for questions related to understanding basic concepts in finance or certain terms in a particular context
10
votes
2answers
305 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
68 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 ...
5
votes
2answers
224 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
61 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
94 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
6answers
235 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
173 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 ...
6
votes
2answers
161 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?
...
2
votes
2answers
4k views
What are “headwinds” and “tailwinds” in financial investments?
I've seen/heard these terms in various writings & broadcasts lately. What do they mean?
1
vote
1answer
917 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".
0
votes
1answer
158 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
133 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
54 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
67 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
829 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?
6
votes
1answer
132 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
408 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
160 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
302 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 ...
8
votes
3answers
193 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 ...
10
votes
3answers
370 views
What is the difference between a stock and a bond?
I am just learning about finances (only 14 years old) and have heard about Stocks and Bonds and I would like to know the difference between these two things and wonder why would I invest in one or the ...
3
votes
2answers
1k views
Italy BTP vs. German Bund spread. Care to explain?
I hear a lot of chatting about BTP/Bund spread recently. I am not familiar with this concept. Could you explain what it is and what it means, in layman's terms?
5
votes
6answers
413 views
Ongoing things to do and read to improve knowledge of finance?
In this forum, there are a lot of people whose primary job is programming. And yet they are very knowledgeable on a lot of financial topics.
Can you please share what you do/read on a regular basis ...
14
votes
7answers
1k views
Where to start with personal finance?
I am married with kids and starting to look hard at savings for retirement, buying a house and sending my kid to college (still a LONG way away).
However, I am completely new to the world of finance ...
6
votes
3answers
254 views
What is the true value, i.e. advantages or benefits, of building up equity in your home?
I am a relatively new home owner, having purchased my first home in October 2009. It was a $315,000 home, purchased with a 5% no-cost loan with I believe 12% down payment. I think the total financed ...
8
votes
5answers
369 views
How to learn about doing technical analysis? Any suggested programs or tools that teach it?
I've been going through the OIC Education Courses recommended by @jaydles in another question about learning options. I'm about halfway through, I've learned a lot about how the stock market works ...
4
votes
2answers
122 views
How can I determine if leaving a lower paying, tax advantaged, job for a higher paying one makes sense financially?
I'm not exactly sure how to go about calculating this problem.
I'm a Canadian (Alberta) working in a ministry position at a church. My credentials qualify me for clergy housing, and I make just shy ...
2
votes
2answers
1k views
What is the difference between a bond and a debenture?
What's the difference between bonds and debentures?
Links are also welcome.
Thanks
6
votes
5answers
346 views
Does reading financial statements (quarterly or annual reports) really help investing?
Will learning how to read financial statements really give investors a significant edge? From your experience, is it worth the time to pick up this tool?
Edit: Thanks for all the feed back guys. I ...
23
votes
9answers
1k views
Which practice to keep finances after getting married: joint, or separate?
My wife and I have been keeping our finances separate for a long time. Some of my friends just put everything in a big pot. We each have our own pot, but then we have a common pot where we put all ...
5
votes
5answers
1k views
Which secured credit cards start building your credit history right away?
I spoke with 3 banks this morning and they all said that for the time I was on the secured card, they would not report me to the credit unions and companies. They would just keep the score internal to ...
4
votes
3answers
337 views
Recommended finance & economy book/blog for a Software Engineer?
I'm fresh graduate from CS field, and having little bit knowledge of finance and economy. Could anyone suggest this which you think more suits me.
Thanks!
0
votes
3answers
282 views
How do I determine future balance owed on a mortgage based on amortization?
A family buys a house worth 326000.They pay 110 000 down and then take out a 5-year mortgage for the balance at j2 = 6.5% to be amortized over 20 years. Payments will be paid monthly. Determine the ...
9
votes
6answers
291 views
Is it a good idea to teach children that work is linearly related to income?
It seems to me that, if you want to teach children at an early age about the benefits of careful personal finance, and other fun concepts (like an intuitive understanding of compound interest), paying ...
3
votes
1answer
44 views
what is the likely reason that the bank have a different year end than the other companies
what is the likely reason that the bank have a different year end than the other companies
76
votes
16answers
4k views
How smart is it to really be 100% debt free?
For the last 2 years, I have been trying hard to be debt free without affecting my personal cash flow. I am by no means a rich person, but I have a decent salary.
I still have debt, specifically
...
4
votes
16answers
469 views
What one bit of financial advice do you wish you could've given yourself five years ago?
Suppose you could travel back five years and give yourself one bit of financial advice, anything except stock tips.
What would it be?
41
votes
9answers
4k views
Why does gold have value?
I'm curious about why is there so much financial interest and news coverage about gold.
It's hard to do things like buy food or pay the rent with gold, but I can do this with cash. Gold doesn't yield ...
3
votes
2answers
85 views
Stocks and bonds have yields, but what is a yield?
I often read about yield such as in this article from Kiplinger, but I have not been able to find a good description of what a yield is. What is it, and why would I care as a novice investor?
2
votes
4answers
202 views
What is a Master Limited Partnership (MLP) & how is it different from plain stock?
I came across a reference to a "Master Limited Partnership" in a news article recently. I understand they are exchange-listed investments like individual stocks. But, what exactly are Master Limited ...
12
votes
3answers
689 views
What is a trust? What are the different types of trusts?
What is a trust? What are the different types of trusts? Are some better than others? What are the different roles involved in a trust?
10
votes
4answers
2k views
Can you explain “time value of money” and “compound interest” and provide examples of each?
Can you explain the time value of money concept, including present value and future value?
How does compound interest work? Why is compound interest a powerful concept when it comes to borrowing, ...
7
votes
3answers
953 views
Foreclosure process: What happens when a bank forecloses on a home?
I know it is a long complicated process, but what is the high level overview of what a bank does when it forecloses on a house? Beyond credit getting hurt, what else?
Where does the bank get it's ...
5
votes
5answers
97 views
Spring cleaning for your finances? Is there any activity that should be done annually, with respect to your money?
In order to maintain the health of your finances, do you do any particular activity on an annual basis that you would recommend that might benefit others? Say, a "spring cleaning" of some sort?
5
votes
1answer
96 views
How to Transition From Employee to Employer?
I know Making the transition from employee to employer requires financial stability, a good business plan, self-confidence and a lot of discipline.
But i am looking for some instructions/tips from ...
7
votes
5answers
435 views
Are personal finance / money management classes taught in high school, anywhere?
It sure seems like something that would be a valuable life skill, akin to Home Ec (or even more important!)... Where I'm from (Peel Region in Ontario Canada), it isn't part of the curriculum.
17
votes
9answers
1k views
What is the difference between “good debt” vs. “bad debt”?
This other question about home renovations makes reference to the concept of "good debt."
Could somebody explain the concepts of good debt vs. bad debt, providing examples of each?
Are there cases ...
17
votes
9answers
606 views
What are the best strategies to give pocket money or an allowance to children?
What are the best strategies to give pocket money or allowance to a child especially if you would like to teach them something through this, e.g. saving?
13
votes
2answers
524 views
What is the meaning of “short selling” or “going short” a stock?
Can someone please explain the meaning of 'shorting' a stock with an example?
7
votes
2answers
2k views
What does market cap (or market capitalization) mean?
When I look at my Google finance page, and I look at a company, lets say Citigroup for example, and I see that the market cap is 83.45 billion, what does that mean? Does that mean Stock Price X ...
