risk free investment? ### Answer: I don't know what restrictions are put on the average employee at your company. In my case, we were told we were not permitted to...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Investment Options for 14-year old? ### Answer: As you are 14, you cannot legally buy premium bonds yourself. Your parents could buy them and hold them for you, mind you. That said, I'm not a fan of p...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Investment Options for 14-year old? ### Answer: A Junior ISA might be one option if you are eligible do you have a CTF? (child trust fund) though the rules are changing shortly to allow those with CTF...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Investment Options for 14-year old? ### Answer: When I was about your age I had the same kind of situation. I asked my bank about possible options and one of them was a guaranteed reserve. You lock th...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Investment Options for 14-year old? ### Answer: 5 years is a reasonable time period to invest in a stock which will give you a decent return and will generally not lose too much value except in case o...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Investment Options for 14-year old? ### Answer: A fourteen-year-old can invest a few thousand into commuting to a part-time job or an education. If you can wait five years for a couple hundred you can...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Buy/Selling prices at the stock exchange represent someone Selling/Buying at that price? ### Answer: You don't see Buying and Selling. You see Bid and Ask. Best Bid--Highest Price someone is willing t...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What happens when the bid and ask are the same? ### Answer: This question is impossible answer for all markets but there are 2 more possibilities in my experience: ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What happens when the bid and ask are the same? ### Answer: In the world of stock exchanges, the result depends on the market state of the traded stock. There are two possibilities, (a) a trade occurs...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What happens when the bid and ask are the same? ### Answer: In simple terms, this is how the shares are traded, however most of the times market orders are placed. Consider below scenario( hypothetica...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What happens when the bid and ask are the same? ### Answer: Rule 610 (Google for it) stands that if Bid and Ask are the same, the market is considered Locked, and the exchange must stop all trading. S...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is there a website with options chain charts? ### Answer: http://dailyfinance.com Enter a stock ticker, then click on the Chain link to the left. Then, click on the option tickers to see their charts....
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it better to miss the dividend and buy the undervalued stock? ### Answer: The stock tends to drop by the amount of the dividend -- or if you prefer to think of it this way, the stock price has been...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it better to miss the dividend and buy the undervalued stock? ### Answer: I guess the answer lies in your tax jurisdiction (different countries tax capital gains and income differently) and your pa...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it better to miss the dividend and buy the undervalued stock? ### Answer: As yet another explanation of why it does not really matter, you can look at this from the valuation point of view. Stock p...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Foolish to place orders before the market opens? ### Answer: If you are in it for the long run and are not worried about intra day fluctuations and buying within + or - 1% you would be better off goin...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Foolish to place orders before the market opens? ### Answer: This would otherwise be a comment, but I wish to share an image. A stock I happened to own, gapped up on the open to $9.20 and slowly worke...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Foolish to place orders before the market opens? ### Answer: Depending on your strategy, it could be though there is also something to be said for what kind of order are you placing: Market, limit or ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Foolish to place orders before the market opens? ### Answer: More on a technical note, but the spread on an ETF tends to be worst at market open and near market close. (assuming the ETF constituents a...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Taking partial capital loss purely for tax purposes ### Answer: Note that the rules around wash sales vary depending on where you live. For the U.S., the wash sale rules say that you cannot buy a subs...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Taking partial capital loss purely for tax purposes ### Answer: When a question is phrased this way, i.e. "for tax purposes" I'm compelled to advise - Don't let the tax tail wag the investing dog. In...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Funneling money from a Traditional IRA to a Roth IRA using Options: Is my method possible and tax legal? ### Answer: I am not a lawyer, but I can't think of a reason this is illegal (something that wo...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Funneling money from a Traditional IRA to a Roth IRA using Options: Is my method possible and tax legal? ### Answer: I am not a lawyer but I do not see a legal problem here. However, if the puts in th...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can the beta of a stock be used as a lagging indicator for the stock w.r.t the market ### Answer: Just to be clear to start, beta is a statistical property. So if your beta is 0.8 over a period of ti...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can the beta of a stock be used as a lagging indicator for the stock w.r.t the market ### Answer: The beta of a stock can be interpreted as the average relative movement of a stock with respect to the...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does wash sale apply if I buy stock on 2 two different dates and sell it later ### Answer: Is wash rule applicable for this? No - because you made a gain on the sale. You paid $13,500 for the stock a...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does wash sale apply if I buy stock on 2 two different dates and sell it later ### Answer: Wash sale applies. If you purchase shares within 30 days of that Feb 3 sell date, the wash sale kicks in, pre...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Stock portfolio value & profit in foreign currency ### Answer: I think this will do the trick: ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Stock portfolio value & profit in foreign currency ### Answer: It's very simple. Use USDSGD. Here's why: Presenting profits/losses in other currencies or denominations can be useful if you want to ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How does start-up equity end up paying off? ### Answer: The details of how you can convert your 5% equity share to cash or stocks will be detailed in writing in the legal agreement you have already si...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How does start-up equity end up paying off? ### Answer: You will probably never see it. The startup at some point may start issuing dividends to the shareholders (which would be the owners, including...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How does start-up equity end up paying off? ### Answer: Read the book, "Slicing Pie: Fund Your Company Without Funds". You can be given 5% over four years and in four years, they hire someone and give...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How does start-up equity end up paying off? ### Answer: Equity could mean stock options. If that's the case if the company makes it big, you'll have the option to buy stocks cheap (which can then be s...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How does start-up equity end up paying off? ### Answer: I agree with all the people cautioning against working for free, but I'll also have a go at answering the question: When do I see money related ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How does start-up equity end up paying off? ### Answer: In the real world, there are only two times you'll see that 5% become worth anything - ie, something you can exchange for cash - 1) if another c...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Investing thought experiment ### Answer: The market cap always reflect the company's equity. Except that you cannot fix a stock price in a free market. A company with such profit pattern would have...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Investing thought experiment ### Answer: Yes, if your assumptions are correct then your conclusions are correct. But your assumptions are never correct, and so this thought experiment doesn't tell us...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If I donate depreciated stock to charity, can I deduct both the market value and the capital loss? ### Answer: No. You should only donate appreciated stock. If you own a stock at a loss, you can only ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If I donate depreciated stock to charity, can I deduct both the market value and the capital loss? ### Answer: No, it doesn't work like this. Your charitable contribution is limited to the FMV. In you...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Got a large cash sum, wanna buy stocks. Should I buy all at once, or spread it over time? ### Answer: When you hear advice to buy index funds, that usually comes with two additional pieces of investme...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Got a large cash sum, wanna buy stocks. Should I buy all at once, or spread it over time? ### Answer: It would depend on a) Ones view on Markets and b) Ones nature. If one believes that the market wou...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Got a large cash sum, wanna buy stocks. Should I buy all at once, or spread it over time? ### Answer: Depends on what you are, an investor or a speculator. An investor will look at an 'indefinite' inv...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do leveraged ETFs (index tracking) set intraday pricing? ### Answer: Does the price only start the day based on the previous day's rebalancing? No, the tracker will open at the price according to ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: where to get stock price forecast ### Answer: First, stock prices forecasts are usually pretty subjective so in the following resources you will find differing opinions. The important thing is to read...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: where to get stock price forecast ### Answer: There's only one real list that states what people think stock prices should be, and that's the stocks order book. That lists the prices at which stock ow...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: where to get stock price forecast ### Answer: I believe you are looking for price forecasts from analysts. Yahoo provides info in the analyst opinions section: here is an example for Apple the price t...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Stability of a Broker: What if your broker goes bankrupt? Could you lose equity in your account? ### Answer: The Securities Investor Protection Corporation is roughly analogous to the FDIC for investm...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Stability of a Broker: What if your broker goes bankrupt? Could you lose equity in your account? ### Answer: Look at the link to the SIPC. I don't know exactly what you mean by "runs out of funds," bu...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Stability of a Broker: What if your broker goes bankrupt? Could you lose equity in your account? ### Answer: Careful with the "stock stolen from your account" thing. SIPC protects investors against b...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What Happens to Bank Stocks If Country Defaults ### Answer: The prices seem very low even considering the risk? The prices are low because of the risk. Nothing happens to the banks if the sovereign de...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What Happens to Bank Stocks If Country Defaults ### Answer: Most national banks are required by the regulations of their host countries to hold significant reserves in the form of government debt. A d...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do straddles that involve selling options protect against early assignment? ### Answer: Yes, that's the risk. If the stock is bouncing around a lot your options could get assigned. If it heads so...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is foreign stock considered more risky than local stock and why? ### Answer: Foreign stocks have two extra sources of risk attached to them; exchange rate and political. Exchange rate risk is obvious...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is foreign stock considered more risky than local stock and why? ### Answer: In addition to @MD-tech's answer: I'd distinguish between stock of a foreign company traded in local currency at a local ex...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is foreign stock considered more risky than local stock and why? ### Answer: The value of a foreign stock is subject to fluctuations in the foreign currency value; this is not the case for domestic st...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is foreign stock considered more risky than local stock and why? ### Answer: Others have mentioned the exchange rate, but this can play out in various ways. One thing we've seen since the "Brexit" vot...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is foreign stock considered more risky than local stock and why? ### Answer: One risk not mentioned is that foreign stock might be thinly traded on your local stock market, so you will find it harder ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is foreign stock considered more risky than local stock and why? ### Answer: If you intend to be responsive to news and intraday price moves, for foreign stocks these will often happen while you're as...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is foreign stock considered more risky than local stock and why? ### Answer: It is very important to note the strength and reputation of the country's regulatory agency. You cannot assume the standard...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Advice for a college student interested in investment opportunities. ### Answer: 2.5 years is a short period in the stock market. That means there is a significant chance it will be lower in 2.5 years...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Advice for a college student interested in investment opportunities. ### Answer: Put it in a Vanguard fund with 80% VTI and 20% VXUS. That's what you'll let set for 10-15 years. For somebody that is t...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Advice for a college student interested in investment opportunities. ### Answer: Over a period of time most mutual funds do not perform better that an index fund. Picking and buying individual stock ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Stock spread: wide vs. narrow? ### Answer: The point is that the bid and ask prices dictate what you can buy and sell at (at market, at least), and the difference between the two, or spread, contribut...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why do put option prices go higher when the underlying stock tanks (drops)? ### Answer: There are two components of option valuation, the value that's "in the money" and the "time value." In the case ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why do put option prices go higher when the underlying stock tanks (drops)? ### Answer: When you buy a put on a stock, you buy the right to sell the stock at fixed price, F, that his usually different...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why do put option prices go higher when the underlying stock tanks (drops)? ### Answer: Options pricing is based on the gap between strike and the current market, and volatility. That's why the VIX, a...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is Stock Trading legal for a student on F-1 Visa doing CPT in USA? ### Answer: you dont need any permits or be inside the US to trade the exact same securities on US exchanges. you can literally move ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is Stock Trading legal for a student on F-1 Visa doing CPT in USA? ### Answer: There are no legal reasons preventing you from trading as a F-1 visa holder, as noted in this Money.SE answer. Per this a...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Possible to purchase multiple securities on 1 transaction? ### Answer: No, this is not generally possible, as each security purchase is booked as a separate order => hence separate transaction. You ca...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Possible to purchase multiple securities on 1 transaction? ### Answer: No you can't, as you would have to have a different order for each security. Usually the bigger the order the more the brokerage ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Possible to purchase multiple securities on 1 transaction? ### Answer: There is such a thing as a buy-write, which is buying a stock and writing a (covered) call simultaneously. But as far as I know b...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Wash sales + restricted stock in USA: grant date or vesting date? ### Answer: The vesting date. Look at publication 525, under stock options, where they talk about ESPP: Your basis is equal to the opt...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Wash sales + restricted stock in USA: grant date or vesting date? ### Answer: For restricted stock, I think the vesting date meets the requirements of the second wash sale trigger from IRS Pub 550: Wa...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: May 6, 2010 stock market decline/plunge: Why did it drop 9% in a few minutes? ### Answer: No one is quite sure what happened (yet). Speculation includes: The interesting thing is that Procter & Gambl...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: May 6, 2010 stock market decline/plunge: Why did it drop 9% in a few minutes? ### Answer: I hate attributing an event like this to a single cause. That implies that the market is an orderly system wh...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: May 6, 2010 stock market decline/plunge: Why did it drop 9% in a few minutes? ### Answer: Trading error at Citi ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: May 6, 2010 stock market decline/plunge: Why did it drop 9% in a few minutes? ### Answer: Part of it was an Oops, but not all of it. There were reports that the sudden drop was caused by a trader wh...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can I buy stocks directly from a public company? ### Answer: As far as I know, the answer to this is generally "no." The closest thing would be to identify the stock transfer company representing the...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can I buy stocks directly from a public company? ### Answer: This is allowed somewhat infrequently. You can often purchase stocks through DRIPs which might have little or no commission. For example ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can I buy stocks directly from a public company? ### Answer: Yes, you often can buy stocks directly from the company at little or no transaction cost. Many companies have either a Dividend Reinvestme...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can I buy stocks directly from a public company? ### Answer: If the company has a direct reinvestment plan or DRIP that they operate in house or contract out to a financial company to administer, yes....