Questions tagged [financial-literacy]

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

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749 views

Is forward P/E calculated using current price(if yes, how useful is it)?

From my understanding, F1/F2 P/E is calculated using forward estimated EPS. And It seems to be impossible to predict future price (otherwise everyone just follow the Est. price) However, if it's ...
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1answer
110 views

calculating no. of payments

is there a formula to calculate the no. of payments "P" required to pay off a loan amount "X", with an interest rate "Y" and a monthly payment amount "Z". I think "X/Z" would be an approximation for ...
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1answer
44 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
107 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 ...
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1answer
259 views

Fed's interest rate vs. effective rate?

I'm trying to understand the "Fed interest rate". Wikipedia says: "Financial institutions are obligated by law to maintain certain levels of reserves... The bank can borrow the requisite funds ...
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2answers
221 views

As a teenager, what's the best way to learn about investing? [closed]

I'm a 16 year old from India who wants to learn the basic principles of investing in order to secure a better future for myself. I've been reading quite a bit on various websites but those that I ...
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1answer
23 views

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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1answer
61 views

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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2answers
73 views

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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1answer
465 views

How to read WSJ US Treasury quotes

I am trying to understand how they calculated "asked yield". If anyone can explain it, I really appreciate it. I would like to see the mathematical formula and the calculation.
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1answer
175 views

Loan Prepayment

I will be applying for a car loan shortly, and trying to evaluate various lender schemes. I was not really sure when its mentioned as No Pre-Payment Penalty or Foreclosure Charges Let say I have ...
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3answers
348 views

What is the lifespan of a series of currency?

I traveled to Canada from the USA and as a souvenir I decided to bring some Canadian cash back with me. While I plan to keep it just as a souvenir, it made me wonder how long a currency can legally be ...
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1answer
94 views

What is the rate of return for a security when there is no risk-free rate (CAPM)?

Let say I want to invest 1000€ in cryptocurrencies in order to get 2000€ In the famous CAPM, the relationship between risk and rates of returns in a security is described as follows: For a security ...
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1answer
359 views

What does “price crunch” mean?

What does "price crunch" mean in this quote? Seventy percent of respondents said they had altered their allocations in regard to euro-denominated assets, and.a third of the respondents said they ...
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1answer
53 views

logistical details of interest and dividend payments on assets traded on the secondary market?

Forgive me if this is a silly or extremely basic question, but I was wondering how the logistics of interest and dividend payments are handled on assets, such as mortgages, bonds, stocks, etc. I ...
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2answers
64 views

(Why) are all Australian mutual funds REITs or bond funds? [closed]

I wonder why Australia does not promote the big and global fund houses to introduce mutual fund schemes for people to have an option to invest in, instead of just the property/related choices. The ...
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1answer
347 views

What is the formula to calculate loans at variable rates and what is the function of PV (present value) in calculations?

Yesterday, I tried during the whole day to solve that problem: You have been living in the house you bought 6 years ago for $250,000. At that time, you took out a loan for 80% of the house at a fixed ...
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3answers
903 views

How to execute a large stock purchase, relative to the order book?

I am looking to buy my first stock, it is TLN, and I want to buy about 3300 stocks. Looking at the order book on yahoo, it looks like this: Bid Price Size 10.46 200 10.45 100 10.44 100 10....
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1answer
179 views

College student lacking investment experience: How to begin investing money? [closed]

I am right now a college student with very little experience investing. I have a little bit of money now that I am looking to invest to increase it. how should I go about this? I have access to stock ...
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5answers
505 views

Lump sum investment vs SIP when I have the lump sum

I am fresh out of college and placed with a good job. It's been two months now and I have with me (after making all deductions): Two months salary Signing bonus = Equivalent to another 1.5 months of ...
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1answer
110 views

are my calculations for PV, NPV, and rate of return right?

Note: This is not a homework. I teach myself some financial principles and I made up this example to find out if I understood these principles. This example is a just a normal example nothing is real. ...
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1answer
105 views

Buy/Selling prices at the stock exchange represent someone Selling/Buying at that price?

I see in my trading system two price quotes for a stock. Buying and Selling. Does the buying price means that it is the lowest price someone is currently attempting to sell their stock? If so, then ...
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1answer
380 views

What is the difference between a structured collar and a normal collar in finance?

How is a structured collar different from an ordinary collar? I failed to find information about the difference online.
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1answer
191 views

Put-Call parity - what is the difference between the two representations?

I have seen these two terms for put-call parity: S + P = C +Ke^(-rT) S + P = C + K/(1+r)^T Which one is the correct formula? When to use each of them? What is the diffrence?
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1answer
974 views

How to find if a public company has taken out a loan?

From a company's Income Statement, Balance Sheet, and Cash Flow data, is it possible to figure out if the company has taken out a loan and how much it has taken out?
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3answers
1k views

How do I determine future balance owed on a mortgage based on amortization?

A family buys a house worth 326000.They pay 110 000 down and then take out a 5-year mortgage for the balance at j2 = 6.5% to be amortized over 20 years. Payments will be paid monthly. Determine the ...
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1answer
61 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
25 views

Price of a share's futures

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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0answers
28 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 ...
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1answer
157 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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0answers
17 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
33 views

Is the operating Income or Loss the equivalent to TOtal revenue 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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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
44 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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1answer
535 views

Meaning of “rat race” in the book of Rich Dad Poor Dad? [closed]

I want know what exactly rat race is and why most of the people fall into that trap?
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2answers
363 views

Help me understand TradingView watchlist data

I'm trying to figure out what is the meaning of the percentage value (comparing to 24-hours before?) and the small last digit?
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2answers
261 views

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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1answer
168 views

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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1answer
491 views

Understanding bid and offer prices in CFD's

I am currently researching the mechanics of CFD trading and, being new to this, am a bit confused about certain terms. I understand that the "bid" is the price that the CFD is sold at and the "offer" ...
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1answer
301 views

What does this mean? SELL -10 VERTICAL $IYR 100 AUG 09 32/34 CALL @.80 LMT

can someone please explain what does this quote mean? SELL -10 VERTICAL $IYR 100 AUG 09 32/34 CALL @.80 LMT what is Vertical what is -10 what the 32/34 stands for? what is LMT
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1answer
89 views

Funds managed by companies that go bankrupt?

With all the talk of Wells Fargo looking pretty shaky, what's the deal with people that have investments through them? It's their fund, but it's not really in them? What happens to holders of ...
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1answer
12k views

What does “LLP” stand for in the name of an organization?

What does LLP stand for? As in the example name "Flood Law Group, LLP".
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1answer
101 views

Ongoing Automatic Investment Fee

When a DRIP plan says "Ongoing Automatic Investment Fee", is that the amount of money they take every month? In the case of Hershey's DRIP, it says it's $2. Does that mean if someone invests $50 a ...
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1answer
1k views

Can debt increase ROE?

I have the following statement which can be true or false. A company with operational rentability (EBIT/Assets) of 11% (after income tax of 30%) analyses taking debt. If the credit consists of 16% ...
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4answers
5k views

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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1answer
249 views

Jumbo loan amount before or after downpayment? [duplicate]

I want to take out a mortgage, but the value of the house is greater than $417,000, which is the amount when a mortgage becomes a Jumbo loan. I looked for more information on BankRate.com, and even ...
-1
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1answer
91 views

Net money invested in Stock indexes ended up in red

A look at the Indian Stock exchange trade today here shows a net investment of INR 296 crores but all the indices Nifty (-38.2), BSE (-137.30) ended in red. Why so? When money is pumped into the ...
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2answers
76 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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2answers
74 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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1answer
95 views

How to calculate a forecast [closed]

I've been looking around to know how to calculate a sales forecast for sales generated. Not profit/loss; only sales made. Oracle's calculation shows some examples but I'm not sure if that's the ...

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