Podcast #128: We chat with Kent C Dodds about why he loves React and discuss what life was like in the dark days before Git. Listen now.

Hot answers tagged

127

Let’s take a step back. Prices have their origin in the fact that there are buyers and sellers. If as you ask “NO ONE” is buying, there is no price that can be reported. No transactions will occur. Prices only exist when there are transactions to report. The price is literally the last price at which a transaction occurred.


57

Two options you can try: Go to the store and ask them to refund the difference. They might not, but it doesn't hurt to ask. Often stores will do this if you are within the return window because it saves them some hassle over you returning the used item and then buying a new item at the lower price. Buy the identical item again at the new price, then ...


51

What you are describing is similar to what used to happen every night on a stock exchange that isn't open 24 hours (before after-hours trading existed), since after the exchange closes no one was buying or selling. If some incredibly good news came out about a certain company over night, the value of that stock would certainly increase, but the price of that ...


40

In addition to Alex B's excellent overview, I'd like to add a few more bits of advice. First of all, one term you should know is "commercial real estate" - which is precisely what this is. There is a business element, but it is strictly (and almost entirely) intertwined to the underlying real estate, which makes this a special category of business which is ...


40

The quote price is simply the last price at which a trade completed.


37

This is known as "Zone Pricing" or "Geographical Pricing". http://articles.latimes.com/2005/jun/19/business/fi-calprice19 Such price variations may seem odd, but they are not unique to Anaheim. On any given day, in any major U.S. city, a single brand of gasoline will sell for a wide range of prices even when the cost to make and deliver the fuel is the ...


29

There are many ways to value a business. Here is a simple method to get a ball park number on most businesses. This business is made of two parts. The significant real estate assets The cabin rental business. For the real estate: What would it cost to buy a similar property without a rental business What could you sell the property for if the rental ...


24

Depending on how you paid for the item, some credit cards have price protection insurance. There are always minimums (e.g. Must be more than 10% or €150 whichever is greater) and paperwork, and processing time, but it does not involve the retailer agreeing to your request.


23

First, I assume you understand that 'Cash Offer' doesn't mean you really show up with cash (in a duffel bag...), but is an expression that designates that you don't need a mortgage approval, but have the money in your accounts. The advantages for the seller are Less turn-around time - if you have an agreement, you can do the deal an hour later (or whenever ...


19

Ultimately this is just bad luck. Prices change, especially for things like computers which become obsolete in a short time. At the end of the day a cutting edge PC is only cutting edge for about 6 months and will be old hat in 2 years, so there is bound to be some point where the price drops. After all, putting things on sale at the end of a season is ...


19

The price of the stock can be reported at its bid or ask price or last trade price. No one needs to buy or sell the stock for the bid/ask price to change just like no one needs to buy merchandise from a vendor for them to change their prices.


18

Mutual funds are collections of investments that other people pay to join. It would be simpler to calculate the value of all these investments at one time each day, and then to deem that any purchases or sales happen at that price. The fund diversifies rather than magnifies risk, looking to hold rather than enjoy a quick turnaround. Nobody really needs ...


15

Location, Location, Location. The closer to the highway, the more they can charge. People want to go less than a mile from the exit to get gas. Therefore they save time, but spend more money. That is understandable, so the gas station takes advantage of the situation.


15

Market-makers (which you term dealers) earn the bid-ask spread by buying and selling in as short a window as possible, hopefully before the prices have moved too much. It is not riskless. The spread is actually compensation for this risk. From The Race to Zero: The market-maker faces two types of problem. One is an inventory-management problem – how ...


14

The simple answer: The opening price is the price of the first trade of the day and the closing price is the price of the last trade of the day. And since the stock price change from trade to trade they are usually different.


14

I don't have a solid data-backed answer, but this is too lengthy for a comment. I've read that on average, about 1-2% is what you can get as a cash discount on a home purchase, all else being equal, but no hard data to back that. In certain situations it makes sense for a cash discount to be much greater than that, for instance, if the seller is in a ...


13

There are sort of two aspects to finding out if you're "spending too much on groceries". One is whether you are paying too much for individual items (i.e., paying $7 for a TV dinner when you could be paying $5). The other is whether the way you allocate your money among different items causes you to spend more than you should overall (i.e., spending $50 on ...


13

Is the price you are quoting the bid, ask, or last? If this was the last, then the information could be days old. The bid or ask may be up to date pricing but the other side may have no interest at that price. This kind of thing often occurs when prices are drastically out of or in the money; or very close to expiration.


12

The "price" is the price of the last transaction that actually took place. According to Motley Fool wiki: A stock price is determined by what was last paid for it. During market hours (usually weekdays from 9:30AM-4:00PM eastern), a heavily traded issue will see its price change several times per second. A stock's price is, for many purposes, considered ...


12

"The price is literally the last price at which a transaction occurred." This is your accepted answer, and it is wrong. Sorry Joe but this is unequivocally not true. Every exchange has different rules for how it displays a stock's price on its platform. Your answer is very very NASDAQ/NYSE specific and even those exchanges do not use the last sale as the ...


11

As others have stated, the current price is simply the last price at which the security traded. For any given tick, however, there are many bid-ask prices because securities can trade on multiple exchanges and between many agents on a single exchange. This is true for both types of exchanges that Chris mentioned in his answer. Chris' answer is pretty ...


11

The blue and green curves have different vertical scales. One being "above" or "below" the other is just a matter of how the scales are chosen -- it's not a feature of the actual numbers being plotted. In particular, the zero point of the blue scale is 115 vertical intervals beneath the bottom horizontal line on the graph (92000÷800=115), whereas the zero ...


10

They're not negotiating trade rates for you, you set the trade rates in your order. What they might have is a slightly slower system, delivering your orders a second later than the competition would. If that's critical to you then you should look at that, otherwise look at their fees, customer support and research aids because that's where the broker value ...


10

It's definitely annoying, but it's not necessarily false advertising. There is no rule or law that says they have to fix a pricing error at all, let alone within a certain period of time. Unfortunately they have no obligation to do business with you unless they take (and keep) your money. If they canceled the order and returned your money you have no binding ...


9

I'd add, this is actually the way any stock opens every day, i.e. the closing price of the prior day is what it is, but the opening price will reflect whatever news there was prior to the day's open. If you watch the business news, you'll often see that some stock has an order imbalance and has not opened yet, at the normal time. So, as Geo stated, those who ...


9

You would have to compare your backtesting to what you will be doing in real trading, and try to have the backtesting as close to your real trading as possible. Note: you may never get the backtesting to match your real trading exactly but you need to get as close as possible. The whole purpose of backtesting is to check if your trading strategies - your ...


9

A look at the utility bills should give you an idea of the actual number of tenants. Some places- like I once read of Carmel, California- may require you prove you have enough water to support more rental cabins. You may find the nearby community is anti-growth. If a profitable expansion were possible, I'm wondering why the current owner didn't do it. ...


9

There is no universal answer. Every company is free to set their own terms. Check the fine print or contact the company. Usually, companies are smart enough to avoid those situations. For example, if you sign up for a "Buy One Get One Free" deal, you can't return the paid one and keep the free one. You should also consider whether or not return shipping ...


8

I only have anecdotal evidence here as members of my family used to own a grocery store / gas station, but they were often time charged much more to have the gasoline delivered to than many gas stations which were just a mile or two away (up to 15% more). Also depending upon the branding of the gas station, they are required to use certain distributors (i.e....


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