New answers tagged

0

Futures prices and stock prices are driven by the same thing, aggregate expectations of what the stock's price will be in the future. Conceptually that is why they always move together. If there is an exogenous shock in demand for one or other (like if a large buyer just decides to go long the futures contract) then arbitragers will work to make the prices ...


0

Short answer is no. A detailed one here https://www.thestreet.com/personal-finance/dear-dagen-your-short-sale-proceeds-draw-no-interest-from-brokerages-766798 Even though you might see a balance in your brokerage account after shorting a stock, you're actually looking at a false credit, according to one big brokerage firm. That money is acting as collateral ...


0

I'm going to throw in my 2 cents worth. Having been in a situation with several debts at varying intertest rates. I've done all the math (which I am not including here -- WAAAAYYYY to much). You cannot assume that interest rates or total balance is the way to determine which one to pay off first. After having computed many scenarios, the most accurate & ...


0

The reason you should pay off the highest-interest loan first is, in essence, quite simple. If you have a loan amount A that incurs an interest rate r, then after the first interest period passes, the loan amount is A(1+r). If you choose to pay off an amount n, then the loan amount is instead (A-n)(1+r). The difference is n(1+r). That is, the reduction of ...


7

It's the Fed (singular), short for the Federal Reserve, the US central bank. The Fed has unlimited ability to lend money and buy and sell securities. It electronically creates the dollars to do this. Normally it uses this power to control the short-term interest rate (which determines how cheaply businesses and consumers can borrow). But especially in a ...


0

Large sums of money are just a bit abstract. Compound interest is particularly weird, and I'll leave you to consult the many excellent answers that get the maths right. I'm going for intuition here. And perhaps it would help the intuition to talk about something more everyday. Perhaps, goblins. So, you're a mighty adventurer with a shiny sword, and as you ...


-3

The size of a loan or a payment doesn't matter. You always pay the highest percentage rate loan first.


23

Lets make the numbers a bit easier. Suppose the situation is as follows. Loan 1: $150.000 at an interest rate of 2% per year Loan 2: $50.000 at an interest rate of 4% per year This situation is equivalent with the following setup, where we split the first loan into three loans. Loan 1: $50.000 at an interest rate of 2% per year Loan 2: $50.000 at an interest ...


1

Another way to think about this intuitively: You have $380,000 in debt which is accruing interest at 1.69% each year. $40,000 of that amount gets an additional 1.91% interest applied to it every year (3.6% - 1.69%). If you have the option, you should obviously pay down that $40,000 "bucket" of your $380,000. Maths: Interest Paid = $340,000 x 1.69% ...


0

I'm surprised no one has mentioned this -- although some might say it's obvious, so obvious that no one is bothering to say it. But here it is: If either loan has a required minimum payment, make the minimum payment first. After that, pay the highest interest rate, but if some of your loans can be paid off quickly, like in a few months, you might want to ...


11

Geez. Everybody wants to give you a fish. I’d like to teach you to fish. What if? In the 70s, a program called Visicalc put PCs on every manager’s desk because it let you “play” with numbers. Change a number and see what happens. Today, you use Microsoft Excel for that same thing, though Apple Numbers or Google Sheets will do the same thing. Excel etc. ...


0

You have a loan of $340k at 1.69% and one of $40k at 3.6%. Let's say you have $10k available to put towards paying off the loans. Case 1: pay off $10k on loan 1, then you'd have: $330k at 1.69% $40k at 3.6% Case 2: pay off $10k on loan 2, then you'd have: $340k at 1.69% $30k at 3.6% In both cases you have (at least): $330k at 1.69% $30k at 3.6% The ...


18

Here is a simulation using a simple program loop. It determines which loan has the largest monthly interest (i1 or i2) and allocates the repayment (d1 or d2) to that loan. A more refined version could look a month ahead (each loop) to find the optimum monthly repayments for each loan. I don't have time to add that at this time. r1 = 1.69/100/12 r2 = 3.6/...


3

Neither. If Person A, B, and C all transacted on the same trading day, the volume is 1 share + 1 share = 2 shares. Volume is not in $. Volume resets to 0 after each trading day.


7

The other answers give you essentially the correct response: after accounting for tax effects, $1000 applied to a high-interest loan saves you more than $1000 applied to a low-interest loan. However, there is one other minor issue that might push you to pay a (slightly) lower interest loan. It can be better to pay off loans that are either secured (on ...


94

This is an interesting question. Many people would tell you to pay the highest interest loan first. There are many others who would tell you to pay off the smallest loan first. In your hypothetical situation, both groups of people would tell you to pay on Loan #2 first. But you are proposing to pay off Loan #1 first, which is the loan that is both the ...


1

In scenario 2 after paying off the smaller high interest loan (#2) you should then start putting that $1000 towards the other loan, drastically reducing the length of that loan (to somewhere around 20 years).


48

The total balance is irrelevant. Try thinking about the interest in terms of each dollar borrowed. Just using simple interest, each dollar borrowed at 1.69% costs you $0.0169 for the year. Each dollar you borrow at 3.6% costs you $0.036 for the year. The difference between those (0.036 - 0.0169 = 0.0191) is how much you'd save in a year for each dollar of ...


1

It means that insiders (directors, senior officers) have significantly divested in their Zoom shares. See on this website, which appears to aggregate filings to the SEC on insider trading and which shows significant insider selling activity in the past few months. As for the stock being worth buying or not, that is your call. Insiders may have information we ...


0

This means that there are one or more people who want to buy this stock, but can't because there is nobody who wants to sell it. So the buyer(s) raise(s) their price by 4.95% every day, hoping to persuade some stockholders (like you) to sell the stock to them. If you want to get rid of this stock, then you should be able to take them up on the offer. Unless, ...


0

There is no problem in selling, I haven't seen anything like buyers only... its many people are bullish and there is a buying sentiment on the stock


5

Confidence OK, so you are 24. You know investing exists... you know you "ought to" do it, i.e. it beats the 1% the bank pays. But you don't know a darn thing about it or how to do it. What you do "know" is that investing is an extremely complex and byzantine world... with lots of dangers. You don't feel confident to try it on your own. You and most ...


2

The best you're going to get from this website is a recommendation you sit down with a proper financial planner. I'm not one, this isn't financial advice. It's advice to sit down with a proper financial planner. I'm 58 and I currently have a total of about $500K US in life insurance. Some of that is insurance I pay for, and some is employer-provided as a ...


25

Pete has a good answer already, but I will add 2 separate thoughts for you to consider: First, go ahead and google "World Financial Group". Google will autocomplete this to "- scam?" This is the first step in determining legitimacy of the company. Note that it is a multi-level-marketing company, which is a happier term for a pyramid scheme. The problem is ...


37

The first question to ask yourself is do you even need life insurance? The benefit amount, 500K is fairly large, but it can also be too small for your needs. Do you have people that are dependent upon your income? Do you have a wife or children? If you don't, then you don't need life insurance. As a single person with no children life insurance is ...


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