New answers tagged

2

This depends on the exact local legislation. What you paid for the shares (price) typically has absolutely no influence. Price is what you pay for, value is what you get. The present fair value of the company is $10, and you are getting a profit of $3 over the fair value (although a loss of $7 considering what you paid for). I'd say this is pretty ok deal: ...


10

It is difficult to answer the question without doing several time-consuming things. I will, however, tell you how to do them. The question as to their worth depends on what happened during the mergers. Other firms purchased all three firms or were broken into different parts, but all three still exist in some form. No one can compel you to sell your ...


52

Let's have a look at the various corporate actions for these companies to see what events would affect your shareholding. EMC Corporate Actions Feb 2001: 0.0369:1 Spinoff of McData. Cash paid for fractional shares. 2003-2016: Dividends totalling $1.435 per share Sep 2016: Taken over by Dell, paying $24.05 cash + 0.111 VMware stock VMWare Corporate ...


105

In order to determine what has happened to Motorola, you need to look at any corporate actions that have occurred on the stock. CORPORATE ACTIONS Motorola Inc had the following corporate actions since 1999: Jun 2000: 3:1 Stock split (so your 36 shares became 108 shares) Dec 2004: 0.110415:1 Spinoff of Freescale Semiconductor Class B shares (i.e. 11.925 ...


1

SEBI doesn't refund money for shares. It regulates the exchange. The company has lost value and SEBI has stopped trading on exchange. Given that it's book value is negative, I doubt if you can find any offline buyer's


2

According to Morningstar, the monthly returns for SPX were: January February March April May June 2019 7.87 2.97 1.79 3.93 -6.58 6.89 The problem is that you either have bad data from AlphaVantage or your data query from AlphaVantage was incorrect. Monthly return is not calculated from the opening ...


3

Since you're asking for Germany, the answer is specific to Germany of course. The 1st scenario only pays off if your personal tax rate on income is less than 25 %. In that case, in your tax declaration you have to apply that your personal tax rate is applied to your capital gains. If your personal tax rate is higher, German flat rate tax of 25 % should ...


1

Many companies have different classes of shares, but not all shares are listed on an exchange for trading (and some are not public at all too). e.g. Alphabet (parent company of Google) has Class A shares (symbol: GOOGL) and Class C shares (symbol: GOOG) listed. Class B shares are held by the founders and are not listed. Other companies, such as BHP ...


2

Most(?) brokers these days also have an online presence. I think Googling for "online broker" already offers a lot of choices. Our company has been using Interactive Brokers for 5 years now and I can recommend them; they accept personal accounts as well.


2

You will never find a step-by-step example. It does not exist. You should buy the fifth and sixth editions of Security Analysis, by Graham and Dodd. The fifth edition was written in 1987, the sixth in 1943. No, that is not a mistake. The revised version of the 1943 edition (commented rather than revised to bring it current to the newer accounting ...


1

I'd say the most important things are to: Calculate the debt-free relative price of the stock. Some people use EV/EBIT, but then it doesn't account for taxes, so I'd say a tax-modified EV/EBIT would be good. This takes correctly into account the capital structure of the company so companies in debt don't seem like such a good idea anymore (hint: they're not ...


1

Before answering your specific question, there is an underlying assumption to address first: If you can notice any significant upwards movement in the bid price, which is still below the ask price, this indicates that there is a significant gap between the bid and the ask. There will always be some amount of spread between the bid and ask, by definition [or ...


-2

It can mean any or mix of the following The bid price is below the market average There are too few sellers, thus price is difficult to be met There are too few buyers It can be a any of the stock manipulation scheme There is a demand for the stock (uptrend) Thus the probability of a real uptrend is only 20%. Will you bet on it without gathering further ...


16

Cash dividends are paid from the company's cash on hand. It doesn't matter where that money comes from. You might have earned it that year, previous years, or (rarely and foolishly) borrowed it or retained it from a stock offering, etc. A cash dividend is funds or money paid to stockholders generally as part of the corporation's current earnings or ...


19

In the end it comes out of earnings, but the earnings don't have to be made that financial year. So yes you can pay dividends despite negative, zero or low earnings in a specific year. This can be a strategic consideration of the company called dividend continuity. This is based on German Law (§ 150 AktG), but should be applicable elsewhere as well.


1

This occurrence is not indicative of anything other than someone placing a buy order that was higher than the current bid price but lower than the ask (price improvement inside the market). Suppose the quote is $20.00 x $20.25 . If nothing changes on the ask side and you place an order to buy X shares at $20.05 then the quote becomes $20.05 x $20.25


3

The 10% accurately describes average growth of the long-term US stock market. It is a nice and round number. This number is also fairly useless. It does not account for inflation. This may or may not matter for your purposes, although it is easier to compare financial instruments without inflation. It does not account for taxes. Since taxes affect your ...


1

Why is everyone on this site calculating an annual return of 10% or higher when in contrast it is not offered/not recommended by banks and financial advisers and where does this difference come from? With dividends reinvested, over the past 25 years, the SPDR S&P 500 ETF (SPY) has returned an average annual return of 9% (14.6% over the past 10 years). ...


16

The other answers do a good job of detailing why the ownership of all shares of a stock must be kept track of. However, I'm going to give a counterpoint: that there is no simple way for a company to track down who all its shareholders are in terms of actual people. There are at least two reasons for this: Shares are frequently held in a "street name". ...


2

If your algorithm works, try it using paper-trading. Maintain a log of the prices it would have bought at, and sold at, and what the overall profit would have been. The longer it runs and the more consistent it is at making a profit, the more it will appeal to investors. Paper trading is a proxy for the real market, but no substitute. You will find you ...


1

If your AI based penny stock predictor is effective, people will flood you with money for the access to the money maker containing the secret sauce. Even if it's no good at all, a cadre of speculators will throw money at you if you create some smooth come on ads. Per your comment that you only have €10,000 to invest, that is more than enough to start with. ...


5

A transfer agent is a trust company, bank or similar institution assigned by a corporation, for the purposes of maintaining an investor's financial records and tracking his or her account balance. The transfer agent records transactions, cancels and issues certificates, processes investor mailings and handles a host of other investor problems, including ...


25

Is a public company able to check out who owns its shares ... Public companies have to maintain a register of members (shareholders). Apart from regulatory requirements, they need to know who to pay dividends to, invite to shareholder meetings etc. Exactly how they maintain this register depends on the company itself and/or on the regulatory jurisdiction ...


3

Honestly, I'd be worried that the corruption inherent in penny stocks will bite you/your customers. Your AI program will either fall prey to pump and dump schemes (if you're bad), or will look like it's involved in a pump and dump scheme (if it's good). That last option seems like a good way to have a chat with someone from the SEC. Also a good way to have ...


2

"Penny stocks" and "long term investing" are contradictions in terms. Be that as it may... I'll make explicit what I wrote before, if you market it properly, people will flood you with money. The world can't beat a path to your door if they don't know your door exists and don't know where you live. However, note that the Pink Sheet market (aka penny stocks)...


0

... is there any way to calculated PE ratio for S&P 500 using PE ratios of individual companies? If an index is equal weighted, if all you know is the PE of the components then you cannot determine the PE of the index by adding the individual PEs and dividing by the total number of components. You need the individual price and earnings for each ...


0

The Price to Earnings ratio is a relatively simple equation - the price of the security as it is traded, divided by the earnings that the security produces each quarter. However, the challenge with many of these index type products is the precise composition is not easily known. For a given index, exactly how many shares of AAPL are contained within it, ...


4

To maintain a constant leverage ratio greater than 1x, an ETF must rebalance. This takes the form of buying high and selling low, which produces the lag effect. However, you may be asking, why does an ETF have to promise to maintain a constant leverage ratio? Couldn't it advertise that, after buying an index with some initial leverage, it will passively ...


6

Suppose that a 2x leverage ETF has a starting value of $100 and it rises 10% immediately. It's now worth $110. In order to maintain 2x leverage, it must add another $10 of leverage because the leverage ratio is now less than 2x. Conversely, if the ETF's price decreases, the leverage ratio exceeds 2x. If the ETF does not rebalance, the leverage ratio ...


3

Expiration is a closing transaction and is considered to be the sale date of a long option and the purchase date for a short option (proceeds are zero if OTM). The rest of your question is missing details. "If the option expires in the money", did you sell to close? If so, was there a gain or a loss? If not, you accepted auto exercise. Did that close ...


0

Here are a few free sites (unless you choose to subscribe to premium content, where offered): Seeking Alpha has many contributors who share their opinion and analysis of stocks and other securities. There's a lot of useful information and some really sharp minds contributing and commenting. But in the final analysis, you have to do your own due ...


0

I heard about Say.com recently, which is a forum of questions and discussion from stockholders — to other stockholders and to the company. Example: The Tesla shareholders' talk.


4

If you did not choose any investment options for your 401(k) plan (administered by Fidelity), then the money that you contribute each paycheck gets deposited into the default investment option which is typically either a Fidelity money-market mutual fund or a Fidelity variable annuity (sometimes called a guaranteed income contract (GIC)). Which one it is is ...


1

You are not going to sell every month with a loss (otherwise, you should change your strategy, maybe). The wash sale losses reduce future gain, but sooner or later, you will sell with a gain, and the taxable gain will be smaller (by the amount of the wash sale losses). Alternatively, you could just wait 31 days instead of 30, and be outside of the wash sale ...


0

I've never received vested benefits so I'm not sure how that part works but I do use Fidelity for trading stocks and mutual funds so if you're sure you're ready to sell, I can lay out the basic procedure for you. In your account, go to the positions tab, select the stock, and click "sell." You can choose to sell all shares at once as you suggested or sell ...


0

I'll give the steps that I did/have to take and hope your accounts are similar: I have 2 accounts, one with the unvested shares and one with the vested ones. In the latter account I can sell the shares and I would receive a check in the mail. It's possible that they would just give you a cash balance in the same account that you have to manually cash out. ...


0

If you are thinking about opting out of stocks and then investing in real estate, it is possible. You can sell your stocks at once. You can't do the same if you've invested in real estate and you want to sell and invest in the stocks. As your rental property will take a little while to list, sell and close, at least a few months. If you have enough ...


0

No, investing in stock market is not a zero sum game, but quickly speculating in stocks may be (it also may be a negative-sum game). Investing in gold (as opposed to gold mine), or stashed-away art (that is not displayed in any commercial revenue-generating museum), or properties that are not offered for rent, or bitcoin is a zero sum game. Investing in ...


1

The other answers are correct but I'd like to address why some people say that it is a zero-sum game. It happens when people confuse trading/speculation with investing. In trading, the focus is on transactions. In that case, it is a zero-sum game. At a given point in time, every transaction has a "winner" and a "loser". If the company is overvalued, the ...


0

I think the other answers (some very good) have failed to address the actual issue. Why is it not a zero-sum game ? The answer is that the stock price is completely detached from the people who have bought or sold the stock. If the company reports strong earnings then the share price (should !) goes up. That means that everyone who currently holds the ...


5

The game is not zero sum. When a friend and I chop down a tree, and build a house from it, the house has value, far greater than the value of a standing tree. Our labor has turned into something of value. In theory, a company starts from an idea, and offers either a good or service to create value. There are scams that make it seem like a Vegas casino. ...


9

The Dutch equivalent of the Securities & Exchange Commission is the so-called Autoriteit Financiële Markten. You can find the 'jaarverslagen', the Dutch equivalent of 10-K financial reports, on this page.


3

Acquisitions can be made for all stock, all cash, or a combination of both. Prior to approval of the merger, the deal can fall apart or someone else can come in with a higher offer (see the recent offer by CVX to buy APC which was then beat by OXY). After the acquisition is approved, at a later date it is finalized. On that date, the acquired company ...


1

The company which has been acquired will normally be delisted (sometimes the combined company operates under the name of the company which got acquired). In the deal, the company buying will pay cash plus stock for the other company. The shareholders of the company which will cease to exist get that money and those shares in the new, combined company. So yes,...


1

The US options exchange are generally open only from 9:30 AM to 4:00 PM (4:15 PM for index options). This is written in the exchange rules, which are in turn filed with and enforced by the Securities and Exchange Commission. The options exchanges also impose rules on their Market Makers to provide liquidity 'continuously' while the options exchange is open ...


4

I'd guess that it's a liquidity issue. Although there are 3,000+ stocks that offer options (and many ETFs as well), an awful lot of them trade by appointment and have hardly any open interest. Therefore, the return (fees and spreads) isn't worth it to a market maker for the time involved. And then there's the issue of daily contract exercise. The OCC ...


2

For starters, is the RSU already transferrable? As for your questions in regards to the movement of the stock over time, results can vary. If the stock is stable, then yes, over its lifetime it should be positive and should have a relatively standard upward trend. However, with that being said, if your knowledge of financial markets is limited, you're better ...


3

Dividends are often depicted as “free money”. When received, they provide investment return and a miraculous source of successful investing. This is not the case. There are two aspects to dividends: what happens on the corporate level what happens in your brokerage account on the ex-dividend date On the ex-div date, the stock exchanges reduce share ...


0

To enter stock prices go to Tools -> Price Database (Price Editor in older versions) and click Add. Select the security and enter the date and price. Use Last as the price type. If you haven't added the security yet you'll have to do that first. To view stock prices over time go to Reports -> Assets & Liabilities -> Price Scatterplot and set ...


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