New answers tagged stocks
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A LEAP can be a put or a call. I'm going to assume that you mean that your Day 5 transaction is a call LEAP. If so, it is a 'substantially identical' security and therefore it triggers a wash sale violation. You will have to pay taxes on $1,000 since the $500 loss must be deferred.
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I don't know about the Pink Sheets but on major exchanges, hiiden orders offer traders the ability to disguise the size of their order, displaying only the order size that they want.
Iceberg Order:
Iceberg orders are large orders that are split up into lots or small sized limit orders. They are split up into visible and hidden parts, with the latter ...
1
An option's price is primarily dependent on share price, time decay and the implied volatility. It's a bit complex.
What happens when the stock reaches $60 next month?
If implied volatility remains the same then one month from now you will have a loss on your position (the price of the put will be higher).
Will I get assigned 500 shares as soon as it ...
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These "absurd bid and ask prices" are called "stub quotes".
A stub quote is an offer to buy or sell a stock at a price so far away from the prevailing market that it is not intended to be executed, such as an order to buy at a penny or an offer to sell at $100,000. A market maker may enter stub quotes to nominally comply with its ...
2
Will I get assigned 500 shares as soon as it reaches $60 and I keep the premium?
Most likely not. What's more likely is that if the buyer wants to close their position they'll sell the option. It's usually more profitable to sell to close a position than to exercise early. But it is possible.
Because the buyer has an opportunity to wait till Jan 23, will ...
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It can be done using bunching, which aggregates odd lot orders together as block trades, executing the odd lot orders as one transaction. The order management system usually handles this process.
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Not much of an answer, but FWIW - based on my knowledge - there's unfortunately NO really international solution for "tax advantaged retirement saving".
Unfortunately each jurisdiction only offers a tax-advantaged-retirement scheme in their own jurisdiction. Indeed as you mention in the UK case, once you happen to leave, you're done, they cancel ...
0
Without studying the financials and more information about the company it is difficult to gauge investor reaction to the IPO. My guess is that its current price is only a reflection of the news it was planning to go public on the NYSE, since the stock was trading down around $2 prior to November of 2020.
What the offer price is now doesn't mean it won't ...
1
For many investments, including ISAs and pensions, it's possible to go straight to the fund managers and cut out the middle-man.
The yearly fees on each fund will be higher as a retail invester, but you can offset against that not having to pay anything to the broker. Many ISAs (and pensions) will accept monthly payments.
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The Delta of an option is a rough estimate of the probability of an option expiring in-the-money (and hence getting assigned). An at-the-money option with a delta of about 0.5 has roughly a 50% change of expiring in the money (the underlying price could go either way), a deep-in-the-money option with a delta approaching 1 will almost assuredly pay out, and a ...
4
Odd lots (less than 100 shares) are not covered by NBBO regulations and they do not update the quote. Read this.
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A market maker can change his bid price to match the ask, but the trade can only happen when an ask price matches his bid price. That's the nature of the order-matching systems used. The prices you see are only what the price of the stock was at last trade, but that doesn't mean one or more market makers haven't adjusted their bid prices either down or up ...
2
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, ...
2
It is common for private placement investors to be able to start trading at least some of their stock right away, while employees usually have restricted shares that cannot be traded for some period of time.
When I worked in the business we tried to get our private placement investors to follow a disciplined exit strategy so that they could sell shares ...
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the 1 million shares are what is traded
sometimes there is a separate lockup where employees can sell some shares first but it’s usually not that much, but enough to flood the market for 1-2 days or if there is big buying it can still go up
sometimes even a few days after an ipo some more shares from employees are released but this is rarer
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Subscribe to the stock ticker on various finance websites. For example, here's the Intel (INTC) page on Finviz. You can see if you scroll down that there are daily news items of interest to Intel shareholders, e.g. as of time of writing we have "Tony Zhang's Intel Trade Heading Into Earnings" and "The pandemic’s differing earnings effects will ...
1
The IRS hears about when you sell a security, not when you move money around between your own accounts. The capital gain is realized when you sell, and that’s when you pay the tax. This is no different for short term gains, where you’ll pay the income tax rate, than for long term gains.
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Just because you share your personal opinions or insights about a company that causes someone else to go and make a potentially reckless trade without doing their own homework is not something that should cause you angst.
I don't know you were actually giving someone a "stock tip" in this case - you pointed out what they could easily figure out on ...
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Do OTC stocks trade similarly to their foreign exchange equivalents?
For F shares (such as DYLLF), the answer is "yes". For OTC stocks in general, the answer is "no".
I'm sure that the discrepancies are caused by faulty data. The faulty data is likely caused by Deep Yellow's 1-for-20 reverse stock split in March 2017:
January 2017: ...
1
"Whereas the executing, or introducing, broker is hired by the customer and makes decisions about how to trade securities on the customer's behalf, the clearing firm performs critical back office duties to ensure that the transaction completes smoothly and successfully." According to https://medium.com/prooftrading/choosing-a-clearing-broker-...
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Some companies continue to trade because they meet overall market cap requirements or some other factor(s) which allow them to continue to trade. Share price alone is not the determining factor, ALTHOUGH it is a large one.
3
Just because the market overall is doing well and at record highs DOESN'T mean the ones you picked participated in that. It's like looking at an index and using it as a broad measure of how all stocks should be doing - that's just a fiction.
Keep in mind that like the DOW, indexes are a composite view of a selection of stocks, not a measure of EVERY Stock. ...
0
If TINA is true, wouldn't investors have reallocated to buying stocks way earlier than Apr 1 2020?
They sure did and that's the reason why the stock market is so bullish and dangerously overvalued. A big driver behind this are retirement savings (which are mostly done on auto pilot)
As Social Security is being faded out (and/or gets eaten by rising health ...
1
I'd offer that over $3 trillion of stimulus money pouring into the economy and the stock market was the driving force of market gains:
Investors poured record $56.8 billion into stock-market funds as stimulus checks arrived.
Experts concluded that the initial CARES Act boosted the market considerably. Many people invested part of their stimulus checks in ...
2
If TINA is true, wouldn't investors have reallocated to buying stocks way earlier than Apr 1 2020?
They did. If you look at the long time frame, the stock market had an unprecedented bull market for a decade, fueled to some extend by low interest rates.
Even in 2019 bonds where not really an attractive investment. Germany for example had already placed ...
0
The highest leverage you can get as a retail investor is limited by regulation. And to get anywhere near the level of leverage you're asking about you'd need to use Options and/or Futures.
If your requirement that no options or futures could be used was lifted though, the following inadvisable scenario would get you an incredible amount of leverage... maybe ...
1
If you're using SEC Filings (10Ks and 10Qs in this case) you'd use the following formula to determine or check LTM numbers for any items from a company's financial statements:
LTM = most recent 10Q + most recent 10K – prior year's corresponding quarter 10Q
So, assuming you're looking at several different items and calculating several different metrics you'd ...
4
31,194 is also in thousands. So it's 31 million Active Customers, confirmed by this press release.
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Here is a link to an excellent "plain english" explanation Wash Sale Rule Explained as well as one from Fidelity that is generally good too Fidelity Wash Sale Rule
The wash sale rule applies to the 30 days before you sell as well as 30 days after you sell. So there's a 61 day period that is important.
If you violate the wash sale rule, the most ...
0
Everywhere?
In the US, pretty much every provider that offers a margin account gives a 4:1 margin - you have 100k cash, you can buy 400k of stocks (or do other transactions, like short sales, write naked calls, etc.). Try eTrade, JPMorgan Chase, Vanguard, Robinhood, etc. The minimum to get a margin account is to have 25k equivalent in the account; that's ...
0
TL;DR:
Over time, "everyone" will not make money by shorting VXX.
Shorting requires holding an account balance (margin requirement) roughly equal to the short position size. The precise amount can be higher or lower, but what happens next is the same:
If the value of your shorted VXX shares happens to move up higher than the available balance, you ...
2
A wash sale has no effect on the cost basis of your overall position or on your P&L. It only affects your ability to claim realized losses in any given tax year.
While IRS language says that wash sale losses are disallowed, technically, they are deferred until you close the replacement share position without a subsequent wash sale violation. The one ...
0
Any brokerage should be able to put you in contact with shareholders to purchase shares, which is essentially a Tender Offer. Tender Offer is a set price that a purchaser of stock is willing to engage in a transaction. From Investopedia a tender offer is a bid to purchase some or all of the shareholders' stock in a corporation.
For example: if you own 100 ...
1
They issue units because when they are fund-raising they lay-out the terms on how much a certain amount of investment is convertible into shares/warrants. So for starters, it is a generally easier negotiation i.e. you will get 1 share + 1/4 warrant per unit at $10 per unit investment. Moreover, it also sets the terms in a more simplified and easily ...
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No. A product described as an Instant Cash ISA would have no provision for holding stocks/shares.
But you are able to transfer the cash within an Instant Cash ISA to an account that does permit holding stocks/shares. If you do so, make sure you get the new account provider to do an ISA Transfer. Do not withdraw the cash from the ISA yourself, otherwise that ...
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Stakes - Stake represents thе percentage оf stock thаt аn individual own. A person саn hаvе a stake in a company аlthоugh hе dоеѕ nоt оwn shares оf itѕ stock. Suppose, a company iѕ lооking tо raise 50,000 dollar in exchange fоr a 20% stake in itѕ business. Investing 50,000 dollar in thаt company соuld entitle уоu tо 20% оf thаt business's profits gоing ...
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The issue is whether or not the company is creating new shares vs distributing already-existing shares not included in the public float (until paid as stock dividends, committed via Options awards, or included in company retirement plans, etc.). I think this is the crux of your question.
A company will pay a STOCK DIVIDEND from Treasury Shares: shares it ...
-1
A Stock Dividend is taxable when you get the dividend.
A Stock Split is taxable when you sell them.
It’s pay (taxes) now or pay later.
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(edit - Whoops! Completely missed that this question is about a dividend paid in stock, rather than cash)
These are completely different things:
Dividend: The company takes money out of their bank account and gives that money to each shareholder. No shares change hands. All else being equal, this usually causes the shares to drop a bit (roughly equal to the ...
0
A holder of record is the owner in the internal records of the company that is owned. Those records are usually maintained by a stock transfer agent. Due to the costs and the risks associated with being in possession of physical shares, most people own shares in book-entry form. These are also called "street name securities." The shareholder of ...
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Bank Nifty represents the 12 most liquid and large capitalised stocks from the banking sector which trade on the National Stock Exchange (NSE). It provides investors and market intermediaries a benchmark that captures the capital market performance of Indian banking sector.
https://www1.nseindia.com/live_market/dynaContent/live_watch/bn_home_page.htm
In ...
3
A stock dividend means that you receive additional shares in the company instead of cash and they are not taxed until the shares are sold.
Like stock splits, stock dividends dilute share price. They do not increase shareholder wealth or market capitalization. There's no difference unless there's a conditional attachment that requires that the stock ...
0
Have you read news articles on the company that could be moving its stock? It looks as though they took a pretty good beating for awhile, perhaps pandemic-related, but it's on the rebound now, either out of optimism for companies in the sector or something in particular involving this company. Perhaps there was some negative news that drove selling and ...
3
They make money by selling options (covered calls). They sell those "in the money" which means at prices lower than the current price. This means that one gets money immediately but if the prices go up the stock has to be sold at a price below market value.
Therefore, this is not a "normal" ETF on the NASDAQ 100 that will rise when the ...
0
FIFO or LIFO or by-lot has no impact or consequences if you use mark-to-market - all your investments are treated as fully “sold” as of Dec/31 for tax considerations.
It wouldn’t matter in which sequence you sell if you sell all of them.
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this makes no sense to me. Why would you have to pay any kind of tax on it unless you actually take a disbursement???
I trade my IRA and trade all kinds of stocks, but as long as it all stays in the investment account and not in your bank or your pocket, you shouldn't have to pay any taxes. You can buy and sell shares within your account all you want. ...
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Based on your comments, let's be clear about what happened:
When you accidentally sold the 10 shares by mistake, you sold them short.
When you subsequently bought 20 shares, this is really two trades:
a. A cover: you covered your short position of 10 shares, and...
b. A buy: you went long 10 shares.</br/>
In a short position, you make money when ...
2
No, the stop order will go into effect immediately. If the stock drops $10, the stop will be triggered, even if the stock did not reach $150 first. Since you don't want a stop to occur in that case, you may need a conditional order instead.
The role of the "limit price" in the "trailing stop limit" order appears to be that when the stop ...
91
Shares are the individual units of ownership of a company. The total number of shares of a company is somewhat arbitrary and can be changed by splits. A company worth $1 billion might be divided into 10 million shares worth $100 each, or 100 million shares worth $10 each. Professional trading is typically done in "lots" of 100 shares; individuals ...
1
It depends. If the 10 shares you sold were sold at a loss, then buying back those 10 shares immediately after, results in a wash sale, in which case there is no tax consequence. If the 10 shares you sold were sold at a profit, then you will owe capital gains taxes on those profits when you file your taxes.
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