59

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 -100% Add them up, -99%. You see how this makes no sense? You need to recalculate that cell, to get your portfolio return.


34

The Fidelity funds have an expense ratio, and while some funds may have little to no profit, having you as a customer lets them try to sell you on their managed account/portfolio and other services. It's possible they don't make much or any money from you at all, but with so many accounts it's fine as long as it averages out. Similar to having a credit ...


20

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 because it is ill-gotten gains. The entire basis of a pyramid scheme is that the focus is principally on recruiting new "downlines", not selling a product or ...


19

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 generate future profits or paying off debt to reduce interest expense) Distribute it to shareholders (dividends, stock buyback) Do nothing (keep it as cash) On the ...


16

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 percentage gains are not additive. I did not make 110%. Nor did I make an average of 55% (divide by 2). I invested $501 and I ended up with $552, a gain of $51. ...


14

It is true that operation profit comes from gross profit however it is possible for a company to have negative net profit yet have postive cash flow , it has to do with the accounting practice A possible example is that a company has extremely high depreciation expense of fixed asset hence net profit will be negative but cash flow will be positive. Assuming ...


14

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 may be processed at one point in time, the "settlement" of the cash takes time and could end up reversed or delayed (such as for rule violations, investigation, ...


13

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 SGY, they closed at $6.95, and opened at $32.80, so your five shares at $6.95 would now be one share at $32.80, so you would have actually lost money (not ...


13

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 payout of 36x. Then, all of those people put their money down again. On average, about 1 of those people will win again, giving them a new payout of 36x [for a ...


12

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 has economic value. The asset has value because it is generating income for you or because you expect that it will be worth something to someone in the future. ...


10

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 sure, may buy it for to make money in future. Does it seem like a justifiably fair way to sell a domain, while keeping a stake in it? This is preview of ...


10

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 contracts pitting the value of one currency against another. For sake of discussion, let's ignore commissions. That make this zero sum. In other words, the money you ...


7

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 most of what is being said claimed can be true, however in reality such windfall gains never happen to the investors. Whatever gains are there will be cornered ...


7

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 themself with a profitable business. Real businessmen do not get their businesses from flyers on the sides of telephone poles. Real businessmen already know ...


7

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 sudden decrease can leave orders unfilled. Your stop-orders can and many times will work to protect your gains, but they are not guarantees.


6

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 deliberate planning or dumb luck, you manage to get more money out of a pyramid scheme than you put in, the government can sue you for any "profit" you made. ...


6

Here are my reasons as to why bonds are considered to be a reasonable investment. While it is true that, on average over a sufficiently long period of time, stocks do have a high expected return, it is important to realize that bonds are a different type of financial instrument that stocks, and have features that are attractive to certain types of investors....


6

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 largely a matter of basic statistics. Bet double-or-nothing on a single coin flip, and those are the only possible results, and your odds of a disaster (losing most ...


6

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 shareholder you hold only one share after for every five that you did before.


5

There are different perspectives from which to calculate the gain, but the way I think it should be done is with respect to the risk you've assumed in the original position, which the simplistic calculation doesn't factor in. There's a good explanation about calculating the return from a short sale at Investopedia. Here's the part that I consider most ...


5

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. If you think think it likely you will retire in the US, you can take advantage of your employer's retirement plan. Laws make it really expensive to move ...


5

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 will be available for trading in two days. In a margin account, your broker would allow you to buy other securities immediately.


5

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) - less than the cost of transportation. If you are being invited to invest money in a scheme which involves buying coins from the US and selling them in ...


5

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 make a profit when he buys the apples from a wholesaler? Of course not. He (hopefully) makes a profit when he sells the apples for more than it cost him to ...


5

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 money through sales; an IPO is seed capital for growth. Now the owner wants to raise more money through the market... how? Issue more shares. A Secondary ...


5

The back half of the year is the latter half, Q3 and Q4. In the Clorox case, it refers to a fiscal year.


5

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 the higher operating margin correctly reflects higher efficiency.


4

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. The key to multi-level marketing is understanding the true objective. It is not to sell soap, vitamins, cell phone plans or whatever. The key is to ...


4

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 a company. When you buy a stock you now own a portion (albeit an extremely small portion) of that company. It is up to you to determine whether holding stock ...


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