Questions tagged [financial-literacy]
for questions related to understanding basic concepts in finance or certain terms in a particular context
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Why are tech stocks risky investments?
I've seen this mentioned so much in writings about intelligent investing, but I don't understand why.
Are Amazon and Netflix tech stocks?
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Does MTM of a Bond include its accrued interest?
I understand that the MTM of a bond refers to Mark to Market value. I am trying to understand whether such price also includes accrued interest if any. I tried searching a lot in google, but couldn't ...
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4
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Bonds: Why repay the principal at the maturity date all at once?
Bank loans have options to repay the principal and interest over the time. Correct me if I'm wrong, but AFAIK, bonds don't have these options but to repay the principal all at once.
And this ...
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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 ...
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Volume of S&P500
According to the page on Yahoo Finance,
the volume of S&P 500 is 1,813,371,531. What is the meaning of this "volume"?
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How do trading platform like TD-AmeriTrade or Fidelity work?
When an individual places a trade on an online brokerage, is it against their order book or is it against the order books of exchanges like NYSE?
Do brokerages warehouse some risk when making markets? ...
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Why would the bidding on a foreclosed property start at the outstanding amount of the loan?
I've read from several reliable-looking sources that if a foreclosed house goes up for auction, the bidding usually starts at the outstanding amount of the loan (plus fees, etc.): Example Money Talks,...
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What is the difference between existing stockholders and new investors?
TrovaGene (TROV) just did a reverse split today n the premarket, and post market they announced an offering. In the offering they state:
If the underwriters exercise in full their over-allotment ...
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What's difference between LIMIT and STOP orders for entry?
After re-reading the descriptions same and again, I can't clearly say, what's the difference between STOP and LIMIT orders actually.
example: i.e. Stock price is at 5.60, and I want to trigger ...
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What shares are actually being sold in "ATM" format release?
I recently invested in $HMNY, a listed company and the owner of MoviePass. I invested it simply because that I love the MoviePass idea.
Then, rumors says that the company wouldn't last long for the ...
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Why do people still write checks as payments in stores?
Why do we still see (edit: in the US) some people (especially the elderly) still pay with checks in stores, even when the amount isn't too large for a debit card?
Here are the disadvantages I can ...
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Where can I find articles of incorporation for Canadian financial institutions?
Search for a Federal Corporation does not have financial companies.
A list of financial companies is given here.
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In what circumstance would a company want to establish an SPE to engage in following investment?
I was reading a book explaining Special Purpose Entities (SPEs) and an example is used in the book:
a firm could sell loans it has made to customers to an SPE that issues
bonds to purchase the ...
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I have Sprint shares. What does this merger with T-Mobile mean for my shares?
Over the weekend Sprint and T-Mobile announced again that they would try to merge.
Assuming the powers that be in the US don't have any issue with this deal and it moves forward as proposed, what ...
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Which compound interest formula can I use to find the final balance with monthly contributions that increase yearly?
I apologise in advance if this has been asked already - I can't seem to find a similar question. I am looking for a formula to find the final balance when provided the following variables:
Initial ...
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22
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Why isn't everybody rich?
This question came up after reading this question (stock market long term risks), in which it is re-iterated (as it has been many times on this site), that investing in the stock market, especially an ...
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Investing in Hedge Fund on a Rolling Basis
If I invest in any sort of hedge/mutual/index fund when the fund performance is up/down, for ex. +/-20%, and I invest $100k the next day - do I share the 20% loss or gain automatically in a pooled ...
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Venturing into Investment Market [closed]
What are some of the noted and best books which cover the basics of Stock market, Forex, Bitcoin investment and other investment concepts and provide expertise and in-depth knowledge of the same? Also ...
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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 ...
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What marks the beginning of a bear market?
I continue to hear that our "aging bull market" continues to plod along, but the indices are falling relative to their high point in late January. What is the metric by which one determines the ...
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Notice of Conversion for 3(a)10
I am trying to figure out what this means.
Is this good or bad?
http://markets.businessinsider.com/news/stocks/metrospaces-announces-that-it-will-not-honor-notice-of-conversion-for-3-a-10-due-to-...
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How are buys executed? [duplicate]
Looking at any given stock, I can see top ten Sellers (cheapest first) and top ten Buyers (highest first). Question is.. does the top buyer buy down through the seller list until satisfied, then buyer ...
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Bought stock at higher price than current price
I wanted to buy stock ABCD at a price of 880. The current price was 900. When I bought, I set 980 instead of 880 and it was fully executed. I don't understand how it is possible to buy stock at a ...
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What is Hosted Staking? [closed]
There are few ICOs are using Hosted staking as a term rather Lending.
I want to understand what is this hosted staking and how it works.
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Is the blockchain similar to double-entry book-keeping?
As far as I know, blockchains keeps transaction records from the beginning of time. This lets the blockchain retain a history of traceable transactions so it can maintain validity.
Double-entry book-...
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Special Needs Trust and Financial Planning
update: I may not have explained it clearly in my post below but I don't believe the intent is to close out the 401k or fund the life ins. policy using it. I will clarify with the consultant what the ...
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How Market Price works?
This is probably a very dumb question but I don't get it.
Usually people say if there are more buyers then the price goes up, and if there are more sellers it goes down. Why is that? And in which ...
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Why do so many tools and sites not show total returns of mutual funds?
My understanding that the total return of a fund is the NAV capital return plus the income return (dividends, etc). It seems to me that (outside of tax implications) total return is the most critical ...
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What does "cashes in many of his Enron share options" mean?
I'm studying for an organisational subject and I was reading the following paragraph:
August 2001
Jeffrey Skilling resigns after just six months; Ken Lay returns to day-to-day management of the ...
user67813
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1
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How to get visibility into contributions to assets
I'm using double entry with Assets, Expenses, Income, Liabilities, and Equity.
To illustrate my question with easy round numbers: Income one month is 10k; 5k goes into an asset like a 401k account (...
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Revenue Vs. Earnings
I have been trying to understand the impact of news and earnings reports on stock price, but this one has confused me. Starbucks released earnings on the 25th and came up short on expected revenue but ...
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Negative Balance terminologies
When your CC balance turns negative, then it's an overdraft right? What are the other terms for Negative Balance / Overdraft?
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Questions about Multi Exchange Listed Equities
I hold a position in a Canadian oil stock that is on the TSX as well as the NYSE.
I read this post: Are stocks only listed with one exchange in one place? but still had some questions
Are Multi ...
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How to approach fixing parents personal finances? [closed]
I'm posting this today to get some advice in case anyone here has dealt with anything similar. I'm including some background because it plays into the situation (i.e. cultural differences)
Background:...
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Why did a "Bought Deal" Drop the share price of Canopy (WEED)?
Recently a Canadian bank (BMO) has participated in a "bought deal" with Canopy (WEED) for 5 million shares valuing 175 million dollars. The share price went down.
Did the share price go down because ...
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Why do people rarely execute options?
Options have recently sparked my curiosity as you can short a stock with a put option and only risk your premium (as opposed to shorting in a margin account) but I still have a few questions.
Why do ...
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Investing and compound interest? [duplicate]
I see lot of information about the power of compound interest and how it can help money grow. I understand the mathematics of compound interest but I have no idea how to take some money and make it ...
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Chained CPI and new tax bill
This morning I heard about how the new tax bill will be using "chained CPI" calculations instead of the traditional CPI calculations, and people seemed to be pretty upset about it. What is "chained ...
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Mathematical proof that NPV always negative when rate of return less than discount rate
Can anyone provide a mathematical proof that NPV is always negative when the rate of return is less than the discount rate? That is suppose that we have
a single initial input, C0
a constant known ...
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The proper term for a third party economy [closed]
A friend of mine asked me whether something odd was going on, including the following picture:
Basically, the companies listed (Bitcoin, Uber, Facebook, Alibaba and Airbnb) sell a service in a market ...
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How long does it typically take for a credit card purchase to appear online (even in pending) [closed]
If you've made a purchase online, how long will it take for the purchase to appear in your online account, even if it's just in pending.
Clarification: What's the typical and maximum time from the ...
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do Convertible bond/note always convert?
This is how i picture convertible notes to work:
the company gets a loan from a investor, and pays a certain annual interest. the note also has a conversion price, and if the market price of the ...
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Buying stocks at one price then buying more at a higher price
If I bought 100 shares at $100 then 2 weeks later bought an additional 100 stocks at a $150, does the cost basis for my original stocks stay the same price of $100?
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How to pick from several products/services to maximize utility considering the cost of each option?
What is the proper way to consider the utility of a product/service versus its cost in order to make the best rational decision to get the "most for my dollar" if there are several choices for me to ...
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Why does high frequency trading remove small bid-ask spreads?
"The major benefit of HFT is it has improved market liquidity and removed bid-ask spreads that previously would have been too small." - Investopedia
"The size of the bid-ask spread from ...
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What is Share Consolidation? [duplicate]
Subject Share Consolidation
Type Consolidation
Description CONSOLIDATION OF EVERY 4 ORDINARY SHARES IN PDZ HOLDINGS BHD ("PDZ" OR THE "COMPANY") ("PDZ SHARES" OR "SHARES") HELD AT 5.00 P.M. ON 4 ...
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Stock Split mean double the stock units?
Financial Year
Subject Subdivision
Type Stock Split
Description SHARE SPLIT INVOLVING THE SUBDIVISION OF EVERY 1 ORDINARY SHARE IN PENTAMASTER CORPORATION BERHAD ("PCB") INTO 2 ORDINARY SHARES IN ...
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1
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When can an "insider" sell shares to the market?
If all the necessary information about the company at the moment is already disclosed to the public, are insiders allowed to immediately sell as much as they want? Is there a limit?
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Do companies sell new securities before or after a prospectus about the offering?
There wasn't any specific information on when exactly the transactions take place. So are the companies able to engage in the actual sale of the new securities prior to giving the public the base ...
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Mathematical proof for justification of interpretation of negative IRR
What would the mathematical proof look like of the interpretation of negative internal rate of return shown here look like which says that "Negative IRR indicates that the sum of post-investment cash ...