For questions related to the analysis of stock prices, stock markets, etc.

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24
votes
6answers
10k views

Why do people buy stocks that pay no dividend?

Before recently, Apple Inc. did not give dividend to shareholders. This makes me curious why people buy Apple Inc. stocks; while it might be due to the expectation of selling stocks at a higher price,...
13
votes
3answers
670 views

If low-cost index funds are considered the best investment, why are there so many high-cost, managed funds?

The general consensus is that the single best indicator of a fund's future performance is the its expense ratio (source). If you look for more than 5 minutes online you discover the Bogleheads ...
113
votes
20answers
23k views

If a stock doesn't pay dividends, then why is the stock worth anything?

I read somewhere that companies are not required to pay dividends to shareholders (this is correct, yes?). If so, then if company A never pays dividends to its shareholders, then what is the point ...
2
votes
4answers
3k views

Why does selling and then rebuying stock not lead to free money?

From what I understand, stock prices go down when large amounts of the stock are sold (thereby lowering the price to attract buyers), and go up when large amounts are bought (vice versa - buyers rise ...
28
votes
5answers
12k views

If I have $1000 to invest in penny stocks online, should I diversify risk and invest in many of them or should I invest in just in one?

I have $1000 to invest. I use Scottrade to invest in penny stocks online, they charge $7 to buy a stock and another $7 to sell it ($14 in total). Given the high volatility of these stocks, what tactic ...
12
votes
5answers
3k 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 ...
8
votes
3answers
13k views

What does “more buyers than sellers” in technical analysis of stocks actually mean?

I often hear/read technical analysts looking at volume and price action on a chart and claiming that there are "more buyers than sellers" or vice versa. Since every trade requires a buyer and a ...
9
votes
5answers
4k views

What are the implications of a corporate stock repurchase or share buyback program?

Zynga's board recently announced their authorization of repurchasing up to $200M shares of Class A stock. What are the implications when a company repurchases their own stock? Some specific questions:...
7
votes
4answers
663 views

How can I remove the movement of the stock market as a whole from the movement in price of an individual share?

I think it would be useful to have a chart that shows how much a specific share out- or under-performs the composite index, e.g. Apple compared to the Nasdaq-100. I think (though I may be naive about ...
2
votes
2answers
3k views

How do I calculate the quarterly returns of a stock index?

I was reading an article and it stated something along the lines of (not accurate figures): Quarter | Stock Index % Change In Quarter Sep 2011 | 5.21 Dec 2011 | 4.69 Mar 2012 | 3.20 June 2012 | -...
10
votes
2answers
2k views

How can this stock have an intra-day range of more than 90% on 24Aug2015?

I am looking at this stock BKCC and was shocked at one point at its price of only $0.97. Just within 1 hour of opening, BKCC traded between $0.97 and $9.5. How can this be so, particularly when it is ...
6
votes
4answers
2k views

What could cause a stock to trade below book value?

A company's book value is the worth of all their assets. What would cause a stock to trade below book value?
6
votes
1answer
148 views

Where can I obtain historic ratios for a sector?

I am trying to compare an individual company's historic annual ratios (leverage, liquidity, profitability, shareholder return, etc.) to its sector average. However, I can't find these numbers for a ...
4
votes
3answers
818 views

Why would analysts recommend buying companies with negative net income?

Can anyone explain why some analysts recommend companies in the biopharmacy sector as a "buy" even though they have high R&D costs and no real profit? I followed three companies and I see the ...
4
votes
1answer
155 views

Bids and asks in case of market order

Suppose that person A places buy market order with quantity 1000 of firm XYZ. Now in the market there only are various asks of quantity: quantity 100, quantity 2000, quantity 1000. Each ask has ...
3
votes
3answers
627 views

Idea for getting rich using computers to track stocks

Hallo, I have been toying with this idea in my mind for a while now and to me it sounds like a fool proof way of getting 'rich'. I'm sure someone has had the same idea as me, maybe even tried it, and ...
2
votes
2answers
1k views

Understanding a Trailing Limit if Touched Order

I"m trying to wrap my head around a Trailing Limit if Touched Order that is offered by Interactive Brokers. The order explanation is at Trailing Limit if Touched. What I'm trying to figure out is ...
1
vote
3answers
922 views

Which kind of investment seems feasible to have more cashflow every week or month?

My plan is to make close to $2000 a month/$500 a week through investments. For that, I can risk up to $2000 to start with. The following come in to my mind, even if nothing is for sure. 1) If I ...