This tag is to be used for any questions related to Stocks. Ideally they should be accompanied by a country tag if relevant. It is discouraged to ask question about a specific stock. However an example can be used to illustrate a point.
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8 views
Benjamin Graham: Minimum Size of the company
In the book "Intelligent Investor", Graham recommends a minimum annual sales figure of 100 Million $ as one of the criteria.
How do we adjust this figure for Inflation and a country other than the ...
3
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1answer
52 views
Selling stocks - capital gains
Say I have 500 shares in company XYZ. 250 were purchased on 5/1/2012 and 250 were purchased on 9/1/2012. Is it possible to sell only the stocks that were held for 1 year (5/1/2012)? Avoiding the ...
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0answers
29 views
After an IPO, does the increase in stock price provide more money to the company? [duplicate]
Companies go public so they can raise money by a funding round. My understanding is that the IPO is for this reason. They offer a certain amount of shares and raise X amount of capital, and the share ...
1
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2answers
128 views
Where does the stock go in a collapse?
During the crash at the end of 2008, pretty much everyone was selling their stock and the market tumbled approximately 50%. Who purchased the stock? Was it market makers or other people? I understand ...
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0answers
29 views
non-tax-resident of Canada pay taxes for investment account earnings? [duplicate]
I am a Canadian citizen working overseas permanently with no ties to Canada (no family, no house, no jobs, no licenses). This makes me a non-tax-resident (meaning I report the taxes to my current ...
4
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1answer
49 views
Non-tax-resident of Canada needs to pay taxes for investment account earnings?
if a person were to be a non-resident of Canada without jobs, a spouse, kids, asset (houses, cars etc.) in Canada, then that person would not be obliged to file a tax report. However, if that person ...
3
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1answer
32 views
How do we know the number of shorted shares of a stock?
I am reading this article which discusses Tesla's stock (TSLA). The article states:
27.5 million shares of Tesla are held short, or about 41 percent of the float.
How can the number of shorted ...
2
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1answer
31 views
What does the settlement date of short interest mean?
NASDAQ lists data like this for the short interest in Walmart:
Settlement Date Short Interest Avg Daily Share Volume Days To Cover
4/30/2013 27,988,175 7,442,123 ...
3
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1answer
44 views
What capital gains taxes do I owe on stock sales in India?
I would like to know about the tax details on selling stocks if I follow this procedure:
Sold stock ABC after holding it for more than a year for INR 1000 for a profit of INR 100
Bought stock BCD ...
3
votes
2answers
175 views
Why have I never seen a stock split?
I know it happens, but I've never seen it once.
I'm a total stock amateur; I just invest small-scale amounts that I have to spare for the sake of experience/practice and a maybe a little fun.
But ...
10
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4answers
265 views
Does doing your “research”/“homework” on stocks make any sense?
One thing about investing has always bothered me. You constantly hear people saying you need to "do your research" or "do your homework" on a company before buying their stock. I rarely watch Mad ...
0
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1answer
64 views
Can I invest in the USA or EU from an Asian 3rd-world country, over the Internet?
Is it possible to invest in markets in the USA or Europe from an Asian 3rd-world country over the Internet?
Does the laws of the USA or EU allow people outside to do so?
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1answer
62 views
What does “Company Distribution” mean on Google Finance's stock screener?
On the Google Finance stock screener, what is meant by the term "Company Distribution", and what are the default values referring to? I googled "Company Distributions" but could not figure out how ...
3
votes
1answer
50 views
What is the process through which a cash stock transaction clears?
When selling stocks through a "cash" account through a brokerage, it takes about 3-4 days for the amount to clear and be available for reinvestment.
I'm assuming the is a process through which the ...
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1answer
49 views
How to use a stop and limit order together?
If I own a stock that trades at 100$, and I want to sell the stock if it either goes to 95$ or below and also if it goes to 105$ or above, is it possible to do so? Do I need to use a stop order or a ...
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2answers
132 views
How can I make a profit by selling a stock short?
This link states:
Shorting (or selling short) allows professional traders to profit
regardless of whether the market is moving up or down, which is why
professional traders usually only care ...
4
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6answers
653 views
How do I build wealth?
Usually CEOs and other executives have a salary which doesn't exceed £200k per annum (with 50% going to taxes). However, they possess luxury cars, large house and huge savings, i.e. great wealth. How ...
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5answers
203 views
Why are some long term investors so concerned about their entry price?
A long term investor is usually defined as someone who enters an investment for, say, 10, 20, 30 years or more. Generally they buy an investment to help meet a certain objective in their lives (e.g. ...
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4answers
219 views
Why did my limit buy order execute at a lower price?
A few weeks ago I started to trade American stocks. I have an IB account. Yesterday, I encountered a strange situation. I'm using the IB API.
9:30:56 I sent a limit buy order to IB (Buy MSI at ...
5
votes
3answers
216 views
Why is the bid-ask spread considered a cost?
I know the obvious costs of trading stocks, like commissions, fees and taxes. But I also hear people saying the bid ask spread is part of the transaction cost. Why is this the case? One of the ...
1
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2answers
70 views
Should I use regular or adjusted close for backtesting?
In an attempt to try and perform few backtesting tasks, I have obtained some historical data. I have noticed that there are 2 closing prices; regular close and adjusted close. After some reading, I ...
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2answers
149 views
What is the compound annual growth rate of the major markets?
What historical compound annual growth rates (CAGRs) have the major markets provided? Data as far back as has been recorded is preferable. Specifically I'm looking for returns of:
Short-term, ...
4
votes
2answers
160 views
Can two companies own stock in each other?
Is it possible for company A to own 20% (for example) of company B's shares, whilst company B owns, say, 20% of company A's shares as well?
Edit: If So, would it be possible then for more then 50%, ...
0
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0answers
78 views
Is dollar-cost averaging wise or risky? [duplicate]
I like to buy share over a medium to long term basis. I used to dollar-cost average on top of my initial purchases when a stock I had dropped in price. I did this for 4 to 5 years and found my returns ...
5
votes
3answers
109 views
Choosing the limit when making a limit order?
I am a long term investor that periodically (several times per month) adds to existing positions. I usually place my orders for stocks before the market opens. I use limit orders primarily to protect ...
9
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3answers
180 views
Foolish to place orders before the market opens?
I was wondering if it is unwise to place orders for stocks/ETFs before the market opens. I am almost always buying to add more to existing positions. I don't have any time during the day to make ...
9
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2answers
136 views
Price graphs: why not percent change?
Apologies if this is a dumb question but:
Why do price charts for securities like stocks and foreign exchange always show the actual price numbers instead of charting everything in terms of percent ...
4
votes
1answer
53 views
401(k) Investment stategies
I am a new grad and I just started working for a company. They offered me a 401(k) with a very good matching. So I decided to invest some of my income as I am single. I was taken by surprise by how I ...
9
votes
1answer
106 views
Is there an application or website where I can practice trading US stocks with virtual money?
For somebody that doesn't know much about the stock market and this type of investing, I was looking to see if anybody knew about an application/website where you can use "virtual" money (in other ...
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1answer
46 views
How to find out if a company has purchased government (or other) bonds?
Looking at a company's income statement, balance sheet, and cash flow, is it possible to find out if a company has given out a loan to a government or to another business, i.e. government/corporate ...
2
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0answers
125 views
What is the minimum out-of-pocket amount I need to buy stock? [duplicate]
Assuming I wanted to buy stock in Walmart, what is the minimum that I would need out-of-pocket?
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1answer
69 views
How do I calculate the dividend yield for Disney Co?
I'm trying to "estimate" the dividend yield for Disney (NYSE:DIS). Let's pretend stock price will stay at $57 and the tax rate is 1%. Is it really the case that after 3 years with this stock the ...
6
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1answer
118 views
How do small cap stocks perform vs. large cap stocks (like Dow constituents) during bear trends?
Does anyone have any good information on how small cap stocks, e.g. < $500M, perform during bear trends and/or recessions in comparison to large cap stocks like the Dow Jones Industrial Average ...
3
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1answer
91 views
Why might it be a bad idea to invest 100% of your 401(k) into a stock index fund?
Background: I'm a young 20-something, I won't be retiring for 40+ years, and the expense ratios for the funds offered in my company's 401(k) plan mostly suck.
I understand that one of the reasons an ...
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2answers
111 views
Do I have to pay a capital gains tax if I rebuy the same stock within 30 days?
My question is similar to this question except that I would be buying the same stock within the wash-rule period. If I sell a stock at a profit, and then use that money to re-purchase the same stock ...
4
votes
1answer
31 views
Who pays the tax on sale of stock when jointly owned?
Mother buys stock with her money sets up joint ownership with her daughter.
Mother sells stock and gets 1099-B in her name showing full proceeds of sale.
Is the full income the mothers (on tax ...
3
votes
1answer
41 views
When does Irish Stamp Duty apply for UK investors buying Ireland domiciled shares?
Let us assume I am a UK resident with a UK-based trading account, considering to buy Ireland domiciled ETF shares, such as VWRL.
I am confused whether I will have to pay Irish Stamp Duty of 1% or ...
3
votes
1answer
66 views
Are there any benefits to investing with a group of friends vs. by myself?
Total newbie here...
Are there any benefits to setting up an investment group/club between myself and three other friends, as opposed to doing it by myself?
I am only talking small amounts, say $25 ...
2
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1answer
71 views
Why do PE ratios for small cap stocks tend to be greater than those for large cap stocks?
As a general rule, why is the PE ratio of small cap stocks greater than the PE ratio of large cap stocks? Is it just a coincidence? Or is there a reason?
3
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1answer
36 views
What securities is Return of Capital applicable to?
I am trying to understand to what securities Return of Capital is applicable (especially I am interested in stocks).
From Wikipedia:
Return of capital (ROC) refers to payments back to "capital ...
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votes
2answers
56 views
Why is financial data of some public companies not available on Yahoo Finance?
On Yahoo! Finance, why isn't the financial data of some companies available? e.g:
this Canadian company.
Because if this is a public company, the data must be made public.
0
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2answers
63 views
How to reconcile these contradictory statements about the effect of volume on stock price?
This link states:
Sharp increases in price and sharp increases in volume can mean bulls have been exhausted, all buyers have bought and there is no one else but sellers; the result is bearish
...
10
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5answers
348 views
Why is the dominant investing advice for individuals to use MFs, ETFs, etc?
The dominant advice on this site (including that which I give to novices) regarding investing is to only invest in fund vehicles (mutual funds, ETFs, etc), rather than in individual stocks.
Why is ...
1
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1answer
51 views
Companies with steady and high dividends
In what kind of companies would you invest if you want a steady stream of high dividends?
Is there other options than infrastructure companies? How would you compare different types of infrastructure ...
2
votes
1answer
48 views
How to buy stock on the Toronto Stock Exchange?
I have an Ameritrade account and thought I was purchasing a stock that trades on the TSE. However, I was only able to buy a pink sheets stock. I'm not sure of the difference. Would it be possible ...
1
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2answers
77 views
Do common stocks and preferred stocks have any differences in terms of percentage of the company per unit they represent?
Forgive me but I'm totally ignorant on this regard. Given that I may not be able to ask the right question.
AFAIK, they differ in terms of how dividends are being paid and by how much. But do common ...
2
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5answers
219 views
Whether to prepay mortgage or invest in stocks
If at the end of the year, I have 10k in hand that I want to save/invest and these are my options:
1.Prepay into mortgage. Rate is 2.1%
2.Invest in stocks and I know I can get at least 7 % return.
...
5
votes
3answers
248 views
How to make a small investment in the stock market? What is the minimum investment required?
I am not rich, so I am talking one to two hundred U.S. dollars per month only. I would like to know whether I can buy stock using that little amount of money, and how to do that if possible?
As an ...
3
votes
4answers
158 views
Where can I find all public companies' information?
Warren Buffett mentions that in his early days he used Moody's Manual, which centralized all public companies's information into a manual, to go through all companies and find interesting ones to ...
5
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2answers
223 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 ...
