New answers tagged

2

From "Industry vs. Sector: What's the difference?" These two terms are sometimes reversed. But the general idea remains: one breaks the economy down into a few general segments while the other further categorizes those into more specific business activities. In the stock market, the generally accepted terminology cites a sector as a broad ...


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The smallest set that I would go with would be the 11 SPDR sector ETFs: Basic Materials Consumer Cyclical Consumer Defensive Energy Financials Healthcare Industrials Real Estate Technology Telecommunication Utilities


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I have been trying to do this as well. Like everyone above said timing markets comes with risk and missed opportunities. My current approach is to just carry about 2 to 5% in cash ( of my total investing portfolio) in a brokerage account which I use to buy what I consider a significant dips. I just buy sp500 index funds. Every time I invest the cash I ...


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You are right that normally GOOGL is traded slightly higher than GOOG thanks to its voting right. But at the end of the day, the price of anything, Google shares included, is determined by supply and demand. At any given moment, GOOG can trade higher due to share buyback, short squeeze, large purchase by institutions, etc. (actual events or the anticipation ...


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Here is a question in turn: Why do you think that the DJIA/S&P500/other indexes should be important to you? Why do you think they could be used to an advantage? They are reported on by the news to give an overall feel of the market. Currently the S&P500 is up .02%, MARA up over 14% and TAL down 5%. (MARA and TAL are companies). The S&P500 ...


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The trading halt was a "LULD pause", as can be seen in this table obtained from the NYSE's historical trade halts webpage: The Limit Up/Limit Down (LULD) mechanism is defined in the SEC-approved NMS Plan to Address Extraordinary Market Volatility, which regulates trading halts in Regulation NMS securities. The associated FINRA rule is 6190. ...


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Indices are used to assess how the total market is doing, but you can also trade them easily by buying and selling ETFs that track the S&P 500 ($SPY), Nasdaq ($QQQ), and Dow Jones Industrial Avg ($DIA). Many people purely trade in the form of index because: they're risk-averse, desire slow but reliable growth, or simply want to preserve already-...


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https://en.wikipedia.org/wiki/Volume_(finance) ... the volume is commonly reported as the number of shares that changed hands during a given day... Selling one share to someone would cause an increase of one, as only one share changed hands even if that transaction involved both a purchase and a sale.


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All of us would like to buy stocks, ETFs and/or mutual funds after every market correction or bear market but no one knows when such events will occur or at what price they will bottom out. You have identified the problem with attempting to time the market. If right, you increase your return. If wrong, you lag the market. With interest rates being so low, ...


1

This is a frequently asked question. More often than not, sharp spikes are due to bad data. For example: Bad Data 1 Bad Data 2 Bad Data 3 and so on ...


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You are essentially trying to time the market. Most people will fail trying to do this and will make less money than if they did not try to time the market. For example, if the markets don't have a significant dip in 5 years then you have cash earning less money than it should be. A much easier and better solution is to choose an asset allocation that you ...


1

Total Produce to combine with Dole Food Company Total Produce plc (“Total Produce”), Europe’s leading fresh produce company, Dole Food Company, Inc. (“Dole”), and affiliates of Castle & Cooke, Inc. (the “C&C shareholders”), which own a 55% interest in Dole’s parent company (“Dole Holdings”) (together, the “Parties”), are pleased to announce that ...


1

Decades ago most transactions involved buying shares in lots of 100 shares. A high price could block some investors. Then things progressed. Many people own shares through their mutual fund or ETF. This can be through a taxable account or a retirement account. A large fund doesn't have any issues with high share prices. Now many brokers are allowing ...


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A high share price discourages trading. A classic example of this is Warren Buffett who has never allowed a stock split of Berkshire Hathaway class A shares because he wants to attract long-term investors for that stock. He has allowed the B shares to split because he wants an affordable class of Berkshire shares available for smaller investors. In reality,...


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In the US, for-profit colleges that came under government pressure converted to non-profit colleges with a for-profit 'services' provider. Theoretically, the non-profit Grand Canyon University could sever ties with its services provider, Grand Canyon Education Inc. (NASDAQ: LOPE). But LOPE shareholders are betting that the two entities will continue their ...


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If the company is organized as a non-profit, then the main benefits of owning many companies: dividends, are non existent. Any profits generated by the business would then me funneled back into the business, they wouldn't be able to be distributed to stock owners. If the company was going to convert from a for profit to a non-profit company, then there will ...


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From Can the market add and subtract? in Chicago Booth Review While these negative stub situations present attractive arbitrage opportunities, the high returns Lamont and Thaler calculated are difficult to realize due to problems with shorting the subsidiary. The chief obstacles to arbitrage in these cases were short sale constraints, which make shorting ...


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Answer: something else (it's complicated!) After-hours and pre-hours trading is not subject to any price barriers or halts, and is mostly unregulated accordingly. Trading errors/spikes are a significant trap for the unprepared, especially when there are corporate actions involved such a dividends, spinoffs, splits etc. Different sources will include/exclude ...


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Yes this is possible as market cap is just #stock * $stock. The market cap does not necessarily have anything to do with the underlying assets (Compare Tesla with Volkswagen for example) , even though it definetly should. For an example: The Porsche SE(not to be confused with Porsche Holding) has a market cap of 28.6B Euro and holds 31.4%(with 50+% voting ...


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Yes. A wash sale occurs if you sell or trade substantially identical securities or their options within a 30 day period. Keyword here is "substantially identical securities". Pub 550 goes into all the detail you'll find on wash sales here. One example in Pub 550 I think applies here is that the IRS defines debt of the same company that is ...


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In a reverse split, share price is increased by the split ratio and the number of shares is decreased by the split ratio. So for determining cost basis: A) 34.31 units times 2/3 equals 22.88 34.412 x 1031 = 35,376 (pre split) B) 1031 GBX times 3/2 equals 1546GBX 22.875 x 1546 = 35,364 (post split) The numbers aren't exact because of decimal rounding but ...


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There are many volume indicators and like all technical indicators, sometimes they'll correlate and sometimes they won't because they are derivatives. Some examples: OBV indicator Volume RSI Volume price trend indicator Money flow index Chaikin money flow indicator Accumulation/distribution Ease of movement Negative volume index Volume-weighted average ...


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The market capitalization of Naspers is approximately 1.3 trillion ZAR, which is equivalent to approximately 75 billion EUR. The market capitalization of Prosus is approximately 130 billion EUR. If not mistaken, Naspers owns about 70% of Prosus, so Naspers' stake in Prosus is worth about 90 billion EUR. Naspers' stake in Prosus is worth more than Naspers' ...


1

Yes, you still have to wait T+2, whether you’re using a small account or one with over $25,000. All the $25,000 and over balance gives you is the ability to trade as many times as you like, like a cash account, but with margin too. The advantage is the PDT restriction is lifted and you can use margin when you run out of settled cash.


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As mentioned, VWAP is typically used for part of your question but does not answer the opening part "a stock metric that reflects the actual prices at which a stock trades hands" That would be "course of sales" or "time and sales" (thanks @Flux) which is also typically available from the exchange or via your broker.


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As mentioned in the comments, VWAP is volume-weighted average price, which is available from brokers that cater to day-traders.


5

If you sell your stock before the ex-dividend date, you also are selling away your right to the stock dividend. Your sale includes an obligation to deliver any shares acquired as a result of the dividend to the buyer of your shares, since the seller will receive an I.O.U. or "due bill" from his or her broker for the additional shares. Thus, it is ...


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The weights of S&P 500 constituents are rebalanced quarterly (every three months). In between the rebalances, the ratio of index constituent weights may differ from the ratio of their actual market capitalization. The index constituent weights are fixed until the next rebalancing, but stock prices (and market capitalizations) will always fluctuate. Refer ...


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I think what you want is algo trading: https://www.tradingtechnologies.com/trading/algo-trading/


2

Actually it's a PUBLIC company. Noble's shares just are not listed on an exchange, and they also have no plans to do so. You can certainly trade them in bilateral trades, with quotations facilitated by venues such as OTC Markets but none of that is a formal stock market. More info here: https://noblegroupholdings.com/faq-shareholder Regarding ADR - at some ...


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From your link, trailing limit if touched, trailing market if touched, or more general conditional orders seem relevant. (All of these are broker-specific.) It's not completely clear how you want this to behave, but for example, you could have a condition triggered on the price falling to $9, that activates an order to buy if the price either falls another $...


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Gamma is a function of current option price and is easily calculated. It tells you how fast delta is going to change per point move in the underlying. Its current value tells you nothing about how much the "underlying" is going to move up or down. And there's no need to learn how to calculate the value of gamma because any decent broker (even ...


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The margin of safety can be calculated by computing an intrinsic value and comparing it to the current price. For example, if the intrinsic value was 100$ and the stock is trading at 80$ your margin of safety would be 20%. In practice, the difficult part is getting the intrinsic value right. No matter how you compute it, you will always rely on assumptions ...


1

I understand the S&P 600 is more volatile due to its small-cap focus, but in the long-term it clearly seems to be the better option, right? The key word is risk-adjusted returns. I didn't run the numbers but I'm willing to bet that the risk-adjusted performance (e.g. Sharpe ratio) of the S&P 500 beats the S&P 600. Additionally, the S&P 500 ...


4

It is of course not true that nothing beats the S&P 500 in the long term. There's certainly nothing magical about the number 500 and it may be that a slightly different allocation would be better, even over the long term. In practice, "nothing beats the S&P 500" is used as a short hand for "nothing beats the market average". The ...


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You have interpreted this as current coverage when in fact it is not. Canaccord Genuity initiated coverage on Virgin Galactic on May 26th with a buy rating and a $35.00 price target. SPCE was about $27 at that time.


1

A buy stop limit sets a maximum higher price for buying a stock. A sell stop order is the opposite, specifying the lowest price that one is willing to sell at. I'm unaware of such orders working in the opposite direction as you would like. Some brokers offer Conditional Orders that allow multiple conditions to be included. For example, Fidelity or ...


1

Last year someone did an analysis of stock performance and observed that US stocks where "V" is the second letter of the ticker symbol averaged an 89% gain whereas the S&P 500 gained 16%. A stellar perform in the early years was the Super Bowl Indicator which was 92% accurate in its first 50 years. Such performance is due to randomness. IOW, ...


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Yes, they may issue both domestic and foreign stocks simultaneously. The reason being, the United States government forbids the transference of shares of U.S. companies to foreign countries. However, this rule does not apply to stocks of foreign companies. Companies can issue shares in foreign stock markets. There are no restrictions on foreign ownership of ...


0

Since no one has answered in more than a year, I will provide an incomplete (and possibly incorrect) answer: CREST charges an "international custody charge". The amount charged varies by the country of the underlying security. As of August 2020, the fees range from 1.50 basis points (i.e. 0.015% of the value of the security) per year for US ...


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From The International Investor: A CREST Depository Interest (CDI) is a UK security that represents a stock traded on an exchange outside the UK. So it's a financial instrument that's traded in the UK that represents a stock on another exchange. In the US they're called "American Depository Receipts" (ADR). The CDI "tracks" the ...


1

As a long-term, new investor, should I even care about the day-to-day or minute-to-minute candlestick patterns? Candlestick patterns are used by people who are trying to time the market. They are wanting to guess when would be the best time to buy or sell. If you are a long term investor, then the best thing to invest in is index funds. The best time is now....


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You need to become financially literate. The only way to do that is to start reading books. Google: Best technical analysis books Best investing books When you get an idea of the lay of the land, figure out what makes sense to you and for you. Asking others what they think is best is folly.


0

After reading the description, my first thought was that I should look for a screen saver of a sparrow. My next thought is that you're quoting a non-binary character on the show Billions on American television? Really? That's the source of your financial information? Yes, you are correct. A stock's delta is either +1 or -1.


-1

It's a fictional TV show. "Predicting the delta of a stock" doesn't mean anything.


3

You seem to be taking the definition of delta from options models, where "Delta" is the derivative of the option price with respect to the underlying price. Delta in mathematics more generally means "change", so I interpret the statement to mean the change in the stock price, either the change over a period of time or the average ...


2

To understand the answer here, one must first understand how the London Stock Exchange categorizes securities. According to the Guide to the Trading System: From a business perspective an individual instrument is assigned to a grouping known as a trading sector. A collection of trading sectors are grouped together to form a trading segment. A specific ...


1

It is a simple measure. The number of shares is easily available and the price as well. Calculating market capitalization is a simple multiplication and you get what the market thinks the company is worth. It is a number that is easily comparable against other companies. To my knowledge, such comparisons are typically based on the total market capitalization,...


2

Preferred stocks are income securities that pay an annual dividend (usually quarterly but sometimes monthly or semi-annually) unless they are fixed/floating issues. Most are issued at $25. Most have no maturity date but they are callable at the issue price five years after the date of issue hence they 'don't grow' unless it's a convertible preferred. GOOG ...


2

It appears that they are all part of the GES (Global Equity Segment) Securities, as opposed to the UK and European Securities. What is the GES? With Global Equity Segment, investors are able to trade certain US blue chips and US-listed Asian ADRs during London hours. Benefits of using the Global Equity Segment Trade global equities on the world’s most ...


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