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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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1answer
41 views

How to efficiently invest in ETFs with a monthly contribution?

I am confused when it comes to ETFs. Many state that their main advantage is that they are low cost. I understand that they are traded as stocks. I want to invest my money in 3 index ETFs (USA, ...
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1answer
82 views

Investing platform options without fixed residency

Background: My wife and I are in our high-twenties currently living in UK. We don't have a mortgage, we're renting our flat. The only debt we have is the standard UK student loans, which is deducted ...
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4answers
251 views

Where should a young person living in Switzerland invest their money?

I am an 18 years old student living in Switzerland, doing my apprenticeship as a software developer. In the last few years I saved around 10'000 francs and instead of buying a car I thought to invest ...
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2answers
2k views

What's a recommended minimum amount for buying an index ETF, to minimize fees/commissions?

Let's say every month I transfer $559, which is about 3 shares of VOO. The commission from Fidelity is $7.95, which is about 1.42%. Is it worth doing that, or better, every other month buy worth of $...
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10answers
17k views

Why would anyone buy U.S. Treasury Bills?

From the Treasury Direct website, I saw this Bills: U.S. Treasury Bills are a type of short-term security of one year or less, usually issued at a discount. The discount is the amount the security ...
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1answer
17k views

How often does a stock price change and where is this defined?

Let's suppose I want to collect stock prices for let's say AAPL on NASDAQ. Where do I find information on how often an official stock price is calculated? Is it every millisecond, every second, or ...
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1answer
97 views

Why do most HSA administrators require accountholders to have a minimum amount in their HSA before they can open up an investment account?

I read on an article at Nerdwallet titled 5 Health Savings Account Rules You Need to Know (mirror): Irvine warns that the majority of HSA administrators require the accountholder to have a steep ...
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2answers
61 views

How exactly does a broad-market ETF work?

So it's obvious that a broad-market ETF attempts to imitate the performance of the whole stock market, but what I still don't understand is how it works and exactly what you are investing in when you ...
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27 views

ETF: ITOT ticker cost calculation?

Forbes says: "The iShares fund from BlackRock ticker ITOT will over the course of a decade chip only $6 out of a $10,000 investment." How is this $6 calculated? The web page for the fund says: "...
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2answers
67 views

Calculating the ETF cost?

Let's say I invest 1000 USD in an ETF. Over the 10 year period, the shares had 5% annualized gain, meaning the value of my investment would be 1630 USD. However, I didn't take into account ETF fees. ...
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1answer
50 views

The value/price of an ETF

From my understanding an ETF has the advantages of a managed fund with the advantages of a stock. Advantages of a managed fund: a) An ETF is a collection of stocks that are packaged into a single ...
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3answers
67 views

European citizen investing in MSCI USA index ETF: to hedge or not to hedge?

Located in Europe, I am thinking about a long-term (~20 yrs) investment into an ETF that follows MSCI USA Index. I am stuck: should I pick an euro hedged fund or a normal one. My salary is in Euros, ...
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1answer
90 views

A lot of bids and asks, but no volume

I'm looking at an option and it has a lot of bids and asks, but zero volume. Does this mean that the market can't decided on the price of the premium because the stock itself is moving? Just curious ...
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2answers
34 views

Currency Future Contract's future fixed price?

Future and options are basically the same with the other using premium and w/o obligation. When trading FX options, you set/buy a strike price. Hence an agreement/was made on a fixed price. In the ...
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2answers
245 views

Why would I buy bonds? [duplicate]

Say I want to buy a bond that matures in 10 years, and that pays out 5% of once a year, so it has 10 payouts remaining. Say the value is 100$. Say the bond is being sold for 140$ today. I would be ...
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6answers
1k views

How to evaluate stocks? e.g. Whether some stock is cheap or expensive?

What kind of information do you obtain before buying (or selling) a stock? I know the PE ratio is very important, but not the only thing. Are there any rules of thumb to determine whether some stock ...
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2answers
73 views

Investing in a target date fund for retirement [closed]

Any suggestions about investing in a Vanguard target date fund 2045 for a Roth IRA? I'm 38 years old. Is 90/10 stocks/bonds too heavy for my age?
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2answers
59 views

To what extent can dividends be seen as an informed and careful conclusion about the company's long term ability to at least maintain it?

John Lintner found that management aimed to have a stable payout ratio target but, in fact, it is often the dividend itself that is kept stable and that reverting a dividend hike in the future would ...
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8answers
15k views

Is this projected return from Wealthify too low?

I am really new to investing and I am so confused. Books, blogs and conferences suggest that investing is the way to multiply wealth. I do not have enough start up money to play with mutual funds, ...
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2answers
258 views

why don't banks invest money in mutual funds or shares instead of giving personal loans

Banks offer personal loan at interest rate of 11 %, but why don't they invest those money in mutual funds or shares and earn more ?
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0answers
41 views

Risk to buy Equity in a new company which is not listing in stock market? [closed]

I want to invest in a company registered in India but I don't want to be involved in the management or operations. I just want my dividend, if any. What will happen if the company commits fraud or ...
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3answers
286 views

Educating others that they may be investing in a scam

I’m not sure if this should be here or at interpersonal skills but there is currently a company in the Philippines asking people to invest and to me, in my opinion it smells like a Ponzi scheme. ...
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1answer
32 views

Considerations re: LLC on SSDI

I am disabled and receive SSDI. I will have some money from inheritance and insurance settlement from an injury. I'd like to put the money into an LLC (for shelter, exclusion and self directed ...
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5answers
161 views

Why isn't the retained earnings of a public company always distributed back to the shareholders?

Shareholders own a public company, so why shouldn't all of a company's income be distributed back to them? Why are dividends (if any) just a small fraction of a company's retained earnings?
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4answers
2k views

Do pension pots get interest? [closed]

Pension pot is the money, the employee and sometimes the employer and the government pay that gets accumulated into pension fund. But my question is, that this pension fund is basically a bank ...
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2answers
305 views

What are some good options to save money? I have the only income, as a father of 1 and husband, France-Canada

I'm already past 30 years old and so is my spouse. We have a two years old child and plan to have another one in a near future. I'm currently doing a PhD and I have about 1500 euros per month as ...
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4answers
6k views

Why would I vote for an increase in the number of authorized shares?

Whole Foods is requesting its shareholders to vote: To approve an amendment to the Company’s Articles of Incorporation to increase the number of authorized shares of the Company’s common stock ...
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3answers
148 views

What is the “definition” of a “diversified” portfolio and why a diversified portfolio is better?

A short version of my question - What is the "true" definition of a diversified portfolio and why is it better? A long version of my question - Regarding portfolio diversification, people ...
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0answers
31 views

Do mutual fund return figures include expenses/fees? [duplicate]

I am trying to figure out an optimal mutual fund investment for retirement on Fidelity.com. Mutual funds typically have 1/3/5/10 year return figures. Do these figures include expenses and fees? If ...
2
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1answer
38 views

Understanding the FTSE Actuaries Share Indices on the Financial Times Paper UK

I am trying to understand how to read the Financial Times FTSE Actuaries Share Indices UK. In two of the columns it says Cover and Exadj. Cover is between Dividend Yield % and P/E ratio. Exadj is ...
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4answers
2k views

Can you explain why it's better to invest now rather than waiting for the market to dip?

I'm interested in investing in domestic (e.g. S&P 500) and international index funds. My investing time period is 30-40 years. This is irrational, but I'm worried about investing now because the ...
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3answers
234 views

How can I get my mother to get to minimally understand the advantages of index investing?

She has a very long investing horizon (several decades according to actuarial life table), so index investing would be perfect for her. I'd like her to read "Little Book of Common Sense Investing" and ...
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1answer
48 views

What are the ways to price a holding company?

I would like to know how people value holding companies. I guess the most famous one is Berkshire ($BRK.A - $BRK.B). And others exist. These holdings usually have a lot of exposure to realestate, PE ...
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2answers
90 views

How to calculate return on investment when the asset increased in value?

A house bought some years ago for 100K earns 5K each year. That's rent minus costs of ownership (maintenance, electricity, local taxes). Today that house would easily sell for 150K. The rent and ...
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4answers
122 views

How to know if negative cash flow rental property is a good investment?

I am completely new to the concept of investments and investment property. I've done research on rental properties and negative cash flow but am unclear how to actually measure if something is a good ...
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2answers
110 views

Should Pay Loan Early or Invest?

Loan: 150,000, interest rate: 1.62%, period: 30 years, so monthly payment is about 700. Investable amount per month: 7000. (Don't need to take the returns from the investments to pay the loan.) I ...
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1answer
70 views

Insurance premiums as an investment opportunity

Here is the scenario: Let's say you are an insurance company and you pool premiums from policyholders in pools of different risk (low, medium, high). Now you want to propose to other people to stake ...
2
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1answer
79 views

Financial benefits of installing EV charger for landlords and employers

This question is based on the location: Vermont, USA. A lot of information regarding federal tax benefits are available online for Electric or Hybrid car owners. However, I am interested to know if ...
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1answer
176 views

Investing in Canadian Stocks as an American

I've been tracking the cannabis industry for awhile and would love to hop on the canna-stock wagon, but I'm not sure if Americans are allowed to invest in Canadian stocks. The companies I'd like to ...
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1answer
37 views

How sensitive are heavily traded options (SPY, AAPL) to brief price changes?

For example if SPY reached a day high of +2% but only for minutes, would call prices rise accordingly such that one could profit from the STC sale of an option of the same strike price?
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1answer
399 views

Money transfer from India to USA for EB-5 visa

My friend wants to sell his inheritance house in India. He wants to invest $500,000 USD in USA to get EB5 investor visa. How money can be transferred from India to USA legally? Also what forms or ...
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4answers
361 views

Trying to understand Return on Capital (Joel Greenblatt's Magic Formula version)

I'm trying to understand the Return on Capital formula, as presented in Joel Greenblatt's The Little Book that Beats the Market. Return on Capital = EBIT / (Net Working Capital + Net Fixed Assets) ...
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3answers
154 views

What prevents leveraged ETFs from exceeding their underlying value in times of high demand?

For example, today SPY decreased -3.17% and therefore the 3x Bear SPY ETF, SPXS, increased 9.85% - roughly equivalent to 300% inverse (310%). What if you somehow foresaw the decrease early in the ...
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1answer
30 views

Calculating approximate returns based on IRR

Given an investment opportunity, which quotes an IRR of 10% (for example), is it possible to calculate an approximate return on investment? Let's say the project life is 5 years and money invested is $...
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1answer
44 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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1answer
31 views

Is it likely for large buy to open orders to be filled on thinly traded options?

Suppose you are very bullish or bearish on a stock but its options are thinly traded. Some stocks have an options market that doesn't exceed $200,000 even around earnings time. Say you want to ...
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3answers
588 views

Is not investing in stock/shares a huge mistake?

I simply cannot understand how investing in stock/shares works. So I am too scared to invest/buy any of these, although I do have Roth and 401(k) plan through my employment. By not investing in the ...
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0answers
22 views

Can a US based NRI avail to PMS(Portfolio management service) in India

I am an NRI with H1B visa in US and I file my taxes here in US. Can I invest in Indian stock market via PMS(Portfolio management service) in India? Will this be considered as PFIC?
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1answer
62 views

Deciding to pay off loans vs. invest [duplicate]

I have $23k in student loans and pay $400/mo on them. I have about $2500 left over after my bills each month. I have a 401k and am already contributing the maximum on it. Does it make sense to spend ...
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1answer
103 views

Bond Issuance Question

During a new bond issue how do the bankers/advisors determine an initial price for the bond? I know that during an IPO the investment bankers will guage demand for the issue, and price the issue ...