43

I'm not sure I would classify Musk's recent TSLA share transactions as "selling like a madman". For one thing his holdings are extensive and he's sold, so far at least, only a small percentage. On 11/15/2021 he sold a bit over 2M shares but if you read the disclosure filed with the SEC, he sold those shares out of a block he purchased the same day....


25

The market capitalization of Naspers is approximately 1.3 trillion ZAR, which is equivalent to approximately 75 billion EUR. The market capitalization of Prosus is approximately 130 billion EUR. If not mistaken, Naspers owns about 70% of Prosus, so Naspers' stake in Prosus is worth about 90 billion EUR. Naspers' stake in Prosus is worth more than Naspers' ...


15

A model is a mathematical formula that tries to explain something or predict something based on a set of inputs or conditions. The price of an item in a free market doesn't have to obey any model. If a bunch of people think that something will become more valuable or less valuable in the future that will drive the price change because people are either ...


11

Here are some simple situations. Imagine you go out and buy a share of Amalgamated Widgets for $100. Tomorrow, Amalgamated Widgets files for bankruptcy. Your share is now worth nothing and will never be worth $100 again. You lose all your money. Amalgamated Widgets is overvalued - it is fashionable, or there has been a speculative bubble, and the real ...


10

In theory it is possible, but very impractical. So much so that it approaches the impossible. Also this does not make much sense. Assuming that it takes 100 hours to do proper fundamental analysis on a company the DJIA would take 3000 hours, the S&P 50,000 hours. That seems like an impractical amount of time given the short estimate of 100 hours. ...


7

Normally, to calculate the price to earnings ratio (PE ratio), you'd divide the share price by the earnings per share. There are different ways to do this but the most common is to take the trailing 12 months of earnings so you get the PE ratio (TTM). Atomera has a share price of 22.69 and earnings per share over the past 12 months of -0.79 so it's PE ratio ...


7

A major investor selling their shares will significantly increase supply for the stock while demand probably stays the same. The price would decrease. Obviously a major investor will not just throw shares worth billions on the market but rather use tools like an iceberg order or direct trading with other investors


7

Maybe a little beyond what you are asking here but one of the repeated misconceptions that you might have seen is the idea that for the price of a stock to drop, a lot of it needs to be sold. For example, people with a HODL mentality seem to believe that as long as they (as a group/team) don't sell, the price of what they HODL cannot go to zero. It doesn't ...


6

I'm not 100% sure it's true that most people lose money in investment markets. Many do, though, and there are reasons for that. Tons of reasons There are lots of ways to "be in" the stock market, through all sorts of investment vehicles and products with radically different characteristics and purposes. It might be hard to "lose money" (...


6

You have interpreted this as current coverage when in fact it is not. Canaccord Genuity initiated coverage on Virgin Galactic on May 26th with a buy rating and a $35.00 price target. SPCE was about $27 at that time.


6

Yes this is possible as market cap is just #stock * $stock. The market cap does not necessarily have anything to do with the underlying assets (Compare Tesla with Volkswagen for example) , even though it definetly should. For an example: The Porsche SE(not to be confused with Porsche Holding) has a market cap of 28.6B Euro and holds 31.4%(with 50+% voting ...


5

Your scenario is impossible because an option that is $10 in-the-money will be worth at least $10, so one possibility is stale option prices, but let's take the directional moves and see what could have caused it. The most common model used to price options is the Black-Scholes model or variants. With the B-S model, there are 5 input variables: Strike ...


5

From "Industry vs. Sector: What's the difference?" These two terms are sometimes reversed. But the general idea remains: one breaks the economy down into a few general segments while the other further categorizes those into more specific business activities. In the stock market, the generally accepted terminology cites a sector as a broad ...


4

You have a faulty premise. Yahoo Screener lists 331 stocks (with some duplication due to different share classes and locations) with an ROE of over 1,000%, and 2,184 with a ROE of over 100%. So it's not true that you "never" see a company with an ROE this high. That said, it's unusual for a healthy, mature company to have such a large ROE. ...


4

Basically, by owning that share, corporate law protects the fact that you own the stated % value of the equity of a company. Companies decide whether to pay dividends, basically, on what the shareholders want. This means that, basically, if the company has profitable projects that it could use its cash on, it won't pay out dividends, and instead it will ...


4

It is of course not true that nothing beats the S&P 500 in the long term. There's certainly nothing magical about the number 500 and it may be that a slightly different allocation would be better, even over the long term. In practice, "nothing beats the S&P 500" is used as a short hand for "nothing beats the market average". The ...


4

I'm assuming "buy" is obvious. "Strong buy" can have different criteria depending on the firm, but it reflects more strength (potential return, probability of higher return, etc.) than just a "buy" rating. Outperform means they think the stock will have a better rate of return that the overall market. "Overweight" and &...


4

Entire volumes have been written about the prediction of stock prices. Analysts, given their profession, presumably have at least a passing familiarity with some of these. They can use any number of techniques or their combinations to forecast the price. They could also be completely making it up and just saying they did analysis as well. It's not like ...


3

Specifically, what is the avenue one takes to get actual control over the buying and selling of stocks with their own money? There are a growing number of "free" stock trading services and apps, and even "traditional" brokers offer individual stock trades (note that you can't usually trade individual stocks in a 401(k), but that's a ...


3

The theta of this call option would be about -0.09 so the expectation would be about 18 cents of time decay in two days. After that, your question has gone off the rails. If you buy a $150 call for $5 when the stock is $150 and the stock rises $10 to $160 in two days then the intrinsic value of the call is $10 and the price of the call would be over $10. ...


3

Google buys back class C shares, so as their buy back programme has expanded the value of C shares has risen disproportionality to Class A shares, and will continue to do so as long as they keep buying back only one side of their share class.


3

As Pete B. points out in his answer, doing an in-depths analysis is impractical. Moreover, according to the efficient market theory there is not much to gain by doing in-depth fundamental analysis as the market has already priced available information. On a whole index that is even more likely than on individual stocks as errors on one stock will be ...


3

Now what? What's your plan, why did you buy the shares? I'm a fan of having an exit plan when opening a position even if that plan is just that I'm going to wait some number of years to revisit. There's a tricky balance you need to find between discipline and flexibility. You don't want to rigidly stick to a plan and ignore factors that change your outlook, ...


3

The smallest set that I would go with would be the 11 SPDR sector ETFs: Basic Materials Consumer Cyclical Consumer Defensive Energy Financials Healthcare Industrials Real Estate Technology Telecommunication Utilities


3

The DOW is a price-weighted index. Boeing makes up about 4% of the index, so any price movement in BA has a very minor effect on the index. It's more likely that the market as a whole was down due to some larger effect, and BA and the DOW were down because they are components of the market. Index funds track the index, which is a computed number from its ...


3

You can't predict future stock prices and there's no guarantee that stocks will rise if you wait for any timespan. Even if the stock market in general will continue to rise over long time periods, there's no guarantee that a specific stock will do so. And note that people usually are not willing to wait indefinitely, simply because they won't live forever. ...


2

Class C's liquidation preference should be above Class A. And as you mentioned, Class C is better protected. If you don't have any voting right to protect yourself, you must have more contractual rights to protect yourself. So security concern is the reason. This seems indicate that the voting right for each share is less worthy than liquidation preference, ...


2

If it is a thinly-traded option (quite possible for non-standard strikes/expiries in most stocks), then this is most likely a trade from one or two days ago. If nobody had bought or sold that specific option since then $485 would still be the "latest price" even if it was wildly out of date.


2

For every trade that occurs, there is a buyer and a seller. Ignoring special circumstances like the seller just needs the money, one of these traders is wrong. Your premise is that the lowest price might be real because everybody tends to buy lower. I'd ask you this in return. The market is up 50% in 9 months and is it trading at record highs. Why is ...


2

MULTPL indicates that the monthly Dec 1, 2020 average is 3,668.10. If you visually scan the Yahoo data for November, most of the days had closes below 3,600 so it's impossible that a simple average of the Yahoo data could result in a MULTPL monthly average of 3,668.10. My guess is that either the two web sites are looking at different data (not likely), ...


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