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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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How does one use EPS as a valuable tool in evaluating an equity?
EPS (Earnings Per Share) is typically listed along with what seems to be much more insightful metrics for equities.
Is EPS useful in it's own right, or does one need to plug it in to an equation to ...
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Charles Schwab shows Ebay's PE as 21. Is that a mistake or a different way of calculating?
Using Charles Schwab data the TTM earnings for Ebay is 2.5B + 2.668B + 2.368B + 2.868B = 10.404B
Shares outstanding is 626M
So 10.404 B / 626 M = 15.9 EPS.
So PE is 58 / 15 = 3.86. How is Charles ...
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When is cash available to be withdrawn from Fidelity after selling stocks?
When is cash available to be withdrawn from Fidelity after selling ETFs and stocks?
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Buffett believes Bitcoin has no value and no future. Isn't it the same with stocks? [duplicate]
Just listened to Warren Buffett's thoughts on Bitcoin and he claims that Bitcoin is a non-producing asset which has no value. Buffet also points out that it is just the hope that others will be ...
