59 votes
Accepted

What does the sum of Profit/ Loss percentages indicate?

Respectfully, nothing meaningful. You are simply adding numbers that should not be added. Say I have a 1% gain on $1M. That's $10,000 But I have a 100% loss on a single share of a $10 stock. That's -...
JTP - Apologise to Monica's user avatar
20 votes

How to increase chances of profiting from a pyramid scheme/multi-level marketing?

As a general rule in many countries, pyramid schemes are illegal, so don't plan on getting rich anytime soon by being involved in one. Anything you earn through such a scheme is subject to forfeiture ...
Daniel Anderson's user avatar
19 votes

Where can publicly traded profits go but to shareholders via dividends?

If a company earns $1 Million in net profit (let's say all cash, which is not entirely realistic), it can do one of three things with it: Invest it back in the company (by buying more assets to ...
D Stanley's user avatar
  • 133k
16 votes

What does the sum of Profit/ Loss percentages indicate?

Suppose that I have two positions which I then sell: Buy 100 ABC for $1 per share and sell for $2 Buy 100 XYZ for $500 per share and sell for $550 I made 100% on stock ABC and 10% on XYZ. These ...
Bob Baerker's user avatar
  • 76.1k
14 votes
Accepted

What do "unsettled funds" mean?

The term "unsettled funds" is a legal term, defined by legislation and judicial decisions and enforced/monitored by the SEC. The intuition is the idea that while a financial transaction on a security ...
BrianH's user avatar
  • 11.7k
13 votes
Accepted

Does a stock holder profit from a reverse-stock split?

If I held stock in these companies yesterday, would I have profited by these gains? No. For DZSI, your 5 shares at $1.10 would now be 1 share at $5.50, so you would have the same total amount. For ...
D Stanley's user avatar
  • 133k
13 votes
Accepted

Forex trading gone wrong?

Think about it like this: Assume 1,500 people go to a casino to play roulette. They all put their money on a single number, with 1/38 odds. On average, 39 of those people will win, giving them a ...
Grade 'Eh' Bacon's user avatar
12 votes

Is a website/domain name an asset or a liability?

This depends on your definitions of assets and liabilities. The word "asset" has a fairly straight forward definition. Generally speaking, an asset in finance is something that you own/control that ...
Ben Miller's user avatar
  • 115k
10 votes

Sell a domain name with equity contracts?

Is it an unattractive offer many buyers would shy away from? Buyer who have specific plan may skip getting into such deals as this would be an hindrance to resell the business. Others who are not ...
Dheer's user avatar
  • 57k
10 votes

Forex trading gone wrong?

There are a few issues at play here. In the stock market, there are gains to be had over the long term. In other words, the system is not "zero sum." Forex is the buying or selling of exchange ...
JTP - Apologise to Monica's user avatar
7 votes

Are marijuana based investments promising, or just another scam?

Any advertisement for a "business opportunity" is nearly always a scam of some kind. In such deals, the seller is the one making the money. They rely on the fantasy of the average person who imagines ...
Five Bagger's user avatar
  • 9,785
7 votes

Are marijuana based investments promising, or just another scam?

Is there any truth to this, or is this another niche scam that's been brewing the last few years? While it may not be an outright scam, such schemes do tend to be on borderline of scams. Technically ...
Dheer's user avatar
  • 57k
7 votes
Accepted

Why take crypto profits when you can just set a stop order?

The big issue is that there has to be a buyer. If BTC (or whatever you trade in) drops 20% very suddenly, your order might not be filled. There has to be someone willing to buy at that price, so a ...
Hart CO's user avatar
  • 70.3k
7 votes

Have companies gone bankcrupt shortly after their stock going up?

Recently, Spotify, while doing 70M profit for Q3, laid off 1500 people, which could approximately double those profits (those people would have cost around 280M a year). This had their stock close up ...
mhoran_psprep's user avatar
6 votes

Why diversify stocks/investments?

Basically, diversifying narrows the spread of possible results, raising the center of the returns bell-curve by reducing the likelihood of extreme results at either the high or low end. It's ...
keshlam's user avatar
  • 44.7k
6 votes

How to increase chances of profiting from a pyramid scheme/multi-level marketing?

Any profit you make can and will be seized by the government All the "money" you might receive from a pyramid scheme is "ill-gotten gains". Even if you didn't know it was a pyramid scheme. If through ...
Kaz's user avatar
  • 2,489
6 votes

Does a stock holder profit from a reverse-stock split?

These are not real gains. Wherever you're looking this up, the prices are not adjusted for corporate actions. In a reverse stock split the price of a single share multiplies by five, but as a ...
SMeznaric's user avatar
  • 798
5 votes

Scenarios for a 25 yo finishing a PhD staying in Academia, but hope to invest her $100 K USD

I agree with the other answers recommending a low ER index fund, purchased through a low-cost well-respected (not "discount"!) brokerage, preferably one with a good selection of commission-free ETFs. ...
Ben Voigt's user avatar
  • 6,787
5 votes

What do "unsettled funds" mean?

You sold your ETF shares so the transaction is complete. Poof! Your shares are gone. Equities have a T+2 settlement date. Since it's a Cash Account, that means that the proceeds from your sale ...
Bob Baerker's user avatar
  • 76.1k
5 votes

Is it the truth that gold / silver coin costs differently in different countries?

I am sure that it is true that the cost of a 1oz gold coin (or whatever the size is) is different in different countries. However the difference is going to be tiny (apart from differences in duty) - ...
Martin Bonner supports Monica's user avatar
5 votes
Accepted

Computing profits from fractional stock trading

For fractional shares, people normally express the number of shares as a decimal rather than as a percentage of one share. For example, instead of saying "10 shares and 12.5% of one share", ...
Flux's user avatar
  • 17k
5 votes

Confusion on Bid vs. Ask and Spread; Profits

how does a person make a profit when buying stock? You don't. Profit is made when you sell at a higher price than what you bought it at. Consider the man with an apple cart selling apples. Does he ...
RonJohn's user avatar
  • 50.7k
5 votes

How do companies profit after initial shares have been sold?

What I don't understand is how they continue to make money (from the market) once the initial shares have been sold. As you intuit, they don't, because, of course, the purpose of business is to make ...
RonJohn's user avatar
  • 50.7k
5 votes

In the context of corporate profits, what does "back-half" mean?

The back half of the year is the latter half, Q3 and Q4. In the Clorox case, it refers to a fiscal year.
nanoman's user avatar
  • 29.5k
5 votes
Accepted

Operating Margin depends on Revenue?

If a company sees increased demand and can handle it with existing employees, capital and expenses, then it certainly has increased its efficiency (the same resources are producing more revenue). Thus ...
Orange Coast- reinstate Monica's user avatar
5 votes

How do online payment service apps earn money?

Generally, these person-to-person transfers are loss leaders that allow the companies to get customers that will use other services. If you sign up for a PayPal account so that you can make free ...
Justin Cave's user avatar
  • 27.2k
4 votes

What's the appeal of dividends in investing?

A dividend is one method of returning value to shareholders, some companies pay richer dividends than others; some companies don't typically pay a dividend. Understand that shareholders are owners of ...
quid's user avatar
  • 49k
4 votes
Accepted

Why do some institutions offer what seems like illogically high interest rates?

Milestone was launched in March 2015. New bank has to entice depositors to part with their cash, so offers a higher rate because with no history they are considered a risky bet. Then reading this ...
DumbCoder's user avatar
  • 10.6k
4 votes

How to increase chances of profiting from a pyramid scheme/multi-level marketing?

I assume you are referring to Multi-Level Marketing, which have organizational structures that look like pyramids. As others have pointed out Ponzi schemes (often referred to as pyramid) are illegal. ...
Pete B.'s user avatar
  • 76.2k

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