Questions tagged [financial-literacy]

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

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-3
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0answers
47 views

Seeking an explanation for a line from a textbook [closed]

"The repo rate of the time works as the guiding rate for the current discount rate". Please justify the statement. I am quoting it from Indian Economy by Ramesh Singh.
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0answers
48 views

What is meant by organized and non organized segments in an economy? [closed]

I do understand what a financial economy is. However I find it difficult to understand what is being referred to here as organized and non organized segments in an economy. A detailed insight to this ...
1
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1answer
34 views

Would shipping costs count as COGS? [closed]

I'm coming from non-accounting and non-finance backgrounds. I need help in form of understanding through a question. When a company sends items to club members but is charged for shipping fees from a ...
0
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2answers
148 views

What is the US subprime crisis of 2008? [closed]

I have heard that after the US subprime crisis of 2008,particularly a lot of people were pointing fingers at the Economic policymakers. I am not really familiar with why it is so, a detailed ...
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0answers
15 views

Distinction between ROCE formulas

I am interested in the distinction in the following formulas for ROCE. The first one is from Financial Management for the academy profession program by L. Hansen, T.R. Jensen, and M. Dalboge. But ...
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1answer
88 views

Why is mandatory vehicle test and vehicle lifetime a part of the union budget? [closed]

Why is the vehicle test and vehicle lifetime included here. What has the vehicle to do with the Union Budget? https://thedailyguardian.com/union-budget-2021-voluntary-vehicle-scrapping-policy-and-its-...
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2answers
147 views

A doubt in definition of banks

"Banking means accepting money for the purpose of lending or investment,of deposits of money from the public,repayable on demand or otherwise,and withdraw able by cheque,draft,order or otherwise.&...
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6answers
137 views

What is a fair way to split the profits for a co-owned property?

Seeking out some financial guidance... My partner and I recently purchased a home with my sister and brother-in-law. All spaces will be shared with the exception of bedrooms. We will be meeting with ...
2
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5answers
415 views

Why does society require the common man, who is not at all interested in finance, to engage in investing? [closed]

I am a young graduate who is 3-4 years into his job, and has just started to make enough savings from my job that I am debt free now, and hence having to look into stock market trading/investing so ...
0
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0answers
25 views

Doubt Regarding Equity Beta and Asset Beta

I know regarding levered beta (equity beta) and how to convert into unlevered beta (asset beta). But recently my finance professor in one of his slides showed the below formula : asset beta = (D/D+E)*...
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0answers
39 views

Rights issues: How do I estimate what the share price *now* would have been before a rights issue?

IAG SA had a significant rights issuance in September (details below). Given the share price now (~200p), I want to estimate what the equivalent price would have been before the rights issuance. How ...
2
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1answer
109 views

What's the difference between “gross profit”, “operating income” and “net income”?

I received an email boasting about a company doing the following in their 4th quarter Revenues up 94% to $978m USD Operating Income up 600% to $200m Net profit of $123.9m What is the difference ...
0
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1answer
47 views

Operating Margin depends on Revenue?

It is said that high Operating Margin means that the company is efficient in its operations and is good at turning sales into profits. But let's suppose that market demand has increased. The company ...
12
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4answers
2k views

How can I budget a 'conditional reimbursement'?

To start off, I don't know the correct term for this situation, which limits my research options. I have looked for 'conditional loan', 'conditional reimbursement' and such, but none of the results ...
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2answers
110 views

What is a company allowed to do with investors funds?

Imagine there are two companies. Company A invests £1m in Company B. Company B stock price goes up. Company B now has £1m and decides to Invest in company A. Company A stock price goes up and with the ...
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2answers
248 views

Why don't GameStop, AMC issue shares?

In line with https://money.stackexchange.com/a/7985, why don't corporations with skyrocketing share prices issue shares immediately? Famous examples this past week are AMC, BBBY, GME. They were all at ...
3
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1answer
82 views

The dividend yield of AMC is reported differently on different financial info websites. How do I know which is correct?

Google Finance says the dividend yield of AMC is 2.68%, Yahoo Finance says it's "N/A", Marketwatch says it's "0.00%", and Robinhood says it's 17.95%. I'm very surprised to see that ...
0
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0answers
12 views

How to calculate Weighted-average common shares outstanding-Diluted

I see the following Form 3. When I calculate Weighted-average common shares outstanding-Diluted, do I have to include all the number of Class A Common Stock and all the number of Class B Common Stock? ...
0
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0answers
25 views

Is COT (cost of transfer) exsists in bank from a certain country to another? (Eg. Uk to philippines or othe country to philippines) [duplicate]

Heres the scenario: I have invested through bitcoin to a certain company but the thing is endless payments were being asked and i have complied with them. A few days i received from a certain bank ...
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8answers
388 views

First car out of college

I am graduating college soon with a job lined up making 100K a year at an area with relatively low cost of living. I am fortunate enough to have no debt whatsoever (thanks mom and dad!). I am ...
4
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1answer
362 views

May I use my IRA account to pay off “parent plus” loans?

My spouse and I are 60 yrs old. We paid for our first 3 children's higher education (in state 4 yrs $100,000) and launched them into adulthood without student loan debt, with the understanding they ...
25
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3answers
6k views

Can someone just forcefully take over a public company for its market price?

I am working for a Fortune 500 company. A recent drop in our stock price caused, let's say, some startle. Following that, one of our executives said in a global Q&A session in response to one ...
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2answers
106 views

Whats my worth of stock after I do the following [closed]

If I buy H stock at $100 then buy another stock at $200. Will my stock then be worth $150? Please don't take me back to college in the answer. Lol
0
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0answers
93 views

How do companies benefit from increase of shares value in the stock market? [duplicate]

I am completely ignorant on the subject and am trying to understand the fundamentals of finance in order to better understand some topics for example how the exchange market works. This is what I ...
0
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1answer
34 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'...
0
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1answer
53 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 ...
1
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1answer
80 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 ...
0
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1answer
73 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 ...
1
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1answer
53 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,...
0
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1answer
149 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
16 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 ...
0
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1answer
48 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 ...
3
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2answers
189 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 ...
0
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1answer
72 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 ...
1
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1answer
46 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: ...
1
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1answer
69 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.
19
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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 ...
3
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5answers
520 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
11k 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 ...
0
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0answers
35 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
101 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, ...
0
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2answers
190 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 ...
1
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1answer
395 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 ...
0
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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 ...
0
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1answer
105 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 ...
0
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1answer
140 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?
0
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1answer
75 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?
0
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1answer
32 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 ...
1
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1answer
101 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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