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Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What is the tax liability from an inheritance from a trust and reported on a K-1 form? ### Answer: You don't need to submit a K-1 form to anyone, but you will need to transcribe various entries on the...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What happens when a calendar spread is assigned in a non-margin account? ### Answer: I would think that a lot of brokers would put the restriction suggested in @homer150mw in place or something more r...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What happens when a calendar spread is assigned in a non-margin account? ### Answer: I can't speak for all brokerages but the one I use requires cash accounts to have cash available to purchase the st...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What's the difference between stocks and shares? ### Answer: For all practical purposes the words mean the same thing. Shares are just stock in a particular company whereas stock can refer to shares ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If you want to trade an equity that reflects changes in VIX, what is a good proxy for it? ### Answer: There is no good proxy for VIX, because it is a completely made-up value. Most listed options trad...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If you want to trade an equity that reflects changes in VIX, what is a good proxy for it? ### Answer: I'd look at VXX, I believe it closely tracks what you are looking to do. http://www.ipathetn.com/p...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If you want to trade an equity that reflects changes in VIX, what is a good proxy for it? ### Answer: If you want to trade to gain from short-term volatility, you can use Derivative-based ETFs that tr...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If you want to trade an equity that reflects changes in VIX, what is a good proxy for it? ### Answer: VXX VZX XVIZ and there are plenty others correlated to market volatility if you want the wildest h...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to calculate the standard deviation of stock returns? ### Answer: This link does it ok: http://investexcel.net/1979/calculate-historical-volatility-excel/ Basically, you calculate percentage retu...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to calculate the standard deviation of stock returns? ### Answer: For implied volatility it is okey to use Black and scholes but what to do with the historical volatility which carry the effect of...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What option-related strategies are better suited to increasing return potential? ### Answer: I've traded covered calls now and then. This is a recent trade. Bought 1000 shares of RSH (Radio Shack) and...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What option-related strategies are better suited to increasing return potential? ### Answer: It definitely depends on your risk appetite as Joe Taxpayer pointed out in his answer. Covered calls are a ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What option-related strategies are better suited to increasing return potential? ### Answer: I think you need to be very careful here. Covered calls don't reduce risk or increase performance overall. ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How should I report my RSUs in my tax return ### Answer: Here's an article on it that might help: http://thefinancebuff.com/restricted-stock-units-rsu-sales-and.html One of the tricky things is that y...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How should I report my RSUs in my tax return ### Answer: Your employer should send you a statement with this information. If they didn't, you should still be able to find it through E*Trade. Navigate ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Dividend Yield ### Answer: The S&P 500 is an index, you can't buy shares of an index, but you can find index funds to invest in. Each company in that fund that pays dividends will do so on their own s...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Dividend Yield ### Answer: Hart's answer regarding the difference between an index and a stock aside, remember that dividend yield is a passive measure. It takes the announced dividend (which is a $/...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Mutual Fund with Dividends ### Answer: There are two independent sets of terms we need to define in order to answer your question. I am trying to understand the difference between Value, Blend, and G...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Mutual Fund with Dividends ### Answer: Generally value funds (particularly large value funds) will be the ones to pay dividends. You don't specifically need a High Dividend Yield fund in order to get ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Mutual Fund with Dividends ### Answer: Funds built of dividend-paying stocks are normally called income funds. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why do more floating shares mean less volatility for the stock? ### Answer: More shares mean less volatility because it takes a larger number of trades, a larger number of shares per trade, or a combi...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What is the benefit of investing in retirement plan versus investing directly in stocks yourself? ### Answer: Because retirement account usually are tax effective vehicles - meaning you will pay less ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What is the benefit of investing in retirement plan versus investing directly in stocks yourself? ### Answer: In the US, the key to understanding the benefits of retirement accounts is to understand c...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What is the benefit of investing in retirement plan versus investing directly in stocks yourself? ### Answer: @Victor above has provided a very good answer, I shall try and highlight some differences....
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: When does selling (writing) options count for tax purposes? ### Answer: Generally speaking, you realize options gains or losses for (US) tax purposes when you close out the option position, or when it...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: When does selling (writing) options count for tax purposes? ### Answer: If you take the profit or loss next year, it counts on next year's taxes. There's no profit or loss until that happens. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Should I wait a few days to sell ESPP Stock? ### Answer: Usually the amount of the ESPP stocks is very small compared to the overall volume of the trading, so it shouldn't matter. But check if for you...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Should I wait a few days to sell ESPP Stock? ### Answer: An instant 15% profit sounds good to me, so you can't go wrong selling as soon as you are able. Here are a couple other considerations: Tax imp...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Should I wait a few days to sell ESPP Stock? ### Answer: It depends on how the program is run. If the company runs the program out of treasury stock (shares that are authorized, but not issued), then ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Break Even On Options Contracts ### Answer: Simple answer: Breakeven is when the security being traded reaches a price equal to the cost of the option plus the option's strike price, assuming you choo...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Break Even On Options Contracts ### Answer: I found the answer after some searching online. It turns out that when talking options, rarely is the current P/L line considered when talking about making ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How much of my capital should I spend on subscribing to a stock research company? ### Answer: You should spend zero on your stock research company. If the management of the company actually had persi...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How much of my capital should I spend on subscribing to a stock research company? ### Answer: To complement farnsy's answer, I want to warn people against market prediction scams. If they give uniform...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Any advantage to exercising ISO's in company that is not yet public? ### Answer: Exercising an option early if you can't sell the underlying stock being purchased is generally not advisable. You're ba...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Any advantage to exercising ISO's in company that is not yet public? ### Answer: As I recall from the documentation presented to me, any gain over the strike price from an ISO stock option counts as a...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Any advantage to exercising ISO's in company that is not yet public? ### Answer: As far as I know, the AMT implications are the same for a privately held company as for one that is publicly traded. W...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What happens if a company you hold short merges with another company? ### Answer: I don't have anything definitive, but in general positions in a company are not affected materially by what is called ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does the P/E ratio not apply to bond ETFs? ### Answer: The simple answer is technically bonds don't have earnings, hence no P/E. What I think the OP is really asking how do I compare stock and bond ET...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does the P/E ratio not apply to bond ETFs? ### Answer: A bond fund has a 5% yield. You can take 1/.05 and think of it as a 20 P/E. I wouldn't, because no one else does, really. An individual bond has...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does the P/E ratio not apply to bond ETFs? ### Answer: How would you compute the earnings for governments that are some of the main issuers of bonds and debt? When governments run deficits they would ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does pink-sheet mean related to stocks? ### Answer: It's an over-the-counter stock quote system. Read all about it. Or visit it. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Dealing with event driven market volatility ### Answer: If you're worried about volatility, and you're in mostly long positions, you should be looking to diversify your portfolio (meaning, buying some...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Dealing with event driven market volatility ### Answer: If you are worried about an increase in volatility, then go long volatility. Volatility itself can be traded. Here in the US there is an index V...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Dealing with event driven market volatility ### Answer: If you are worried about elections think about writing some calls against your long positions to help hedge. If you have MSFT (@ $51.38 right ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Tax implications of restricted stock units ### Answer: RSU are taxed when vested, based on their value at that point, as salary. If you don't sell to cover, you need to pay the taxes, if you sell to c...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Tax implications of restricted stock units ### Answer: My friend Harry Sit wrote an excellent article No Tax Advantage In RSU. The punchline is this. The day the RSUs vested, it's pretty much you got...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Tax implications of restricted stock units ### Answer: With the Employee Stock Purchase Plan stock, if you sell it in less than 18 months from exercise, the discount you bought it at (normally 15%) be...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to hedge a long stock position that does not have options ### Answer: If there are no traded options in a company you can get your broker to write OTC options but this may not be possible given so...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to hedge a long stock position that does not have options ### Answer: You could always maintain a limit order to sell at a price you're comfortable with. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What happens to public shareholders when a public stock goes private? ### Answer: I can see two possibilities. Either a deal is struck that someone (the company itself, or a large owner) buys out the ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What happens to public shareholders when a public stock goes private? ### Answer: If a deal is struck, you're part of that deal because you own shares. If someone offers $10/share for the entire comp...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are there any caveats to withdrawing funds from brokerage? ### Answer: Assuming a USA taxable account: Withdrawing funds from a brokerage account has nothing to do with taxes. Taxes are owed on the pr...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are there any caveats to withdrawing funds from brokerage? ### Answer: nan ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can I donate short-stock to charity? ### Answer: No. There is no asset associated with your short position, so there's nothing to gift. The short position in the stock is purely a liability. When you ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can I donate short-stock to charity? ### Answer: With a short position you make your money (profit) when you buy the stocks back to close the position at a lower price than what you bought them at. As...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Online stock screener to find stocks that are negatively correlated to another stock/index? ### Answer: Finviz can be screened by beta which is an index of correlation. Finviz covers all major North ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Online stock screener to find stocks that are negatively correlated to another stock/index? ### Answer: There are lists with Top 1,000 Most and Less correlated stocks for different markets, I think y...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Online stock screener to find stocks that are negatively correlated to another stock/index? ### Answer: SeekingAlpha has a section dedicated to Short ETFs as well as others. In there you will find SH...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Online stock screener to find stocks that are negatively correlated to another stock/index? ### Answer: You may want to have a look at DiversifyPortfolio which will give you the info you want plus qu...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: (United Kingdom) Multiple Stock ISAs? ### Answer: It is a very good idea to spread your ISAs over more than one stock broker. However now that a lot of stock brokers charge an admin fee it can get ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How risky are penny stocks? ### Answer: Penny stocks are only appealing to the brokers who sell the penny stocks and the companies selling "penny stock signals!". Generally penny stocks provide abysma...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How risky are penny stocks? ### Answer: Consider firstly that they're penny stocks for a reason - the company just isn't worth much. Yes, it could take off but this happenstance is rarer than you thin...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How risky are penny stocks? ### Answer: The biggest problem with penny stocks is that they are easily manipulated, and they frequently are. Many of the companies trading as penny stocks have poor tra...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How risky are penny stocks? ### Answer: Most penny stocks go to zero because most businesses fail. You stated in your original post that you were wondering specifically about companies with no assets...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How risky are penny stocks? ### Answer: Penny stocks are only appealing to two types of investors: Most of the beginners who invest in penny stocks only do so because they don't have a lot of money to...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How risky are penny stocks? ### Answer: Penny stocks are for the real gambler. Don't even think about holding them long. Buy a lot of shares and profit from a penny uptick. Rake a hundred dollars h...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does “a stock pays a dividend of 3%” mean? ### Answer: It means a 3% return on the value of the stock. If a stock has a $10 share price, the dividend would be $0.30. Normally though, the dividend...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: When writing a covered call, what's the difference between a “net debit” and a “net credit”? ### Answer: When you enter into a multi-legged trade where one is a buy and one is a sell, the limit is exp...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: When writing a covered call, what's the difference between a “net debit” and a “net credit”? ### Answer: When you buy a stock and sell a covered call, the call can't be valued higher than the stock, r...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: When writing a covered call, what's the difference between a “net debit” and a “net credit”? ### Answer: I am not familiar with this broker, but I believe this is what is going on: When entering combi...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does an option trading below parity always indicate an arbitrage opportunity? ### Answer: Probably but not necessarily. Your question could also be posed regarding cash & carry for commodities in con...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does an option trading below parity always indicate an arbitrage opportunity? ### Answer: Defining parity as "parity is the amount by which an option is in the money", I'd say there may be an arbitrag...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does an option trading below parity always indicate an arbitrage opportunity? ### Answer: In the equity world, if a stock trades at 110 and is going to pay a dividend of 10 in a few days, an option ex...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: When do I need to return short stock to the lender ### Answer: If the owner of the stock wants it back, they "call" it back. There are no guarantees of how long you can keep it for your short, or the ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why are there hidden bids and offers in the US stock market for the more illiquid stocks? ### Answer: When you place a bid between the bid/ask spread, that means you are raising the bid (or lowering t...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why are there hidden bids and offers in the US stock market for the more illiquid stocks? ### Answer: Certain brokers allow for hidden orders to be placed in the market. It is as simple as that. Refer...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Premium classification when selling covered calls in a traditional IRA? ### Answer: If you hold stock in a traditional IRA and sell a covered call against that stock, the premium received for writing ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Who gets the dividend when a stock is bought/sold around the ex-dividend date? [duplicate] ### Answer: Your understanding is incorrect. The date of record is when you have to own the stock by. The e...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are investor's preference for dividends justified? ### Answer: This question is predicated on the assumption that investors prefer dividends, as this depends on who you're speaking to. Some investors...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are investor's preference for dividends justified? ### Answer: Stocks aren't just paper -- they're ownership of a company. Getting cash from a stock that doesn't pay dividends basically means reducin...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are investor's preference for dividends justified? ### Answer: Some investors (pension funds or insurance companies) need to pay out a certain amount of money to their clients. They need cash on a per...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do you get your Canadian stock information? ### Answer: I only follow the news of stocks I already own. I use the GlobeInvest Watchlist http://www.theglobeandmail.com/globe-investor/my-watchlist...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Am I doing the math for this covered call/long put strategy correctly? What risks do I run with this strategy? ### Answer: You own the stock at $29.42 At $40, the stocks is called at $26. You can't ad...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Am I doing the math for this covered call/long put strategy correctly? What risks do I run with this strategy? ### Answer: FYI: GM has an earnings announcement on April 24th. I think you were trying t...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What are the pros and cons of investing in a closed-end fund? ### Answer: Pro: - Faces less redemption pressure and hence the Fund Manager can focus more on long term gains rather than immediate gain...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What are the pros and cons of investing in a closed-end fund? ### Answer: The pros and cons of investing in a closed end fund both stem from the fact that the price per share is likely to differ from ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What are the pros and cons of investing in a closed-end fund? ### Answer: One advantage not pointed out yet is that closed-end funds typically trade on stock exchanges, whereas mutual funds do not. T...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it possible to make money off of a private company? ### Answer: Yes, but only if they're looking for investors. You would need to contact them directly. Unless you're looking to invest a significan...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it possible to make money off of a private company? ### Answer: Another way to do this is go to work for that company. Companies in this situation normally offer low pay, long hours, and stock opt...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What's the difference between Buy and Sell price on the stock exchange [duplicate] ### Answer: The same as when you are buying a car. If a dealer quotes 10k and you quote 8k. 8k is the buy price and 1...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What's the difference between Buy and Sell price on the stock exchange [duplicate] ### Answer: The Bid price is simply the highest buy price currently being offered and the Ask price simply the lowest...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What's the difference between Buy and Sell price on the stock exchange [duplicate] ### Answer: To add to @Victor 's answer; if you are entering a market order, and not a limit order (where you set the...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What's the difference between Buy and Sell price on the stock exchange [duplicate] ### Answer: This is copying my own answer to another question, but this is definitely relevant for you: A bid is an o...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Questrade - What happens if I buy U.S. stock with Canadian money? ### Answer: I personally spoke with a Questrade agent about my question. To make a long story short: in a margin account, you are auto...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Questrade - What happens if I buy U.S. stock with Canadian money? ### Answer: The reason it's not automatic is that Questrade doesn't want to force you to convert in margin accounts at the time of buy...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Questrade - What happens if I buy U.S. stock with Canadian money? ### Answer: I don't believe from reading the responses above that Questrade is doing anything 'original' or 'different' much less 'bad...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Choose online stock trading companies ### Answer: Lower fees are always better, everything else equal. A lower fee makes your transaction overall a better deal, all else equal. Other transactions cos...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Choose online stock trading companies ### Answer: Every brokerage is different, on all of their websites they have an actual list of fees. There are tons of different charges you may encounter. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Choose online stock trading companies ### Answer: That all depends on you. The cheaper places are certainly going to cost less, but when it comes to comparing value that is a subjective decision that ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Choose online stock trading companies ### Answer: This very informative link gives a clear and comprehensive comparison (pros and cons) of various popular brokers: https://www.nerdwallet.com/blog/inve...