18

Why are cheques so insecure? Short answer: because banks bear the risk of check fraud, and any wholesale change in the check payment system is very complicated and expensive. Instead they work to reduce the use of checks by introducing novel electronic payment systems and take what steps they can to mitigate check fraud. The check is the original cashless ...


17

Why has no such method been implemented? Checks aren't always deposited/cashed in a timely fashion. Also, a single account can have multiple checkbooks, and therefore there's no requirement that they be used in strict order. Ordering is used to some extent by banks to catch fraud already, but I don't see how your proposed solution helps significantly. While ...


15

Because funds of different share classes are there to cater different account sizes. The actual equivalent of VTI is Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) if account size is > US$10,000. Now you may ask why VTI is 0.03% while VTSAX 0.04%. That is because Vanguard of VTSAX provides service, while the service of VTI is provided by ...


9

Lets assume that they implement your your idea: there is an algorithm that generates a pseudorandom check numbering algorithm. Your bank would have to use your account number, the routing number for the bank, and a salt to feed the algorithm. The check numbers would then have to be transmitted by the bank to the company that prints the blank checks. You ...


9

This would allow the bank to check that a particular cheque number was issued to a particular account and had not previously been used We already do this with sequential check numbers. An attacker with a check from an individual has no way of knowing how many more checks were written and cashed before they try to cash a fake. Many attackers use real checks ...


9

The reason is that using checks is a flawed payment system from a security point. Making minor changes in security would not make any real difference. You could compare with cash where as long as bills has been around they have been forged. The reason checks still are around is that they "safe enough", "reasonably convenient" and "...


7

Adding onto base64's excellent answer, an ETF also avoids some of the liquidity costs incurred by open end funds. Since only authorized participants may trade shares directly with a fund, and only in large blocks, the fund manager does not need to worry about buying/selling shares to service individual account holders needs. Imagine if you needed to cash out ...


6

No. The warning says you are placing a pre-market order that is eligible for trading until two minutes before the market opens. They are warning you because pre-market trading carries additional risks, like reduced liquidity and increased volatility, and they want to be sure you are aware of what you are doing.


5

There are lots of types of income that go on the Schedule 1, Line 8 "Other Income" spot. The Form 1040 instructions say this: Use line 8 to report any taxable income not reported elsewhere on your return or other schedules. List the type and amount of income. If necessary, include a statement showing the required information. For more details, ...


5

It doesn't matter if your form of payment was lost, stolen, declined, temporarily misplaced, forgotten at home, or borrowed temporarily by a family member; that is your problem not theirs. You requested services and they delivered on the expectation of payment upon completion. Communicate with the business's representative; whether it's the owner, manager, ...


4

Hold on. If you go to that question and read OP's comment to my answer, you'll see that this was a fraud by a house-sitter gaining physical access to their book of checks. (And that is why I use a PMB). So your proposal wouldn't have helped at all in that case. Your idea removes "well-understood" and creates "opaque". You're essentially ...


3

On Jan 2nd you realize a loss of $1. When you buy the share back on Jan 3rd, you create a wash sale and the $1 loss deduction is disallowed (temporarily) and must be carried forward. The disallowed loss is added to the cost of the replacement share and when you sell on Jan 4th, you realize the $2 loss, for tax purposes. All of this just means that it's an ...


3

In short, because the market prices them that way. There is still huge demand for (effectively) risk free long term bonds at these rates, for a number of reasons so large many books could be written about it. However, for the sake of a super of a super simple overview, here's two key points: Long term risk free/low risk debt has historically always had a ...


3

The short answer is ... that depends. When you say you "realize you have no way to pay", do you mean that you forgot to bring your credit card? Or that you don't have enough money to your name? And what kind of service? If it's a matter of, "Oops, I didn't bring enough cash" or "I forgot my credit card", and the service is to ...


3

When you invest in a traditional (not exchange traded) mutual fund, you generally have an account with the mutual fund company directly. Your money goes straight to them, they send you statements, you log in directly to their website, etc. If you interact with a broker at all (not required), the broker is simply acting as a sales person for the mutual fund ...


2

The only way you could list the $5,000 in "other income" as opposed to Schedule C is if it's considered a hobby. This is a common question so the IRS has information on it here. I think the default assumption is that it's a business. In your example, is the student actively seeking out gigs? Then it's almost certainly a business. Or were they just ...


2

"XXX Company Announces Proposed Public Offering of Common Stock" means that the company is selling shares to the public. This could be an Initial Public Offering (IPO) or it could be a secondary offering. Whether a secondary offering is dilutive depends on whether the shares offered are newly created or if they are existing shares owned shares ...


2

For 2020, if you had no gains to offset, you would take $3000 against ordinary income. Then $27,000 is carried forward and would offset up to $27,000 of gains.


2

As long as these are all the transactions of XYZ and you don't reopen the position within 30 days you have a tax loss of $2 that you can deduct.


2

In your example, your compensation is so low (below $6000) that it becomes the limiting factor for how much you can contribute to IRAs. In Publication 590-A, the limit (here for 2019) for how much you can contribute to Traditional IRA is the lesser of $6000 and your "taxable compensation" for the year. So your question is basically whether a Roth ...


2

The common misconception is that a wash-sale permanently disallows adding the loss to your taxes. That is simply incorrect; it temporarily disallows it - because you bought the same security, it is 'parked' in the newly bought pieces, and once you sell those, it comes back out (unless you buy them again within 30 days, then it get's 'parked' again, etc.). ...


2

If I sell you a house in Denver, it involves agents; if I sell you a house overseas you could say "oh it still just involves agents" but obviously there's more rigmarole - more agents, more transactions. International wire transfers typically involve multiple banking systems and operators between the two countries The statement given on the "...


2

Yes, you are eligible for $1800 of Recovery Rebate Credit on your 2020 tax return, since only one of you has an SSN by the tax filing deadline. The recent stimulus bill added $600 "EIP 2" stimulus money, and provided that for a couple filing jointly where only one person has an SSN, they get the stimulus money of one person (see Division N section ...


2

Since you were out of the US for at least 330 days in the 12-month period of Jan-Dec 2020, you qualify for the Foreign Earned Income Exclusion for that 12-month period. (Note that the 12-month period used for the Physical Presence Test does not have to be Jan-Dec, and you can use multiple, potentially overlapping, 12-month periods in a calendar year. But in ...


2

Just for the sake of accuracy, a wash sale occurs if you acquire a substantially identical security within 30 days before or 30 days after a realized loss. If you incur a wash sale, the loss must be deferred and is added to the cost basis of the replacement shares (or options). If you close all positions by the end of the year then you get to claim your ...


2

A major difference between a Mutual Fund and a corresponding ETF is the consequences of daily trading: if you buy a mutual fund, the respective company, in your example Vanguard, needs to act accordingly and invest your money in the underlying stocks / securities. If you sell the Mutual Funds the next day, they again have to act and sell the underlying, to ...


1

Your HSA provider typically has a form to fill for undoing part or all of your contributions ("Withdrawal of Excess Contributions"). If it is not on the website, call them. It's pretty simple and might be just some clicks and typing the amount in.


1

When the spinoff occurs, you will be long shares in the parent company and long shares in the spinoff. You might receive the same or a different number of spinoff shares. The acquisition date for the spinoff stock will be the same as the acquisition date for the parent stock. There will be no short positions involved. If you choose to sell the spinoff ...


1

The annual deduction for losses is $3k so your carryover loss from 2020 would be $27k which would offset $27k of gains in 2021. However, if you qualify for Trader Tax Status, the $3k annual limit does not apply. Read this if interested in more details.


1

Flipping is a generic term that refers to purchasing an asset with the intent of selling it for a quick profit in a short period of time. It's most commonly used in regard to short-term real estate transactions and selling IPO shares shortly after they begin trading. You could also use flipping for short term stock trading but it's non specific. It could ...


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