Questions tagged [investing]

Investing is growing money over a longer time frame. When appropriate a specific tag like stocks, mutual funds etc should additionally be used.

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0answers
30 views

How does an ETF that tracks a foreign stock index work? - Potential arbitrage opportunities because of time-zone?

Suppose I live in the US and want to buy an ETF share traded in the US. I would already know how Chinese stock market performed by the time the US market is open because of the 12-hour difference. ...
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2answers
88 views

S&P 500 only returns 1.26% (after UK inflation)… am I wrong?

I invest in the S&P 500 from the UK. I am trying to calculate what my investment pot will be in 25 years, adjusting for inflation. Unfortunately, my calculations point me towards an abysmal ...
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2answers
324 views

Tax efficiency and Roth IRAs

I have a question relating to avoiding investment taxes as compared to maximizing tax free growth in a Roth IRA. Suppose you have: $10000 in a Roth IRA $10000 in a taxable brokerage account and ...
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1answer
173 views

Are there Bond ETF’s that don’t go down? [duplicate]

I would like to put some percentage of my money in an investment that only goes up, even if it goes up only by a small amount. One way to do this would be to put my money in a bank account, but I’d ...
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8answers
718 views

Why is it ever a good idea to found a company?

I have a side project with a few friends that's gradually getting more serious. We're nearly at the stage where we'll be taking some early clients, which is really exciting after about a year of ...
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1answer
245 views

How can Cost Basis be greater than the Amount Invested?

A friend owns a mutual fund, Capital World Bond Fund CL A. He has owned it for a fairly long time, but does not know how long. It might have originally been with a different brokerage about a decade ...
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1answer
41 views

FD in 10 banks v/s Mutual Funds

This question is to be answered in terms of security of the money as well as how profitable the investment is. Let's say a person is in India under 30% tax slab. In India, FDs are more secure than ...
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4answers
10k views

Is there a CD that allows additional contributions?

I've made a budget for this year; after contributing the max to my IRA and 401K ($5,500 and $18,000, respectively, for 2015) I've realized that I have a lot of money that I'll be able to use. As such, ...
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9answers
6k views

Best ways to invest for a planned house purchase in 1 year?

I've just sold my house after relocating and got £45,000. I am now looking for a house to buy. In the area where I live now houses are around £500,000, so I will need at least £50,000 for the deposit, ...
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3answers
211 views

Where or how to invest short term money

For a short time (about a year or so) I will be able to put away about $2000 a month. I have looked into stocks, played to stock market a while ago and lost a lot of money, yes i was playing in the ...
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0answers
37 views

Is Trading 212 fair and legitimate broker for buying ETFs?

I am looking for a way to make an investment into an ETF. Many of the low cost international brokers are unavailable in my country while the local banks have fairly high commissions. I got a ...
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2answers
111 views

Dilution of investment; how does it happen?

I sometimes hear my investing friends talking about their investments being diluted down, but I've never had the courage to have one of them explain it to me. From my perspective, if you buy 20% of ...
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2answers
138 views

Investment Clubs Net Worth

If a company is asking for investors with a net worth of $1M, can that net worth be collectively, i.e., investment club members?
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2answers
1k views

Roth IRA vs taxable investment account

I'm new to investing, using M1 Finance, and have been doing some overall research. From what I know, Roth IRA is tax-free income and mostly used as a retirement plan so if I invest in a Roth IRA ...
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1answer
138 views

Is money from a trust account considered a gift?

I have a BNY Mellon Investment Fund account designated to me and set up by my parents. On the statements the Client Name is in my parents name and the Designation is my name. My financial advisor ...
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1answer
78 views

Lack or abundance of shares available to short. What does it mean for share price in short term?

When there are no shares available to short, it seems to me that there is a big demand for shorting and the price should go down. Demand for selling is higher than demand for buying. Buyers can't ...
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2answers
444 views

Which is the best way to invest a small amount in Bitcoin?

From the answers to this question Are there multiple Bitcoin markets? I understood there are multiple platforms to trade Bitcoin (Coinbase and Kraken were mentioned). Suppose I want to invest a ...
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1answer
40 views

Selling Lots and SMA (Special Memorandum Account)

My broker allows me to sell shares in the lots that they were bought. For example, the fictitious NuCo, In., in order of purchase: Lot A: 300 Shares of NUCO at $20 Lot B: 300 Shares of NUCO at $17 ...
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3answers
322 views

How can someone own only a part of a share of stock? Are the rights any different with a fractional share?

A friend told me, he is able to buy parts of a share. So he does not buy one or two shared but one and 1/5 of a share (1.20). Is this a benefit from the digital age? Because in the past, when shares ...
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2answers
103 views

Trailing Stop Order - how often do they get executed due to an error?

I've just submitted a trailing stop order. In the order preview a warning icon popped out: "...your order can be executed due to a system outage or accidental miscalculated ticks..." How often does ...
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2answers
231 views

What form of investment should I use to wait out fears of a recession?

I have recently pulled my investments out of the stock market and am looking for another way to grow my funds. However, in light of past recession fears I do not want to invest in any way that would ...
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2answers
62 views

Why does CAD-hedged S&P 500 ETF suddenly not track to actual index

At the time of posting this question, the BlackRock ETF XSP is down approximately 1.3% during the period Dec 24 9:30 am - Dec 31 10:30 am, while the actual index is down approximately 0.3% during the ...
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1answer
119 views

Savings Question, how to invest

I have about $20,000 just sitting in a TFSA, I do plan to spend it (on a vehicle) in about 12-16 months, so I don't want to lock it away, is there anything better then the TFSA? I am Canadian.
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1answer
64 views

How much is a total market dividend yield expected to drop in a bad year?

Let's take a total US market ETF like VTI. Its dividend yield is about 2%. How much will it drop on a bad year, when its composing stocks are mostly down?
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12answers
11k views

How can there exist a profession consisting of investing others' money?

How can there be a profession where some person sits at a desk and trades or invests for somebody else? If they are so smart and can predict the market so well, would they not long ago have invested ...
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0answers
51 views

When do these Amazon warrants expire?

The expiration date is blank according to the source. Here's the original source: https://www.centralcharts.com/en/284-amazoncom/warrants Thanks so much!
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1answer
94 views

Liability for poor investment advice?

[Country is South Africa but I am also interested in this in the context of the U.S. / Europe] A good friend of mine has trusted a wealth manager with her sizeable portfolio for the last 6 years. Her ...
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1answer
253 views

Lost $100k (paper) money on property subdivision project. What should be my next step?

I had the misfortune of working with a shady project manager for my first property subdivision project (1 property into 3). The development contract with him was for him to organise and supervise the ...
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2answers
1k views

What is a Rebate rate when short selling shares

Investopedia says: The amount paid by a stock lender to a borrower who has put up cash collateral to borrow a stock. The stock loan rebate comes from the reinvestment of the cash collateral by the ...
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12answers
16k views

“Don't invest now because the market is high”

I have heard many people in my life say things like The market is low so it's a good time to invest or The market is high so don't invest It makes me wonder if mean-reversion is actually a ...
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2answers
109 views

How to interpret negative bond yield quote

I am trying to understand investing in (non-us) government bonds. Looking at data I can find online regarding the bonds available in my broker is giving me information I can't make sense of. For ...
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4answers
528 views

Why don't forced buy-ins of short sold stock happen much more frequently?

When you short sell a stock, you are borrowing the stock from a lender, and the lender always has a right to say that they need their shares back, which might result in a forced buy-in by your broker. ...
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11answers
15k views

Should I invest ~18k being 19 years old? [duplicate]

I am currently thinking about investing my money in various things. I have a monthly income of 900€ and only 40€ regular expenses including food, spotify premium and a web domain. From what I can ...
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0answers
25 views

Locking in Capital Gains when in Lower Tax Bracket [duplicate]

I am a college student graduating this upcoming year. I have a decent amount currently invested in a taxable brokerage account. For the 2019 year I would be in the 0% long term gains bracket and 12% ...
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4answers
316 views

Is this considered day trading, active management or something else?

I have been practicing with a few stock simulators for just over 1 year. My process for investing is to buy stocks when I see a significant drop in share price due to what seems like negative media ...
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5answers
7k views

Is trying to learn day trading a complete waste of time?

I understand there is a lot of people, maybe even most, who believe day trading is far too risky or the person trying day trading won't be skilled enough. I have gotten interested into investing ...
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1answer
117 views

How to interpret returns on index funds

I don't quite understand how investing into index funds works, or how to interpret the average historical returns. Let's say that, 10 years ago, I decided to invest $30,000 dollars at the end of each ...
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0answers
107 views

Best way to invest ~10k euros in Europe [duplicate]

newbie here. I'd like to know what are the best ways to invest ~10k euros here in Europe. I don't have any debt and I am able to save 1k euros every month moving forward. I can't buy property yet, ...
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0answers
37 views

How is “fixed debenture” not a contradiction of terms?

I recently came across the idea of a "fixed" and "floating" debenture. I was under the impression a debenture was specifically an issue not secured by assets. Wouldn't a debenture secured by assets (...
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3answers
354 views

Why do people claim that Stock Markets are broadly exponential in the long term?

I've always heard Stock investment being described in terms of getting X% return per-year in the long-running. But looking at the FTSE in the long-term doesn't suggest an exponential growth? See below,...
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1answer
42 views

what Is the relation between margins, brokers, and clearing members?

What is the difference between clearing margin and margin maintenance? I know that an investor in a futures contract is required to keep a maintenance margin with the broker. The broker will require ...
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2answers
123 views

How to decide where to invest home equity?

Let's say I bought my home several years ago and now have (for example) $100k equity available if I refinance. Now I can take that $100k* and invest it in the stock market. Or I could take the 100k ...
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1answer
53 views

What does it mean to short a futures contract?

I am currently studying the convergence of futures price to spot prices. I know that as the delivery month of a futures contract is approached, the futures price converges to the spot price of the ...
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0answers
17 views

How do you calculate daily gain and cumuative gain on future contracts?

So i have this excercise : I'm new to finance and i was wondering if anybody could tell me how to calculate the DAILY GAIN AND THE CUMULATIVE gain with the information provided? For example, in day ...
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1answer
116 views

Stock market fluctuations and when to sell out [duplicate]

I recently bought a medical marijuana stock at its lowest point. It is estimated that it will reach a high price by 2023. How can I know for sure when to sell out?
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1answer
305 views

A question about CAPEX when Calculating Free Cash Flow (FCF)

When performing the following to determine free cash flow: Free Cash Flow = Operating Cash Flow - Capital Expenditures Do I include only Capital Expenditures (13,732 in the example below), or do I ...
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2answers
9k views

How does pre-market trading work?

From what I understand pre-market and post market trading is basically an extension to regular hours trading. How does it compare in terms of buying stocks? What I mean is if I order a stock at 10:...
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0answers
118 views

How might ETFs accelerate a “crash” [closed]

I am editing my question to pose the inquiries first in order to hopefully emphasize their objective, rather than subjective nature upfront. Here is my question: Am I correctly understanding the ...
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4answers
1k views

Sanity check on recommendations from a financial advisor

Recently my wife and I have decided that we make enough money to go see a financial advisor and see how we can be smarter with our money. The most important topic we discussed with the advisor was ...
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0answers
86 views

Invest in stock, ETF etc. for a minimum amount of time?

Is there any financial product that would allow someone to invest a sum X (once or maybe periodically) in a single stock, an ETF or similar for a minimum of say 25, 50 or even 100 years? I'm not ...