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.
3,267
questions
2
votes
3
answers
169
views
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 ...
- 131
3
votes
1
answer
189
views
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 ...
- 33
0
votes
0
answers
58
views
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....
- 33
2
votes
1
answer
935
views
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 ...
- 1,245
1
vote
0
answers
57
views
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 ...
- 123
-1
votes
2
answers
66
views
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 ...
- 1,058
0
votes
1
answer
98
views
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 ...
- 103
1
vote
1
answer
260
views
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?
0
votes
1
answer
331
views
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 ...
1
vote
1
answer
85
views
Margin Trading Questions (Reg T, Scaling in, Deposits)`
I'm researching how to effectively trade on margin and I'm having trouble visualizing some scenarios and I haven't been able to find anything online so any help would be greatly appreciated.
Here are ...
- 11
2
votes
2
answers
569
views
Do we get EPS (Earnings per share) if I buy Google's stock?
I am a newbie at investing. I just read that Google's IPO price was $85 per share. If I had invested $1000 to buy 11.76 shares at that time, then assuming that its stock price is $2,750 per share ...
0
votes
2
answers
204
views
Where does the formula for terminal value come from?
I am a beginner investor and I had this doubt in DCF models of valuation.
Where does the formula for terminal value even come from? Like I have seen this video: https://www.youtube.com/watch?v=...
- 103
12
votes
9
answers
4k
views
My ignorance keeps me awake at night (specifics below) [closed]
I feel like a financial idiot, and I'm worried that I might be overlooking opportunities and making big mistakes that I will regret later. So, I'm looking for a sanity check on my finances from people ...
- 273
3
votes
2
answers
277
views
Friend has 90k USD after a home sale, use it to buy a new home in new location or pay down med school loans?
I have a friend. He is an up-and-coming doctor. This means he has about $160k in student loans. The interest rate is about 6%. In a month or two he is selling his house. From this sale he will have ...
- 1,193
2
votes
2
answers
94
views
Taking temporary loan from my relative to invest in an LLC in USA
This question is in context of USA.
Background: My brother and I plan to invest money in an LLC that will invest in a startup. I will take a temporary loan at 0% interest from my brother to invest in ...
- 395
1
vote
0
answers
46
views
Pros/Cons of Foreign Ordinary Shares vs International Markets
As a US investor I have several options to invest in foreign equities:
Direct investing in a foreign market (ASX, TSX, TSXV, etc.)
ADRs (Y-class shares on OTC, not always a 1:1 ratio)
Foreign ...
- 353
2
votes
2
answers
308
views
Reduce salary in exchange for higher employer 401k contribution?
Would it be in my interest (assuming my employer agrees) to reduce my salary by x amount in exchange for an increase in employer 401k contribution for x amount?
For example if I make $150,000/yr and ...
- 315
0
votes
3
answers
203
views
Is it reasonable to expect the return on my savings will match or exceed inflation?
I am doing some modeling on retirement savings. Variations on the rate of return for savings during retirement (this is, after one has retired) as well as the inflation rate yield very different ...
- 1
0
votes
1
answer
62
views
How should I schedule pulling money from investments for home purchasing?
I'm getting married this year, after some delays for reasons you can probably guess. Afterwards -- so in six months or so -- we are hoping to buy a home. Of my money, roughly a third of it is in cash ...
- 101
0
votes
2
answers
411
views
How can one do their own algorithmic trading (does Robinhood and/or Webull provide a REST API)?
In order to do algorithmic trading one needs more than just access to a commercial app like Robinhood or Webull. Their tools give individuals access to a range of tools, but all the execution of ...
- 327
0
votes
3
answers
268
views
Why shareholders don't always get dividends?
"Public corporations have no legal obligation to pay dividends to common shareholders, no matter how profitable they are or how much cash they have"
Does that mean we don't own part of ...
- 55
1
vote
1
answer
126
views
If I raised X dollars of venture capital for my startup business, is that X dollar my personal money now? [duplicate]
If I sell a portion of my startup business to a venture capitalist for X dollars for the purpose of raising funds, is that X dollars my own personal money that I can do whatever I want with? Or am i ...
0
votes
1
answer
178
views
Stock Analysis Equation Questions
I am a newer value investor and I am trying to slowly learn. I came across these equations and I am not able to find for sure online or in the books I have available what these abbreviations/acronyms ...
- 9
-1
votes
1
answer
82
views
Is IRR in VC different to IRR in accounting
I am coming from a more accounting background and I always understood as IRR to be a discount rate that would lead to an NPV of a project to zero. That is to say that IRR is how much value money loses ...
- 11
1
vote
1
answer
58
views
Has anything changed since 2019 regarding selling shares within 30 days of purchase being deductible for tax purposes?
The upvoted answers to this questions, if correct, indicate that, under US law, if one buys and sells an equity within 30 days for a loss, and does not repurchase anything substantially identical ...
- 11
1
vote
0
answers
62
views
Resource(s) for becoming financially literate [closed]
I'm looking for some resources for becoming financially literate, something for absolute beginners. Can be in any shape or form, doesn't matter for me as long as the content is accessible.
For more ...
- 11
6
votes
1
answer
632
views
It's official - I've paid off my student loans. Now what?
I paid it off. (Before you congratulate me, I'd like to remind you that I imagine this must be how it feels getting released from prison.)
But now there's $1100/month that I was paying toward that ...
- 198
2
votes
4
answers
1k
views
Fidelity funds vs S&P 500 (Is fidelity just "bad" at managing money?)
I invested a bunch of money around March (~9 months ago) in a Roth IRA. I am getting ready to rebalance, and put more money in this January.
I was very attracted to Fidelity's ZERO funds, and put some ...
- 167
1
vote
1
answer
95
views
Company exceeding Index weight percentage cap
I was looking at the Index MSCI World SRI Select Reduced Fossil Fuels where it says:
The Index is float-adjusted market capitalization weighted and a 5% capping with
10% buffer is applied on issuer ...
- 11
0
votes
1
answer
62
views
What does "existing balance sheet cash" mean for a company, as compared to actual cash and cash equivalents?
I read that Li-Cycle (LICY), a Li-ion battery recycling company, is increasing the size of a large recycling plant. To do this:
The Company estimates that the Hub will require a total capital ...
- 1,058
0
votes
1
answer
61
views
Why ETF Actual Dividend yield differs after only 3 months
Will take IDVY.L as an example, dividends paid per share in September - 26.74p (30.91¢), projected dividends in December - 2.004p (2.35¢) - 13 times less.
Another example - IUKD - 3 times difference
...
- 101
1
vote
1
answer
147
views
What are the rights of a minority shareholder in a public company?
Suppose in a listed company, the promoter owns more than 51% of shares. In that case, what prevents the promoter from exerting his own free will, like appointing his own family/friends in important ...
- 11
0
votes
1
answer
344
views
Reasons to not have multiple investment accounts to avoid SIPC limit
Most brokerages in the US are members of the SIPC. The SIPC provides an insurance for customers up to $500,000 for cash and securities held by the brokerage in case of troubles (bankruptcy, assets ...
- 133
2
votes
1
answer
202
views
Violating bank policy by not disclosing brokerage account and short selling
I live in U.S and work as a software developer (back office) at an investment bank. I don't have those series 63 license that needed to be registered with Finra, and my work is nothing at all ...
- 21
3
votes
0
answers
188
views
Are there any legal risks/implications of this indirect gold purchasing process
Setup:
My wife and I live in UK. My In-Laws are UK expats currently living in Switzerland.
They are investing some of their savings into Gold Bullion. (not interested in any assessment of that ...
- 2,266
-2
votes
2
answers
242
views
Handing multiple people pooling money into a crypto that compounds
This might be an odd one, but I’m looking for some advice. I have a few people wanting to pool money together into a crypto that compounds.
I’m looking for a good way to record the percentage that ...
- 113
1
vote
1
answer
119
views
Renting a basement suite out for income, that has a lower ceiling - Data on percentage of renters to consider this a deal breaker [closed]
I'm in the market to move out, and I'm eyeing bungalows, mostly those that are built in the 1950's and 1960's in Winnipeg, Canada. I'm wanting to live on the main floor and have a tenant occupy the ...
- 11
2
votes
1
answer
76
views
Does the transfer of an investor's Legal & General fund to Fidelity reduce diversification?
I live in the UK, and over the years have put savings into funds with several different institutions with a view to diversification to reduce risk. Two of these institutions are Legal & General ...
- 191
1
vote
1
answer
80
views
How can I calculate an efficient way to rebalance?
Having a math related issue, and I feel like the solution is obvious but I just can't get it for some reason. Let's say you have four sector ETFs (or stocks, whatever really). You want to maintain ...
- 111
25
votes
10
answers
12k
views
Why doesn't common investment advice include the idea of pulling out of the market during downturns?
The most common advice goes somewhat as follows:
Every month, save as much money as possible after paying down your high interest bills
Put that money into an index fund
Reinvest dividends
Enjoy your ...
- 5,832
0
votes
2
answers
276
views
What is ipo issue size and how they decide ipo issue size
What is IPO issue size?
How they decide IPO issue size? I am asking about IPO issue size like 5000 cr. How they decide this size and what can be maximum IPO issue size? Not IPO share price.
- 55
1
vote
3
answers
157
views
How exactly can I benefit from straight line depreciation on my property?
I have a rental property and have been reading heavily about straight line depreciation but I'm not quite grasping what it is and how I can benefit from my $4,092.92 deduction come tax season? After ...
- 13
0
votes
2
answers
506
views
Better to withdraw from 401k or take out home equity loan for investment opportunity?
There is a fast-approaching investment opportunity (January) that I very strongly believe will have significant short-term (2x - 5x within a matter of months) and long term returns. I need ...
- 103
0
votes
2
answers
131
views
How to prioritize paying back loans based on interest?
If I have a loan at 0% and can get a 7% return on my capital, then I wouldn't want to pay back that loan until the absolute last moment.
If I have a loan at 14% and can get 7% return on my capital, ...
- 101
-1
votes
1
answer
91
views
Why do promoters in public companies sell their shares and reduce their holdings?
Promoters in public companies can sell their shares and reduce their holdings. Why do they want to reduce their holdings?
- 55
1
vote
1
answer
133
views
Why does IPO share price decrease?
Assume that I subscribe to an IPO at 1000rs and when it begins trading, its price decreases because IPO subscribers are selling the stock. Why do they subscribe if they're going to sell at a lower ...
- 55
0
votes
0
answers
70
views
Quantifying and hedging for FX risk
So I am new to investing and currently use an AUD account to invest, but mostly trade USD denoted instruments (mainly XAUUSD). Therefore I am getting unwanted exposure to AUDUSD because of the ...
1
vote
2
answers
224
views
Using margin/leverage to buy index funds [duplicate]
Brokerages like IB has pretty low sub 2% interest rate per year while index fund grows 10%. Is using borrowing/margin to amplify and purchase more shares of stable growth stocks like snp500 index ...
- 2,003
-2
votes
1
answer
80
views
If I lose money one year, and make them back the 2nd, can I still be at a net loss due to taxes? [closed]
Say I invest 100 dollars and lose 10 dollars in year 1.
I then make those 10 dollars back in year 2. If this is taxed, then I will get less than 10 dollars back, therefore currently having less than ...
- 101
0
votes
0
answers
92
views
Do I owe money if my loss is more than my overall account balance/equity with a fixed funds account?
I'm pretty new to trading and have been paper trading for some time, so I'm not sure about this stuff.
For context, I was messing around and practicing paper trading when I saw that my loss was more ...
- 1