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 -...
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 ...
- 142k
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 ...
- 77k
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 ...
- 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 ...
- 142k
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 ...
- 43k
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 ...
- 116k
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 ...
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 ...
- 57.2k
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 ...
- 9,805
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 ...
- 57.2k
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 ...
- 71.2k
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 ...
- 145k
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 ...
- 798
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 ...
- 51.6k
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. ...
- 6,788
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 ...
- 77k
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) - ...
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", ...
- 17.2k
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 ...
- 50.8k
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 ...
- 50.8k
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.
- 30.3k
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 ...
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 ...
- 28.3k
4
votes
Purpose/benefits of having a large investment portfolio?
There are several problems with your reasoning:
if I buy one share of GOOGLE now for $830, I could have $860 within the end of tonight -- totally possible and maybe even likely.
You can do the ...
- 142k
4
votes
Sell a domain name with equity contracts?
Keep in mind, if the name is trademarked, you might have it taken away from you. If it's generic, there's a good chance the potential buyer would just move on and set up another domain name. Consider ...
4
votes
Accepted
How do companies profit after initial shares have been sold?
Now the owner wants to raise more money through the market... how? Can they 'split' one of their shares into more shares and sell them at the new value? Isn't that just creating artificial money out ...
- 13.9k
4
votes
In the context of corporate profits, what does "back-half" mean?
Since the company had reported results for the first half of the fiscal year (Q2 results), the rest of the year would be the "back half". So "back half" sales would be sales in ...
- 28.3k
4
votes
Accepted
How do I profit from having a share in an LLC?
In the US, LLCs do not have shares. LLCs have membership interest. They also have something called "Operating Agreement" which is essentially a contract that governs the relationships ...
- 185k
Only top scored, non community-wiki answers of a minimum length are eligible