user253751
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Why do people who sell something on a marketplace ever allow the price to go down?
25 votes

Because what if nobody wants to buy at that price any more? When the buy price and the sale price meet, a transaction happens, and those prices are removed from the market. That means there's always a ...

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Why aren't non-dividend stocks ponzi assets?
13 votes

Ultimately, if you own the company, you can vote to shut down the company, sell everything it owns and give the money to the shareholders. You can also vote for the company to start paying dividends. ...

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Can secret Bitcoin transfers cause the reported values to be completely off?
9 votes

Since people are still buying and selling Bitcoin at the exchange price on the exchange, the exchange price still reflects the actual Bitcoin price. If the exchange price didn't reflect the actual ...

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Why crypto price increases when market cap increases?
Accepted answer
6 votes

You can't buy more bitcoins. There are a certain number of bitcoins that exist at any given time. You can't change that by spending money. If Alice and Bob each bought bitcoins worth $20 from Jim who ...

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Why can’t I short Game Stop right now?
6 votes

I can't know why your brokerage, specifically, disabled shorting, but the reason seems very obvious to me, like common sense. Nobody knows how high the stock will go, especially not you. A month ago ...

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How is the "loan" repaid in a leveraged trade?
5 votes

If the price goes up 1% and you cash out, you get $10100. You repay the $9000 loan and you now have $1100, you started with $1000 so your profit is $100. You may or may not be charged interest.

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Is it okay to display prices in USD if I am charging in CAD
4 votes

The displayed price must be what you actually charge me. This is non-negotiable. If your website says $78 USD and then I buy the item, and exchange rates have changed and I actually pay $81 USD, that ...

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Should I focus on repaying private or federal student loans during Covid-19 and CARES act?
4 votes

Your federal loans have the lowest interest rate even after they start charging you interest again. Therefore, after they start charging you interest again, you'll still be paying them off last. And ...

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How to sell gold and silver bullion legally and through legitimate buyers
Accepted answer
4 votes

At one point in history, gold and silver had something to do with paper-based money. Actually, quite recently - less than 50 years ago. Now, they don't. If you want to "convert" silver into paper ...

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Foundational equations or concepts of Finance
Accepted answer
3 votes

For personal finance (even though this question is tagged for stocks): How about the fundamental accounting equation? Assets = Liabilities + Equity or (equivalently) Equity = Assets - Liabilities ...

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Paycheck in a foreign currency: protecting from exchange rates
2 votes

No. Unless you can predict whether it will go up or down, on average you'll have the same amount of EUR no matter whether you exchange it now or later. If you predict the conversion rate will go up ...

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How does QE reduce long-term interest rates?
Accepted answer
2 votes

"Long-term securities" (i.e. bonds) work like this: You're a big company wanting to expand. You write a bunch of IOU notes that say "I'll pay you back $100 in 10 years". Then you ...

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How can I benefit as an individual investor in bonds, from increasing of bond yield?
Accepted answer
2 votes

The yield of a bond relates to the amount of money you make by buying it now and holding it. The payments you get from holding the bond are fixed (that's the par value and coupon payments). So if the ...

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Is it illegal to transfer money to my girlfriend in Taiwan?
Accepted answer
2 votes

Money laundering is when you try to hide where your money came from. Are you doing that? No. If the police wanted to see where your girlfriend's money came from (they probably don't), they can see she ...

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Investor Paradox. How can you calculate how much is a company worth when buying part of it changes the total value?
2 votes

The other comments have explained the accounting valuations of investments in large, steady businesses, but I want to a perspective that's more specific to Shark Tank. Let's say a shark accepts 30% of ...

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Are new dividend investors severely disadvantaged by ongoing rising dividend growth stock prices?
1 votes

Yes, if stock prices go up and dividends don't, then you get back a smaller percentage of your stock price as dividends. That is correct. This may mean the dividends are no longer a good investment. ...

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Why do people refer to Bitcoin as currency when it is not classed as tender from a taxation perspective?
1 votes

Why would that be relevant? What the tax man says is completely irrelevant, except for tax. If the tax man says houses are investments, does that mean we shouldn't live in them? No, it just changes ...

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Is it correct to say that any "Basis of accounting" is a database that can be used to create a Trial balance?
Accepted answer
1 votes

No. It says: The basis of accounting is the time when various financial transactions are recorded. Then it says the main ones are the cash basis and accrual basis. The cash basis means you record the ...

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How to pay taxes if I have no money?
0 votes

If the vegetables are taxable income, then you must sell some of the vegetables for money in order to pay the taxes. Even if nobody in your town uses money and you have to drive 50 miles to a place ...

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How to prioritize paying back loans based on interest?
-1 votes

If you have a loan that is guaranteed to have 6.999% interest forever, and a savings account that is guaranteed to have 7% interest forever, and some extra money, of course you should put it in the ...

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