9

ETFs are legally required to publicly disclose their positions at every point in time. The reason for this is that for an ETF to issue shares of ETF they do NOT take cash in exchange but underlying securities - this is called a creation unit. So people need to know which shares to deliver to the fund to get a share of ETF in exchange. This is never done by ...


7

To follow up in 2019, gnucash version 3.3 and later have fixed the bug discussed in the other answer by Geert Janssens. But you must go to Preferences -> General and select Force Prices to display as decimals. This will cause the prices to be rounded.


6

This is a bug: https://bugzilla.gnome.org/show_bug.cgi?id=794755 Unfortunately nobody has found time to fix it yet...


6

A buy limit order is an order to purchase a security at or below a specified price. That guarantees that you pay no more than your limit price. The only downside risk that you face is that your order is filled and the security's price then drops like a rock. However, that's investment risk and it that has nothing to do with the level of quotes that you ...


4

There's something called the "greater fool theory of economics", which sets forth the premise that the goal of investing or trading is to find someone who will pay you more for something than you paid for it -- that makes them the "fool", although I don't think it is necessarily foolish to see value and opportunity in something that another person has missed....


4

Is a mortgage-backed security (MBS) something retail investors can buy? Technically, yes, but they are designed to be sold to institutional investors in bulk (i.e. in increments of tens of thousands of dollars). You probably can't buy, say, $500 of an MBS. If you want exposure to the MBS market you can look at ETFs that invest in MBSs. Plus, there are ...


3

Toward the end of 1971 it was possible to obtain 8% taxable interest on good medium-term corporate bonds, and 5.7% tax-free on good state or municipal securities. In the shorter-term field the investor could realize about 6% on U.S. government issues due in five years. In the latter case the buyer need not be concerned about a possible loss in market value, ...


3

A company that goes public receives money from investors but then becomes partly owned by those investors, including possibly sharing the profit with them. If you don't need a large investment of money to expand your business, then why would you give up your complete ownership and control of the company? Being public also brings lots of regulations to abide ...


3

In the US, retail investors can buy mortgage-backed securities issued by Ginnie Mae, Fannie Mae, Freddie Mac, and other private issuers. These securities trade over-the-counter, so you will need to find a dealer to ask for quotes. Not all stock brokerage firms deal in MBS. The minimum investment is usually $10,000 to $25,000. FINRA has a good basic article ...


3

Fees: Stock exchanges charge listing fees. There are also fees associated with keeping shareholder records, and expenses for a maintaining a shareholder relations department. Some companies would rather not have to pay these fees. Listing requirements: The listing requirements of some stock exchanges may require companies to set up audit committees and ...


3

https://www.investopedia.com/terms/f/fund.asp A fund is a pool of money that is allocated for a specific purpose. A fund can be established for any purpose whatsoever, whether it is a city government setting aside money to build a new civic center, a college setting aside money to award a scholarship, or an insurance company setting aside money to pay its ...


3

Why are there so many types of transportation mechanisms (cars, bikes, trains, planes)? Why doesn't everyone just drive a car? Obviously, they each have their benefits in certain situations, and meet different needs. Bonds are a way for companies to raise money to grow (or survive) by borrowing it from people or companies that are willing to lend it. In ...


3

Save the effort. For personal finance purpose, just use the simple tools. For example, if you like P&G very much but you want to diversify with ETF, use: http://etfdb.com/stock/PG/ https://www.etfchannel.com/finder/?a=etfsholding&symbol=PG Pick a ETF with highest weighting. Replace "PG" in the link with other tickers.


2

GNUCash determines the value of stock in two ways: Implicitly - when you buy or sell a stock you tell GNUCash how many shares you purchased/sold and the total price paid/earned. Via updates in the 'price editor' tool which can be either manual or automatic if you've configured it to retrieve prices from the web. For example, the AAPL stock you purchased:...


2

In general, investments can be divided into fixed-income and equities and each has its own safety, return, as well as pros and cons. Equities are stocks that trade on exchanges. Equities have higher risk but offer a potentially higher return on your money. They may be pooled in mutual funds or ETFs which diversifies the assets and spreads the risk ...


2

First, make sure whether there are any investments that can reduce the fees. Some brokers that charge commissions on stocks offer select mutual funds or ETFs with no transaction fee. You will want to confirm if each dividend reinvestment incurs the commission. Sometimes these are free. If they are charged, then you may want to decline reinvestment until you ...


2

There's really no such thing as a wash sale "violation". If a sale counts as a wash sale, under some circumstances some or all of the loss cannot be claimed with the sale and instead adds to the basis of the stock. It's important to keep in mind that the wash sale rule does not care what account you trade in or what lot designations you use. You can even ...


2

Because taking a company public risks losing control of it. Many small companies are owned by individuals or families. They decide how the company is run, usually with the intention of creating a long-lasting profitable business that they can pass on to their children. As soon as you sell shares on the stock market, you create new shareholders who will also ...


2

The company may decide that they have no need for selling shares to outside investors, beyond their ability to sell to a small number of investors as a private company. Once they have people invested that have no other linkage to the company, many of those investors want the stock to pay dividends. Many of those investors want to be able to sell anytime for ...


1

Yeah its pretty important although it likely won't make a difference in your portfolio's performance. These things often reveal rights and privileges and also landmines, all of which many other investors will not be aware of simply because they didn't read.


1

According to Citi Depositary Receipt Services' glossary: ADRs: American Depositary Receipts (ADRs) A negotiable instrument issued by a U.S. depositary bank evidencing ownership of shares in a non-U.S. company. Each ADR denotes American Depositary Shares (ADSs), representing a specific number of underlying shares on deposit with a custodian in the issuer’s ...


1

The payment of a "normal" MBS tranche don't distinguish between interest and principal - when a mortgage payment is made, the full payment goes to the tranche holders in whatever order the MBS dictates. But prepayments get them their money back sooner than expected, which could be bad if interest rates are lower. For example, if you're holding a tranche ...


1

Per IRS Publication 550 (page 56): A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you: Buy substantially identical stock or securities, Acquire substantially identical stock or securities in a fully taxable trade, Acquire a contract or option to buy substantially identical stock or ...


1

If I follow your question, there was a loss, disallowed via wash sale due to the purchase of an option. The option takes on the loss as an increase to its basis, and when it expires, it's reported. The option transaction adds the loss to its purchase cost and the sale is still zero. That transaction allow the option owner to take the loss.


1

You seem to be confused about what is being said--the ratings agency and financial guarantee company are completely different. The page you are referencing is discussing assets that are being vetted by (1) the originator (2) a ratings agency (3) a financial guarantee company. The financial guarantee company provides bond insurance, which means they are ...


1

It's most likely a combination of both. Patterns like "head & shoulders" do have a valid psychological explanation behind them. To take it apart, it's essentially a failure of a new high (the last "shoulder") in which the buyers are now nervous after a long uptrend, now when it breaches the recent bottom, there is a lot of room for it to go down and the ...


1

Many patterns and other signals in technical trading are based on the psychology of the markets. You mentioned a head and shoulders as an example, well where and why do patterns such as head and shoulders, double tops and triple tops occur. They occur at a market top. The price had recently hit a high point and then reversed back down. After a certain ...


1

There's a few layers to the Momentum Theory discussed in that book. But speaking in general terms I can answer the following: Could the S&P500 be replaced by another index such as the Nasdaq100? Kind of. Assuming you understand that historically the Nasdaq has seen a little more volatility than the S&P. And, more importantly, that it tends ...


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