Tagged Questions

for questions related to understanding basic concepts in finance or certain terms in a particular context

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0
votes
1answer
39 views

Financial times vs free news

I am a student living in the UK and I am trying to improve my 'commercial awareness' for applying to finance related jobs. (In particular algorithmic trading) What advantages, if any, does reading ...
0
votes
0answers
28 views

Are there any agent-based software for the stock-market?

I am looking for game theory agent-based software to run simulations of the stock market. Ideally it would be a software where i could manipulate the variables and possible the underlying assumtions ...
0
votes
1answer
34 views

calculating no. of payments

is there a formula to calculate the no. of payments "P" required to pay off a loan amount "X", with an interest rate "Y" and a monthly payment amount "Z". I think "X/Z" would be an approximation for ...
1
vote
1answer
149 views

What is the rationale for a separate “National Insurance” tax in the UK?

In the UK there's a type of income tax called "National Insurance", similar to regular income tax. http://www.hmrc.gov.uk/ni/ What is the rationale for having this separate income tax? How does it ...
4
votes
2answers
209 views

401k Hardship withdrawal (First home), without buying home?

Not saying this is a good idea, but honestly it was something I was just curious about. My and other 401(k) plans allows you to withdraw from your 401(k) before 59 years of age for "hardship" for the ...
27
votes
5answers
4k views

What are the economic benefits of owning a home in the United States?

I am trying to figure out if owning a home is more economical then renting. According to all the tools, according to the rent I pay now (< $800) owning a home is not economical, even in the long ...
-1
votes
1answer
47 views

Lump sum investment vs SIP when I have the lump sum

I am fresh out of college and placed with a good job. It's been two months now and I have with me (after making all deductions): Two months salary Signing bonus = Equivalent to another 1.5 months of ...
0
votes
1answer
32 views

are my calculations for PV, NPV, and rate of return right?

Note: This is not a homework. I teach myself some financial principles and I made up this example to find out if I understood these principles. This example is a just a normal example nothing is real. ...
3
votes
1answer
93 views

What is the difference between an Independent Financial Advisor (IFA) and an Accountant?

I'm looking for some advice on various small personal financial matters relating to pension, salary, taxation etc. I've been given a personal recommendation for an accountant, but looking at their ...
0
votes
2answers
115 views

Loan math problem

There was a 9gag post some time ago with the following problem: A car dealer offers Lachlan a car that is priced at $21800, but he only has a $600 deposit. Lachlan's trade-in is actually worth $500. ...
0
votes
5answers
5k views

How do companies like WhatsApp and Hike earn money?

How do companies like whatsapp and hike earn money? How actually the Internet we use to to operate them will be actually converted into money??
4
votes
1answer
109 views

Will I see a collection on my credit report if I paid the bill in full?

I received a call from a collections agency a couple of days ago about an unsettled bill of $200. Turns out that during my grad school days (over 7 years ago), we used a water delivery service and I ...
5
votes
4answers
520 views

Should I get a bank account since I recently got my first job?

I'll be starting work this Friday (yay!) and haven't got the slightest clue about any of this. It'll be washing dishes at a restaurant, and I really don't know anything. Do I set up a bank account ...
0
votes
2answers
80 views

What are some way to decide if a e-commerce site is reliable?

I am planning to travel to US for holidays, and my friend in US told me that gift card from mygiftcardsite. Here's the website, and here's where you can register/view your transaction details. Truth ...
3
votes
1answer
115 views

What is a good service that will allow me to practice options trading with a pretend-money account?

I want to get a little more practice before I put my money on the line. I was using Paper Money from thinkorswim through school, but my account is bugged where the buying power will not update. The ...
2
votes
1answer
137 views

What standards should I expect of my CPA when an error was made?

I was storing some product at a fulfillment company in California in 2011 & 2012. I live in Florida where I do business from my home. I have been doing my taxes with a CPA so it would get done ...
1
vote
2answers
275 views

What is the difference between direct plans and Institutional Plan?

When I look at ultra short term funds, I generally see at least these two options for a given fund house. If the fund house name is "ABC", then I generally see these 2 options: ABC Ultra Short Term ...
14
votes
6answers
2k views

What do I need to know before getting a loan?

Recently, due to a series of events, I've been finding myself... uncomfortable with my financial situation. I'm not in debt, but my account balance did drop into the low three-digit figures a couple ...
6
votes
1answer
345 views

What's the difference between a certified check, a cashier's check, a money order, and a bank draft?

The question comes from reading this answer. I've heard these terms used somewhat interchangeably, but I have no idea what the differences are. What's the difference between a certified check, a ...
1
vote
5answers
2k views

Best way to invest money as a 22 year old?

I currently have a small sum of money of less than $1000, but will be reaching greater than $1000 over the summer due to a summer waiter job. I have been reading about the stock market, but so far I ...
2
votes
1answer
134 views

Making Sense Of This Sentence

Some random browsing brought me to the Wikipedia page on Financial Independence, and I'm having trouble making sense of something it says. Below is the whole extract, provided in full to make it easy ...
6
votes
3answers
674 views

What is the “rule of 70” or “rule of 72” with regards to investment, and how do I apply it?

What is the "rule of 72" (sometimes called the "rule of 70") with regards to investment, and how do I apply it?
2
votes
2answers
68 views

What amount will I get back if I hold a bond to maturity?

If I hold a bond to maturity, then on day of maturity, will I get back: The price of the bond at maturity? or, The price I paid when I bought the bond? or, The par value of the bond? My guess is ...
-4
votes
1answer
75 views

Do I need to repay back my line of credit in the form of monthly payments?

When I take a line of credit, do I start making monthly payments, like with a mortgage? Or do I make a lump sum (principal + interest) payment at the end of the term of the line of credit? Or is there ...
2
votes
2answers
50 views

financial statement

i'm a student and in my academic financial statement there is the money which i am supposed to pay for the registration and modules fees on the debit side, which is less than the one on the credit ...
6
votes
4answers
791 views

Buying life insurance at the age of 25

Given that, the person is unmarried and without any dependent, is it advisable to buy life insurance (which is not a term insurance) at the age of 25? Considering it as an investment tool plus a ...
6
votes
1answer
278 views

Is having a Critical Illness Insurance worth it?

I am aware that the typical argument for having a CI insurance is because we just really don't know what will happen in the future and it's better to be protected. But is it really worth it paying for ...
10
votes
2answers
1k views

Is there a term that better describes a compound annual growth rate (CAGR) when it is negative?

When calculating rates of return for an investment or portfolio over time, whether to report or compare performance, one frequently calculates the Compound Annual Growth Rate (CAGR). I've got a ...
13
votes
2answers
507 views

Can someone explain the different kinds of annuities?

So in my retirement and personal investing I have some stocks (very little), a Roth IRA, a Roth 401K and a Traditional 401K (later two are from work and I split things right now). At my age and ...
3
votes
3answers
156 views

What sort of investment accounts are generally used for short term (not retirement) investing?

If accounts such as Roth IRA and 401(k) are designed for investing towards retirement, what sort of accounts do people generally use for short term investing, say 5-10 years? Ideally there would be ...
7
votes
3answers
707 views

What is the point of the stock market? What is it for, and why might someone want to trade or invest?

Sometimes you have to explain this to young people or people unfamiliar with the stock market. Why would a company want to be a stock company? Why would a person want to trade stocks? How does a ...
0
votes
1answer
99 views

How to find if a public company has taken out a loan?

From a company's Income Statement, Balance Sheet, and Cash Flow data, is it possible to figure out if the company has taken out a loan and how much it has taken out?
3
votes
1answer
420 views

How do interest rates work?

My question is very simple. I am considering a CD for my money, but I don't know a whole lot of the financial math that goes into that kind of stuff. My question is about interests rates. Do CD's ...
4
votes
1answer
485 views

How can I come up with a good personal (daily) budget?

I've read a bunch of posts about how to create a portfolio, investments when starting out on your career. I know that a lot (almost everyone) goes through the same kind of things that I'm going ...
5
votes
7answers
292 views

Why do investors buy stock that had appreciated?

I understand you make money by buying low and selling high. But even if the stock price goes up, why are we guaranteed that there is some demand for it? After all, it's more expensive now. It would ...
2
votes
3answers
316 views

If prices are falling, who will lend shares to short sellers?

Short selling is a process that involves borrowing shares from a person, selling them and then buying them back at a lower price, thus realizing a profit. In this situation, knowing that prices are ...
7
votes
2answers
274 views

what are the pros and cons of structured deposits?

This morning, I came across the term, structured deposits. As I am still learning about finance, I am quite curious on different types of deposits. In layman's terms, What is a Structured Deposit? ...
3
votes
2answers
30k views

What are “headwinds” and “tailwinds” in financial investments?

I've seen/heard these terms in various writings & broadcasts lately. What do they mean?
0
votes
1answer
113 views

How to understand expenses matter relative to investment type for mutual funds?

From Wikipedia Expenses matter relative to investment type There are three broad investment categories for mutual funds (equity, bond, and money market - in declining order of historical ...
1
vote
1answer
4k views

What does “LLP” stand for in the name of an organization?

What does LLP stand for? As in the example name "Flood Law Group, LLP".
1
vote
1answer
939 views

Is a budget comprised of expenses, and/or revenue?

From the book website for Economics Principles in Action by O'sullivan:: States have two budgets: an operating budget and a capital budget. But from Wikipedia: A budget is generally a list ...
1
vote
2answers
338 views

What does “running a very large fiscal deficit” mean?

Recently I was reading an article on ft.com, and I came across this quote: They [yield on gilts and bonds] are particularly striking in the cases of the US and UK,which unlike Germany, run very ...
1
vote
1answer
69 views

Physical Delivery vs Assignment?

In options: What is the difference between the two? Assignment: http://www.investopedia.com/terms/a/assignment.asp#axzz1tG3VpKt8 Physical Delivery: ...
1
vote
1answer
95 views

Why do they call them “financial products”?

As far as I know there are no products involved. All they sell are services. Why then this name "products"?
2
votes
3answers
2k views

How can the ROE on a stock be more than 100%?

I looked at a stock's ROE for Q3 2011 and it was more than 100%, but the operating margin wasn't very high, around 5%. How is this possible?
10
votes
2answers
264 views

Has anyone created a documentary about folks who fail to save enough for retirement?

In this question, the OP suspects that she simply needs to select the right annuity to solve her money problems. And in her defense, many financial institution commercials try to convince soon-to-be ...
2
votes
4answers
2k views

“Derivative” and “asset-backed security”: Same concept, or related?

Derivative and asset-backed security seem to be similar, as both are based on some other assets. So I wonder if they are the same concept?
0
votes
2answers
210 views

What is meant by “proof of funds” and what would such proof be used for?

What does it mean when some funding firm or commercial bank asks for "proof of funds"?
1
vote
1answer
872 views

What's the difference between “marketable” vs. “tradable” (tradeable)?

In Bodie's textbook "Investments": Money market instruments include short-term, marketable, liquid, low-risk debt securities. I was wondering about the differences and relations between ...
9
votes
3answers
249 views

Solid reading/literature for investment/retirement/income taxes?

I'm striving for financial literacy and education. I've been really frustrated with most of the literature that's out there surrounding retirement, income taxes, and investment. Most of it seems ...