Questions tagged [financial-literacy]

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

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5
votes
2answers
267 views

Why would a public company not initiate secondary stock offerings more often?

What prevents a company from doing secondary public stock offerings on regular basis? What are the cons of initiating secondary offerings other than the negative impact on stock price (at least in ...
1
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3answers
76 views

Order Book - Does the price (ask or bid) depend on the size of the order?

I still haven't quite grasped the concept of order book. In fact I still have a few questions like the one in the title. I understand that in a market, at any given time, there is a list of pending ...
1
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0answers
28 views

How To Calculate Daily Volatility?

I'm working in SQL Server and I'm trying to find the daily volatility of a stock's price. Is it simply day2price/day2price-1? Is that considered daily volatility? Or, is there something else to it? ...
3
votes
1answer
128 views

Direct access to the currency exchange market

It is now fairly common for "lambda" users to have direct access to the stock market, i.e., see the book of order (up to a given depth), place a buy or sell order, cancel an order, etc. The bank or ...
2
votes
2answers
237 views

Investing platform options without fixed residency

Background: My wife and I are in our high-twenties currently living in UK. We don't have a mortgage, we're renting our flat. The only debt we have is the standard UK student loans, which is deducted ...
12
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5answers
5k views

Will the stock market continue to grow forever?

I am relatively new to investing. I understand that the stock market, in some sense, reflects what happens in the real economy. For example, if the U.S. economy grows, the stock market in the long ...
0
votes
2answers
99 views

Does the stock market provide better long term returns than bonds outside the US?

There is an old saying that stock market provides better long term returns than bonds. The example usually cited is always the US stock market which has had a good bull run and has it doubled in ...
1
vote
4answers
504 views

I (21M) make decent money for my age. What are the best financial moves for my situation?

Like the title says, I'm 21 and I work as Software Engineer. I bring home a little over $3,600 a month(After taxes). My monthly expenses are as follows: Rent/Utilities $626 Phone $100 Car insurance $...
10
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4answers
8k views

Do you have to be mega-rich to invest in companies pre-IPO?

Say there's a company which is known with certainty to be doing very well, but is privately held and is expected to go public within a few years. When such companies do investment rounds, are the only ...
38
votes
3answers
12k views

How do the rich and wealthy withdraw from accounts without leaving home?

I was at someone's house once and they made a phone call and had someone bring $50,000.00 cash to their home from one of their bank accounts. I think the person worked for the bank and wasn't a ...
2
votes
1answer
38 views

composition of ADR in comparison to home market

I want to know how one unit of ADR is constructed from the home stock. For example, I see a ADR for India's Tata motors . ADR is trading at about $12 and in home market it is about INR 177, but given ...
21
votes
6answers
16k views

Is rent considered a debt?

I am taking a financial assessment. It asks me: What is your total monthly debt payment (e.g. student loans, vehicles, credit cards, personal loans, etc.)? Then the next questions are about ...
4
votes
3answers
7k views

Stocks: do Good Till Cancelled orders get executed during after hours?

If I place a stop loss GTC order on my shares at $80, and it reaches that price during pre-market or after hours, will my order get executed? I ask because a lot of the time the stock opens at a ...
1
vote
1answer
117 views

What does it mean by Global recession? [closed]

I am bit curious to understand what it actually means when I read global recession is coming soon. There are some questions which pop in my mind reading such news. Some of them are: What causes ...
2
votes
1answer
99 views

Confused about stock merger reflection on portfolio

So I have stock in ASX who announced a merger earlier in the year with SPIL and I received all the usual merger notices etc about they will become "ASE Industrial Holding" and the way the share ...
1
vote
2answers
236 views

What are the different methods for budgeting?

I've always used the envelope method to budget. I know Mint uses a different method, but I'm not sure if it has a name or not. It could simply be a derivative of the envelope method. Wells Fargo's ...
1
vote
3answers
358 views

Do SPY returns include dividends?

Looking at a chart of SPY on finance.yahoo.com from March 1 - Nov 30, 2018, it returned +1.67 (+0.61%). Does the +0.61% include dividends? Looking at the historical data, dividends are displayed ...
1
vote
0answers
91 views

How to do financial planning?

I'm not doing this for any entity other than me. I run a business and I'm doing some financial goal-setting for the next few years. What I'm trying to achieve with this is setting numeric goals with ...
10
votes
4answers
4k views

Credit card minimum monthly payment

I am opening a new credit card and am not sure exactly what this clause means: Your Minimum Payment Each Month. Each billing cycle, you must pay at least the Minimum Payment Due shown on ...
4
votes
1answer
94 views

When is Retained Earnings considered equivalent to issued common stock?

The below reference states: "As long as management is presumed to be acting in the best interests of the stockholders, retained earnings can be regarded as equivalent to a fully subscribed, pre-...
1
vote
2answers
111 views

Is the math wrong on these future value and draw-down calculations?

Let's say I plan on retiring in 10 years, have some IRAs (401(k) rollovers), a conservatively invested taxable account and plan on contributing 15% to my 401(k) until I retire. I'm using round ...
43
votes
10answers
4k views

How do I explain why debt on debt is bad to my brother?

My brother has about 5 loans that he paying back and he thinks that another 5000 loan will "solve his problem". He has been this way since he was young, he's now in his 30's. I'm trying to find a ...
7
votes
2answers
540 views

How can I trade in “OTC” stocks?

Where do you buy "OTC" stocks? I may be naive but OTC means over the counter. I am confused as to where to purchase such stocks?
8
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11answers
6k views

Ways you can end up paying extra on a credit card even if you pay the full amount back in due time

If you are a financially responsible person, you know how a credit card works, you pay back the loans in full before the due date, you don't take out money form the ATM or otherwise do something that ...
2
votes
3answers
542 views

CandleStickChart: How to understand the timestamp of a candlestick

I'm in the process of learning to read candlestick charts. Many websites using candlesticks will display a single timestamp if you hover the mouse over a candle. Since a candle is a visualisation of ...
0
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2answers
97 views

How to interpret negative bond yield quote

I am trying to understand investing in (non-us) government bonds. Looking at data I can find online regarding the bonds available in my broker is giving me information I can't make sense of. For ...
119
votes
14answers
16k views

As a 16 year old, how can I keep my money safe from my mother?

I am 16 and still in HS and work 20+ hours a week. I live with my mother (my Dad left us when I was a kid and I don't see him anymore). My mother is an alcoholic and has trouble keeping a job. I don't ...
2
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0answers
220 views

Is there a 1031 Exchange equivalent in Ireland?

I've recently been looking into buying real estate investments, & I've read about a 1031 Exchange in USA. Here is a definition I've found: Thanks to IRC Section 1031, a properly structured ...
1
vote
3answers
269 views

Question about protecting yourself from company not beating earning estimate

I'm new to this site and thought I'd start off with a quick question. Let's use Advance Auto Parts (AAP) in my example. Let's assume you are looking into buying AAP and you do all the research you ...
2
votes
3answers
312 views

What is the difference between “trading in stock” and "investing?

I have no finance background and most people are saying trading in stock is not investing. I would like to know what actual investing is and if trading in stock is not investing. Then what are ...
0
votes
2answers
151 views

How do you compare the sales of a company like Coca Cola against another company like JPMorgan Chase to figure out the best investment opportunity?

I am wondering how to compare companies from the sales perspective. If I take a look into the balance sheet of Coca Cola) and take a look at the sales, they are pretty clear to understand. If I take ...
0
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2answers
228 views

Why Do People Continue Using Expensive Payment Services Like Paypal And Western Union [closed]

Paypal - the 'industry standard' for online payments makes this opportunity inaccessible to Africans in most cases. Most, who qualify to be a part of the workforce for some internet companies are not ...
0
votes
2answers
141 views

Changing the price in a limit order

I have a question about a limit order, or any non-market order for that matter, like a GTC limit order. My question is that, if I change the price, or quantity, of a limit order, will the system ...
27
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3answers
3k views

What does “Yield Curve” mean?

In the financial news we often read about the Yield Curve. What exactly is it?
2
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1answer
69 views

What should I look at to decide whether to keep or not my Restricted Stock Units?

The company has been happy with my performance these years, and I received RSU which started investing. I have never owned stocks before: even though the company is US-based, I'm not a US resident and ...
0
votes
4answers
204 views

What do we know about elementary financial education at highly ranked schools at the pre-college and early college levels in the US?

Several answers and comments have postulated ignorance of the most basic financial features, for example, a total misapprehension of "marginal tax rate". See, for example, the comments under the ...
9
votes
4answers
4k views

What does net selling or buying of a stock mean?

What does it mean when some one says that today there was a lot of net selling or buying in a stock. What does it mean because for every selling there is also a buying going on then how can you ...
23
votes
3answers
8k views

Is 95% of what you read in the financial press “either wrong or irrelevant?”

From a Cato Institute article by Steve Hanke1 (emphasis added): Most press reports about Zimbabwe’s fantastic hyperinflation are off the mark – way off the mark. Even our most trusted news sources ...
2
votes
4answers
143 views

What is an appropriate metric measure average annualized rate of return for an average investor?

Let us say an investor invests $X per year for N years. Let us say the final portfolio value is $Y. In this scenario, how should I measure a metric that quantifies "average annualized return"? I ...
44
votes
14answers
14k views

How can I support myself financially as a 17 year old with a loan?

I'm a 17 year old Ohio high school student who makes ~$160 a month working minimum wage. I have a $3500 loan (4 year duration) to pay off for a car with ~$2880 left. Monthly payments are ~$80 for ...
10
votes
2answers
4k views

Why do futures traders write months in a strange way?

I was reading up a bit on futures and found that futures clearing merchants write months in a very unexpected way: Month Month Code January F February G March H April J May ...
2
votes
1answer
95 views

Understanding the FTSE Actuaries Share Indices on the Financial Times Paper UK

I am trying to understand how to read the Financial Times FTSE Actuaries Share Indices UK. In two of the columns it says Cover and Exadj. Cover is between Dividend Yield % and P/E ratio. Exadj is ...
11
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2answers
1k views

How can I tell what is “real” Motley Fool advice? [duplicate]

I clicked on a link and was taken to a video, which troubled me a bit and is a bit different from what I expect of the Motley Fool, of which people have presented as offering advice like "Live below ...
1
vote
1answer
63 views

Bond prices changing due to interest rates

I feel as if I'm missing a fundamental step here. I'm aware that bond prices fall as yields go up; but what makes yields go up? If I had a bond issued in the UK for example, and the base rate went up ...
52
votes
6answers
21k views

How can a company use money from stock investors when they are constantly being bought and sold?

I am interested in the mechanisms which a company can use the money that investors give them when they buy a public stock since they are being bought and sold constantly. How can a company spend other ...
1
vote
1answer
125 views

What is “corporate drag”?

What is meant by the term corporate drag? Have seen this in some valuation analyses associated with a numerical cost value, but googling terms like "corporate drag" or "corporate drag value" do not ...
0
votes
2answers
185 views

How to calculate the payback period when income is reinvested? [closed]

Could someone please show me how to calculate the payback period with compounded interest? So if I had a initial investment of $100, paying 1.5% interest annually that is reinvested, how do I ...
3
votes
2answers
277 views

Am I looking for a financial advisor?

I am a recent college graduate and have just started my career. The company I work for has benefits such as 401(k) which I have signed up for. I have some student loan debt and I am looking for ...
3
votes
2answers
152 views

Balloon Payment on a Mortgage

How do I calculate the balloon payment on a 30 year mortgage with an APR of 7.8%, where the balloon payment must be made after 8 years.
3
votes
1answer
203 views

What is a “Subscription Rights Offering” of a stock one owns?

Last week a funny thing popped up in my little "play" brokerage account (where I own <100 shares of some stocks that trade below $5.00). A second line appeared below one of my stocks with a funny ...