Questions tagged [financial-literacy]

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

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34 views

Gross Income for a bank [closed]

I am doing a project and I have to use the Basic Indicator approach as applied to a bank. However, I am not quite sure how to calculate the bank's gross income from its annual report. Initially, I ...
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0answers
20 views

Research and Development Costs Not Shown on SEC Income Statements

I'm new to analyzing company financial statements (specifically, Income Statements). I noticed that some companies do not have Research and Development costs reported on their Income Statements, and I'...
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1answer
35 views

Income Statement Question — Confusing Operating Expense Calculation?

I'm completely new to looking at company financial statements for analysis, so please correct any misconceptions I have here. I'm having trouble with reading an Income Statement. I am looking at the ...
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4answers
2k views

Why do people who sell something on a marketplace ever allow the price to go down?

This question really goes for any kind of "financial instrument" or whatever the generic term is, but I'm going to mention Bitcoin as an example. I fundamentally don't understand why, once ...
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1answer
54 views

Am I using the right method for this compound / simple interest problem with annual deposits?

I am trying to solve the following exercise: A bank account is opened at the beginning of the year 2013 by making a one-off deposit of £1000. A further deposit of £200 is made at the beginning of each ...
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1answer
70 views

How does interest rate influence the strength of the currency?

Here's a statement that spawned the question: "A rising interest rate means higher returns for investors, increasing the demand for that cutrency and therefore its value". Here's a ...
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0answers
30 views

The term “debt financed” as a source of payment for doing the Acquisition, is it?

I have a question for word phrase "debt financed" in Acquisitions but for my best understanding, I would like to ask a question on random example: Let's say we have three companies: CompanyA,...
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1answer
103 views

Cash flow Analogy

I want to understand and/or get a more intuitive feeling of different financial terms from financial statement by comparing it to persons salary. I have tried to come up with an analogy, as to how I ...
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0answers
15 views

Why do some market makers have many Market Participant Identifiers (MPIDs)?

I noticed that some (most?) market making firms have many Market Participant Identifiers (MPIDs). For example, from the list of NASDAQ market participants1: "Jane Street Capital, LLC" has ...
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1answer
38 views

Why do companies issue depositary shares for preferred stock instead of issuing preferred stock directly?

I was looking at the list of US Bancorp preferred stock issues. Among them are: Depositary Shares Each Representing a 1/1,000th Interest in a Share of Series B Non-Cumulative Perpetual Preferred ...
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2answers
178 views

Does credit score show you are a responsible borrower or a profitable client for the bank?

This might be a silly question, but I'm trying to wrap my head around how the US Credit Score works. I'm from Europe. Credit Score represents creditworthiness, which as I understand it, represents a ...
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1answer
63 views

Why technology companies don't report high net income from the use of GAAP?

The article GAAP vs. Non-GAAP: What's the Difference? says: Technology companies have been large users of non-GAAP adjustments as these companies typically don't report high net income from the use ...
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1answer
45 views

Coupon payment intervals in bond names

Consider the name of a bond: "American Telephone & Telegraph Co. Convertible 4½s, due 1933"†. I have some questions about the coupon payment interval information contained in the name: ...
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1answer
68 views

Why do some stocks have a pre-market value whereas others do not?

Why do some stocks open at 4 AM and have a pre-market value whereas others do not? For example, AAPL opened at $114 (pre-market) but MSFT still has its Friday close value.
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3answers
7k views

In what way does technical analysis involve astrology and reading tea leaves?

I am considering whether or not I should learn technical analysis after fundamental analysis. When I searched for "technical analysis" on internet forums to gauge whether or not it is ...
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5answers
450 views

Financial astrology: How do the movements of celestial objects affect the stock market?

I noticed that there are many published research papers about financial astrology. There's also a book published by Wiley: A Trader's Guide to Financial Astrology: Forecasting Market Cycles Using ...
66
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14answers
10k views

What are some effective ways to help someone financially?

After managing my income and investments quite well over the last few years, I’m reaching the point of having more income than my personal needs require, and (after already giving thousands to charity ...
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0answers
28 views

What is a “Broker Broker's Trade” in the municipal bond market?

I was looking at the historical trades of a municipal bond using the Municipal Securities Rulemaking Board (MSRB) Electronic Municipal Market Access (EMMA) website: Notice that the first row in the ...
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2answers
96 views

Bonds: Is “principal” a synonym of “face value”?

Consider a bond that has a face value (or par value, or nominal value) of $1000. Suppose I buy this bond at a price of $950. Is this $950 the principal, or is the principal $1000? From my perspective, ...
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2answers
185 views

How to finance and structure an easy knockoffable business idea of a dummy poor 19 yo?

I am a poor 19yo, found one probably original business idea of products that will help (not entertain) people. However I am absolutely not savvy in technical business knowledge, so please answer my ...
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1answer
215 views

Degiro Oxy non-tradable stocks

A little while ago, I bought 61 shares of OPC (Occidental Petroleum Corp, now known as Oxy) traded in the Xetra exchange through Degiro. A couple of days ago, the 61 shares are still there, but now I ...
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2answers
95 views

the real rate of decline [closed]

This figure is being reported by the media- U.S. gross domestic product, or GDP, tumbled by an annualized rate of 32.9 percent in the three months through June since this is a misleading number - what ...
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1answer
87 views

IRR calculation with Initial Investment disbursed on two years

In my case, I think: Numbers say more than words. So, I've simplified the financial situation in this image: Here is the Excel file. How to calculate the Internal Rate of Return (IRR) with such a ...
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1answer
132 views

What is “market manipulation”?

What is market manipulation? When we can speak about market manipulation? Can "normal people" with a not so high budget manipulate the market?
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1answer
70 views

Can I use the money I obtained from shorting a stock? [duplicate]

If I were to short a stock currently valued at $100, I understand that $100 would be placed into my margin account. Can I use that $100 to purchase stocks?
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1answer
30 views

Price of a share's futures [duplicate]

Is the price of a share's future contract in the secondary market dependent on supply demand of the share in the secondary market or is it also influenced by the supply demand of the future's contract ...
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1answer
98 views

What does it mean for the “Feds” to step in?

In several stock market crashes in the US including the recent Covid crash in March and the financial crisis in 2008 it was said that the Feds had to step in and save the economy. There was an ...
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1answer
45 views

How does a specific share having intermediate owners during a time period affect volume?

Take any public company on an exchange. On this exchange, Person A sells one share of this company to Person B for $X, then Person B sells the specific share he bought from Person A to Person C for $Y....
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37 views

How Do Collateralized Loan Obligations (CLOs) Work?

I am trying to understand, in its simplest form, how the collateralized loan obligations (CLO) work. I refer to an article in the Atlantic for those who are interested in learning about CLOs. The way ...
42
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14answers
10k views

Hypothetically, should I pay off the smaller + higher interest rate loan first, or the larger + higher absolute interest cost?

I have this hypothetical situation on my mind and I am not sure which is the best solution. Given: Loan 1: $340,000 at an interest rate of 1.69% per year Loan 2: $40,000 at an interest rate of 3.6% ...
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1answer
170 views

What does a large negative “Insider Transactions” mean (finviz)?

What does a large negative "Insider Trans" on finviz.com mean? In general, does it mean that the stock is not worth buying now? For example: The Zoom Video Communications stock is very ...
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2answers
82 views

Stocks with buyers only

I have Alok Industries stock NSE in my portfolio, everyday it increases by a fixed percent 4.95 and moneycotrol websites states everyday that "buyers only". What's the matter and will I face ...
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4answers
3k views

Universal Life Insurance or Term Life Insurance?

I am new to this website and asking for your help with a situation related to my personal finances. I have a friend who recently joined WFG (World Financial Group) and they were asking for me to join ...
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2answers
78 views

If the only value in a share (excl. dividends) comes from owning part of a company (and few own enough) then why are stocks valuable? [duplicate]

Sorry if the title is a little vague, let me be more precise. This post says that the value in shares comes from: The dividend payout Voting rights Owning part of a company, therefore receiving ...
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2answers
121 views

What determined the “cost of borrowing money” or the interest rate in a gold-based economy [closed]

In the modern economy, the central bank decides the cost of borrowing money using interest rates along with other several tools and technic. But I was wondering, in a gold-based economy (not the gold ...
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2answers
352 views

Invested 600 , now cot is required to release payments

I invested 300 with this company Called CRYPTOPAIDOPTIONS and Option Flix. My concern is they are asking for cot to be sent to them before sending my payout . While another company name Alis Capital ...
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1answer
34 views

What do I need to know in order for a US citizen to open a custodian brokerage account in Canada?

I need to open custodian brokerage accounts for my 2 Canadian grandchildren, ages 16 and 13. As a US citizen, I am willing to tie them to a US savings account in USD. What is the best way to do that ...
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2answers
499 views

Bank financing vs. Owner Financing (Dan Pena QLA, Company Acquisitions)

I have a question about small detail in QLA program from Dan Pena about company acquisitions and business loan lending in general. My question is related to the 03:45 (minute:second) moment of the ...
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19 views

How can I weigh profit sharing against STAK/COOP shares?

Currently I work for a company consisting of around 15 people based in Europe. As a full time employee I receive a 1% profit sharing at the end of the year. At the beginning of this year we received ...
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2answers
80 views

With a 401k, can I sign up first, and then switch to different investment types and buy/sell them later?

For example, our company's 401K has an easy choice of "BlackRock US index fund" (for Dow Jones 30 DJI) using Fidelity, and does not require opening a broker account. Should I just start using the ...
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1answer
49 views

What are the non current assets in a balance sheet?

In order to know if companies are conservatively financed I query an API that gives me the financial information. Yet when if the information it gives for the current assets, I can't understand what ...
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2answers
51 views

Is the Operating Income or Loss equivalent to Total Revenues for wealthier companies?

I have noticed on yahoo finance that some companies like this one don't have total revenues in their financial table but rather an Operating Income or Loss and a Net Income. Is it the same ? Can I use ...
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1answer
63 views

Understanding the term “open position”

The investopedia page on open position states that: The recommendation for investors is to limit risk by only holding open positions that equate to 2% or less of their total portfolio value I am ...
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2answers
159 views

Market Cap Calculation Based on Yahoo Financials

I am trying to calculate market cap based on outstanding shares and stock price for AAPL. I go to Yahoo Finance, https://finance.yahoo.com/quote/AAPL/balance-sheet?p=AAPL Quarterly view for 2019 Q4 ...
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0answers
23 views

Questions about Financial ratio

I am doing some tutorial questions about financial ratio and encounters some problems that I would like to share in this forum. Why we use Profit AFTER Interest & Tax as numerator in Return of ...
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1answer
82 views

What determines the interest rates of government bonds?

It's not clear to me how the interest rate of a specific government bond changes. I would like to make a comparison with cryptocurrency exchanges. Consider, for example, the price of bitcoin on ...
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2answers
111 views

How has the modern era of low dividend paying index affect the principles of compound interest?

From my understanding: *To keep it simple, we will keep the asset as index S&P500, not including asset allocation. Compound interest (or compounding interest) is interest calculated on the ...
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1answer
66 views

Why does private equity have a higher fee structure than public markets?

I'm trying to understand why private equity tends to have higher fee structures than public markets. My hunch is that it takes more skill/risk to manage illiquid assets. I'd also imagine more due ...
3
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0answers
78 views

Equity cannot be redeemed at the option of the holder

I was going through Tier 1 Capital on Investopedia. I came across this note a couple of times in the article. Equity capital is inclusive of instruments that cannot be redeemed at the option of the ...
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1answer
71 views

Is it possible to calculate share price previous to stock split based on adjusted close price?

The price of NSE:HDFCBANK was around Rs. 2K+ before it split on 19-Sep-2019. I am using AlphaVantage to get stock price for NSE:HDFCBANK. It does not show the stock price before stock split as Rs. 2K+....

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