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

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0
votes
1answer
64 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
203 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
213 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
82 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
136 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
1k 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
782 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
188 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
470 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
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2answers
291 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
347 views

What is good growth?

I want to start rolling rental income into the stock market more. I already max my company 401(k) 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
124 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
44 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
67 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
248 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, ...
2
votes
1answer
68 views

Which are assets? Which are liabilities? [closed]

Way to financial independence is buying assets instead of liabilities, right? Can anyone give list of popular assets? By assets I mean things which create money and by liability I mean things which ...
-1
votes
3answers
137 views

How to execute a large stock purchase, relative to the order book?

I am looking to buy my first stock, it is TLN, and I want to buy about 3300 stocks. Looking at the order book on yahoo, it looks like this: Bid Price Size 10.46 200 10.45 100 10.44 100 10....
2
votes
1answer
149 views

Definition of basis and cobasis in a chart

In this article https://monetary-metals.com/silver-price-spikes-but-what-demand-4-oct-2015/, there is a chart of basis and cobasis. For basis I found too many different meanings and for cobasis ...
100
votes
23answers
16k views

Why buy insurance?

I don't understand why people buy insurances when they know that odds are is not their favor. Is it not better bet to stay uninsured, and save money? I am not talking about house insurance. About ...
2
votes
1answer
123 views

Will getting a second credit card from Citibank lower my average account age on my credit report?

I just got a new credit card from Citibank (double cash back card). Whenever the Citibank Visa for Costco is available, I would like to get that too. When I get the Costco card will this lower my ...
2
votes
1answer
65 views

Can a bank make you convert your HELOC into a loan? [closed]

Can a bank make you convert your Home equity line of credit (HELOC) to a loan?
6
votes
4answers
138 views

How do dividend reinvestment purchases work?

Typically if I buy a stock I buy the stock from some guy selling the stock. If I own AAPL I receive a ~2% annual dividend payout which I choose to reinvest automatically. Who am I buying these ...
12
votes
5answers
4k views

Why don't SPY, SPX, and the e-mini s&p 500 track perfectly with each other?

These tickers (SPY, SPX, /ES) are all based off the S&P 500 yet the relative lows and highs diverge. Can someone provide a basic explanation what causes this to happen? I feel like it may stem ...
7
votes
2answers
282 views

How can I tell what is “real” Motley Fool advice?

I clicked on a link and was taken to a video, which troubled me a bit and is a bit different from what I expect of the Motley Fool, of which people have presented as offering advice like "Live below ...
3
votes
2answers
127 views

How does inflation rate affect debt payoff strategy?

When reading a comment by user Philipp on this answer, he states: [W]hen the debt is in a currency which has an average inflation rate larger than the interest [in this case 0%], you essentially ...
5
votes
4answers
195 views

Does bull/bear market actually make a difference?

This may be an extremely naive question, but it is often discussed on the news, here and in person (at least in financial circles) that it is easy to make money in a bull market, and harder to make ...
1
vote
0answers
431 views

What is an undervalued or overvalued bond?

Here's a small excerpt from Bond Valuation section on Investopedia: Determining Whether a Bond Is Under or Over Valued What you need to be able to do is value a bond like we have done before ...
1
vote
2answers
86 views

Dividend yeild per unit

I have been reading the intelligent investor, on chapter 4 page 91 Graham goes on to say.. While our proposed 50–50 division is undoubtedly the simplest “all-purpose program” devisable, it may ...
3
votes
3answers
599 views

Stocks: do Good Till Cancelled orders get executed during after hours?

If I place a stop loss GTC order on my shares at $80, and it reaches that price during pre-market or after hours, will my order get executed? I ask because a lot of the time the stock opens at a ...
10
votes
3answers
178 views

What exactly is the interest rate that the Fed is going to adjust?

Lately, the financial press talks non-stop about the Fed doing this and that to the interest rate. What exactly is this interest rate that the financial press is talking about? Why is this Fed ...
9
votes
3answers
2k views

Should I care about expense ratios?

I've never been an investor before, but I recently came into some money. In my understanding, expense ratios for mutual funds and ETFs are typically incorporated into the yield or ticker price. If ...
0
votes
0answers
36 views

Free float is expressed as percentage of shares issued or shares outstanding?

Quiet often, one sees the free float expressed as a percentage number, e.g. http://www.pse.com.ph/stockMarket/companyInfo.html?id=154&security=165&tab=0 The question is, is the free float ...
5
votes
4answers
1k views

What exactly is a “derivative”?

I haven't been able to find exactly what a derivative means. It seems to be some sort of cross of insurance, stock, and lay-a-way. When I try to look it up, all I find is all the problems not ...
2
votes
4answers
218 views

Why does ExxonMobil's balance sheet show more liabilities than assets?

In analyzing balance sheet of ExxonMobile, based off of Yahoo Finance report, we run into the following figures for the year: Current Assets: 51,647,000 Total Liabilities: 175,592,000 Now Current ...
1
vote
2answers
78 views

Liquidity Balance Sheet

Should be or should we not deduct long term debt along with current liabilities from total current assets to arrive at current asset value per share?
1
vote
1answer
475 views

What does it mean to borrow short and lend long?

What does it mean that institution borrowed short and lent long?it would be great if u may use a comprehensive example. Thank you very much.
5
votes
2answers
259 views

When is the right time to pay my credit?

I am confused on when is the right time to pay my credit. Here is what is written in the paper included with my card. Statement Date: 21st of the month Payment Due Date: 24 days after statement ...
2
votes
2answers
2k views

converting annual interest rate to monthly when compounding frequency known

Just like the title I'm looking for the formula to convert APR to monthly when I also know compounding frequency eg APR is 8% and being compounded daily what is the monthly interest rate I earn. Or ...
2
votes
2answers
250 views

First Home Purchase - Understanding Closing Costs

My loan officer earlier gave me an estimate of $11,485 towards closing cost, now when I applied for loan I see the estimate going up to $17,110. For example the Origination Fee Charge increased/...
3
votes
3answers
320 views

Can anyone help me understand my loan payment?

My loan was $40500 for five years with 9% interest per year. I do not understand the total I would have to pay. I have been paying 700 per month since 2006 and it feels like I've been paying forever. ...
0
votes
1answer
211 views

How soon in advance to cancel a credit card to avoid the annual fee?

Last year I applied for a credit card (Delta Gold Amex) in order to get 50K bonus miles with the first year annual fee waived. I'm about to cash in the miles and I have never paid a dime in interest. ...
0
votes
1answer
101 views

How To Interpret Share Prices?

During conversation shares in Google came up as a topic. Out of interest I Googled the share price for Google and was presented the following: Google Inc. (GOOG) -NasdaqGS 523.40 My ...
3
votes
3answers
7k views

If I was to buy something a day before my due date for my credit card bill, would I be charged interest?

First of all, I am a resident of Canada. I am new to credit cards, so I hope my question makes sense. I've had my card for a few months ago and I've always paid the balance in full by the time the ...
2
votes
1answer
329 views

What does “issued XXX and YYY shares” mean?

I'm looking at a random company, Hain Celestial Group (HAIN). Their 10-Q from 2014-11-07 says on the first page: "As of November 3, 2014 there were 50,460,313 shares outstanding of the registrant’s ...
1
vote
1answer
170 views

How do parent companies collect/handle net income from their subsidiaries?

Say Company A purchased 100% of Company B, and in 2012 Company turned over a net income of $X Were Company B to be its own owner, the $X would go in their "pockets", their bank account. But seeing ...
6
votes
1answer
310 views

Why do futures traders write months in a strange way?

I was reading up a bit on futures and found that futures clearing merchants write months in a very unexpected way: Month Month Code January F February G March H April J May ...
-2
votes
1answer
85 views

What does bank do with “Repaid Principal”? [closed]

When a bank on its loaned amounts receives payments towards repayment of the principal, what does it do with this amount received by them as "Repaid Principal"? Does this amount received as "Repaid ...
0
votes
1answer
172 views

Is Bitcoin practical? How does Bitcoin actually work in real life? It's a good way to invest? Did you use it only for shopping? [Edit] [closed]

How can I use Bitcoin? Is it convenient to convert euros/currency to Bitcoin and use it for shopping? Or is it better to hold the Bitcoin hoping for it to become more valuable and reconvert some back ...
1
vote
0answers
314 views

Learnvest vs. Wealthfront: Advantages and disadvantages for a beginner investor

I am very beginner in terms of investing, financial planning and growing my money to save for the future. My objective is to be able to start covering those bases by getting education as well as find ...