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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1answer
60 views

Do corporate executives have a fiduciary duty to maximize the value returned to investors?

I have repeatedly heard that corporate executives have a fiduciary duty to maximize the value returned to investors. I have also repeatedly heard exactly the opposite: that there is no requirement ...
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1answer
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Equivalent of Irish domiciled ETFs for individual stocks

ETFs, following for example the US stock markets, are often offered domiciled in Ireland because of favorable taxation conditions. Is there an equivalent thing for individual stocks? Say I want to buy ...
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3answers
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Why would one choose to sell stock back to a company for less than their current market price?

Marathon Petroleum Corporation (MPC) is currently offering to buy back $4 billion USD of their stock (reference). The minimum they will pay is $56, and the maximum is $63. Given that this equity is ...
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1answer
56 views

What is company capitalization?

I was reading up on some investment agreements and I came upon the following paragraph from one of the agreements: If there is a Coin or Token Sale before the expiration or termination of this ...
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0answers
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What are the risks of investing in a stock tracker ETP?

Just a few days ago (2021-05-26), the first "stock tracker ETPs" were listed on the London Stock Exchange, Euronext Amsterdam, and Euronext Paris. These instruments track the price of US-...
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63 views

Emigrating while investing

If I have invested using a mobile app, like eToro, Trading212, BUX etc and then I decide to live abroad (permanently) would I have to close all my invested positions/accounts and start from scratch ...
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2answers
58 views

How important is it to read the sections of an annual report that are not part of the financial statements?

Annual reports of companies seem to always include multiple sections before the financial statements. For example, "financial highlights", "chairman's letter", "CEO's report&...
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2answers
125 views

What are the risk types for a large amount of savings in an index fund

I'm curious what are the possible things that can go wrong with storing half of savings in a single index fund. Specifically, I mean things other than the market going down - these are long term ...
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0answers
37 views

Investment analysis software [closed]

I'm looking for software for investment analysis. It should be able to calculate and visualize: NPV Net present value of an investment after 3, 5, 10 years IRR Internal rate of return ROI Return ...
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1answer
21 views

Derive Initial investment based on Compounded returns

I know the investment instruments, their average yearly returns, the duration of investment and the target corpus. Based on the target corpus and the average returns, I want to reverse engineer and ...
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2answers
43 views

Can mere expectations affect oil spot price?

For example if confirmed information spread today that for some reason oil producers will increase their supply one month later, will this affect oil spot prices immediately like what happens in ...
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2answers
889 views

New to investing, do I have to pay taxes on my ETF's interest or just when I sell it?

I recently bought one share of VUG (ETF) and it's not doing so bad so far, I made a profit of roughly 2 dollars. Do I file this in tax somewhere? Or do I only file if I sell the thing. I can't find ...
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1answer
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Average Annual Total Return - How to calculate fractional number of years?

Per the SEC Form N-1A, P(1+T)n = ERV Where: P=a hypothetical initial payment of $1,000. T=average annual total return. n =number of years. ERV= ending redeemable value of a hypothetical $1,000 ...
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2answers
39 views

Why are warrant liabilities considered a financial loss?

If a company says they lost $2M in Q1 because of: "non-cash mark-to-market increase in warrant liabilities" As I understand warrants, they allow the holder to purchase the shares at the ...
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1answer
36 views

Is using proceeds from a short sell or put option to cover the cost of excercising a call option considered freeriding?

I heard that freeriding is not having the cash to pay for the underlying shares when a call option is exercised. If I purchase a call option that is ITM and (purchase a put OR short sell) above the ...
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What would qualify as capital gains to be taxed on in this scenario?

So I have recently gone into investing crypto and have made good money on it. However I recently started thinking about the taxes on my investments. I'm not a day trader but I do sell and buy the same ...
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1answer
33 views

Why do we discount cash flows with WACC instead of the opportunity cost?

First, a definition of WACC: The weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted. All sources of ...
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6answers
4k views

Is there a threshold (in effort, or capital) beyond which it makes sense to be an active investor?

According to Benjamin Graham's The Intelligent Investor one could define an aggressive investor in accordance with the following line (not a verbatim extract from the book): The difference between a ...
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0answers
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What do I do with nominee shares I got from a crowdfunding “investment”?

I am not an investor and it all goes a bit beyond me and that's why the things I've found on Google on this topic don't really add up for me. Years ago I "invested" in a company that I like ...
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3answers
143 views

Index or fund that closely tracks residential properties in the UK

Rather than buying property in the UK, are there indices or funds that closely follow house price growth/loss in the UK? Property developers tend to have their own growth patterns. My problem is I won'...
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2answers
165 views

Started earning money, have significant savings, would like to invest [duplicate]

I am in the last year of university and got myself a well paid part-time job. My expenses are negligible for now. Since I was 18 I was always making money here and there, so I managed to gather over ...
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2answers
88 views

If we form an investment company, then are the expenses deductible?

It is commonly known that if we are individual investors in the USA, then if we need to investigate smartphones and see how they work with the 7nm, 5nm chipset, or attend shareholder meetings, it is ...
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1answer
30 views

How do the long-term returns of a high-variance investment compare to those of a low-variance investment?

Variance over the short-term is a useful way of comparing the risk of investments. Got a home purchase or large medical expense coming up? Better not to have too high variance on your invested savings....
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1answer
39 views

Investment with Valuation and Credit Line with 10% Equity

Before I ask my question, I would like to tell that I am not from a Business background and therefore this might sound like a stupid question to most. Recently, I watched a film based on Steve Jobs ...
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1answer
130 views

Are there good ways to hedge against a combination of high inflation & rising rates?

I have saved some money that I would like to use in the next 1-3 years to start a company. In the meantime I would like to make sure that inflation does not eat up into my accumulated capital. I am ...
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3answers
117 views

What are the disadvantages of copying the consensus stock picks of hedge funds?

Suppose I have made a list of hedge funds that are known to successfully follow a particular style of longer-term investing (e.g. long-term momentum, or value, or ...). I notice that this group of ...
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1answer
170 views

Why does eBay's 2018 Form 10-K filing show a different net revenue for 2018 than in its 2020 filing?

eBay's 2018 10-K filing declares a net revenue for 2018 of $10.746 billion. eBay's 2020 10-K filing declares a net revenue for 2018 of $8.650 billion. Why is there a discrepancy?
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1answer
102 views

Trying to understand the U.S. yield curve and global inflation

With the COVID crisis the FED has lower interest rates a lot: Now, inspecting the US yield curve: It seems to be that this is a normal curve that doesn't flatten too much at the end. Is this correct?...
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1answer
51 views

Is using debt into a regular mutual fund different from investing in a leveraged mutual fund?

I was thinking if I should invest in some mutual funds using low-interest rate debt. But then I read this Q&A: Why are daily rebalanced inverse/leveraged ETFs bad for long term investing? If I ...
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1answer
52 views

Stock Offering Pricing

All- Quick general question about the pricing of secondary offerings: I understand that a dilutive offering decreases earnings / share, which is why it often leads to selling pressure. I’m wondering ...
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7answers
2k views

Why is there a distinction between growth and value investing, when growth is part of value?

I regularly come across articles about "growth vs value investing", "growth stocks beat value stocks", etc. Why is there a distinction between growth investing and value investing ...
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0answers
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What are my options for investing as a resident in Poland?

I am intending to become resident in Poland in 2 years and would like to find ways of investing, eg: stocks and shares, tax free savings etc. What are the options and how can I find them? (I don’t ...
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4answers
5k views

Have I left investing until too late?

I'm 44 and have only the investment of a house. I was scared off ISAs (individual savings accounts) etc because of the complexity, choice, etc and only now have I come to make the decision to open an ...
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1answer
70 views

Holding ISAs after emigrating to Poland

I'm a UK resident and plan to move to Poland for at least 10 years, in 2 years' time. I'm intending to open a junior Investment ISA and, for me, an Investment ISA. We will retain our property here in ...
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3answers
154 views

How to distinguish between appreciation and inflation?

Is there a way to differentiate between the appreciation of an asset and the devaluation of the currency it is denominated in (inflation)? I know I could look at conventional inflation measures (like ...
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1answer
44 views

How to find platform to invest in Canadian ETFs from overseas?

I am intending to invest in Canadian ETFs. I reside overseas. Although I have Canadian SIN, I do not have a permanent address in Canada at the moment. I searched online for platforms which can allow ...
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1answer
88 views

Investment Accounts For People That Regularly Change Country

I would like to invest ~$20,000 a year, ideally mainly in funds. I am a British Citizen however I regularly move country, roughly once every 2 years. I have been in the UK for the past 2 years and ...
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1answer
58 views

Given a tax advantage account and a non-tax advantage account, should trades be concentrated in the tax advantage account?

TL;DR: If my investing strategy is a mix of ETFs (50% value, rarely traded) and stocks (50% value, more frequently traded), is it advantageous to do the stocks trading in the tax advantage account and ...
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2answers
67 views

Can I lose money on a Forex cross currency trade even if the currency pair goes up in value?

My question applies only to cross currency pairs. As an example, imagine my home currency (the currency I am buying with) is USD, and I intend to buy 5 units of the EUR/GBP currency pair. To keep the ...
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140 views

What is meant by a fund?

I read in the book Indian Economy by Ramesh Singh (in the chapter Indian Financial Market): Money market fulfils the requirements of funds for a period of up to 364 days. What is the meaning of &...
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2answers
127 views

What should I do to stay updated on my investment after buying a stock?

I've researched the industry, I've read the financial statements, I've made my calculations, and I've finally bought the stock. Now what? From a fundamental analysis point of view, what do I need to ...
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2answers
189 views

Business paying back debt to individuals

I have a single member LLC (Missouri, United States) that I started a few years ago. We received approximately $20,000 in funding from family and friends, of which I did not fully understand the ...
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0answers
67 views

Why do stock (and forex) prices change over weekend, when the market is supposed to be closed?

I am checking out Apple's stock on TradingView on a Sunday night and it shows its price fluctuating? How is that possible? Isn't the stock market supposed to be closed on weekends? Same with forex. If ...
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1answer
90 views

What happens with funds whose underlying is in a different currency if there is hyper-inflation?

Let's suppose that a british investor invests in a mutual fund whose underlying is in american dollars, but which is bought in pounds sterling. This means that the fund's managers convert the pounds ...
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5answers
7k views

What does “not touching the principal” actually mean?

When talking about "trust fund children" or large savings it's common to hear the phrase "not touching the principal", which means that only the "earnings" from the money ...
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6answers
818 views

How to split monthly profits in a co-owned (mortgaged) home when we invested different downpayments, and only one of us lives there?

My brother and I are buying a home for 415k. The Downpayments are uneven; I pay $28,500 (68%) and he pays $16500 (32%). It seems fair to split profits when we sell the house proportionally to this ...
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3answers
79 views

Investment instrument for investing money saved for a used car

I have saved money which I plan on using to purchase a used car in the coming years. The amount saved is the purchase price for a used car right now in April 2021 and I would like to make sure that I ...
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1answer
58 views

OTC stocks and their foreign stock exchange equivalent

Do OTC stocks trade similarly to their foreign exchange equivalents? I'm looking at a company that is not available for US investors on the ASX, but it has ticker on the OTCQX. My broker shows me ...
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2answers
2k views

Type of account for investing surplus funds when planning to retiring early?

How do people retire early? Say that their debts (including house) are paid in full, they have ample money already saved in IRAs, 401ks, etc., they are expecting a pension, and have earned enough SS ...
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1answer
50 views

What is the effect of rising interest rates on a Bond Fund?

For Example: Assume you purchase $1,000 of a bond fund. If the bond fund has an average duration of 5 years and general interest rates increase 1% , what is the impact on the value of the bond. What ...

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