Questions tagged [stocks]

This tag is to be used for any questions related to Stocks. Ideally they should be accompanied by a country tag if relevant. It is discouraged to ask question about a specific stock. However an example can be used to illustrate a point.

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2 votes
2 answers
2k views

selling one day before the ex-dividend date after 4pm (during extended hours)

Suppose I have a stock ABC of 1000 shares whose ex-dividend date is May 20 (Wednesday) and I sell 500 shares after the market closes on May 19 (Tuesday) during the extended hours of trading, say at 4:...
2 votes
2 answers
165 views

Why are preferred shares in the Korean market traded at a discount?

According to the answers here, voting rights don't really matter when it comes to the price of shares. Also, I am not sure about the US market, but in the Korean market, a preferred share usually pays ...
10 votes
4 answers
3k views

Why is the price of Berkshire Hathaway B class shares proportional to the face value and not the voting rights?

So there are BRK.A and BRK.B. The face value of BRK.A is 1,500 times of that of BRK.B, and BRK.A has 10,000 times the voting rights of BRK.B. BRK.A is normally traded at about 1,500 times the price of ...
0 votes
1 answer
72 views

Dividends compared to stock prices [duplicate]

I'm new to stock market, and I'm wondering, if final idea behind stocks is that someday you will be paid back your investment in dividends and start making profit, how long does it usually take for a ...
2 votes
1 answer
111 views

Choice between equity and stock options

I am part of a tech startup and have just been brought on as the technical co-founder. My compensation is 100% equity for now, but I will likely be hired with a salary in the near future. The problem ...
-2 votes
1 answer
87 views

When we invest in a corporation that has high capital expenditure every year but it is buying warehouses, is that less of a concern?

I think the usual idea is that capital expenditure that goes to $0 value is not usually a good thing. For example, if a company needs to buy 5 new fancy coffee maker for $800 every 5 years, and the ...
5 votes
2 answers
333 views

How are stock options priced?

I was reading the Wikipedia article about the Black-Scholes model, and it says this: The key financial insight behind the equation is that one can perfectly hedge the option by buying and selling the ...
1 vote
0 answers
38 views

Where are the Direct Stock Purchases (DSP) sold?

I am new to stack trading. I want to understand if the stock bought directly from a company via Direct Stock Purchase and is in my Demat account, be sold through another Online Brokerage account I ...
1 vote
2 answers
3k views

How is it possible to buy call options with a strike price below current market price?

I'm a newbie with all of this. I've been reading on call options and from my understanding, you're paying some "premium" to buy an "option" to buy the stock at a certain fixed ...
25 votes
7 answers
151k views

Will there always be somebody selling/buying in every stock?

When buying or selling stocks, the transactions seem to take place relatively quickly. I could almost assume that someone will buy my stocks when I sell and someone will sell me when I want to buy. ...
1 vote
1 answer
169 views

How and when are stock shares created? Destroyed?

Apologies if this is a duplicate, but someone (quite possibly me) is confused about whether stock shares can be arbitrary manufactured at any time and in any quantity, or whether they in fact ...
1 vote
0 answers
146 views

Google Finance US dollar index

Why Google Finance does not process a quote for "dxy" - u.s. dollar index? what are prefix standards to specify various indexes, mutual fund and stocks traded on foreign exchanges? Thanks.
2 votes
1 answer
783 views

Origin of a market-maker's inventory

Could you please explain in the context of the OTCBB exchange Q) little known company goes public on the OTC with 40 shareholders whose securities have been registered assuming none of this base of ...
1 vote
2 answers
400 views

What is the role of a market-maker?

I am trying to understand the role of a market-maker. So, the best bid and offer depend on where orders are resting, and these orders are from retail investors or institutions or whoever. Why is it ...
3 votes
1 answer
2k views

Does each stock have its own designated market maker?

From Wikipedia: In the United States, the New York Stock Exchange (NYSE) and American Stock Exchange (AMEX), among others, have Designated Market Makers, formerly known as "specialists", ...
0 votes
1 answer
145 views

Does it make sense for a publicly-traded market-maker to profit a lot from a crash?

The Dutch publicly-traded liquidity-provider Flow Traders is doing extremely well on the Amsterdam AEX, which is currently crashing. Does that make sense? My idea of a market-maker is that their happy ...
1 vote
0 answers
660 views

What happens when a market-maker goes bankrupt during / as a result of an over-extended unsupported position?

The meme stocks have me thinking about the exchange backend. What happens when a market-maker / money-maker has an extreme position in a stock that is now unsupported by shares, just derivatives and ...
2 votes
7 answers
5k views

Is there a candlestick pattern that guarantees any kind of future profit?

I have been working with candlestick patterns for a long time. Bullish engulfing is my favorite because it almost guarantees that the succeeding candle will be green. So, I am sure of a profit, even ...
2 votes
1 answer
8k views

Does wash sale apply if I sell stock in profit and within 30 days rebuy and sell it at loss?

I am a a little confused with the wash rule statement that says "buying a share 30 days before or after". I understand the after. But the before is confusing. As an example: I buy 100 shares of A ...
0 votes
1 answer
120 views

Understanding cost basis for ESPP shares

On June 1, 2022 company's stock price was 100$ On November 30, 2022 company's stock price was 150$ On December 1, 2022 company purchased 10 shares for 85$. 15% discount applied to stock's price on ...
5 votes
1 answer
29k views

Why does Rolls Royce have 4 separate tickers, on OTC Markets?

I found at least 4 tickers for Rolls Royce RLLCF. This is Preferred Share? The others are Common Shares? RYCEY RYCEF RYCRF What are the differences? Are there any more for the US stock market? I ...
0 votes
2 answers
115 views

How can a company be losing money from year to year but have the same/increased cash and cash equivalents?

I am looking at a company (Uber) which to my knowlgede has no new investors. So how is it’s cash and cash equivalents slightly higher yoy. When it’s been losing money (yoy?
0 votes
1 answer
51 views

Cross Brokerage Wash Sale Help Needed

The following trades happened in a month: Day 4: Bought 83 Shares of Company A using Fidelity Day 5: Bought 118 Shares of Company A using E-Trade Day 7: Sold 118 Shares of Company A bought in E-Trade ...
0 votes
0 answers
69 views

Why is EPS looked at much more than FCF/S (Free Cash Flow Per Share)

I understand that eps is an important metric to look at when analyzing a company. (And I wont go into all the details of eps) But at the end of the day, the amount "you" have in "your&...
6 votes
5 answers
1k views

Online tutorials for calculating DCF (Discounted Cash Flow)? [closed]

What is the best online tutorial to learn calculating DCF (Discounted Cash Flow) for a stock?
7 votes
5 answers
13k views

Why doesn't change in accounts receivable on balance sheet match cash flow statement?

If we take a look at the balance sheet for Microsoft, I see Net Receivables as 21,485,000 [2014] and 19,118,000 [2013] On the cash flow statement, I see Changes In Accounts Receivables as (1,120,000)...
1 vote
2 answers
3k views

How do I Adjust for stock splits in Yahoo Stock Portfolio?

I have adjusted for stock splits before in my Yahoo Stock Portfolio and have printed out the steps but can't get it done now. Step 2 says after you have loaded the portfolio, scroll over the Modify ...
1 vote
4 answers
1k views

Put option - exercise when it expires but don't have enough money to buy stocks to sell

Ok, so here is my plan. I wanted to buy put options which will sell Tesla stock at Strike price 900 Euro in June, 2021. The price for an option is 2.3 Euro and I will buy 1000 options (total cost to ...
-5 votes
7 answers
1k views

How can you possibly lose on investments in stocks?

Is there any way to actually lose to stocks? Once you buy stocks on 'X' day of the month, the chances of stocks never actually going above and beyond your point of value on the chart are close to none....
15 votes
4 answers
12k views

Why can't I short a stock that sells for less than $5? Is there another way to "go short" on them?

I don't like satellite radio as a business and I want to short Sirius (SIRI). The stock sells for less than $5, so my broker won't let me short it. Is this a limitation of my broker? Or some SEC ...
5 votes
3 answers
353 views

Most cost effective way to realize profits?

Selling a security at a loss is subject to wash sale rules in the US, but selling a security at a gain is not. While they are rare, there are a few situations in which an investor might want to ...
1 vote
0 answers
53 views

Starting a family fund, owned by a parent company?

first post here. I have been doing some research, but I am still not 100% sure on this. A little background: I live in NY state, have a Bachelors Degree in finance and data analytics. My situation: I ...
3 votes
1 answer
50 views

Selling covered calls when the contract is over 5x the cost of the stock share

I just discovered that a stock I've held onto a few hundred shares of for a while, which is currently trading for about half what I paid (under a dollar a share) has an options contract for a covered ...
1 vote
1 answer
116 views

Would I have to personally pay UK taxes on any profits on Rolls Royce RYCEF stock?

I have read this answer and this webpage by Schwab; however, I am still a bit confused by the RYCEF Rolls Royce stock. Looking at the table on the Schwab page, is RYCEF a 'foreign ordinary traded in ...
2 votes
5 answers
409 views

Value investing

Does value investing work? More specifically, I've taken Dr. Damodaran's course on valuation (available online at his website) and have read parts of his textbook "Investment Valuation", and am coming ...
25 votes
1 answer
6k views

Why has IBM been trading at a fixed price of $118.95 in London for the last few years?

As far as I understand, IBM stocks are trading in New York at $141.83 currently, with 1.84m of shares traded daily(?) and some +7% change of price in the recent year: https://markets.ft.com/data/...
-1 votes
2 answers
223 views

How did the merger of Draftkings (DKNG) affect my holdings?

I am a beginner investor for stocks. Last year I bought Draftkings stock 220 @ $68.00 but after merger with Golden Nugget on May 4 2022. My share Cost changed from $68 to $14.44. My 220 shares didn't ...
1 vote
1 answer
97 views

What is the formula of ESTIMATED dividend yield?

If you're going to say it's based on last 12 months of dividends: let's sum up the distributions of last 12 months and divide that by which stock price? Stock price of the last day of the month? ...
1 vote
2 answers
3k views

Passive income for International student

After working 3 jobs and taking advantage of scholarships, I am seeking advice for earning passive income with F1-visa. It's amazing to be able 'buy' time to spent with the family!! I am very ...
1 vote
1 answer
213 views

Can NYSE market makers step in front of existing limit orders to fill an incoming market order?

Suppose the lowest offer on stock S is $10. This offer is not the market maker's offer. A trader places a market order to buy stock S on the NYSE. Can the NYSE market maker "intercept" this ...
38 votes
11 answers
12k views

Why do people claim that it's hard to outperform the S&P 500? It has only increased in value by ~1.5x in the past 5 years

Whereas companies like Google, Facebook, Netflix, Amazon, Apple have all increased anywhere from 3x-6x in value in the past 5 years. If you just stuck with those companies, you would have easily ...
1 vote
2 answers
266 views

How to choose an Online Investment Platform?

TL;DR: Although I know all the things I want out of an online investment platform, I have no idea how to find which platform best offers those things. I have spent some time organising and planning ...
1 vote
2 answers
130 views

Much difference in historic prices between brokers and others

I am analyzing e.g. TUI Group stocks. In XTB broker we can see peak at around 20 EUR, current price ~5.2 EUR: In Exante we can see peak at around 20 EUR, current price ~5.2 EUR: But when we check e....
1 vote
2 answers
372 views

May I Invest as a non accredited investor?

I want to join a website where they allow only accredited investors to participate in investments that they manage. I am not an accredited investor. However, in the past, I worked for the company and ...
0 votes
3 answers
320 views

Trading options and stocks under $1 per share at Charles Schwab shortly after the brokerage account creation

When creating a brokerage account at Charles Schwab, I see: January 05, 2023: Funds post. You can buy most securities, but we restrict withdrawals and trading of some securities, including all ...
0 votes
1 answer
84 views

Will broker release some of the margin to cash account if the market go in my favor?

Say the broker requires a init margin of 40%, and a maintenance margin of 30%. If I buy 10000 USD worth of stock, depositing a margin of 10000 * 40% = 4000 USD. How do I calculate the required margin ...
1 vote
2 answers
146 views

If I have a fixed amount to invest, should I exercise and hold NSOs or ISOs of my company?

I am trying to play some scenarios to compare opportunity costs and hopefully decide on which route, to maximize my gains (after all taxations). I formulated a spreadsheet to help me calculate a few ...
3 votes
2 answers
243 views

What is the meaning of the cellular signal icon in Bloomberg stock data?

What is the meaning of the icons highlighted in the image below taken from today’s European Market Opening as shown on Bloomberg?
1 vote
1 answer
153 views

Why did SHY ETF only drop 5% YTD but IEF dropped 15% when yield curve is inverted

I don't understand the pricing of these two ETFs. I understand the effect of duration risk, thus, making IEF more volatile but this explanation would contradict with the inverting yield curve. In ...
-4 votes
1 answer
103 views

When price is sitting at a Resistance Level, how can I tell if it will go "Up" or "Down" [closed]

I am looking for some advice in this area. I was doing some "backtesting" and charted the following image here (on a 1 Hr Chart): This is using a "Pitchfork" (which looks as though ...

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