New answers tagged

4

Most of the time, sharp momentary dips like this is due to bad data. If so, it's usually corrected once the error is recognized. Whether it's bad data or not can be verified by looking at Time & Sales. With most options and stocks, near the end of the day, the bid/ask spread widens as traders pull their orders and go home. This can begin 10 minutes ...


0

Is it typical for companies to announce their financials after a merger/acquisition? Yes, unless the other company is insignificant. Shareholders - the owners - must be informed and if I merge or acquire another company my financials change SIGNIFICANTLY. This may not be the case if MS buys a smaller game studio i.e., but if you buy something that does a ...


4

Fidelity, Schwab, Vanguard, et al make billions of dollars per year from investors from: Net interest income Mutual fund and ETF service fees Financial planning Sale of annuities Managed money When major discounters eliminated commissions last year, for Schwab, commissions made up something like 5% of their revenues so elimination of commissions wasn'...


4

You are applying the model of sports betting, to something that is in no where related or similar to sports betting. It is very difficult to know where to start, because you have such a fundamental misunderstanding of what it means to be an investor or even a speculator. About the closet thing to a "vig" is the commission one pays to trade an ...


4

You've lumped stocks of different sectors under biotech. The companies you listed are biotech, manufacturers, medical equipment, drug manufacturers. They're rather different. I don't know why this correction occurred this morning but in the absence of major news, there can be a variety of reasons why one group of stocks does not track the market: Profit ...


4

Why do the paid prices for an accumulating ETF share follow the current net asset value per share? The creation and redemption mechanism of ETFs ensures this. The share prices of ETFs (including accumulating ETFs) will follow the net asset value (NAV) per share because "authorized participants" will conduct arbitrage when the price and NAV deviate....


1

How do you take profit from stock trading while keeping capital invested? For a single stock the answer is a definitive no. You cannot keep the stock and sell it at the same time. It gets even worth as it is the same for any asset that is "gaining value", like real estate. You have to sell to realize the gain and can the invest the money or ...


2

What I personally do (although I'm definitely a novice investor) is have a goal of doubling my initial investment. Once I do so, I sell half of my shares, and typically reinvest that portion in another company. For example, say I bought 100 shares of FOOBAR for $20 each, or $2,000 total investment. If it hits $40, I will sell 50 shares to get back my initial ...


7

Imagine that you're on a train, headed to some place west of where you started. At some point, you realize that you're 300 kilometers west of your starting point. How do you collect those 300 kilometers while still being a train passenger? Well... you don't. It doesn't work that way. The question doesn't make sense. If you think that the train is headed ...


2

If you decide you no longer want a certain stock, you sell it. If you're a professional trader, you're most likely going to spend (the majority of) this money to buy other stocks. If you want to use all this money or a portion of it for something else, then you can do that too. Whether you consider briefly not owning stocks to be "out of the trading ...


2

After you sell FOOBAR, you're essentially back at square one. You have up to $Y to invest, you do some research, and you invest it (or a portion of it, e.g. just $X) in some company (or other type of security) you expect to make money for you in the future. What you were invested in in the past is irrelevant. Ideally you would have done this research before ...


3

As we know, there are two types of investors in stock market: Investor Trader Your question pertains to trader. Trader wants to leverage the price increase and make profit out of that. Without trading stocks, he cannot make profit out of the stock price increase. If he considers to hold the stocks and not trade them, then trader, has become investor, who ...


9

I think to get at the heart of the issue, you should realize that if a stock you own has risen, you have already made money whether or not you sell. Your investment returns compound over time, regardless of whether you hold the same stock or switch between different stocks. Every day you continue to hold a stock, it is as if you sold it and then decided to ...


21

You don't have to sell just because the price has gone up 25%. You sell... if you need the money... because you think that the company share price will not be growing any more or even it will be going down... because you have found another investment that has more potential... because you want to rebalance your investments... because you have to pay a tax ...


11

If the stock offers options, there are some strategies that can be used to lock in the much of the gain. Other than that, you don't have much choice. In lieu of that, you could sell 20% of the appreciated position, pulling out 25% of the invested capital but this would only book 5% of the gain. It's not a good solution for anything other than lowering cost ...


0

As I mentioned in my comment to your question a few days ago about non-cumulative preferred stocks, preferred stocks often trade on the OTC grey (or gray) market before getting their final listing. The grey market is for any type of security that have been suspended from trading or has not yet begun official trading on an exchange. Preferred stocks may ...


0

The market capitalization (market cap) of a company is calculated as the total shares outstanding multiplied by the price. It doesn't matter where the stock is listed: it could be one exchange, multiple exchanges (as in your example) or no exchange at all for small/micro cap stocks that only trade OTC. You should be able to find the total number of shares ...


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