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

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0
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1answer
23 views

What is the formula to calculate loans at variable rates and what is the function of PV (present value) in calculations?

Yesterday, I tried during the whole day to solve that problem: You have been living in the house you bought 6 years ago for $250,000. At that time, you took out a loan for 80% of the house at a fixed ...
1
vote
0answers
57 views

How much accounting knowledge is needed to read financial statements of publicly traded companies?

"You have to understand accounting and you have to understand the nuances of accounting. It's the language of business and it's an imperfect language, but unless you are willing to put in the ...
1
vote
1answer
45 views

About dividend percentage

I want to know on what price of a share the percentage is taken. There are two types of value for a share of stock: the market value, the face or par value. What amount I will be paid if I have ...
1
vote
1answer
26 views

Direct access to the currency exchange market

It is now fairly common for "lambda" users to have direct access to the stock market, i.e., see the book of order (up to a given depth), place a buy or sell order, cancel an order, etc. The bank or ...
1
vote
2answers
50 views

What foreign currency exchange rate is applied at cash machines

I recently came back from Auckland and China . Prior to withdrawing cash from ATMs , the currency exchange sell and buy prices give an estimate price. I wonder how much € exactly will 100 NZD cost. ...
0
votes
2answers
68 views

How does the person lending shares to the short selller protect themselves if the short sellers are correct?

I'm curious how the person lending shares protects themselves from the downside if the short sellers are correct. Are they actually loaning shares or is it like the banks, loaning out more money ...
11
votes
1answer
1k views

What is the difference between an amortized loan and a non-amortized loan?

As an example, my parents told me that their current car loan is amortized. Does that make any practical difference to how they pay off their loan, as opposed to if their loan had not been amortized?
2
votes
1answer
155 views

Normal for my 401k to be performing at -11% over the past 18 months? [duplicate]

Me: 27 years old Income of upper $70ks Contribute 6% to 401k, and 3% to roth 401k (increase my 401k by 1% each year; employer matches up to I think 3%) Performance: Over the past 18 months, my ...
5
votes
1answer
276 views

Will the stock market continue to grow forever?

I am relatively new to investing. I understand that the stock market, in some sense, reflects what happens in the real economy. For example, if the U.S. economy grows, the stock market in the long ...
4
votes
1answer
82 views

One Share Stock Reverse Split

What would happen if I hypothetically had one share of a stock that is undergoing a reverse stock split? This would be an odd predicament but I just read about someone in this situation and can't ...
6
votes
2answers
239 views

Will I ever lose money if I always pay the credit card bill on time?

One last thing I am pondering before getting a secured credit card. Your due date is at least 25 days after the close of each billing cycle. We will not charge you interest on new purchases, ...
5
votes
1answer
87 views

Does Investing in commodity helps to build home

I am from India. I have plan to build new own home next year. Now commodity price for metal (steel) is less than past years. Is it worth to buy steel from commodity now, then Is it possible to switch ...
-2
votes
2answers
85 views

Shouldn't it be the person writing the check who endorses the check, not the depositor of the check?

I have to sign the backs of checks other people give me. Why is this necessary? It seems that someone could easily steal the check and write their name instead and deposit it into their own account. ...
5
votes
5answers
172 views

Real Estate blind auction - who benefits?

The housing market in Portland, OR is extremely hot. So hot that realtors are now using blind auctions. Listings say Offers will be reviewed on [date] at [time] Prospective buyers are ...
4
votes
3answers
128 views

Why would I buy a bond with a negative yield?

The only reason that I can think of is because I expect the bond to appreciate in price thus offsetting the loss in yield. I could still end up with less money than I started with, if I hold the bond ...
0
votes
3answers
207 views

Mortgage payments

Background I was watching a video about mortgage-backed securities on Khan Academy (ref. this video, skip to 2:32), and something struck me as odd about the way he presented the mortgage model. He ...
0
votes
1answer
39 views

company market capitalization to total (annual) stock market capitalization

I have a panel dataset with 13 countries and 10 years (1999-2009). I'm trying to calculate share/pctage of the average firm market capitalization to average stock market capitalization for each ...
0
votes
1answer
132 views

How to calculate depreciation?

I am not accountant and my question could be trivial but I will ask it. Let's say that I bought a car that cost $50,000. The maintenance cost over 5 years is $25,000. The revenue of the car over 5 ...
1
vote
1answer
93 views

Why is the number of issued shares less than the number of outstanding shares

We know that #issued shares = #outstanding shares + #treasury shares. So the number of issued shares must be greater than treasury shares by definition. However, Starbucks' fiscal 2014 From 10-K ...
15
votes
2answers
5k views

Buying shares in a company after you quit

US law dictates that you cannot buy / sell shares in a company you work for except during open trading windows. I understand lockout periods when you're in a company but what about after you quit? ...
5
votes
1answer
53 views

what does “private equity structures” mean?

I'm translating an article about finance. What does "private equity structures" mean in this context - He said that popular ways for UHNWs to invest in real estate included property club deals ...
2
votes
2answers
122 views

When is an IPO considered failure? [closed]

I am reading case of Air Berlin IPO. It has detail that investors where unhappy as the operating profit was less and company's strategy was not aligned to increase profit. But why did knowing ...
4
votes
1answer
69 views

Can a non dividend-paying product (say ETF) suddenly start paying dividends?

If I buy shares of a product that currently does not pay dividends, can it theoretically/technically start paying dividends in the future?
-1
votes
1answer
54 views

Ongoing Automatic Investment Fee

When a DRIP plan says "Ongoing Automatic Investment Fee", is that the amount of money they take every month? In the case of Hershey's DRIP, it says it's $2. Does that mean if someone invests $50 a ...
3
votes
2answers
66 views

Does a mutual fund's return include fees?

If a mutual fund's published YTD return is 3%, and it has an up-front sales charge of 5% and a 12b1 fee of 2%, are these fees included in the YTD return, or would the "real" return be 3%-5%-2% = -4%?
3
votes
4answers
347 views

Basic questions about investing in stocks

I've had some questions regarding stocks that have been bothering me for a while. They are naive, but that is the whole point: to understand what they are and fix my misconceptions. What is a stock? ...
1
vote
1answer
76 views

How to calculate mutual fund return

How do you calculate the annual return of a mutual fund? I understand roughly how mutual funds work, and I'm trying to decide which mutual funds to invest in, but to prove to myself that I understand ...
1
vote
3answers
130 views

Why should a company go public?

For someone who holds stock in a privately held startup (through exercised employee options) is it preferable to see the company aiming to go public so that stock can be sold on the open market? It ...
0
votes
2answers
80 views

Long term drip (dividend reinvestment plan) stock

I sold a Home Depot stock that I will take in cash and deposit into TD amertrade. Is their tax on this? I want to reinvest in mutual funds. We purchased HD over a 15 yr time period in California. I ...
0
votes
1answer
42 views

Understanding bid and offer prices in CFD's

I am currently researching the mechanics of CFD trading and, being new to this, am a bit confused about certain terms. I understand that the "bid" is the price that the CFD is sold at and the "offer" ...
6
votes
1answer
76 views

Do ETF owners buy and liquidate units from the market when gap between market value and value of underlying shares is large?

Due to various reasons, an ETF, even an index ETF might trade at a value lower that the value of its underlying securities. In such a situation, can the company managing the ETF actually buy from the ...
2
votes
2answers
111 views

Compounded Interest on Mutual Funds

I may be missing or misunderstanding something regarding how compound interest works with mutual funds and ETFs. Let's say I have $10,000, and I invest said monies in mutual fund XXXXX at $100/share, ...
2
votes
1answer
44 views

Currency forward rates

I'm looking at EUR/USD forward rates here: http://www.investing.com/currencies/eur-usd-forward-rates Can someone explain, in very simple terms, what do the bid/ask prices mean? And what is the ...
38
votes
3answers
7k views

How did this day trader lose so much?

I recently read this article about a day trader that lost $100,000: A trader started a GoFundMe page to pay back $100,000 to E-Trade after a disastrous short Please explain this, because I can not ...
0
votes
1answer
61 views

Why would a stock price raise above an initial tender offer price?

Company X received a tender offer buyout price of $8.50/share. Fast forward 10 days later and the share price has exceeded the $8.50 offered. Is this common and what is happening? It was in the offer ...
2
votes
6answers
199 views

Name of investment where capital guaranteed?

I remember briefly hearing about an investment type which guarantees your initial investment. So you are able to make a reasonable (but not mind-blowing) profit but the initial capital that you pay is ...
5
votes
2answers
155 views

Which bank is my Discover card through?

I have used Visa exclusively for 15, now I have my first Discover card. A notable difference is that Visa always carries the name of the bank (for me it was Chase); but the Discover card does not. ...
0
votes
3answers
72 views

Emulating a 'long straddle' without buying or selling Options?

If I go long and short a stock simultaneously, with a 1:50 leverage, and place a stop loss on both for when a 10% loss is reached, isn't this the exact same principle as the long straddle strategy ...
6
votes
1answer
133 views

Can Mutual Funds Invest In the Start Up Market?

This question refers to this article. I can't find Snapchat anywhere on the US stock exchanges as a public company, so I'm assuming that the Fidelity Blue Chip was holding this through the start up ...
4
votes
4answers
827 views

What are some examples of unsecured loans

I am writing an essay on unsecured loans and am now trying to find some examples, so that I may then talk about the pros and cons for each example. I have already mentioned credit cards and an ...
6
votes
4answers
651 views

Why is gold not a good investment? [closed]

The following comment has 18 up votes: Gold is really not a good investment. – Almo (source) What's the deal with it? Is investing in gold bars equally bad as investing in gold jewellery?
1
vote
1answer
152 views

Stock dividends effect on dividend received by shareholder

In CFA level 1 Reading 38, it says Stock dividends are a non-cash form of dividends. With a stock dividend (also known as a bonus issue of shares), the company distributes additional shares ...
3
votes
1answer
425 views

What do the suffixes on stock symbols indicate

For example, this article mentions symbols VZ.N, CVC.N, TWC.N, and CCOI.O. Are these related to share classes and/or warrants? Each of these symbols also seem to exist and can be referenced without ...
1
vote
2answers
220 views

Increasing PE ratio good or bad?

Some stocks like sbux, and nke have continuously increasing PE ratio. Is this a sign of company doing well or a bad sign that company is slowly getting overvalued ?
2
votes
2answers
34 views

Online demat account for stock market

I am planning to open a stock market online account in India. My question is do I need to pay any extra charges on the days when I dont play stock market.
4
votes
4answers
293 views

What is good growth?

I want to start rolling rental income into the stock market more. I already max my company 401k so I don't mind something that isn't tax deferred. Up to this point I have been saving $5k and then ...
4
votes
3answers
118 views

Is technical analysis based on some underlying factors in the market or do they work simply because other people use them?

The market is undoubtedly driven by people, and technical analysis is one way to analyze and predict this behavior. My question (also the title) is "Is technical analysis based on some underlying ...
1
vote
1answer
40 views

Calculating long intervals of Interest with Simple Interest Formula

My last post Calculating long intervals of Interest calculates interest using compounding formula. But what about calculating simple interest accrued where the day count is actual/actual and it goes ...
2
votes
2answers
64 views

Calculating long intervals of Interest

Small interval calculations is fairly straight forward. But what about long intervals. If a loan's daycount is set to Actual/Actual and the duration has run into two different DayCount intervals, how ...
4
votes
3answers
246 views

Do mutual fund companies deliberately “censor” their portfolios/funds?

In Survivorship Bias, David McRaney writes: In finance, this is a common pitfall. The economist Mark Klinedinst explained to me that mutual funds, companies that offer stock portfolios, ...