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Remember that the current price is representing the markets expectations for current and future performance; not taking any past information into account - hence the 20 years downturn is irrelevant.
Also the analyst’s buy-recommendation is based on the fact that they believe the company is going to perform better in the future than the market thinks. Again ...
8
Can someone please explain how stocks works with blockchain analogies?
Well, that's a little like explaining football using a potato as an analogy since there are many fundamental differences, but I'll answer your specific questions.
Where can I buy stocks? Are there exchanges for that?
Set up an account with a broker which can buy/sell stocks for you ...
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You can do that, and yes you'd get the divident payment, but you'll find that on average the price of the stock will decline by the dividend amount once it goes ex-dividend so you'll not make any money by doing this.
In fact you'll likely lose money once you take transaction costs into account.
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What about that graph today is different from that graph would have been 6 months ago? People 6 months ago bought thinking it would still go up, and it has. That's why people are buying today. That's what you asked. They may be right, they may be wrong, but that's why they are buying.
Further, they may be buying because they have few other options. If ...
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Your observation that those two exhibit a strong negative correlation is correct. In a nutshell, this is because ABT goes up with the market, while VIIX goes down when the market is up. A more detailed reply:
Abbott Laboratories (ABT) discovers, develops, manufactures, and sells a broad and diversified line of health care products and services. It's a ...
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In exchange for each share of Celgene, you received 1 share of BMY, $50 and 1 share of BMY.RT. The latter is a security that will be pay out IF (and only if) three Celgene drugs currently in trials are approved by the FDA by certain dates ending 12/31/21. If all three are approved, it pays out $9. Anything less and it's worth will be zero.
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To your question as asked, but not your example and probably not your intent, there is (since a few years ago) one exception. If you directly own stock of a foreign (non-US) issuer (i.e. NOT an ADR held in a US account, or a mutual fund, which are the easy ways to invest 'abroad') -- or you own anything (not just stock) in a foreign bank or financial ...
5
Dividends are considered regular income and are taxed at your marginal income tax rate. Selling a stock that has gone down in value is called realizing a capital loss. Capital losses primarily offset capital gains; however, you can also use capital losses to offset up to $3000 of regular income. Since your dividends are less than $3000 you could sell stock ...
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While it's true that some companies may cut their dividend if a bad year pushes them over the edge, overall dividend yield will increase in a bad year because of share price decline.
Here's the yield for the SPY for the past 15 years. As you can see, its yield dramatically increased in 2008 when the market dropped ~39%.
Date Yield
Dec 31, ...
4
According to a New York Times article from last year
Apple’s insider trading policy said any individual with material, nonpublic information about the company was not allowed to trade the stock until 60 hours after that information had been announced.
From researching Blackout Period Procedures it appears that only specific reference is made to the ...
4
Apple offers share options as an incentive for its employees. When the employees exercise the options, the shares have to come from somewhere.
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I deny your assertion that that market is overbought, and have a graph to lend credence to my assertion.
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I suspect what you mean by "take money out of the market" is obtaining returns above the market average, i.e., "beating the market". Indeed, your intuition is correct that unless you can statistically predict stock returns better than the "random walk" model, you cannot beat the market just by applying "risk management rules" like profit targets or stop ...
3
The S&P 500 does not include dividends. You should check the S&P 500 Total Return Index.
From Wikipedia:
The average annual total return of the index, including dividends, since inception in 1926 has been 9.8%
This would give you roughly 5.2% annual real return, looking much better.
However, this is in USD. Apparently, one GPB was worth ...
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I come from a cryptocurrency background (Bitcoin etc.)
I come from an automotive background, so I'm the perfect person to explain stocks to you. You laugh, but it really is like that. Your experience playing with "Hacker ForEx" is inapplicable.
I have no idea how stocks work and how to invest into stocks.
Good on you. Your first task is to read John ...
answered Jan 17 at 23:27
Harper - Reinstate Monica
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As described, you would still receive the dividend.
As long as you hold on the close of the day prior to the ex-dividend date, you will receive the dividend.
You can also sell it on the open of the ex-dividend date too. So, in your example, you could sell it on the open of Aug 31st.
There is no dividend-related benefit to buying the stock earlier, but ...
3
Antares Resources was delisted from Nasdaq in Feb 1997 due to it having too low a price (it closed at $1.375 on 4 Feb 1997).
It then went and traded as an OTC stock and did not make any SEC filings until 2006 (apart from a minor filing for issue of securities to employees). In 19976 SEC queried them about not reporting but there doesn't appear to be any ...
3
What's the alternative? Bonds? Interest rates are at historic lows in most developed areas. Commodities? Energy prices are relatively low and have enormous volatility (remember the oil spike a few weeks ago after the US-Iraq dust-up? That's gone now). Mattresses? You actually lose value due to inflation.
I don't know that people are saying that "it's a good ...
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If I do not sell it, it seems that I do not have to be worried about capital gains/losses.
Correct. You do not inform the IRS (via Form 1040 Schedule D) of capital gains and losses until you realize them (which is a fancy way of saying that you sold the underlying securities).
would there be any mention at all on my tax forms about my Facebook stocks?
...
2
No, you don’t report stock purchases or stock you hold on your tax return.
Also, if the stock is held at a broker, as is typical, you don’t report it as a payer of dividends, either; the dividends are paid to you by the broker.
So, the IRS generally doesn’t know about any specific stock you own until you sell it. (They do know if you own dividend-paying ...
2
Frankly, your whole structure doesn't make much sense to me. I know why some people choose to work "through" a pass-through entity, but - generally speaking - it's an iffy proposition.
In your case, it seems you work "through" an LLC which elected to be treated as corporation and then elected to be treated as a Sub S corporation; why??? Also, was your "...
1
The inverse of the P/E is the earnings yield, which is somewhat analogous to the interest rate on a bond. Interest rates have been generally falling for the past several decades, sometimes attributed to a "savings glut". Stocks and bonds compete as investments; when bonds' yields fall and prices rise, so often do stocks'. Another viewpoint is that bond ...
1
If the feature is gone, for vertical spreads, it's easy to figure the maximum gain or loss.
If long the spread, the maximum loss is the debit cost.
If short the spread, the maximum loss is the difference in strikes less the premium received.
1
The one armed bandits in Vegas are programmed somewhere near a 40% payout. During a short period of play, you may win, you may lose because it's a finite sample. Over the long haul, the house wins.
It's the same with your hypothetical set up. If the odds are even that "you have a 1:2 risk reward ratio meaning that for every 1 dollar you are risking to ...
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You need an edge to make money over long term.
Proper risk management will increase your sharpe ratio and protect against bankruptcy. Even with a strong edge you can go bankrupt without proper risk management.
Ways of risk management is diversification, stops and not having too high leverage.
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There is 50% chance that the price will rise to 14 and 50% chance that the price will fall to 6, this anyone would agree.
No, absolutely not. The chance of the price going to 14 is significantly greater than the chance of the price going to 6.
Is my analysis correct, or have I missed something?
What you've missed is the fact that on average, stocks are ...
1
There are several things that you could try:
Do a Google search to see if you can track down corporate events that may transpired such as a symbol change or a merger with another company.
Find a source for OTC BB and Pink Sheets companies and see if there's a current listing there (these are where delisted stocks still in business end up)
The stock ...
1
Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders' equity.
- investopedia
So long as the net income is positive, ROE will be positive (assuming the denominator net assets is also positive).
More importantly, ROE isn't related to share price - it is mathematically related to measures like ...
1
There were 2 questions.
Can I invest in stock prior to its ex-dividend date, then sell after and still get the dividend payout?
A detailed explanation can be found in this article : Dividend implications. If you are thinking of getting the dividend and selling the stock its price is adjusted price, it is not going to happen. There is a chance that a few ...
1
The thing you want instead of paper trading is backtesting, which uses historical stock data to evaluate the hypothetical performance of a given trading approach. See Investopedia and Quora for some pointers.
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