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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17
votes
6answers
2k 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 ...
45
votes
18answers
20k views

I carelessly invested in a stock on a spike near the peak price. How can I salvage my investment?

I carelessly invested on stock on a spike (I have been persuaded by a family member) and now my investment value is really low, as you can see below. Is there anyway to salvage my investment for ...
29
votes
7answers
3k views

Shares: are they really only for the rich/investors?

I've always been under the impression that if you want to be a player in the "shares game" you either have to be an full time investor, or someone who has a lot of money to play with. Is ...
22
votes
10answers
31k views

Is the stock market a zero-sum game?

In the stock market, over both the short and long-term, does someone necessary need to lose in order for someone else to make a profit? If not, then more fundamentally does something — in the most ...
26
votes
7answers
8k views

What prevents investors from buying high yield stocks and selling them as soon as their dividend is paid out?

What prevents investors from buying high yield stocks and selling them as soon as their dividend is paid out? I guess I am confused: If you know the yield and when the dividend will be paid out, why ...
25
votes
3answers
9k views

Does investing in a company support it?

I ask this question in the context of investing in "ethical" companies, as someone I know wants to do in order to support them. My understanding is that when you buy stock, you're just exchanging ...
37
votes
9answers
17k views

Is it legal to “mine” dividends?

Dividends are paid to share holders based on ownership of shares before the “ex-dividends” date. Example: Stock A has an ex-date of July 1st Stock B has an ex-date of July 15th Stock C has an ex-date ...
11
votes
4answers
21k views

Company stock listed in multiple exchanges?

Some companies apparently have their shares listed in multiple exchanges. For example, I think that a company can be listed simultaneously in New York, London, and maybe even some Asian markets - is ...
11
votes
2answers
1k views

How can I purchase Skype stock during the IPO?

Skype will be going IPO soon. How can I purchase their IPO stock?
11
votes
3answers
3k views

Is my investment strategy a form of fundamental indexing?

I have a peculiar investment strategy for building up my portfolio. I invest in companies that produce what I need. To illustrate my investment strategy, it works in the following manner: I identify ...
10
votes
3answers
3k views

Should I wait a few days to sell ESPP Stock?

I have read three other threads about employee stock purchase plans (I get to buy company stock at a 15% discount) and come to the conclusion that I should sell most of my shares immediately after ...
10
votes
2answers
25k views

What happens to public shareholders when a public stock goes private?

I feel like an idiot for buying ZNGA at $3/share. Now, there is talk of having the company go from public back to private? What does this mean for me as a public shareholder?
7
votes
3answers
2k views

What happens to a short seller, who wants to close his position, but there are no shares available for sale?

For the sake of argument, let's assume a scenario, where the company is very illiquid, and there are no shares for sale and even increasing the buy order doesn't produce sellers. What happens to the ...
5
votes
4answers
6k views

Will ADR owner enjoy same benefit as common shares holders

Currently, I would like to invest in the stock of HSBC. Details on Google Finance Details on Yahoo Finance I am not sure whether I should purchase from the Hong Kong or US stock market. What I know ...
4
votes
1answer
520 views

Indian Demat account

I just converted my savings account to NRO and created a new NRE account. Now the bank is asking me to convert my demat to NRO demat where I need to close my exising demat account and open a new NRO ...
19
votes
1answer
1k views

What's the differences between a discount broker and a regular broker?

What are the differences between a discount broker and a regular broker? "Discount" implies a price difference... but why can they be cheaper than regular brokers??
12
votes
3answers
2k views

Should I exclude bonds from our retirement investment portfolio if our time horizon is still long enough?

My wife and I (ages 35 and 38) have 25-30 years until we reach retirement age, and I'm doing some research regarding our asset allocation. In addition to various podcasts, articles, and online posts, ...
12
votes
1answer
3k views

Is there extra risk in owning an ADR vs. the underlying stock?

One of my favorite on-again-off-again recovery plays is Mittal Steel (NYSE: MT). I buy the MT ADR there (American Depositary Receipt) because I live in the US. Am I exposing myself to any extra risk ...
10
votes
1answer
2k views

If a startup receives investment money, does the startup founder/owner actually gain anything?

I am a bit confused on this topic. You hear a lot of stories now on how startup X received X million dollar from X VC firm. But I'm unsure whether the owners of the startup are actually 'making money' ...
8
votes
5answers
5k views

Dollar-cost averaging: How often should one use it? What criteria to use when choosing stocks to apply it to?

This may seem like a simplistic question, but I haven't found any great answers on it yet. How often should one use dollar-cost averaging? What criteria do you use when choosing a stock to apply ...
7
votes
1answer
3k views

For a single company listed in multiple exchanges in different countries, are the shares being offered the same?

For a given company ABC, which is listed in PSE, DEU and ASX. Are the shares being offered in DEU the same shares being offered in ASX and PSE? What's the difference if a person buys it in DEU versus ...
7
votes
2answers
895 views

Mechanics of forward stock split

Apple (AAPL) recently announced that they'll undergo a 4:1 stock split. Here are the relevant dates per a CNBC article: The shares will be distributed to shareholders at the close of business on ...
6
votes
9answers
3k views

Are stories of turning a few thousands into millions by trading stocks real?

I've seen stories on the internet, people got rich from only a few thousands by trading stocks. I've seen some trading academies claim offering courses that can help you to make a living by just ...
4
votes
5answers
12k views

Is it possible to trade CFD without leverage?

I'm new to trading. Based on what I read, trading CFD involves high risk because of leverage. Is it possible to trade CFD stocks without leverage (in Etoro for example)? If this is possible, then I ...
4
votes
2answers
659 views

Can the shorting of S&P futures negatively affect the underlying index and constituent stocks?

I hear people on financial shows talk all the time about index futures like SPY and QQQQ affecting the actual index. Can shorting these futures (in huge quantities obviously) cause the underlying ...
3
votes
2answers
602 views

How to check I own a stock not involving a broker

I want to check whether stocks I bought with my online broker are really mine. Obviously I can use my broker's desktop application, web-site, or go to their office and ask. The question is: "Is ...
2
votes
2answers
1k views

What are the risks of allowing my stock broker to lend out my shares to short sellers?

Some types of brokerage accounts allow the stock broker to lend my shares to short sellers (probably without needing to notify me). Do I incur any risks when I sign up for such accounts? Is there any ...
2
votes
1answer
110 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 ...
33
votes
2answers
4k views

What happened to Home Depot's Stock in 1988?

I was exploring various stocks this morning on Google Finance, and I came across some strange behavior for Home Depot (HD) in 1988. For the entire year, the stock traded incredibly low, and at ...
11
votes
5answers
14k views

What percentage of my portfolio should be in individual stocks?

It's easy to find guidelines for how much of my non-retirement portfolio should be in stocks as an asset class (i.e. via mutual funds) but I'm having trouble finding recommendations for how much ...
11
votes
2answers
810 views

What is the “Bernanke Twist” and “Operation Twist”? What exactly does it do?

I was reading the article Bernanke’s Twist Sharpens Year-End Anxiety Over Stimulus and In the article it says The Fed on June 20 extended its Operation Twist program to swap $267 billion in ...
11
votes
4answers
8k views

What percent of a company are you buying when you purchase stock?

Lets say I buy a share of Apple stock. When you talk about stock, you say you are buying a small amount of the company. How small would 1 share of apple stock be at the moment you are answering the ...
7
votes
1answer
271 views

How did the WallstreetBet community know that Game Stop was shorted so heavily?

What I understand from the whole Game Stop soaring stock prices event is that Game Stop stocks were in essence shorted too heavily, there were more stocks borrowed/shorted than in existence. This ...
7
votes
1answer
273 views

Why adjust for inflation annually, as opposed to realising it after the holding period?

Why do investors offset their annual returns against inflation, when inflation isn't realised until the end of the holding period (when the investor is actually spending the money)? An example: ...
5
votes
1answer
1k views

Are Investment Research websites worth their premiums?

There are websites that claim to own formulas that outperform the market. Examples of these websites are - Zacks Investment Research or Investors Business Daily. Each keep a list of equities that they ...
5
votes
3answers
328 views

question about short selling stocks

I'm trying to wrap my head around short selling. Online the explanations i found talk about borrowing a stock from your broker, selling it at a high price then waiting for the stock to drop in price ...
4
votes
1answer
857 views

What is this discrepency between Fidelity's and Google's stock price chart; large price spike?

I generally use Google throughout the day to track the price of stocks. I understand there can be minor discrepancies between sources based on the time the data is collected and how it is displayed ...
3
votes
3answers
4k views

Is it possible to own more than 100% of outstanding shares?

Suppose there are 100,000 shares outstanding. I own 90,000 shares. I allow my shares to be lent to short sellers. Short sellers borrow 30,000 shares from me and they sell those shares on the market. I ...
2
votes
2answers
187 views

How could strike price for new shares be higher than the market price

A company has made an application for new Ordinary Shares. The new Ordinary Shares will rank pari passu with the existing Ordinary Shares. Also the company issues Ordinary Shares in respect of the ...
2
votes
2answers
143 views

Taxes on selling shares bought over a period of time

If I bought shares of stock abc over a period of time for example: 50 shares @ $100 1 year ago (long term capital gains) 20 shares @ $120 2 months ago (short term capital gains) Today the price is $...
1
vote
1answer
129 views

Why do I get charged more than the depositary fees + withheld taxes on my American Depositary Receipt (ADR)?

I have 894 shares of AXAHY (which is an American depositary receipts (ADR)) on my Fidelity brokerage account. According to this answer by Flux, the depositary fees for AXAHY in 2020 are 0.04 USD per ...
1
vote
3answers
696 views

Can a wealthy investor invest in or make a deal with a company before it goes public / IPO?

Can a wealthy investor invest his money in any company before it goes public / IPO? I am referring to a recent Goldman Sachs and Facebook deal worth $450 Million at a valuation of $50 Billion dollars. ...
1
vote
6answers
873 views

Why do stock prices rise when dividends increase?

It seems like stock prices rise when dividends increase unexpectedly [possible citation needed]. This doesn't seem intuitive to me, because if you think of stock as a claim of ownership on a company, ...
59
votes
14answers
31k views

Is it a lie that you can easily make money passively in the stock market?

People on this site often recommend that investing in an index fund is a good, passive way to make money long-term. But this is clearly not true. Even if we ignore the risk associated with ...
27
votes
13answers
20k views

Should I sell my stocks when the stock hits a 52-week high in order to “Buy Low, Sell High”?

I have a 10 stock portfolio and considering market conditions that are on the rise when this question in being asked, a few of them did hit their 52-week high price. I would like to call myself a ...
64
votes
10answers
16k views

Are Index Funds really as good as “experts” claim?

I use the quotations because generally the people touting these the most (John Bogle) are also ones selling the index funds. Being biased doesn't mean they're wrong, but it does mean they may not be ...
17
votes
5answers
34k views

Historical stock prices: Where to find free / low cost data for offline analysis? [closed]

I am looking for a free way to get a large amount of data on the prices of stocks. I am not a trader or anything like that so it wouldn't be worth it to pay for a service to give me stock prices. I ...
54
votes
6answers
34k views

How can a company use money from stock investors when they are constantly being bought and sold?

I am interested in the mechanisms which a company can use the money that investors give them when they buy a public stock since they are being bought and sold constantly. How can a company spend other ...
50
votes
2answers
5k views

What is the difference between shares, stock and stakes?

What is the difference between shares, stock and stakes? For a layman, many times it seems they are used almost interchangeably.
42
votes
12answers
26k views

Can the stock price go up even if no one is buying?

Let's assume there's this random company (XYZ)--that few are aware of--is selling stocks and they're doing really well. If their stock price is at $50 and no one is buying, will it still go up? Do ...

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