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Questions tagged [financial-literacy]

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

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Looking for Canada GST memo D17.1 dated Jan 1995

In April 1999, Canada Revenue And Customs Agency revised its GST/HST Memorandum 17.1, obsoleting the previous version which was dated January 1995 I would like to obtain the obsolete, January 1995 ...
Jaredo Mills's user avatar
0 votes
0 answers
43 views

Simple YTM calculation

I'm working the following problem, but getting the wrong answer. Any feedback appreciated. Suppose you bought a five-year zero-coupon Treasury bond for $800 per $1000 face value. Assume the yield to ...
Hank's user avatar
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-3 votes
1 answer
148 views

Strategy and science behind determining which stocks to buy and invest in?

I'm starting to get into serious investing & I being new and inexprience I have questions regarding the decline & incline in stocks. From my understanding and research, stocks increases and ...
Mxvii's user avatar
  • 1
0 votes
3 answers
119 views

Home renovation payment: Loan with interest, lump sum with discount or quarterly payment with no interest

I have a home renovation that would cost me 50k. The company offer me these options: 50k 15 years loan with 3% per annum fixed interest (monthly repayment) 45k lump sum with 5k discount 5k quarterly ...
sg552's user avatar
  • 101
6 votes
2 answers
4k views

What is this type of equity called where I get a share of the profits for the duration of my employment?

I've heard of an interesting "equity" scheme in a company from my friends and I'm wondering what this scheme is called. You work as the Manager for a supermarket chain, and they will give ...
John Hon's user avatar
  • 371
1 vote
2 answers
65 views

Contributions (ira, hsa, etc) for minors?

I know a minor who has some decent self-employment income that has a heavy self-employment tax pending. No personal deductions are being made currently, as the minor doesn't even have a retirement or ...
No Name's user avatar
  • 331
0 votes
1 answer
130 views

Why is it called "accredited investor" status with no accreditation process?

The word "accredited" has a pretty specific meaning: having successfully passed a formal process of certification. But becoming an "accredited investor" doesn't appear to have any ...
Mason Wheeler's user avatar
1 vote
0 answers
45 views

How does net inventory value affect further deposity into a fund?

I am trying to understand finances regarding funds and yearly calculation of net inventory value (NIV). Say I've deposited $50,000 into a fund. Next year I get an annual report that says: the net ...
Samuel's user avatar
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2 votes
2 answers
517 views

What is the correct Formula for calculating fund growth with fees

I am considering two different options for a roth IRA. A managed fund that has a higher historical growth rate but 1% fee and a self directed vanguard account, which would have a lower growth rate but ...
achyrd's user avatar
  • 123
0 votes
1 answer
137 views

IRR -> Reinvestment Assumption Or Myth (And What It Actually Means)

I've been trying to wrap my head around a downside of using IRR - the reinvestment assumption. I don't really understand the concept on how IRR assumes that we reinvest at the IRR, if IRR is for ...
Wet Don's user avatar
1 vote
1 answer
74 views

What is a trust? (Canada)

I'm having a very difficult time researching what exactly a trust is. Is a for-profit company with some additional agreements? Is it a not for profit? If it's neither of the two, and is simply a ...
Anton's user avatar
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1 answer
98 views

Is it wrong to say that a company only has a single stock?

I'm a newbie to investing and I was doing some research regarding the difference between stocks and shares. According to Investopedia stock simply refers to partial ownership of a company, whereas a ...
andrej's user avatar
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0 votes
1 answer
51 views

Standard method for calculating YoY and YTD performance of an index or stock

I'm trying to understand how year-over-year and YTD performance values are calculated. I thought it was obvious and straightforward, but I can't replicate the values my bank shows for even a simple ...
rothloup's user avatar
  • 253
-1 votes
2 answers
182 views

Resources vs. Assets

I read an excerpt on Quora from the book, "Rich Dad, Poor Dad": If you want to be rich you must know the difference between an asset and a liability and you must buy assets. This may sound ...
Vinay Sharma's user avatar
14 votes
11 answers
4k views

Does the debt snowball outperform avalanche if you put the freed cash flow towards debt?

There are two main algorithms for paying off debt; The snowball, where you put your extra money towards the smallest debt to knock them off the board faster The avalanche, where you put the extra ...
HAEM's user avatar
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0 votes
1 answer
230 views

How can I analyze my whole financial health?

I've tried Mint, but don't love it and all the ads. I have all these csv spreadsheets of transactions from banks and credit cards. I can look at each one or create tabs and look at each tab and sort, ...
Marinaio's user avatar
  • 397
0 votes
1 answer
838 views

How to read CDs: price vs yield vs bid vs ask?

I'm trying to understand CDs by comparing the two: NAME CLOSING PRICE CLOSING YIELD CURRENT BID YIELD CURRENT BID PRICE CURRENT ASK YIELD CURRENT ASK PRICE Mountain Commerce Bank 99.68 5.694% 99....
Danijel's user avatar
  • 298
-1 votes
1 answer
191 views

How to deal with insurance after car accident

My car met with an accident early January. The doors were slammed and the person who hit our car admitted his fault and confirmed his insurance will take care of expense. This is what happened (...
OpenStack's user avatar
  • 137
2 votes
4 answers
125 views

How to decide whether to pay an USD amount from my AUD account or from my EUR account?

Soon I have a payment of, say, 100 USD to make and I have an AUD account which holds enough currency and an EUR account which holds enough currency. I wonder which account to choose? Just looking at ...
halloleo's user avatar
  • 121
0 votes
1 answer
65 views

How can one compare the yield of a municipal money fund with the yield of a municipal bond?

Let's consider the following municipal money fund and the following municipal bond: The Schwab Municipal Money Fund (Investor Shares) (SWTXX) discloses a 7-day yield (with waivers) as of 02/28/2023 ...
Franck Dernoncourt's user avatar
2 votes
5 answers
1k views

What exactly is a professionally managed company? Why the promotor holding of professionally managed company is always 0%?

As you might have guessed by now, yes! I am new to the world of finance. I have been going through a playlist on YouTube about investing in the stock market. And in one of the videos, I came across ...
The Chinky Sight's user avatar
0 votes
1 answer
363 views

How to calculate the APR on an investment?

I'm trying to boil this scenario down to an equation: A token is worth $1.50. There is a total of 100 tokens invested. Last week, this investment earned $2 in interest. Given this, how would I ...
Danny Delott's user avatar
1 vote
2 answers
193 views

How do I buy a life insurance policy as a collateral? [closed]

I’m almost done paying my home, my wife wants to sell it and buy a bigger house using the money from the sale? Someone told me to borrow against the house instead of selling it, and then purchase a ...
Mrdorsvalk's user avatar
0 votes
3 answers
229 views

Why is beta linear?

Alpha and beta are commonly used to metaphorically describe decorrelated vs. correlated return, implicitly following a linear regression of returns relative to some benchmark. But isn't the choice of ...
TheEnvironmentalist's user avatar
1 vote
2 answers
89 views

For mutual funds, does average annual return mean compounded annually or continually or daily?

Vanguard's Portfolio Allocations page (1926-2019) shows 9.21% Average annual return for 70% Equity and 30% Fixed income. Does this mean 9.21% compounded annually? GOAL... If at age full retirement age ...
Doug Null's user avatar
  • 676
14 votes
2 answers
5k views

Why is Year-Over-Year (YOY) important? [closed]

I have a question regarding Year-Over-Year (YOY) as I am really confused right now. Why is YOY important?
Kayla Lee's user avatar
  • 237
0 votes
0 answers
59 views

Effective Maturity Calculation for prepaying securities?

Trying to find the best way to calculate effective maturity for prepaying securities (non-fixed income). My current understanding is that the link below is the best definition for effective maturity. ...
MattSamm's user avatar
-5 votes
2 answers
288 views

Is it becoming normal for young people to spend most of their income on rides and meals out? [closed]

Is it becoming normal for part-time and hourly employed people in their 20s (not college students) to spend most of their income on rides and meals out? If someone works 8 hours, spends 2 of those ...
user avatar
2 votes
2 answers
107 views

How to produce daily loan amortisation schedule

I've seen some examples of how to calculate an amortisation schedule either monthly or yearly. My bank charges interest on a daily basis so I'd like to create a spreadsheet detailing my current ...
ScaryAardvark's user avatar
1 vote
4 answers
220 views

What is meant by daily high/low and monthly high/low when it comes to stocks?

I have started reading financial information. I see mention of stocks reaching "daily highs", "monthly highs" and so on. What is the exact of these descriptions? What is a daily ...
StatsScared's user avatar
0 votes
1 answer
137 views

How to calculate Average CAGRs?

I have sales by 30 different products over years (2015-2022). I need to compute Compound Annual Growth Rate, however some of the product groups have high CAGR and some of them have quite low CAGR. So ...
Underwood's user avatar
  • 101
1 vote
2 answers
144 views

Calculating future value on an initial deposit and then, incrementing this initial deposit as a recurring deposit yearly

I have a scenario where $10000 was initially invested into a savings account, at 6% pa compounded yearly. An amount of $1000 is then added annually to this savings amount after the first year, and we ...
HelpMePls's user avatar
0 votes
2 answers
96 views

what is more to Market Capitalization formula?

I wonder what is more to Market Capitalization formula ? I am mostly an ETF investor, but follow some stocks with few # of shares and when I look at SPCE about 4-5 years ago its market capitalization ...
puzzled's user avatar
  • 1,016
25 votes
1 answer
6k views

What does 'mutual' mean in mutual fund?

I am confused on the usage of 'mutual'. Is there any 'mutual benefit' or 'mutual dependence' between the participants (unit holders) in a mutual fund? It looks more like a 'mixed fund' with diverse ...
Dynamic_equilibrium's user avatar
4 votes
4 answers
2k views

Financially stable. Now What? [closed]

I'm 43 0 Debt Home Mortgage: PAID OFF Several Cars: PAID OFF Loans on renal property: PAID OFF Credit Cards: PAID OFF Personal Loans: PAID OFF 6mo+ Emergency Fund Credit report clean and rising I've ...
Curium's user avatar
  • 59
0 votes
3 answers
362 views

Does 20/4/10 rule really exist when financing car?

I saw the video the other day and it has "To afford a car one needs to have 20/4/10 rule". Do you need to put 20% down payment for 4 years and the payment shouldn't be more than 10% of your ...
localhost's user avatar
  • 595
11 votes
2 answers
2k views

Long-term financial implications of selling stocks to get a higher house down payment

I have been searching for a house and am potentially going to make my first offer. I have cash on hand to make a 15% down payment on the place in question and enough money in stocks to comfortably get ...
Gramatik's user avatar
  • 427
2 votes
6 answers
4k views

Why isn't there a universal investment standard/benchmark?

When I watch golf and look at the results of the top players, I can immediately know exactly how they compare both to the standard (called par) and to each other. Why doesn't investing have such a ...
soakley's user avatar
  • 330
0 votes
1 answer
83 views

Corporate Finance Vs Corporate Finance? (w/ context differences)

I've heard corporate finance in 2 very different contexts, one referring to IBD, S&T, PE, VC and hedge funds, the other referring to a more financial accounting oriented role (at the same level w/ ...
piny88's user avatar
  • 59
3 votes
1 answer
340 views

Possible Car Dealership Scam

I am new to purchasing vehicles and handling financial matters in general. I am trying to improve my financial literacy but still have a ways to go. My father is currently trying to purchase a vehicle ...
Polo's user avatar
  • 31
0 votes
1 answer
62 views

What does "existing balance sheet cash" mean for a company, as compared to actual cash and cash equivalents?

I read that Li-Cycle (LICY), a Li-ion battery recycling company, is increasing the size of a large recycling plant. To do this: The Company estimates that the Hub will require a total capital ...
End Antisemitic Hate's user avatar
1 vote
2 answers
303 views

What really is a recurring deposit?

What I do not understand is what is really meant by the term "recurring"? Also why is the minimum time limit between recurring and fixed deposit so different (min :6 months and min :7days) ...
Nayanthara Thomas's user avatar
0 votes
2 answers
3k views

Is deal value equal to the enterprise value?

If a buyers pays $1.55 per share to get 6,480,000 shares of the target company such that the total outstanding shares of the target is 12,180,265. So deal value is $1.55 x 6,480,000 = $10.044M, but is ...
ROHAN PAUL's user avatar
1 vote
1 answer
77 views

Is book value in BVPS really just shareholders equity?

So shareholders equity is total assets - total liabilities while book value is tangible assets - total liabilities. But apparently book value in practice could also just be total assets - total ...
piny's user avatar
  • 47
0 votes
1 answer
50 views

How is BVPS calculated for common shares vs for preferred shares?

I've read a whole bunch of articles (eg: BVPS Definition) and all of them say BVPS is calculated using a formula similar to this: (total shareholder's equity - preferred equity) / total outstanding ...
piny's user avatar
  • 47
0 votes
2 answers
102 views

Foundational equations or concepts of Finance [closed]

For the other sciences it´s easy to point to the most important equations, inequalities, propositions or concepts that ground the discipline. If I want to explain Finance to a physicist say, what are ...
BCLC's user avatar
  • 125
2 votes
2 answers
174 views

Market Cap, NAV and finite resources

Gave a read through this question and I believe I understand the following: NAV is the sum of a companies assets; represents the value if the company was liquidated Market Cap is (shares outstanding ...
pstatix's user avatar
  • 353
3 votes
2 answers
331 views

Office and the human capital [closed]

I heard a business man saying "The Office is not a storage of the Human Capital". I do not understand this phrase and I believe there is an interesting and intuitive analysis behind it. Can ...
Christina's user avatar
  • 143
36 votes
8 answers
9k views

We're in an asset bubble currently, what can I do about it?

My opinion is that we are in an asset bubble: house and property prices are sky-rocketing, interest rates are low, and inflation rates are high. I'm aware of the futility of trying to time the top of ...
Anonymous's user avatar
  • 479
1 vote
1 answer
348 views

How does the continuously compounded interest formula work in terms of months?

The continuously compounded interest formula is: Pe^rt Where: P = Principle e = 2.718... r = Annual interest rate t = time in years If instead of an annual interest rate, I got a monthly interest ...
piny's user avatar
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