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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25 views

Future value with contributions NOT increased for inflation

Let's say one starts with a portfolio balance of $1,000 and wants to contribute an additional $100/year. Future returns are assumed to be 5%/year. Future inflation is assumed to be 2%/year. If he ...
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1answer
60 views

How to compute unit average cost after capital gain distributions?

My question is about how and why the average cost of a stock is re-computed after the capital gain distributions of the corresponding fund. I'll give the actual example that confuses me to ground the ...
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1answer
79 views

Rundown on minimum initial investments?

I found while looking at money market/purchased money funds that while there is no minimum initial investment for SWVVX ("investor shares") there was a minimum initial investment of $1,000,...
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439 views

Why does society require the common man, who is not at all interested in finance, to engage in investing? [closed]

I am a young graduate who is 3-4 years into his job, and has just started to make enough savings from my job that I am debt free now, and hence having to look into stock market trading/investing so ...
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How to find capital gain from 1099 B form automatically [closed]

Are there any program that can import 1099 B pdf file and then calculate capital gain for me automatically ? Turbotax sorta able to do this. However, Turbotax won't let me upload the form, but they ...
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2answers
432 views

Capital Gains on same stock but two different accounts

I have two different personal accounts. One on Robinhood and one with Webull. I have many shares of a stock in Robinhood that I am trying to hold for a year or more before I sell. At the same ...
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0answers
86 views

Can I transfer stocks from a margin account to a TFSA to avoid capital gains tax?

I am new to trading and ended up opening a margin account rather than a TFSA a few months ago. I know I can sell my stock and then buy it again in the TFSA, but the stock price has gone up and I am ...
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1answer
319 views

Google Sheet formula for annualized returns - doubts

I'm trying to setup a calculator in google sheets where I calculate the future value of investing for example: a principal of 10.000 into which I deposit 1.000 every month the investment doesn't give ...
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1answer
137 views

Which laws prevent a corporation with a 51% stake in another firm from exploiting the minority shareholders?

What are the relevant laws which prevent a corporation with a majority stake in another firm from acting against the interests of the minority stakeholders? Such a corporation could, for example, use ...
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2answers
2k views

How does a fund's expense ratio work?

There are several posts here but I cannot wrap my mind around it. Suppose a fund has an expense ratio of 0.055%, as I understand it that means $55 per $1000. Where do the expenses come from? Is every ...
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2answers
130 views

How are dividends taxed if there is no wage income?

Based in USA. How are dividends taxed if an individual does not have wages from labor?
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1answer
105 views

Basic Stock Questions

Hi I'm new to stock trading and have a few questions: If I put in $100 into a stock, the stock rises and I take out $120, do I only pay taxes on that extra $20? If I put in $100 into a stock, can I ...
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2answers
93 views

Why analysts' estimates may differ significantly from market prices and should I follow their recommendations?

Consider the following screenshot from Thomson Reuters Eikon with the freshest price targets for Sberbank (Russia's most expensive bank): As you can see, the price targets range from +12.36% to 57.31%...
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Non-US citizen/resident trying to begin trading options and futures

I'm from Brazil and I already trade shares, options and futures here for ~5 years in the Brazilian stock market. I began trading shares in the US stock market a few months ago using the Passfolio ...
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1answer
132 views

What happens if too many investors want to purchase a given ETF? [duplicate]

I wonder what happens if too many investors want to purchase a given ETF. On one side, the ETF share price is approximately the sum of the ETF holdings divided by the number of ETF shares, since ...
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0answers
93 views

What do I need to do to prepare for starting a business? [closed]

I have this service business that I've been working on the backend (planning, relationships, coding etc) for a couple of years but I don't know how I can get the time/money to launch it. I work 40 ...
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0answers
42 views

Reports that demand regular review

I am a long-time long position holder, but am moving into more aggressive trades. I am not really looking to do "day trades" but rather in a 2 day to 90 day position. With this context in ...
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1answer
56 views

JJN Barclays iPath Bloomberg Nickel Subindex ETN , What happened in 2018 to its price?

What happened to JJN price history? Barclays iPath Bloomberg Nickel Subindex Total Return ETN Series B In January to March 2018? I am trying to understand its price history for analysis, don't see any ...
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0answers
42 views

What are some issues with ETN Commodities Indexes?

I am thinking of buying, two ETNs in Commodities Metals (Copper, Nickel). I am curious of risk factors for these. Besides Barclays Bank going bankrupt during a market crash with unsecured ETN debts, ...
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1answer
74 views

After some help with Rolls-Royce Holdings PLC (RR.L)

I need help understanding RR.L(Rolls Royce Holdings Plc) Charts. Same graphs , same time frame but different side numbers what am I missing??? Here🤔??? Here’s some pictures. Any help cheers!! https://...
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1answer
133 views

DEGIRO: Is Debit Money better than an MMF-ETF short for leveraging?

I was looking into the options of leveraging my main index fund by a certain amount and was recommended to use Degiro's inhouse credit product "Debit Money". Current annual cost: 1.25% pa ...
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1answer
52 views

How can an investor assess the tax efficiency of an ETF?

I read on this answer by mhoran_psprep The tax impacts [resulting from the ETF manager changing the ETF composition by selling + buying stocks] are assigned to the investors. This means that if two ...
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2answers
77 views

How are ETFs, especially actively-managed ETFs, taxed when changing their portfolio?

For example, let's assume some ETF sell their 1k USD position in stock A, purchase 1k USD of stock B, and sell it two months after. How would this ETF be taxed and how does this impact the investors ...
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3answers
195 views

The Buffett Indicator and Entering the Market

I was reading recently that markets are overvalued, and came across a term called the 'Buffett Indicator' from Warren Buffett: The "Buffett indicator" divides the combined market ...
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1answer
170 views

Is it legal to get free advice from a friend regarding investing?

My son does not have any securities licenses but has been DESTROYING the market for almost two years. I want to start trading based on his advice. I don't need warnings about "what if you lose ...
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12answers
8k views

Hedging vs just betting less

This is a question from a layperson about the fundamental concept of hedging, with regards to investing, gambling, and any situation in which hedging is used to manage risk. I do not understand why ...
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2answers
117 views

How to convert annual rate to monthly rate for personal investment?

If we have an annual rate of return of 7% for our stock investment, how much is the monthly rate? First of all, why might we want to use monthly rate: that's because we may do monthly contribution of $...
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1answer
124 views

How to calculate unrealized gain/loss on your entire crypto portfolio

I read a lot of places where it takes the following steps to calculate unrealized gain/losses: step1: Multiply the price you paid per share by the number of shares purchased to calculate your cost for ...
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1answer
37 views

Computed 401K RoR differs from broker's information

I have a 401k through Fidelity and have recently started being more active in the market. I was haphazardly selecting funds that seemed to do well but apparently wasn't the most advantageous due to ...
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5answers
7k views

How much money do I need to retire?

Assume that I need $15,000 (USD) per year to cover all my costs including health insurance. How much money do I need to retire? The naive approach would be something like this: An ETF gives, on ...
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1answer
59 views

Why does a steepening bond yield curve usually result in a price increase for stocks in the financial sector?

ARK Invest CEO/CIO Cathie Wood mentioned on 2021-01-08: We're seeing the yield curve steepens, i.e. long rates are going up but short rates are not, because the Federal Reserve is holding them down. ...
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5answers
5k views

When I retire, should I really pull money out of my brokerage account first when all my investments are long term?

Preparing to retire and I've looked at a lot of info on the internet and it all says the same thing: pull money out of your high taxed brokerage account first so you leave all that tax deferred money ...
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1answer
173 views

Accredited investors when W-2 Box 12 reduces Box 1 income

My understanding is that to be an "accredited investor" as defined by the SEC, an individual must have $200,000 of earned income two years in a row. If a person has pre-tax deductions from ...
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1answer
303 views

As an US citizen living in the US, if I buy/sell stocks on the London Stock Exchange do I pay taxes to the US and the UK?

I am a U.S. citizen, living in the United States. I am interested in buying shares of a company that is traded on the London Stock Exchange, but not in the US (including as an ADR). I've tried ...
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2answers
963 views

Is investing in index futures better than investing in index funds? [duplicate]

Given that futures price is equal to S*e^(rt), it is possible to create a synthetic investment into an index by: entering into an index future for the amount of money which are planned to be invested ...
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1answer
37 views

How to compute a funds TER?

I’m getting started with investing and will be starting with ETFs. When searching for how to pick an ETF, a common term comes up: TER. As I understand it, the formula is total fund cost divided by its ...
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2answers
93 views

How do I report January 2021 wash sales in the 2020 tax return?

Do I need to report my January 2021 wash sales in my 2020 tax return or how are they handled? I have some wash sales in the month of January which are of course the result of similar transactions that ...
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1answer
181 views

Why doesn't this options investing strategy work?

I am trying to understand a certain investing strategy involving options. In the example I'm looking at, it seems one can obtain a stock for less than its market price, so there must be something I am ...
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1answer
94 views

How could i start an ETF or Mutual fund? [closed]

I want to start a mutual fund and an etf. How would i go about doing this? i would want it to be publicly traded on the market. Thanks for any answers!
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2answers
67 views

What could be the basis for computing your Cost of Opportunity?

For example, I bought 30 shares of X Company for $10/share in November 2016: 30 x $10 = $300 + 10% tax = $330 If I hold on to it until 2021 and the price of each share is around $11.50, Have I made ...
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2answers
115 views

What is a company allowed to do with investors funds?

Imagine there are two companies. Company A invests £1m in Company B. Company B stock price goes up. Company B now has £1m and decides to Invest in company A. Company A stock price goes up and with the ...
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4answers
114 views

Calculating a company's PE value

My friend has a startup comapny. The company licenses a software for public participation (example: a municipality wants to conduct a survey/discussion between it's citizens regarding changes they ...
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2answers
141 views

I bought a stock which I then sold for a profit and then bought it again same price. Am I liable for capital gains tax?

I bought a stock for lets say $100. I sold it for $200. I then immediately bought it again for $200 (in a different broker). All of this happened in the same tax year. The reason why I sold the stock ...
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2answers
86 views

How to self educate on securities analysis? [closed]

I am looking resources for self-education on security analysis. I read some books such as Intelligent Investor by Graham and trying to get further knowledge (will be using this knowledge for myself). ...
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3answers
169 views

When exercising a leap call option, do you keep the premium?

let's say that 1 stock of XYZ currently is 50$. I bought leap call option for XYZ with strike price 50$ and premium 10$. When exp date will come and I will exercise my call option. How much will I pay ...
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1answer
36 views

While calculating PE ratio of a mutual fund what do I do with negative earnings of a particular stock?

I am reading one of Peter Lynch's book and he recommends some decisions based on the PE of a mutual fund. While trying to calculate the PE of the mutual fund, I came across a member stock with the ...
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1answer
46 views

Life insurance and its risks on the insurer and the insured

Consider a life insurance contract designed for independent workers who have little salary and are afraid to lose their retirement opportunity: for example, they will always be obliged to work even ...
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2answers
162 views

Can I purchase shares of a privately held company as a non-accredited, non-US citizen?

I have a relationship with an individual in the US who owns a company that hopes to go public one day. I believe in his venture and would like to take part as an investor. However, I am not a US ...
21
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4answers
4k views

Could some of the other funds have done what Reddit did with Gamestop?

In general I understand the mechanism of the Gamestop event (short squeeze), but I am a bit confused as to why it happened only when Reddit investors got involved. I would presume that anybody with ...
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2answers
500 views

How can I verify ownership of shares bought using an application?

I am currently 24 and looking to start purchasing share for the long term investment of retirement saving. I am a little bit nervous about the entire process and I would hope somebody could explain a ...

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