Questions tagged [financial-literacy]
for questions related to understanding basic concepts in finance or certain terms in a particular context
640
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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 ...
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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 ...
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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 ...
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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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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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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 ...
user106292
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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 ...
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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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8
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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 ...
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1
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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 ...
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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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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
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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 ...
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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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answer
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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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4
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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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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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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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1
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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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365
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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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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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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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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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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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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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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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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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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 ...
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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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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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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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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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2
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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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1
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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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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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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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1
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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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1
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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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1
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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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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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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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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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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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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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2
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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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2
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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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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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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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2
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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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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 ...
