Questions tagged [investing]

Investing is the process of buying assets such as securities, real estate and other items of value that will hopefully increase in value over time, providing a return in the form of income payments or capital gains.

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How many hedge funds are there? [closed]

For personal interest. This 2022 special report on hedgeweek.com says, Cayman is domicile to over 23,000 CIVs, including about 80% of all international hedge funds which suggests a maximum global ...
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-2 votes
1 answer
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Why oil, gas and metal ETFs simultanously drop?

As an ETF beginner I have four ETFs like iShares Oil & Gas Exploration & Production UCITS ETF - USD ACC Morningstar Rating Morningstar Rating™ , WKN: A1JKQL, Oil & Gas Exploration & ...
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gemini trading platform scam [closed]

Exchange.Gemini.com customer service is the worst I have ever encountered. they are refusing to close my account. and I have been locked out frozen from my own account from day one when I opened the ...
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1 vote
1 answer
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Does converting a foreign company's profit to US dollars change the PE ratio?

When calculating the PE ratio of a company that reports in EUR, would the EPS be converted at today's exchange rate or the rate on the latest fiscal period end date (i.e. Dec 31, 2021)?
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1 vote
2 answers
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Does 401k contribution to index fund pay dividends?

My 401k fund has an option for investment in S&P 500 index fund, however the investment doesn't come with any dividend yield. S&P 500 index funds such as VOO, SPY come with a dividend yield. ...
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Can you help me understand the behavior of DXY index after the FOMC interest raise?

Context: I am only a curious person observing what is going on in the markets. I am not educated in finance, investing, etc. Out of curiosity, I followed the behavior of Dollar (represented in the DXY ...
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2 answers
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Why is the YTD return for my 401k contributions down 20% but the YTD return on S&P500 is 1.5%?

I imagined that my 401k investments must be going to some low-risk-stable-return type of financial investments. However, when I checked the YTD return on my 401k contributions for this year, it was ...
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1 answer
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What does "haircut" mean here?

I'm reading WHAT HAS WORKED IN INVESTING, and quote When liquidation value appraisals are made, the estimated "haircut" on accounts receivable and inventory is often recouped or exceeded by ...
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1 answer
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Transfer holdings to different broker w/o paying capital gains?

Suppose you own a bunch of stocks/ETFs with a broker (e.g, Fidelity) and you want to switch to another broker (e.g., Vanguard). You can certainly sell the stocks/ETFs, move the cash to Vanguard, and ...
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0 votes
1 answer
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Can I take profit in option trading if

If the current price of a stock is at 2000 and I take a call option buy at strike price 2100 weekly expiry with 80 ltp. Suppose now ltp increases by 5 points and yet the price does not go above 2100, ...
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Pro Rata - Calculate the amount of shares to buy

A company gets incorporated with only 2 stakeholders: 1st stakeholder has 250 shares (a.k.a 33.33%) 2nd stakeholder has 500 shares (a.k.a 66.67%) Price per share: 1$ On it's first financing round: ...
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2 answers
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Why are there fees on international online transactions?

I have been talking to some nice people around the world who want to help me finance a project. But when I look into the practical issues, it becomes almost impossible to do because of bank fees. Why ...
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2 votes
2 answers
163 views

Why might a company buy back their shares at a price above market value? [closed]

Some companies buy back their shares at a higher price than what is currently listed in the market. What is the benefit to the company, vs just buying at the current value?
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2 votes
3 answers
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Why would anyone invest in a stablecoin (e.g. TerraUSD)?

Some stablecoins (a type of cryptocurrency) try to tie their value to another currency. For example, the TerraUSD stablecoin was pegged to the U.S. dollar, at least it was before it collapsed last ...
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2 votes
1 answer
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Relationship between interest rates and DCF discount rates

I've been reading that interest rates lower the over future cash flows of equities, hence their decline as money can be moved elsewhere for better returns. What is the direct relationship between ...
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3 answers
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Changing Investing Strategy Near Retirement

Currently, I am 40 years old and I am investing in Traditional IRA (T Row Price actively managed funds) and also Index Funds (Vanguard). At what age, I should move to money conservation phase? ...
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2 votes
3 answers
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Why is investing in commodities recommended during a stagflation period?

Not looking for investing advice. Instead, I would like to understand the underlying logic and mechanic as to why commodities could be beneficial as an investment during a stagflation. I believe there ...
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0 answers
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Is proxy voting advice available for small investors?

There are proxy advisor companies available for institutional investors, but it doesn't seem like there's any proxy voting advice available for small, individual investors. Where should a small ...
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24 votes
11 answers
6k views

Why should I hold stocks for the long term when the risk of more companies going bankrupt increases over time?

The longer the time frame, the larger the risk that any given company is going to go bust. If this is the case, then why is long term stock investing encouraged? Isn't it more risky to invest for the ...
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5 votes
1 answer
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Mutual fund historic prices, seen @ Google and Yahoo, don't match my activity

I'd like to understand, how should I interpret the VFIAX mutual fund historic prices, which can be found @ Google Finance and @ Yahoo!Finance. For example, both these sites show the VFIAX closing ...
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3 votes
1 answer
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Is this article correct about leveraged tokens?

In this article, it says the following: Let's say you're interested in buying Bitcoin, so you purchase $100 of it. After a day, the price has increased by 10%, and your investment is worth $110. But ...
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12 votes
8 answers
4k views

Does it make sense to repeatedly increase your limit order price in small increments until your order fills?

Whenever I buy a security, I always use a Limit Order. Just to be safe, I input a price just below the Bid Price, e.g. 21.80. Why? In case the spot price dips suddenly! See below. This cheap trick ...
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0 votes
0 answers
71 views

How to withdraw contributions from Fidelity Roth IRA? Fidelity-specific

From my understanding (correct me if I'm wrong), contributions can be withdrawn from a Roth IRA at any time without any penalty. I opened a Roth IRA with Fidelity two weeks ago and contributed $3,000 ...
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1 vote
1 answer
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What difference does the domicile of the funds I'm investing in have regarding taxes in the UK?

I'm looking to invest some money and the investing website I looked at had two funds which looked near identical so I messaged the company asking what the difference was and they responded by saying ...
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4 votes
1 answer
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Can I buy whatever I want in an IRA?

I have a Roth IRA and so far I've only contributed to a target fund. If I contribute $500 dollars to the IRA, could I buy whatever I want, such as $500 dollars in Apple stock? If so, when I want to ...
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3 votes
1 answer
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When starting to invest, is it better to use a bank or online broker?

I am looking into investing in an ETF. I'm very new at this. Is it better to open a self directed RSP with a bank or an investment management service like WealthSimple or Questrade? I heard that if ...
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1 vote
0 answers
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Family Member Broker - Managing Mother's Investment

My niece works for a securities firm as registered broker, (not CFP) - her mother, my sister, inherited a large sum of money and will be investing 100% of her funds with her daughters business. Is ...
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4 votes
3 answers
559 views

When is the earliest I can withdraw contributions from a Roth IRA?

I'm considering putting a few thousand dollars or so into a Roth IRA. The tax due date is in a few days and I want to finish it now because I think I have to report Roth IRA contributions on taxes. ...
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14 votes
5 answers
6k views

Do I understand correctly that while index funds (based on S&P or Dow Jones) generally go up, it might take a decade?

This is probably a simple question, but I don't know much about investing, so here goes: Some time ago, though I can't find it again now, I read a couple of responses on this site saying that these ...
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1 answer
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Is it possible for the dividend rate to decrease at a constant rate to the future?

I came across the following question; Mayfair corporation is expected to pay 40% dividends to its shareholders as its next dividend. However, the company announces that it is not expecting to pay a ...
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1 vote
3 answers
96 views

How to compare investment options for HSA

I'm having some trouble comparing ETFs or other index funds. I have some money in a Health Savings Account which I would like to automatically invest and use when I'm old and in need of care. One ...
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1 vote
1 answer
31 views

Reporting return of capital on 1040NR

How can I report return of capital on my 1040NR? This was reported on my 1042s form under income code 37 in box 1 and 0% tax rate. This income is not effectively connected to US business or trade. On ...
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0 votes
4 answers
100 views

How to use short selling to safeguard or protect an investment?

I came across the following question: Kumar has 100 shares of ABC Co. which he bought at $ 50. The current market price is $ 140. Illustrate how Kumar using short selling can safeguard or protect his ...
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0 votes
0 answers
53 views

Investing via power of attorney for incapacitated principal

Can I use a financial POA to invest for an incapacitated principal? Or do brokerages commonly refuse to do so? i.e. POA must be setup on an account while they are in good health. My father has ...
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0 votes
1 answer
53 views

Should I hold strong currency with weaker interest rate or a weaker currency with high interest rate?

I earn in USD but my home country has a different currency INR. Pros of holding USD: Converting to INR cost me 0.5% of the amount which I save by not converting. USD/INR rate seems to be going up ...
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0 votes
1 answer
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Combining DCF and P/B

If you have two companies with the same value according to DCF, but they differ in their equity. Let's assume company A has 1M USD in equity while company B has 0M USD equity. This means that company ...
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0 votes
2 answers
124 views

Is there a way to sell a stock and as soon as possible buy another stock without paying a capital gains tax? Even if there was would it be outlawed?

Something similar to cryptocurrency trading where you can sell and buy for small fee via stablecoins.
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0 votes
0 answers
56 views

As an EEA retail investor, how can I purchase options on Gold / Gold ETF

As part of my strategy to hedge against rampaging inflation (and assuming that Gold really is a good hedge against inflation, as it has generally been over the years), I'd like to purchase medium-term ...
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0 votes
1 answer
99 views

Is this the result of Sell Market?

I saw a deep red line this morning. That means there is a lower than usual transaction. What happened there? Does it indicate someone "Sell Market" and somebody else is waiting at the much ...
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-1 votes
2 answers
113 views

Which stock is better to sell in a falling market? The first bought or the most expensive one?

The stock market in the US has been falling with consecutive losses. What is the best stock to sell: when everything was bought 9 months, less than a year ago? when everything was bought more than a ...
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0 votes
1 answer
46 views

Compound interest with compounding fee included

I have found plenty of compounding interest spreadsheets but none that include the relevant investment fee. example First column is the sub headings: A1/ Initial Principle A2/ Annual Interest Rate A3/ ...
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2 answers
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Is the return rate equal to the discount rate if I buy a stock at its intrinsic value?

I know many value investors emphasized that we need to buy a stock with margin of safety since our estimation for intrinsic value is not precise. By this way, we can lose less when our estimation is ...
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5 votes
3 answers
2k views

How is company valuation calculated?

There are many TV shows where people present their ideas and investors are ready to invest if they like the Idea. So, I was watching one of those TV shows when I saw that a person came with a unique ...
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0 votes
0 answers
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How safe are investment in Mutual funds (in India)?

I am aware of the fact that investment in mutual funds (MFs) are linked to market and are subject to market risks. However, my question is what is the security on our invested amount from framework ...
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0 votes
1 answer
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I've already filed my personal income taxes but didn't file my schedule E along with it

I have an out of state investment property that's under my name that I rent out to a tenant. I did my personal income taxes through Turbo Tax for free and during the process, it asked about any ...
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2 votes
3 answers
100 views

If total assets less total liabilities is positive, how should negative shareholders' equity be interpreted?

For some recently public companies, total assets minus total liabilities is a positive number, but shareholders' equity is negative. In some cases, this appears to be the result of a past sale of ...
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3 votes
1 answer
167 views

Analyze the probability of a porfolio increasing (or decreasing) by certain amounts

I would like to build a portfolio (of funds) which I don't need to manage often. In principle I am relatively happy to allocate the money in higher risk funds, since I don't plan on using it in the ...
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0 votes
0 answers
55 views

Building a portfolio based on possible personal finance scenarios

I would like to start a portfolio of assets which I don't have to manage day to day. I don't have a specific savings goal in mind but have a number of scenarios where I might want to withdraw money. E....
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1 vote
1 answer
225 views

What are the pros and cons of participating in a "Fully Paid Lending Income" program in IRA?

I am interested in lending my passive holdings for generating more income. Hopefully the risk is minimal. I see, for instance, two brokerages offering it. I am not asking any recommendation on ...
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1 vote
0 answers
52 views

Momentum strategies as a private investor [closed]

I like to invest in a fund or ETF that invests itself according to the momentum strategies described in the paper by Jegadeesh and Titman, i.e. investing into stock with recent strong performance and ...
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