71
Sometimes, we own things that are all but worthless.
What do you do if you have a single staple you want to get rid of? Nobody would give you even a penny for it. Even if it's unbent, a single staple is only worth a tiny fraction of a penny. If it's been used, its value as scrap metal is even less.
But if you have a million of them, you can open an ...
36
No, private companies have no obligation to help you sell their
shares.
It may not be legal, but there is very little you can do short of suing the company. Great article about this from the Wall Street Journal here.
You could approach the company and ask if they are interested in buying back shares, or if they know anybody who is interested in buying. But ...
27
Yes, this is absolutely possible. Stock prices move based on the market's expectations of growth, not based on whether the company grew or shrank. Take Tesla Motors, for example. It continues to grow Revenue and EPS, but is occasionally hammered by the stock market. Why? The rate of growth is what matters. "Positive results" are relative - a company can grow ...
24
The company going public is probably your best chance of being able to sell your shares. Therefore, your first job should probably be to try and see if there are any indicators that this might still happen: scour their website and financial news websites for anything that might indicate that this is still a possibility. If you do still have contacts within ...
15
I cannot buy/sell a single share?
Sure you can. I'm sure someone would sell you theirs for $0.01, 3x the market value. Selling would obviously be tricky
What happens if I own one share, I sell, and then want to cash out?
You need to find someone who enjoys losing money. Or buy more then sell the new total.
Sometimes investments become worthless. ...
13
Nomenclature for stock symbols isn't standardized. Brokers and web sites use a variety of suffixes for non standard symbols. This is particularly maddening for preferred stocks. Fortunately, securities have CUSIP numbers so that other than infrequent human error, ACAT transfers operate efficiently.
To demonstrate the insanity of web site nomenclature for ...
12
No. Virtually all savings accounts pay interest based on what your average balance was over the course of the month, not based on what it was at one particular moment in time.
9
I think you need to go back and reconsider your interpretation.
First, the volume is showing you the TOTAL volume. It is showing you "How much X has been traded over period Y".
The pretty green/red colours are derived data:
Green = Closing Price > Opening Price
Red = Closing Price < Opening Price
9
In general, shares in a private company aren't worth anything. (Unless the company is paying dividends or they give voting privileges or something.) There's no good way to convert them into cash unless the company is buying.
5
About a decade ago I worked for Akamai Technologies for 5 years. It seemed like almost every quarter our stock would drop 5-10% after the earnings report, even though we always reported increased earnings and other positive indicators. Akamai was a leader in its industry, but it's a highly technical industry that I think analysts had trouble understanding ...
5
I wrote to Audi Investor Relations and they provided a quite detailed answer. It turns out that there are "tick sizes" for shares as per European Union regulation 2017/588, which came into effect from 2018 on and has larger tick sizes for for expensive shares and shares with lower trade volumes; hence it is especially noticable for an expensive share with ...
5
The S&P 500 constituents are rebalanced on a quarterly basis on the third Friday of March, June, September and December on the basis of their weighting and other relevant factors.
Intra-quarter changes can also occur, typically because a company becomes ineligible to remain in the index, such as takeover/merger, removal from major exchanges due to ...
5
Trending indicators work well in strong trending markets. They're late in and late out. They're not effective in sideways markets because they will generate many false signals and whipsaws.
Oscillating indicators generate more signals and they are best used in trading markets. However, more signals means more false signals and whipsaws.
The problem ...
4
Read JL Collins stock series. Part 10 provides a good explanation of why a large regulated brokerage that tracks an index can't crash.
"1. You are not investing in Vanguard, you are investing in one or more of the mutual funds it manages.
The Vanguard mutual funds are held as separate entities. Their assets are separate from Vanguard, they each carry ...
4
Is there any ETF / Index Fund that tracks the S&P 500 and that holds both stocks and bonds?
No, because the S&P 500 does not contain any bonds, so trying to track that index with both stocks and bonds would be extremely difficult.
I assume you want the returns of the S&P 500 but not the risk, hence the addition of bonds. Unfortunately, risk ...
4
One of the characteristics of the OTC market is that the trades aren't 'public' in the same way that trades on exchanges are.
A trade can be executed between two participants in an OTC market without others being aware of the price at which the transaction was completed.
- investopedia
So in relation to your question about "Who is buying the stock?" - ...
4
Contact the Investor Relations department of the company that most recently bought them. They should be able to tell you what your options are.
4
AMD would record revenue whenever MS actually orders the AMD processors. They might have already done that, or they might not do that until next quarter. Unless either company states specifically when that is going to happen, there's no way to know for sure.
In general, a company records revenue whenever a purchase is made, or an order for a purchase is ...
4
A moving average (MA) reduces the amount of noise in a price chart. The longer the period, the greater the smoothing and the fewer the number of whipsaws. The drawback of a longer period is that the signals are delayed so that you are late in and late out. Use a shorter period and you'll be more timely but you'll have a lot of bad trades from whipsaws.
A ...
3
I understand how this can happen as the market cap falls below the shares outstanding
Technically, the market cap would have to fall below 1/100th of the shares outstanding in order for share price to drop below one cent
...but how do you actually transact when the prices are like this? I cannot buy/sell a single share? What happens if I own one share, ...
3
I had a situation where one stock dropped over 99% in value. The company where my account was, had rules that allowed sales of sub-penny stocks in 2 manners: blocks of 100 or "all of it". My account was credited for the 94 cents that the 100 shares sold for, and I was not charged the $7.95 fee for stock trades (in that type of retirement account).
I don't ...
3
What the authors are trying to discuss is how to think about a company which has retained earnings, in terms of the 'cost of financing'.
Because you want this to non-corporate finance people, first some definitions:
(1) Retained earnings: these are accrued profits from previous years, that haven't yet been paid out as dividends. ie: if Ford had net income ...
3
It's a somewhat vague term for "series of technically related events". Here it means the stock has gone down a lot, and someone attributes this to a "spiral" or "cascade" of negative technical signals that accompanied and possibly exacerbated the selling (e.g., a downtrend, then a loss of critical support, then a capitulation). Now, they believe the stock is ...
3
If this happens, the pair of companies is worthless and might as well not exist.
Proof 1:
No shares of either company are owned, directly or transitively, by any natural person (human). The ownership chain bounces back and forth endlessly between A and B.
There is no way for the companies to do anything, because there is no way to legally exercise control ...
3
Nobody; or at least, no individual counterparty.
Let’s use (mostly) @Michael’s labels of borrowing securities from beneficial owner A via broker B, sell high to C and buy back low from D. Note that in this answer, B refers to the broker rather than the borrower.
A: starts with the securities and ends with the same. The broker makes good if A wants to trade ...
3
Open interest represents the number of contracts that exist on any given day.
In order for a trade to occur, there must be a buyer and a seller. Each may be opening or closing the contract. There are 4 scenarios:
BTO and STO
Both parties are initiating a new position (one new buyer and one new seller) so open interest increases by one
BTO and STC ...
3
Nothing happens to the option if FB sells off assets. Your contract is for 100 shares of FB, whatever it is worth at expiration. If below $145, your short put will be assigned and you will buy shares of FB.
A spin off is a distribution and existing contracts will be adjusted to reflect the terms of the spin off. The same holds true for a break up.
...
3
If something happens to the mutual fund and it crashes, you lose everything.
Theoretically, yes, but the point of diversification is that the odds of ALL of the underlying stocks going to zero is infinitesimal. Certainly there can be large economy-wide crashes, which is why you can further diversify into multiple mutual funds covering different markets (...
3
No, You cannot enter any order without the risk of the order getting executed. In my humble opinion, the fault resides with those who read and look at the order books and then take advantage.
But the general public loves a hanging, and I fully agree, This article is by a similar sounding name.
2
If something happens to the mutual fund and it crashes, you lose everything.
Nothing will happen to the mutual fund that doesn't also happen to the underlying index.
What might happen is that the brokerage goes bankrupt or collapses due to some malfeasance.
The SIPC should pick up the pieces after you, but that will take time. Better to just invest with ...
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