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93c54db3cb34101e2244963c85e5663a
|
Is it possible to quantify the probability of sudden big movements for a high-volume stock?
|
[
{
"docid": "4e0a75beec67e1583279b4a0d8dae31a",
"text": "\"Certainly no one knows in advance how much a stock is going to swing around. However, there are measures of how much it has swung around in the past, and there are people who will estimate the probability. First of all, there's a measure of an individual stock's volatility, commonly referred to as \"\"beta\"\". A stock with a beta of 1 tends to rise and fall about as much as the market at large. A stock with a beta of 2, in the meantime, would rise 10% when the market is up 5%. These are, of course, historical averages. See Wikipedia: http://en.wikipedia.org/wiki/Beta_(finance) Secondly, you can get an implied measure of volatility expectations by looking at options pricing. If a stock is particularly volatile, the chance of a big price move will be baked into the price of the stock options. (Note also that other things affect options pricing, such as the time value of money.) For an options-based measure of the volatility of the whole market, see the Volatility Index aka the \"\"Fear Gauge\"\", VIX. Wikipedia: http://en.wikipedia.org/wiki/VIX Chart: http://finance.yahoo.com/q?s=%5EVIX Looking at individual stocks as a group (and there's an oxymoron for you), individual stocks are definitely much more likely to have big moves than the market. Besides Netflix, consider the BP oil spill, or the Tokyo Electric Power Company's Fukushima incident (yow!). I don't have any detailed statistics on quantitatively how much, mind you, but in application, a standard piece of advice says not to put more than 5% of your portfolio in a single company's stock. Diversification protects you. (Alternatively, if you're trying to play Mr. Sophisticated Stock-Picker instead of just buying an index fund, you can also buy insurance through stock options: hedging your bets. Naturally, this will eat up part of your returns if your pick was a good one).\"",
"title": ""
},
{
"docid": "ce37e68e00f537c767c19173cb989473",
"text": "The P/E is currently 20. In hindsight, it's easy to see that when it was 50, not long ago, it was very overpriced. They were not adding customers or increasing revenue as they should have to sustain that P/E level. Probability? I suppose this can happen with any company that has both a high P/E and non-diversified business. Why did you think this company was large and stable? Their marketing blunders simply pricked the bubble level pricing these guys had. (Disclaimer - I am actually a happy customer of Netflix. For $8/mo, I get 6-8 DVDs and neither spend gas nor time to get them. Others who grew used to free streaming feel otherwise)",
"title": ""
},
{
"docid": "879c0735767dce73815b86de9e6871b6",
"text": "\"This is a classic correlation does not imply causation situation. There are (at least) three issues at play in this question: If you are swing- or day-trading then the first and second issues can definitely affect your trading. A higher-price, higher-volume stock will have smaller (percentage) volatility fluctuations within a very small period of time. However, in general, and especially when holding any position for any period of time during which unknowns can become known (such as Netflix's customer-loss announcement) it is a mistake to feel \"\"safe\"\" based on price alone. When considering longer-term investments (even weeks or months), and if you were to compare penny stocks with blue chip stocks, you still might find more \"\"stability\"\" in the higher value stocks. This is a correlation alone — in other words, a stable, reliable stock probably has a (relatively) high price but a high price does not mean it's reliable. As Joe said, the stock of any company that is exposed to significant risks can drop (or rise) by large amounts suddenly, and it is common for blue-chip stocks to move significantly in a period of months as changes in the market or the company itself manifest themselves. The last thing to remember when you are looking at raw dollar amounts is to remember to look at shares outstanding. Netflix has a price of $79 to Ford's $12; yet Ford has a larger market cap because there are nearly 4 billion shares compared to Netflix's 52m.\"",
"title": ""
},
{
"docid": "57473b20e156f849264f404f94ac0064",
"text": "\"In general, when companies are regarded as \"\"hot\"\" growth stocks, they are expected to keep up an accelerated level of growth for a good long time. That accelerated growth justifies a high PE relative to a slow-growth stock. When companies that are supposed to grow miss expectations or (worse) lose money, the markets punish the stock severely... Particularly if the company doesn't make analysts aware of problems early on. Netflix is a great example of a company bungling a few different business problems, creating a much bigger one in the process. A poorly conceived rate hike killed the reliable cash flow of the company, and that crazy Quixter thing just confused everyone. Now nobody trusts the management. BlackBerry is another example of a high performing company that just screwed up, damaging shareholders in the process. We're living in a very challenging era today, but growth stocks are always risky by nature -- growing a company rapidly is very difficult.\"",
"title": ""
}
] |
[
{
"docid": "adebc6f97829d7aef018c0582f2976c3",
"text": "ode2k noted the liquidity can very wildly especially 9 months out and there will be little volume even in the largest stocks. Victor noted standard measures of liquidity don't always apply cleanly to options as they are priced using a hybrid of model and market inputs. So your question is generally very hard to answer on SE, but you can get an answer yourself without too much trouble. The best way to get a feel for slippage in your case is to just get quotes. Most systems should let you get a quote for both buying and selling options at the same time. This will give you a feeling for how much you are paying in spread. Do the same for near dated options to get a feeling for spread size when you end up selling. You should factor in some widening of spreads at bad times, but this should get you a feeling for the scale of the slippage problem.",
"title": ""
},
{
"docid": "e4f3aface41cde6730131dcf5e91dbab",
"text": "Yes it is possible but with a caveat. It is a pattern that can be observed in many lightly traded stocks that usually have a small market cap. I am talking about a stock that trades less than 2,000 shares per day on average.",
"title": ""
},
{
"docid": "00135dcac4fb6133749e18b232752e96",
"text": "you can check google scholar for some research reports on it. depends how complex you want to get... it is obviously a function of the size of the portfolio of each type of asset. do you have a full breakdown of securities held? you can get historical average volumes during different economic periods, categorized by interest rates for example, and then calculate the days required to liquidate the position, applying a discount on each subsequent day.",
"title": ""
},
{
"docid": "5143955b19fc35d10f4d972ba0c77714",
"text": "I've never heard of such a thing, but seems like if such a product existed it would be easily manipulated by the big trading firms - simply bet that trading volume will go up, then furiously buy and sell shares yourself to artificially drive up the volume. The fact that it would be so easily manipulated makes me think that no such product exists, but I could be wrong.",
"title": ""
},
{
"docid": "408b55cf5d99100c61738355162a6405",
"text": "You have just answered your question in the last sentence of your question: More volume just means more people are interested in the stock...i.e supply and demand are matched well. If the stock is illiquid there is more chance of the spread and slippage being larger. Even if the spread is small to start with, once a trade has been transacted, if no new buyers and sellers enter the market near the last transacted price, then you could get a large spread occurring between the bid and ask prices. Here is an example, MDG has a 50 day moving average volume of only 1200 share traded per day (obviously it does not trade every day). As you can see there is already an 86% spread from the bid price. If a new bid price is entered to match and take out the offer price at $0.039, then this spread would instantly increase to 614% from the bid price.",
"title": ""
},
{
"docid": "559b03198b6c4e4f85f0593d61c2a272",
"text": "I suggest you look at many stocks' price history, especially around earnings announcements. It's certainly a gamble. But an 8 to 10% move on a surprise earning announcement isn't unheard of. If you look at the current price, the strike price, and the return that you'd get for just exceeding the strike by one dollar, you'll find in some cases a 20 to 1 return. A real gambler would research and find companies that have had many earnings surprises in the past and isolate the options that make the most sense that are due to expire just a few days after the earnings announcement. I don't recommend that anyone actually do this, just suggesting that I understand the strategy. Edit - Apple announced earnings. And, today, in pre-market trading, over an 8% move. The $550 calls closed before the announcement, trading under $2.",
"title": ""
},
{
"docid": "91c79dcdf2c298131d02119744c2cdb1",
"text": "While trading in stochastic I've understood, one needs reference (SMA/EMA/Bolinger Band and even RSI) to verify trade prior entering it. Stochastic is nothing to do with price or volume it is about speed. Adjusting K% has ability to turn you from Day trader to -> swing trader to -> long term investor. So you adjust your k% according to chart time-frame. Stochastic setup for 1 min, 5 min ,15, 30, 60 min, daily, weekly, monthly, quarterly, half yearly and yearly are all different. If you try hopping from one time-frame to another just because it is below oversold or above overbought region with same K%, you may get confused. Worst you may not square-off your loss making trade. And rather not use excel; charts gives better visual for oscillators.",
"title": ""
},
{
"docid": "546e0c06691b487e035f23ed55eccc9a",
"text": "\"I am strongly skeptical of this. In fact, after reading your question, I did the following: I wrote a little program in python that \"\"simulates\"\" a stock by flipping a coin. Each time the coin comes up heads, the stock's value grows by 1. Each time the coin comes up tails, the stock's value drops by 1. I then group, say, 50 of these steps into a \"\"day\"\", and for each day I look at opening, closing, maximum and minimum. This is then graphed in a candlestick chart. Funny enough, those things look exactly like the charts analysts look at. Here are a few examples: If you want to be a troll, show these to a technical analyst and ask them which of these stocks you should sell short and which of them you should buy. You can try this at home, I posted the code here and it only needs Python with a few extra packages (Numpy and Pylab, should both be in the SciPy package). In reply to a comment from JoeTaxpayer, let me add some more theory to this. My code actually performs a one-dimensional random walk. Now Joe in the comments says that an infinite number of flips should approach the zero line, but that is not exactly correct. In fact, there is a high chance to end up far from the zero line, because the expected distance from the start for a random walk with N steps is sqrt(N). What does indeed approach the zero line is if you took a bunch of these random walks and then performed the average over those. There is, however, one important aspect in which this random walk differs from the stock market: The random walk can go down as far as it likes, whereas a stock has a bottom below which it cannot fall. Reaching this bottom means the company is bankrupt and gets removed from the market. This means that the total stock market, which we might interpret as a sum of random walks, does indeed have a bias towards upwards movement, since I'm only averaging over those random walks that don't go below a certain threshold. But you can really only benefit from this effect by being broadly diversified.\"",
"title": ""
},
{
"docid": "076ed20173f85274209c411312206559",
"text": "\"The price of a company's stock at any given moment is established by a ratio of buyers to sellers. When the sellers outnumber the buyers at a given price, the stock price drops until there are enough people willing to buy the stock to balance the equation again. When there are more people wanting to purchase a stock at a given price than people willing to sell it, the stock price rises until there are enough sellers to balance things again. So given this, it's easy to see that a very large fund (or collection of very large funds) buying or selling could drive the price of a stock in one direction or another (because the sheer number of shares they trade can tip the balance one way or another). What's important to keep in mind though is that the ratio of buyers to sellers at any given moment is determined by \"\"market sentiment\"\" and speculation. People selling a stock think the price is going down, and people buying it think it's going up; and these beliefs are strongly influenced by news coverage and available information relating to the company. So in the case of your company in the example that would be expected to triple in value in the next year; if everyone agreed that this was correct then the stock would triple almost instantly. The only reason the stock doesn't reach this value instantly is that the market is split between people thinking this is going to happen and people who think it won't. Over time, news coverage and new information will cause one side to appear more correct than the other and the balance will shift to drive the price up or down. All this is to say that YES, large funds and their movements CAN influence a stock's trading value; BUT their movements are based upon the same news, information, analysis and sentiment as the rest of the market. Meaning that the price of a stock is much more closely tied to news and available information than day to day trading volumes. In short, buying good companies at good prices is just as \"\"good\"\" as it's ever been. Also keep in mind that the fact that YOU can buy and sell stocks without having a huge impact on price is an ADVANTAGE that you have. By slipping in or out at the right times in major market movements you can do things that a massive investment fund simply cannot.\"",
"title": ""
},
{
"docid": "6a02db1438babc2f423868a9c0a75f42",
"text": "\"There's an old adage in the equities business - \"\"buy on rumor, sell on fact\"\". Sometimes the strategy is to buy as soon as the rumor is out about a potential merger and then sell off into the news when it is actually announced, since this is normally when the biggest bounce occurs as part of a merger. The other part of the analysis you should do is to understand which of the companies benefits most (or is hurt the worst) by the merger and then make your play accordingly. Sometimes the company being acquired will see a bounce while the acquiring firm takes a hit, which is an indication the experts think the acquisition will be a drag on the acquiring company (perhaps because it is taking on a great deal of debt to make the acquisition, or because the acquiring firm is paying too much of a premium for what it's getting in return). Other times the exact opposite is true, where the company being acquired takes a hit while the buyer bounces, and again, the reasons for this can vary widely. If you wait until the merger is actually announced then by the time you get in, most of the premium from the announcement will likely have already been realized, and you'll be buying near the top of the market for the stock. The key is to be ahead of the other sellers by seeing the opportunities before they do and then knowing when to get out before everyone else does. Not an easy thing to pull off when you're trying to anticipate the markets, but it can be done if you do the right research and have patience. Good luck!\"",
"title": ""
},
{
"docid": "d176eb94e8783fd32d6e57b1f9aa3118",
"text": "You should not look at volume in isolation but look at it together with other indicators and/or the release of news (good or bad). When there is lower than average volume this could be an indication that the stock is in a bit of a holding pattern, possibly waiting for some company or economic news to come out (especially when accompanied by small changes in price). It could also mean that trading in a certain direction is drying up and the trend is about to end (this could be accompanied with a large move in price). When there is higher than average volume (2 to 3 times more or higher), this could be due to the release of company results, company or economic news, or the start or end of a trend (especially if accompanied by a gap). A large increase in volume accompanied by a large fall in price (usually a gap down) may also be an indication the stock has gone ex-dividend. There could be a range of reasons for variations in volume to the average volume. That is why you need to look at other indicators, company reporting and news, and economic news in combination with the volume changes to get a grasp of what is really happening.",
"title": ""
},
{
"docid": "5ce9dc303f7b78f4535fe5dc72d28a7d",
"text": "It is a fool's errand to attribute abnormal option volume or volatility to any meaningful move in the stock. One side of the chain is frequently more expensive than the other. The relationship between historical volatility and implied volatility is dubious at best, and also a big area of study.",
"title": ""
},
{
"docid": "40e19a42d0c1030422b12eaa08ea15d4",
"text": "The shortest-hand yet most reliable metric is daily volume / total shares outstanding. A security with a high turnover rate will be more efficient than a lower one, ceteris paribus. The practical impacts are tighter spread and lower average percentage change between trades. A security with a spread of 0% and an average change of 0% between trades is perfectly efficient.",
"title": ""
},
{
"docid": "c04be15b6800d5c5717ebe50622497f3",
"text": "\"You can't do this automatically; you want to understand whether the drop is from a short-term high. is likely to be a short-term low, or reflects an actual change in how folks expect the company to do in the future. Having said that, some people do favor a strategy which resembles this, betting on what are known as \"\"the dogs of the Dow\"\" in the assumption that they're well trusted but not as strongly sought and therefore perhaps not bid up as strongly. I have no opinion on it; I'm just mentioning it for comparison.\"",
"title": ""
},
{
"docid": "8ae1d1b1312fe92617416fb321e35db0",
"text": "Your plan will probably work. I speak from past experience approx 5-10 years ago, when Lloyds used to offer tiered interest of up to 4% on £5000 in their Vantage accounts. It was allowed for an individual person to have up to three Vantage accounts. The criteria for obtaining the headline interest rates were simply: What I, and many others, did was to set up three Vantage accounts, call them A, B, and C, and a standing order on each to transfer minimum amount + £1 on the same day each month in this manner: This satisfied the letter of conditions, though perhaps not the spirit. Most importantly it satisfied the bank, and all three accounts received that headline interest rate. These days banks have got a little wiser to this and have started including the 'set up n direct debits' condition, which makes this a more time-consuming system to arrange - you must assign your various bills across your accounts - but I believe that the overall plan still works. They don't care where the money comes from, or whether it stays - just that it comes in. Enough people get it wrong that they don't have to worry about the few who get it perfectly right (see also: how 0% balance transfer offers can be profitable...)",
"title": ""
}
] |
fiqa
|
87f0d5ca2bc03d05219811e984f7112b
|
What's a good free checking account?
|
[
{
"docid": "f776b37b0daea040b62129b4e72351e8",
"text": "The best bank with least amount of gotchas is Alliant Credit Union. I did a lot of research and finally decided on this bank. I did a comparative study between ING, Ally and Alliant and found Alliant to be superior than the the other two. More about my study: http://www.moneycone.com/a-bank-thats-better-than-ally-and-ingdirect/ If you do find a better bank than this, please update this post, I'd definitely like to know! Disclaimer: I have no relationship with either of the three banks.",
"title": ""
},
{
"docid": "4201f0db350d44ceacf0e9361bc26368",
"text": "Check with a small local bank or credit union, they might offer better terms. That said, my local credit union still charges $6/month for a checking account if you don't have a direct deposit into it.",
"title": ""
},
{
"docid": "2d797e0c5aeb688f536cd46d2b3308dd",
"text": "\"Here's a hack for getting the \"\"free\"\" checking that requires direct deposit. Some effort to set up, but once everything is in place, it's all autopilot. (If your transfer into savings is higher than your transfer out of savings, you'll build up a nice little stash over time.) I don't know if there are deposit amounts or frequencies that you must have to qualify for the free account, if these are public or secret, or if this works everywhere. If anyone else has experience using this kind of hack, please leave a comment.\"",
"title": ""
},
{
"docid": "f037e925896d678b10bbe59832cb7e56",
"text": "\"If you want to deposit checks or conduct business at a window, you should look at a local savings bank or credit union. Generally, you can find one that will offer \"\"free\"\" checking in exchange for direct deposit or a minimum balance. Some are totally free, but those banks pay zippo for interest. If you don't care about location, I would look at Charles Schwab Bank. I've been using them for a couple of years and have been really satisfied with them. They provide free checking, ATM fee reimbursement, free checks and pre-paid deposit envelopes. You also can easily move money between Schwab brokerage or savings accounts. Other brokers offer similar services as well.\"",
"title": ""
},
{
"docid": "7dc7abd96a4232b1049975ebf8aa602f",
"text": "Capital One 360. No minimums balance, no fees. Everything's online. Make deposits using an app or an image of the check. ATMs are free almost everywhere.",
"title": ""
},
{
"docid": "6ffed1ba7c7a5456be4234ae36bda59c",
"text": "Online banks are the future. As long as you don't need a clerk to talk to (and why would you need?) there's nothing you can't do with an online bank that you can with a brick and mortar robbers. I use E*Trade trading account as a checking account (it allows writing paper checks, debit card transactions, ACH in/out, free ATM, etc). If you don't need paper checks that often you can use ING or something similar. You can always go to a local credit union, but those will wave the fee in exchange for direct deposit or high balance, and that you can also get from the large banks as well, so no much difference there. Oh where where did Washington Mutual go....",
"title": ""
}
] |
[
{
"docid": "853f1ab64894dc0649111e6afc7bcd20",
"text": "\"There is no free lunch. \"\"Free\"\" can cost you a small fortune over time. If you wish to sit through a free pitch you may as well go to a time share seminar. Just keep your hands in your pocket and don't sign anything. In the end, you will be best served spending the time it will take to learn to manage your own money. Short term, spend a few hundred dollars and find a fee only planner who will give you general advice. My disdain for the \"\"bank guy\"\" goes back to an overheard conversation. An older woman, in her 70s was asking about investing in T-bills vs the bank CD. T-bills were a bit higher yield at the time. The banker stated that the CD was FDIC insured,but T-bills were not. This was decades ago, but I remember it as if it were yesterday.\"",
"title": ""
},
{
"docid": "1f29a91f8306aa4d1ac166445ac5fc43",
"text": "\"I think that your best option is to use the internet to look for sites comparing the various features of accounts, and especially forums that are more focused on discussion as you can ask about specific banks and people who have those accounts can answer. \"\"Requests for specific service provider recommendations\"\" are off-topic here, so I won't go into making any of my own bank recommendations, but there are many blogs and forums out there focusing on personal finance.\"",
"title": ""
},
{
"docid": "188502c8878306a1a913ada819b89d34",
"text": "Sorry, in the US (Bank of America). The kind of account we have has that high fee, but they also have free account options that have lower or zero balance requirements, you just have to setup direct deposit. The one we have has free checks, free safe deposit box, an English speaking customer service rep guaranteed to answer my call in something like 3 rings, and a bunch of other stuff I'll never use.",
"title": ""
},
{
"docid": "2865107e261613e3cc2c935b5a67bace",
"text": "\"These good rates all tend to be \"\"on up to $X\"\" where X is some low'ish number that could require multiple accounts. They often also come with other strings, like set up automatic deposits/withdrawals, and use debit card at least 15 times per month. The two you mention have these flaws, whether or not it's worth it depends on if you are happy to meet those requirements and how big your emergency fund is. Personally, I'd rather get rewards on a credit card than use a debit card, and I don't want to open a bunch of accounts, so I have a boring savings account with a pretty low interest rate for my emergency fund. It's liquid, earns some interest, and I don't have to think about it.\"",
"title": ""
},
{
"docid": "aaaa8fcea2cbfa583bb92f4848b54efa",
"text": "I would strongly suggest you select an answer: all the above two cover everything I can possibly recommend, but perhaps my perspective as a person who was exactly in your shoes a year ago might appeal to you more. My first bank was Chase, and they usually give out a free checking account to students that come with leaves of 100 checks. Unfortunately, I was 24 at that time, and the max possible age to qualify was 23 or 21. Paying $25 for any number of checks was a big deal for me as I had no job, and transportation and rent was costing me $1k/month anyways. I came here and asked questions: lots of them. MrChrister, God bless his soul, recommended credit unions to me. I never knew they existed. A year later, I am a proud member of 3 CUs: I recommend Alliant, DCU and SchoolsFirst: I am their member and very proud of it!",
"title": ""
},
{
"docid": "4eaf0ece65e124c8ee239f8b0f7821d9",
"text": "I've seen credit cards that provide you your credit score for free, updated once a month and even charted over the last year. Unfortunately the bank I used to have this card with was bought and the purchasing bank discontinued the feature. Perhaps someone out there knows of some cards that still offer a feature like this?",
"title": ""
},
{
"docid": "4e3516519bc1be02dd6e3238df4960f9",
"text": "Ally Bank is a good online only account. They reimburse any ATM Fees you may occur. I have both checking and savings, with both Ally and ING Direct. I don't know about having 25 total accounts - seems like overkill to me. I do something similar though - I get direct deposit into one account, then transfer the average bill amount each pay to a different account that I never touch other than for the allotted bills. It works well, especially for Utilities that are inflated seasonally. What do you use to mange the 25 accounts? I use Quicken, but I don't have 25 accounts...yet.",
"title": ""
},
{
"docid": "fe8cec63df9636d261bc60e06280cf6d",
"text": "This only indirectly answer your question, but Schwab investor checking account has no fee, no minimum balance, and will reimburse all ATM fee (inside and outside the US)",
"title": ""
},
{
"docid": "37e38b00009688a5f953c84a8685cce1",
"text": "My wife and I have two Schwab brokerage accounts, one for retirement and one for non-retirement investments. The latter also has a checking/savings account which we use as our main account. Schwab is very happy with us, as we are cheapskates and save a lot of money. The checking account, which seems to act like any ordinary checking account, gives us all the things listed above. They pay the ATM fees, which is not a lot of money, but seems like a nice thing to me. We can also do cash deposits and we can go to any Schwab branch to talk to someone face to face. We've only had to do the latter once in 10 or so years, and the former maybe once or twice.",
"title": ""
},
{
"docid": "8a8a67ea7ce494e435405a0f4a50e3b6",
"text": "Yes, and there are several ways, the safest is a high-yield savings account which will return about 1% yearly, so $35 per month. That's not extremely much, but better than nothing (you probably get almost zero interest on a regular checking account).",
"title": ""
},
{
"docid": "93c96645f913850d5a0ff9df12226fe4",
"text": "She needs to get a bank account at literally any other bank or credit union. I have not paid for a checking account ever, any bank that tries to is ripping you off. Personally I've used ING Direct/Capital One 360 for years without any problems.",
"title": ""
},
{
"docid": "66a1f33edc8c08ddea2dc3d497857005",
"text": "And I'm mad that everyone's mad. STOP BEING MAD D: But seriously, chill out u/3th0s. There are legitimate reasons to keep money in your checking account and it is not a moronic move. A more moronic move would be to have no money available on hand in the event of an emergency, like if your own a house and your boiler breaks or if you get in an accident and have to shell out money for medical bills or if you want to save up so you can pay your larger loans off in full so you don't accrue interest on them (e.g. college loans).",
"title": ""
},
{
"docid": "394bb6647586be1013b72bbe7b8f1858",
"text": "Wells Fargo. They have an account called PMA, an umbrella account for checking, savings, mortgage, and brokerage accounts. It would cost $30/month, but I never had to pay because I have a rollover retirement account that is enough to waive the fees. They count all accounts, including mortgage, which I used to have. Oh, and no restrictions. An added advantage is there are no fees for any of the accounts, nor for some other things, like bank checks, outside ATM fees, etc. I'm in California, so I don't know if the same deal exists in other states. But if you qualify for the free account, it's pretty good. Actually, most of my investments are Vanguard funds. And I have another rollover account with Vanguard, and never pay fees, but I only buy or sell from one Vanguard fund to another, and rarely since I have targeted retirement funds that are designed to be no maintenance. For some reason, I trust Vanguard more than most other funds; maybe because I like their philosophy on low-cost funds, which they started but are now getting more popular.",
"title": ""
},
{
"docid": "4d7f2372eac414d801f4c68ed0695462",
"text": "(Six years later...) I've used CheckFree for over 20 years, and my uncle started using it back in the early 1980s through a 300 baud modem. It has e-bills, EDI bills that you schedule yourself, and will also mail checks to people and small businesses. You can make your payments from an unlimited number of banks, can schedule multiple recurring payments for the same bill (I find that useful for when buying large/expensive items by CC: I create a different payment schedule for each), plus ad hoc payments.",
"title": ""
},
{
"docid": "3fe18d8b664294e35f4ba7aec9d1e9be",
"text": "\"I've looked around for a while and found one at Broadway Federal Bank. I opened one up last year and will most likely be renewing it if the rates stay fairly competitive. Here are the features: I think it's a great alternative to a savings account because the ability to withdraw at any time defeats the purpose of \"\"saving\"\". By getting penalized to withdraw with this CD, you are discouraged from withdrawing and hence, actually save. The biggest downside is that they are a fairly small community bank and only have branches in Los Angeles. They also only have three branches in total and do not have ATM's that you can make deposits into aside from the ones outside of their branches.However, you can open an account online and and make electronic deposits. Hope this helps.I included their website below. www.broadwayfederalbank.com\"",
"title": ""
}
] |
fiqa
|
4c01d1141026ad2e71c2f477ee23edae
|
Official site to follow Warren Buffet's Berkshire Hathaway change in investment holdings?
|
[
{
"docid": "71865ab9675a4e9f94db73782e2c72df",
"text": "Are you looking for this Warren Buffets Stock Portfolio? Or Berkshire Hathaway Portfolio WFC is near the bottom of the BH portfolio but it seems to be a rather large investment for both.",
"title": ""
},
{
"docid": "7a53c5f4ce1cf486607686d161248249",
"text": "\"The official source is the most recent Form 13F that Berkshire Hathaway, which is filed with the Securities & Exchange Commission on a quarterly basis . You can find it through the SEC filing search engine, using BRKA as the ticker symbol. and then looking for the filings marked 13-FR or 13-FR/A (the \"\"/A\"\" indicates an amended filing). As you can see by looking at the 13-F filed for the quarter ending September 30 , the document isn't pretty or necessarily easy to read, hence the popularity of sites such as those that Chad linked to. It is, though, the truly official source from which websites tracking the Berkshire Hathaway portfolio derive their information.\"",
"title": ""
}
] |
[
{
"docid": "364a2c6a6b09a7ef1e8b5460a85ef642",
"text": "The recommended way to track TSP funds in online portfolio tools is to track the underlying index and know that the results are pretty close. Not a perfect solution: :( Source including suggested ETFs: http://finance.yahoo.com/news/breaking-down-tsp-investment-funds-194600393.html Related, but not exactly what you are looking for, Personal Capital will track your TSP holdings: http://themilitarywallet.com/manage-thrift-savings-plan/",
"title": ""
},
{
"docid": "922cfb7dfced64ee1eb794c4ae2d7e28",
"text": "The Bible of fundamental analysis was written by Graham and Dodd, and is titled Security Analysis. If you don't know the name Benjamin Graham, Warren Buffet was his student and attribute his own success to Graham. If Security Analysis is a bit too intense for you, Graham also wrote The Intelligent Investor which is probably a better starting point.",
"title": ""
},
{
"docid": "6e1a49099026facd9c7a976bb9804035",
"text": "I searched for FTSE 100 fund on Yahoo Finance and found POW FTSE RAF UK 100 (PSRU.L), among many others. Google Finance is another possible source that immediately comes to mind.",
"title": ""
},
{
"docid": "dc791ff7f4a2e648915913f2f2bc62ae",
"text": "Yup. What I wanted to know was where they are pulling it up from. Have casually used Google finance for personal investments, but they suck at corp actions. Not sure if they provide free APIs, but that would probably suck too! :D",
"title": ""
},
{
"docid": "a0a4756367c596b3fda74b485d5ea1a0",
"text": "\"See Berkshire Hathaway Inc. (BRK-A) (The Class A shares) and it will all be clear to you. IMHO, the quote for the B shares is mistaken, it used earning of A shares, but price of B. strange. Excellent question, welcome to SE. Berkshire Hathaway is a stock that currently trades for nearly US$140,000. This makes it difficult for individual investors to buy or sell these shares. The CEO Warren Buffet chose to reinvest any profits which means no dividends, and never to split the shares, which meant no little liquidity. There was great pressure on him to find a way to make investing in Berkshire Hathaway more accessible. In June '96, the B shares were issued which represented 1/30 of a share of the Class A stock. As even these \"\"Baby Berks\"\" rose in price to pass US$4500 per share, the stock split 50 to 1, and now trade in the US$90's. So, the current ratio is 1500 to 1. The class B shares have 1/10,000 the voting rights of the A. An A share may be swapped for 1500 B shares on request, but not vice-versa.\"",
"title": ""
},
{
"docid": "6b204b1ac56d47235c85b96f0a5a43c4",
"text": "Does Coke count as one of his operating businesses though? He's the biggest shareholder but wikipedia says it's around 26%. There are some other huge cash cows in there as well; BNSF Railroad's earnings were like $3.5 billion last year, and Berkshire own 100% of the business.",
"title": ""
},
{
"docid": "0aa78e92743857ed9109abd1c871a63c",
"text": "That is absolute rubbish. Warren Buffet follows simple value and GARP tenants that literally anyone could follow if they had the discipline to do so. I have never once heard of an investment made by Warren Buffet that wasn't rooted in fundamentals and easy to understand. The concept is fairly simple as is the math, buying great companies trading at discounts to what they are worth due to market fluctuations, emotionality, or overreactions to key sectors etc. If I buy ABC corp at $10 knowing it is worth $20, it could go down or trade sideways for FIVE YEARS doing seemingly nothing and then one day catch up with its worth due to any number of factors. In that case, my 100% return which took five years to actualize accounts for an average 20% return per year. Also (and this should be obvious), but diversification is a double edged sword. Every year, hundreds of stocks individually beat the market return. Owning any one of these stocks as your only holding would mean that YOU beat the market. As you buy more stocks and diversify your return will get closer and closer to that of an index or mutual fund. My advice is to stick to fundamentals like value and GARP investing, learn to separate when the market is being silly from when it is responding to a genuine concern, do your own homework and analysis on the stocks you buy, BE PATIENT after buying stock that your analysis gives you confidence in, and don't over diversify. If you do these things, congrats. YOU ARE Warren Buffet.",
"title": ""
},
{
"docid": "40e6638b269729348c0961549dc69b5a",
"text": "\"The best answer here is \"\"maybe, but probably not\"\". A few quick reasons: Its not a bad idea to watch other investors especially those who can move markets but do your own research on an investment first. Your sole reason for investing should not be \"\"Warren did it\"\".\"",
"title": ""
},
{
"docid": "f72096078666904daa338a9408f0f8e9",
"text": "Do you think Buffet's track record is a result of luck? Also it is tough to compare Singer and Buffet because their strategies are so different. Paul Singer's investing focuses on activism & distress, whereas Buffet is a value investor.",
"title": ""
},
{
"docid": "9c4f475139584541610800bc20ced200",
"text": "\"Yes, that's true. Excerpt from \"\"The Warren Buffett Way\"\": \"\"In November 2000, Warren Buffett and Berkshire Hathaway paid about $1 billion for Benjamin Moore & Co., the Mercedes of paint companies. Founded in 1883 by the Moore brothers in their Brooklyn basement, Benjamin Moore today is fifth largest paint manufacturer in the United States and has an unmatched reputation for quality. It was reported that Buffett paid a 25 percent premium over the stock’s then current price. On the surface, that might seem to contradict one of Buffett’s iron-clad rules: that he will act only when the price is low enough to constitute a margin of safety. However, we also know that Buffett is not afraid to pay for quality. Even more revealing, the stock price jumped 50 percent to $37.62 per share after the deal was announced. This tells us that either Buffett found yet another company that was undervalued or else that the rest of the investing world was betting on Buffett’s acumen and traded the price up even higher— or both.\"\"\"",
"title": ""
},
{
"docid": "d9d5189c132f0a6e7e2c252016c06ba4",
"text": "You could try asking Merrill Lynch, (general inquiries) :- http://www.ml.com/index.asp?id=7695_114042 So far I only found a few graphics :- http://topics.nytimes.com/top/news/business/companies/merrill_lynch_and_company/ http://www.reuters.com/article/2008/01/17/us-merrilllynch-results-idUSWNAS674520080117 http://www.stocktradingtogo.com/2008/09/15/merrill-lynch-saved-by-bank-of-america-buyout/",
"title": ""
},
{
"docid": "fdc9a3d345cfffb929751b0151c33abe",
"text": "\"If you're looking to generate your own charts, you can get up-to-date TSP fund share prices in a Google Docs spreadsheet by \"\"scraping\"\" the data from the HTML of certain TSP webpages. You'll need to do this because the GoogleFinance function does not recognize \"\"private\"\" funds or collective trusts like those of the TSP. See this thread for tips: Bogleheads • View topic - GoogleFinance price quotes for TSP Funds\"",
"title": ""
},
{
"docid": "ebb20a00f7a59b2682b77987bd4151f6",
"text": "The steps you outlined are fine by themselves. Step 5, seeking criticism can be less helpful than one may think. See stocktwits.com There are a lot of opposing opinions all of which can be correct over different time-frames. Try and quantify your confidence and develop different strategies for different confidence levels. I was never smart enough or patient with follow through to be a successful value investor. It was very frustrating to watch stocks trade sideways for years before the company's intrinsic value was better reflected in the market. Also, you could make an excellent pick, but a macro change and slump could set you back a year and raise doubts. In my experience portfolio management techniques like asset allocation and dollar-cost-averaging is what made my version of value investing work. Your interest in 10k/10q is something to applaud. Is there something specific about 10k/10q that you do not understand? Context is key, these types of reports are more relevant and understandable when compared to competitors in the same sector. It is good to assess over confidence! It is also good to diversify your knowledge and the effort put into Securities Analysis 6th edition will help with other books in the field. I see a bit of myself in your post, and if you are like me, than subsequent readings, and full mastery of the concepts in 'Securities & Analysis 6th ed.' will lead to over confidence, or a false understanding as there are many factors at play in the market. So many, that even the most scientific approaches to investing can just as equally be described as an 'art'. I'm not aware of the details of your situation, but in general, for you to fully realize the benefits from applying the principals of value investing shared by Graham and more recently Warren Buffett, you must invest on the level that requires use of the consolidation or equity method of accounting, e.g. > 20% ownership. Sure, the same principals used by Buffett can work on a smaller scale, but a small scale investor is best served by wealth accumulation, which can take many forms. Not the addition of instant equity via acquisitions to their consolidated financials. Lastly, to test what you have learned about value investing, and order execution, try the inverse. At least on paper. Short a stock with low value and a high P/E. TWTR may be a good example? Learn what it is like to have your resources at stake, and the anguish of market and security volatility. It would be a lot easier to wait it out as a long-term value investor from a beach house in Santa Barbara :)",
"title": ""
},
{
"docid": "560638c8ad7f70d280c4a628437bee49",
"text": "\"I hate to point this out, but have you heard of this guy Trump, or Warren Buffet (although his son seems to be very competent and grounded, to some degree). The US is also plagued with this problem where family companies remain so through leadership, they also tend to fail at greater rates than our publicly ran companies. I suppose Samsung is public company, but why having stock on the open KRX doesn’t lead to better leadership is beyond me to understand? EDIT:My bad for bringing Trump into this, it was meant as an example of wealth distribution which translates into capacity for business options, and he's well known. However you guys need to do some more research before throwing shade, Howard Buffet has taken over Berkshire Hathaway in a non-executive role, while also holding board positions on a multitude of companies in which BH own significant portions including coca-cola. I wasn't pointing out Warren is incompetent in any way, just he passed the reins off to family too in many ways. \"\"In December 2011, Warren Buffett told CBS News that he would like his son Howard to succeed him as Berkshire Hathaway's non-executive chairman.\"\" Apologies for lack of clarity in my statement.\"",
"title": ""
},
{
"docid": "a8d2b79642f69b96d682fd6049896ed9",
"text": "I won't think so. Too much trouble for the compliance and internal audit team. Unless you are moving money from Russia, Iran or those non-FATCA countries.",
"title": ""
}
] |
fiqa
|
4abe00e47fbcdca1af6b41cddb566211
|
Is engaging in stocks without researching unwise?
|
[
{
"docid": "e1a6d5b5502902f159e503bd5fe91ad0",
"text": "\"If you don't want to do the deep research on each individual company, you might want to look at index funds and similar \"\"whole market\"\" investments.\"",
"title": ""
},
{
"docid": "77e47927dac5aaa60257ce81f1d37181",
"text": "\"Stock recommendations and price history are an unwise way to invest. People that recommend stocks are usually compensation for recommending it. They are paid directly by third parties, that can be paid in shares, they can simply own the stock themselves and if the stock goes up they can sell it to new investors at a higher price (or even a lower price, they may not actually care) Price history does not tell you a complete picture, what kind of price history are you even looking at: \"\"this stock went up, let me buy now at the very top and hope it goes higher, am I too late\"\" \"\"this stock went down let me avoid it\"\" if you don't know why, what, who, when, assets, debt, etc, you shouldn't be buying the stock.\"",
"title": ""
},
{
"docid": "cde469018b3cfb591796938d77a8ff2d",
"text": "I don't see balance sheet in what you're looking at, and I'd definitely suggest learning how to read a balance sheet and looking at it, if you're going to buy stock in a company, unless you know that the recommendations you're buying on are already doing that and you're willing to take that risk. Also, reading past balance sheets and statements can give you an idea about how accurate the company is with their predictions, or if they have a history of financial integrity. Now, if you're going the model portfolio route, which has become popular, the assumption that many of these stock buyers are making is that someone else is doing that for them. I am not saying that this assumption is valid, just one that I've seen; you will definitely find a lot of skeptics, and rightly so, about model portfolios. Likewise, people who trade based on what [Person X] does (like Warren Buffett or David Einhorn) are assuming that they're doing the research. The downside to this is if you follow someone like this. Yeah, oops. I should also point out that technical analysis, especially high probability TA, generally only looks at history. Most would define it as high risk and there are many underlying assumptions with reading the price movements by high probability TA types.",
"title": ""
}
] |
[
{
"docid": "91531f9f9d19837f1ed28ee8d8142eb3",
"text": "Be cognizant of your own limitations when approaching this material. I've dealt with lawyers, doctors, engineers and other highly intelligent people from other disciplines, who then try to learn about companies and the stock market. Their own arrogance and assumption that they can just learn anything *quickly* ends up hurting them. It can take years and real classical training of finance to understand this material with any depth. Someone is wrong (a fool) in every trade. There is someone who is going to make money and lose money. Odds are the fool is you.",
"title": ""
},
{
"docid": "3c86ef63d24853ad9bb7f969cbe35133",
"text": "“Burt Malkiel is still the high priest of passive investing,” said Jakub Jurek, vice president for research at Wealthfront. “To be absolutely clear, we’re not stock pickers. There are decades of research on active investors, which show they underperform.” So ... not really straying, just promoting a somewhat more sophisticated model based on algos (robo-investors?)",
"title": ""
},
{
"docid": "fcd11b792061a47b8e47a4bb91c17281",
"text": "You are always best off investing in things you understand. If you have a deep understanding of the aeronautical industry, say, you are a Vice President at Boeing and have been working at Boeing for 40 years, then that would be a reason for investing in that sector: because you may be able to better evaluate different companies in that sector. If you are a novice in the sector, or just have an amateur interest in it, then it may not be a good idea, because your knowledge may not be sufficient to give you much of an advantage. Before focusing on one investment of any type, industry sector based, or otherwise, you want to ask yourself: am I an expert in this subject? The answer to that question will have a big impact on your success.",
"title": ""
},
{
"docid": "a4dea673d39dae97fa909527a80f3e36",
"text": "\"My feeling is that you're basically agreeing to throw away a bucket of money for a lesson that doesn't have to cost a penny. Like another commenter said, you're putting the cart before the horse. I once asked a similar question to a seasoned investor, though I wasn't in the position to toss my hard-earned cash into the well yet. He told me that the difference between the winners and losers is that the winners don't need the money. I'm not trying to say that there's a \"\"rich keep getting richer ...\"\" component here, while schlubs like me get nada. The real nugget of wisdom he offered was that if anyone wants to do well as investors, we must invest in a way that we're not dependent on the money we have in the market. Instead, manage risk carefully so that you don’t get swept up in the emotional highs and lows. For you, what I applaud is that you're willing to do your research first. And part of that should be anticipating how you will handle the anxiety when you put your money in at the wrong time or get out a little later than you should. What I understand now is that you don’t need to be wealthy to “not need the money.” You just need to invest smartly and leave your emotions out of it.\"",
"title": ""
},
{
"docid": "7977d3c2f03fdc9ffd7ec7b2853de952",
"text": "I would also consider unnecessarily complex investment strategies a big warning sign as they can easily hide poor investment advice or a bad strategy. This is especially the case when it comes to retail investment as complex strategies can have so many moving parts that you, as someone with a day job, can't spend enough time on it to keep an eye on everything and you only spot issues when it's too late. Other bugbears:",
"title": ""
},
{
"docid": "33a18214048d00ec5c14fc9655f16b82",
"text": "If you are an entrepreneur, and you are looking forward to strike on your own ( the very definition of entrepreneur) then I suggest that you don't invest in anything except your business and yourself. You will need all the money you have when you launch your business. There will be times when your revenue won't be able to cover your living costs, and that's when you need your cash. At that point of time, do you really want to have your cash tie up in stock market/property? Some more, instead of diverting your attention to learn how the stock market/property works, focus on your business. You will find that the reward is much, much greater. The annual stock market return is 7% to 15%. But the return from entrepreneurship can be many times higher than that. So make sure you go for the bigger prize, not the smaller gains. It's only when your business no longer requires your capital then you can try to find other means of investment.",
"title": ""
},
{
"docid": "3eba0ee9b9ecd19532789be1d9146812",
"text": "\"I find the question interesting, but it's beyond an intelligent answer. Say what you will about Jim Cramer, his advice to spend \"\"an hour per month on each stock\"\" you own appears good to me. But it also limits the number of stocks you can own. Given that most of us have day jobs in other fields, you need to decide how much time and education you can put in. That said, there's a certain pleasure in picking stocks, buying a company that's out of favor, but your instinct tells you otherwise. For us, individual stocks are about 10% of total portfolio. The rest is indexed. The amount that \"\"should be\"\" in individual stocks? None. One can invest in low cost funds, never own shares of individual stocks, and do quite well.\"",
"title": ""
},
{
"docid": "eaf6c3310231fc85c46cd31aa5e7a832",
"text": "The answer is no. Online trading is not premature, and hasn't been for a long time. The presence of online complaints has no bearing on the maturity of this means of trading. I'm sure you can find negative reviews of banks, brokers, grocery stories, online retailers, car manufacturers etc. but no one in their right might would consider those industries premature. Sorry, I think your avoidance based on some online reviews sounds a little paranoid. What exactly are you afraid of? Maybe I could provide a more precise answer if we knew your exact concerns.",
"title": ""
},
{
"docid": "514cb66269b47140c703c2ab852a8381",
"text": "You shouldn't be picking stocks in the first place. From New York Magazine, tweeted by Ezra Klein: New evidence for that reality comes from Goldman Sachs, via Bloomberg News. The investment bank analyzed the holdings of 854 funds with $2.1 trillion in equity positions. It found, first of all, that all those “sophisticated investors” would have been better off stashing their money in basic, hands-off index funds or mutual funds last year — both of them had higher average returns than hedge funds did. The average hedge fund returned 3 percent last year, versus 14 percent for the Standard & Poor’s 500. Mutual funds do worse than index funds. Tangentially-related to the question of whether Wall Street types deserve their compensation packages is the yearly phenomenon in which actively managed mutual funds underperform the market. Between 2004 and 2008, 66.21% of domestic funds did worse than the S&P Composite 1500. In 2008, 64.23% underperformed. In other words, if you had a fund manager and his employees bringing their skill and knowledge to bear on your portfolio, you probably lost money as compared to the market as a whole. That's not to say you lost money in all cases. Just in most. The math is really simple on this one. Stock picking is fun, but undiversified and brings you competing with Wall Streeters with math Ph.Ds. and twenty-thousand-dollars-a-year Bloomberg terminals. What do you know about Apple's new iPhone that they don't? You should compare your emotional reaction to losing 40% in two days to your reaction to gaining 40% in two days... then compare both of those to losing 6% and gaining 6%, respectively. Picking stocks is not financially wise. Period.",
"title": ""
},
{
"docid": "a4afa8c2f6d30d437aba51b7bd25b53b",
"text": "Knowing the answer to this question is generally not as useful as it may seem. The stock's current price is the consensus of thousands of people who are looking at the many relevant factors (dividend rate, growth prospects, volatility, risk, industry, etc.) that determine its value. A stock's price is the market's valuation of the cash flows it entitles you to in the future. Researching a stock's value means trying to figure out if there is something relevant to these cash flows that the market doesn't know about or has misjudged. Pretty much anything we can list for you here that will affect a stock's price is something the market knows about, so it's not likely to help you know if something is mispriced. Therefore it's not useful to you. If you are not a true expert on how important the relevant factors are and how the market is reacting to them currently (and often even if you are), then you are essentially guessing. How likely are you to catch something that the thousands of other investors have missed and how likely are you to miss something that other investors have understood? I don't view gambling as inherently evil, but you should be clear and honest with yourself about what you are doing if you are trying to outperform the market. As people become knowledgeable about and experienced with finance, they try less and less to be the one to find an undervalued stock in their personal portfolio. Instead they seek to hold a fully diversified portfolio with low transactions costs and build wealth in the long term without wasting time and money on the guessing game. My suggestion for you is to transition as quickly as you can to behave like someone who knows a lot about finance.",
"title": ""
},
{
"docid": "8b473900266d99d7287e105b68cc01dd",
"text": "\"You could end up with nothing, yes. I imagine those that worked at Enron years ago if their 401(k) was all in company stock would have ended up with nothing to give an example here. However, more likely is for you to end up with less than you thought as you see other choices as being better that with the benefit of hindsight you wish you had made different choices. The strategies will vary as some people will want something similar to a \"\"set it and forget it\"\" kind of investment and there may be fund choices where a fund has a targeted retirement date some years out into the future. These can be useful for people that don't want to do a lot of research and spend time deciding amongst various choices. Other people may prefer something a bit more active. In this case, you have to determine how much work do you want to do, do you want to review fund reviews on places like Morningstar, and do periodic reviews of your investments, etc. What works best for you is for you to resolve for yourself. As for risks, here are a few possible categories: Time - How many hours a week do you want to spend on this? How much time learning this do you want to do in the beginning? While this does apply to everyone, you have to figure out for yourself how much of a cost do you want to take here. Volatility - Some investments may fluctuate in value and this can cause issues for some people as it may change more than they would like. For example, if you invest rather aggressively, there may be times where you could have a -50% return in a year and that isn't really acceptable to some people. Inflation - Similarly to those investments that vary wildly there is also the risk that with time, prices generally rise and thus there is something to be said for the purchasing power of your investment. If you want to consider this in more detail consider what $1,000,000 would have bought 30 years ago compared to now. Currency risk - Some investments may be in other currencies and thus there is a risk of how different denominations may impact a return. Fees - How much do your fund's charge in the form of annual expense ratio? Are you aware of the charges being taken to manage your money here?\"",
"title": ""
},
{
"docid": "52683fac8adacb6501cef0f04b28178d",
"text": "The best way I know of is to join an investment club. They club will act like a mutual fund, investing in stocks researched and selected by the group. Taking part in research and presenting results to the group for peer review is an excellent way to learn. You'll learn what is a good reason to invest and what isn't. You'll probably pick both winners and losers. The goal of participation is education. Some people learn how to invest and continue happily doing so. Others learn how to invest in single stocks and learn it is not for them.",
"title": ""
},
{
"docid": "13d54dbd5a6b33f419ebeafe4f977782",
"text": "\"I read the book, and I'm willing to believe you'd have a good chance of beating the market with this strategy - it is a reasonable, rational, and mechanical investment discipline. I doubt it's overplayed and overused to the point that it won't ever work again. But only IF you stick to it, and doing so would be very hard (behaviorally). Which is probably why it isn't overplayed and overused already. This strategy makes you place trades in companies you often won't have heard of, with volatile prices. The best way to use the strategy would be to try to get it automated somehow and avoid looking at the individual stocks, I bet, to take your behavior out of it. There may well be some risk factors in this strategy that you don't have in an S&P 500 fund, and those could explain some of the higher returns; for example, a basket of sketchier companies could be more vulnerable to economic events. The strategy won't beat the market every year, either, so that can test your behavior. Strategies tend to work and then stop working (as the book even mentions). This is related to whether other investors are piling in to the strategy and pushing up prices, in part. But also, outside events can just happen to line up poorly for a given strategy; for example a bunch of the \"\"fundamental index\"\" ETFs that looked at dividend yield launched right before all the high-dividend financials cratered. Investing in high-dividend stocks probably is and was a reasonable strategy in general, but it wasn't a great strategy for a couple years there. Anytime you don't buy the whole market, you risk both positive and negative deviations from it. Here's maybe a bigger-picture point, though. I happen to think \"\"beating the market\"\" is a big old distraction for individual investors; what you really want is predictable, adequate returns, who cares if the market returns 20% as long as your returns are adequate, and who cares if you beat the market by 5% if the market cratered 40%. So I'm not a huge fan of investment books that are structured around the topic of beating the market. Whether it's index fund advocates saying \"\"you can't beat the market so buy the index\"\" or Greenblatt saying \"\"here's how to beat the market with this strategy,\"\" it's still all about beating the market. And to me, beating the market is just irrelevant. Nobody ever bought their food in retirement because they did or did not beat the market. To me, beating the market is a game for the kind of actively-managed mutual fund that has a 90%-plus R-squared correlation with the index; often called an \"\"index hugger,\"\" these funds are just trying to eke out a little bit better result than the market, and often get a little bit worse result, and overall are a lot of effort with no purpose. Just get the index fund rather than these. If you're getting active management involved, I'd rather see a big deviation from the index, and I'd like that deviation to be related to risk control: hedging, or pulling back to cash when valuations get rich, or avoiding companies without a \"\"moat\"\" and margin of safety, or whatever kind of risk control, but something. In a fund like this, you aren't trying to beat the market, you're trying to increase the chances of adequate returns - you're optimizing for predictability. I'm not sure the magic formula is the best way to do that, focused as it is on beating the market rather than on risk control. Sorry for the extra digression but I hope I answered the question a bit, too. ;-)\"",
"title": ""
},
{
"docid": "a45d1335104ace690d1de07daca77cc3",
"text": "\"I'd question whether a guaranteed savings instrument underperforming the stock market really is a risk, or not? Rather, you reap what you sow. There's a trade-off, and one makes a choice. If one chooses to invest in a highly conservative, low-risk asset class, then one should expect lower returns from it. That doesn't necessarily mean the return will be lower — stock markets could tank and a CD could look brilliant in hindsight — but one should expect lower returns. This is what we learn from the risk-return spectrum and Modern Portfolio Theory. You've mentioned and discounted inflation risk already, and that would've been one I'd mention with respect to guaranteed savings. Yet, one still accepts inflation risk in choosing the 3% CD, because inflation isn't known in advance. If inflation happened to be 2% after the fact, that just means the risk didn't materialize. But, inflation could have been, say, 4%. Nevertheless, I'll try and describe the phenomenon of significantly underperforming a portfolio with more higher-risk assets. I'd suggest one of: Perhaps we can sum those up as: the risk of \"\"investing illiteracy\"\"? Alternatively, if one were actually fully aware of the risk-reward spectrum and MPT and still chose an excessive amount of low-risk investments (such that one wouldn't be able to attain reasonable investing goals), then I'd probably file the risk under psychological risk, e.g. overly cautious / excessive risk aversion. Yet, the term \"\"psychological risk\"\", with respect to investing, encompasses other situations as well (e.g. chasing high returns.) FWIW, the risk of underperformance also came to mind, but I think that's mostly used to describe the risk of choosing, say, an actively-managed fund (or individual stocks) over a passive benchmark index investment more likely to match market returns.\"",
"title": ""
},
{
"docid": "1064fdecc92155663d3b8808178a2388",
"text": "\"First off, monozok is right, at the end of the day, you should not accept what anyone says to do without your money - take their suggestions as directions to research and decide for yourself. I also do not think what you have is too little to invest, but that depends on how liquid you need to be. Often in order to make a small amount of money grow via investments, you have to be willing to take all the investment profits from that principle and reinvest it. Thus, can you see how your investment ability is governed by the time you plan to spend without that money? They mantra that I have heard from many people is that the longer you are able to wait, the more 'risk' you can take. As someone who is about the same age as you (I'm 24) I can't exactly say yet that what I have done is sure fire for the long term, but I suggest you adopt a few principles: 1) Go read \"\"A Random Walk Down Wall Street\"\" by Burton G. Malkiel. A key point for you might be that you can do better than most of these professional investors for hire simply by putting more money in a well selected index fund. For example, Vanguard is a nice online service to buy indexes through, but they may require a minimum. 2) Since you are young, if you go into any firm, bank, or \"\"financial planner,\"\" they will just think you are naive and try to get you to buy whatever is best for them (one of their mutual funds, money market accounts, annuities, some flashy cd). Don't. You can do better on your own and while it might be tempting because these options look more secure or well managed, most of the time you will barely make above inflation, and you will not have learned very much. 3) One exciting thin you should start learning now is about algorithmic trading because it is cool and super efficient. quantopian.com is a good platform for this. It is a fun community and it is also free. 4) One of the best ways I have found to watch the stock market is actually through a stock game app on my phone that has realtime stock price feed. Seeking Alpha has a good mobile app interface and it also connects you to news that has to do with the companies you are interested in.\"",
"title": ""
}
] |
fiqa
|
528397288b2c44f4e002778918d0fae5
|
Optimal way for withdrawing vested company match from my 401k?
|
[
{
"docid": "55fa27ae850d048706e23ab6e49c4bc6",
"text": "Why would you want to withdraw only the company match, and presumably leave your personal contributions sitting in your ex-company's 401k plan? Generally, 401k plans have larger annual expenses and provide for poorer investment choices than are available to you if you roll over your 401k investments into an IRA. So, unless you have specific reasons for wanting to continue to leave your money in the 401k plan (e.g. you have access to investments that are not available to nonparticipants and you think those investments are where you want your money to be), roll over part (or all) of your 401k assets into an IRA, and withdraw the rest for personal expenses. If your personal contributions are in a Roth 401k, roll them over to a Roth IRA, but, as I remember it, company contributions are not part of the Roth 401k and must be rolled over into a Traditional IRA. Perhaps this is why you want to take those in cash to pay for your personal purchase? Also, what is this 30% hit you are talking about? You will owe income tax on the money withdrawn from the 401k (and custodians traditionally withhold 20% and send it to the IRS on your behalf) plus penalty for early withdrawal (which the custodian may also withhold if you ask them), but the tax that you will pay on the money withdrawn will depend on your tax bracket, which may be lower if you are laid off and do not immediately take on a new job. That is, the 30% hit may be on the cash flow, but you may get some of it back as a refund when you file your income tax return.",
"title": ""
},
{
"docid": "4030dc55fad97d9314441a551fec6c34",
"text": "You can borrow against a 401k for 5 years. This defers any penalty fees that the IRS mandates. Put the cash back in your 401k within those 5 years. you can also solo administer 401k plans even if you have an unincorporated business, so you can start one of those if you have any other form of cashflow, and there may be a way to get the other plan rolled into your solo one. http://www.irs.gov/publications/p560/ch04.html#en_US_publink10009053",
"title": ""
}
] |
[
{
"docid": "b4a947c1b4a02e26f333a174d8090296",
"text": "If your employer does not offer contribution matching, and you don't like the range of investment options provided by the company 401k, then you probably are better off investing in your own IRA instead. In an IRA held at a bank or brokerage, you can invest in multiple stocks or funds and move money around within the IRA pretty freely in most cases. If your company is doing well and is actually sharing profit into the 401k, you might consider leaving your 5% contribution to the 401k where it is and put the other 5% you are planning to contribute into a new IRA of your own. This straddles the risk of you losing money if your company 401k tanks (or profit sharing dries up) and your missing out on profit sharing if it continues to pay well.",
"title": ""
},
{
"docid": "afb5b4fbf1539e64167c69d8252f847b",
"text": "Use a compound interest calculator to project the difference with ETFs in the S&P 500 (or the asset mix of your choosing), and subtract the expected pension amount. If the difference is positive, or around around even, I would do it to avoid the risk of company failure.",
"title": ""
},
{
"docid": "969ee94d14e1dc337601ab97bf11cb94",
"text": "Start with the tax delta. For example, you'd hope to deposit at 25% bracket, but take withdrawals while at a marginal 15%. In this case, you're 10% to the good with the 401(k) and need to look at the fee eating away at this over time. Pay an extra 1%/yr and after 10 years, you're losing money. That's too simple, however. Along the way, you need to consider that the capital gain rate is lower than ordinary income. It's easier to take those gains as you wish to time them, where the 401(k) offers no flexibly for this. Even with low fees, this account is going to turn long term gains to ordinary income. (Note - in 2013, a couple with up to $72,500 in taxable income has a 0% long term cap gain rate. So, if they wish, they can sell and buy back a fund, claim the gain, and raise their cost basis. A tiny effort for the avoidance of tax on the gains each year.) First paragraph, don't forget, there are the standard deduction, exemption, and 10% bracket. While you are in the range to save enough to create he income to fill the low end at withdrawal, there's more value than just the 10% I discussed earlier. Last, there's a phenomenon I call The Phantom Tax Rate Zone when one's retirement withdrawals trigger the taxation of Social Security. It further complicates the math and analysis you seek.",
"title": ""
},
{
"docid": "2095856000a43ba310d2ac61948c6cb0",
"text": "Stuff I wish I had known, based on having done the following: Obtained employment at a startup that grants Incentive Stock Options (ISOs); Early-exercised a portion of my options when fair market value was very close to my strike price to minimize AMT; made a section 83b) election and paid my AMT up front for that tax year. All this (the exercise and the AMT) was done out of pocket. I've never see EquityZen or Equidate mention anything about loans for your exercise. My understanding is they help you sell your shares once you actually own them. Stayed at said startup long enough to have my exercised portion of these ISOs vest and count as long term capital gains; Tried to sell them on both EquityZen and Equidate with no success, due to not meeting their transaction minimums. Initial contact with EquityZen was very friendly and helpful, and I even got a notice about a potential sale, but then they hired an intern to answer emails and I remember his responses being particularly dismissive, as if I was wasting their time by trying to sell such a small amount of stock. So that didn't go anywhere. Equidate was a little more friendly and was open to the option of pooling shares with other employees to make a sale in order to meet their minimum, but that never happened either. My advice, if you're thinking about exercising and you're worried about liquidity on the secondary markets, would be to find out what the minimums would be for your specific company on these platforms before you plunk any cash down. Eventually brought my request for liquidity back to the company who helped connect me with an interested external buyer, and we completed the transaction that way. As for employer approval - there's really no reason or basis that your company wouldn't allow it (if you paid to exercise then the shares are yours to sell, though the company may have a right of first refusal). It's not really in the company's best interest to have their shares be illiquid on the secondary markets, since that sends a bad signal to potential investors and future employees.",
"title": ""
},
{
"docid": "1e5a296417919a3349a32bef497bbb96",
"text": "\"The company itself doesn't benefit. In most cases, it's an expense as the match that many offer is going to cost the company some percent of salary. As Mike said, it's part of the benefit package. Vacation, medical, dental, cafeteria plans (i.e. both flexible spending and dependent care accounts, not food), stock options, employee stock purchase plans, defined contribution or defined benefit pension, and the 401(k) or 403(b) for teachers. Each and all of these are what one should look at when looking at \"\"total compensation\"\". You allude to the lack of choices in the 401(k) compared to other accounts. Noted. And that lack of choice should be part of your decision process as to how you choose to invest for retirement. If the fess/selection is bad enough, you need to be vocal about it and request a change. Bad choices + no match, and maybe the account should be avoided, else just deposit to the match. Note - Keith thanks for catching and fixing one typo, I just caught another.\"",
"title": ""
},
{
"docid": "805eb47b11cca78c00063830acd132c6",
"text": "\"You have a few options: Option #1 - Leave the money where it is If your balance is over $5k - you should be able to leave the money in your former-employer's 401(k). The money will stay there and continue to be invested in the funds that you elect to invest in. You should at the very least be receiving quarterly statements for the account. Even better - you should have access to some type of an online account where you can transfer your investments, rebalance your account, conform to target, etc. If you do not have online account access than I'm sure you can still transfer investments and make trades via a paper form. Just reach out to the 401(k) TPA or Recordkeeper that administers your plan. Their contact info is on the quarterly statements you should be receiving. Option #2 - Rollover the money into your current employer's 401(k) plan. This is the option that I tend to recommend the most. Roll the money over into your current employer's 401(k) plan - this way all the money is in the same place and is invested in the funds that you elect. Let's say you wanted to transfer your investments to a new fund lineup. Right now - you have to fill out the paperwork or go through the online process twice (for both accounts). Moving the money to your current-employer's plan and having all the money in the same place eliminates this redundancy, and allows you to make one simple transfer of all your assets. Option #3 - Roll the money from your former-employer's plan into an IRA. This is a cool option, because now you have a new IRA with a new set of dollar limits. You can roll the money into a separate IRA - and contribute an additional $5,500 (or $6,500 if you are 50+ years of age). So this is cool because it gives you a chance to save even more for retirement. Many IRA companies give you a \"\"sign on bonus\"\" where if you rollover your former-employers 401(k)...they will give you a bonus (typically a few hundred bucks - but hey its free money!). Other things to note: Take a look at your plan document from your former-employer's 401(k) plan. Take a look at the fees. Compare the fees to your current-employer's plan. There could be a chance that the fees from your former-employer's plan are much higher than your current-employer. So this would just be yet another reason to move the money to your current-employer's plan. Don't forget you most likely have a financial advisor that oversees your current-employer's 401(k) plan. This financial advisor also probably takes fees from your account. So use his services! You are probably already paying for it! Talk to your HR at your employer and ask who the investment advisor is. Call the advisor and set up an appointment to talk about your retirement and financial goals. Ask him for his advice - its always nice talking to someone with experience face to face. Good luck with everything!\"",
"title": ""
},
{
"docid": "e2942910561dfc31946780b57e43f77f",
"text": "I completely agree with Pete that a 401(k) loan is not the answer, but I have an alternate proposal: Reduce your 401(k) contribution down to the 4% that you get a match on. If you are cash poor now and have debts to be cleaned up, those need to be addressed before retirement savings. You'll have plenty of time to make up the lost savings after you get the debts paid off. If your company matches 50% (meaning you have to contribute 8% to get the 4% match), then consider temporarily stopping your 401(k) altogether. A 100% match is very hard to give up, but a 50% match is less difficult. You have plenty of years left ahead of you to make up the lost match. Plus, the pain of knowing you're leaving money on the table will incentivize you to get the loans paid as quickly as possible. It seems to me that I would be reducing middle to high interest debt while also saving myself $150 per month. No, you'd be deferring $150 per month for an additional two years, and not reducing debt at all, just moving it to a different lender. Interest rate is not your problem. Right now you're paying less than $30 per month in interest on these 3 loans and about $270 in principal, and at the current rate should have them paid off in about 2 years. You're wanting to extend these loans to 4 years by borrowing from your retirement savings. I would buckle down, reduce expenses wherever possible (cable? cell phone? coffee? movies? restaurants?) until you get these debts paid off. You make $70,000 per year, or almost $6,000 per month. I bet if you try hard enough you can come up with $1,100 fairly quickly. Then the next $1,200 should come twice as fast. Then attack the next $4,000. (You can argue whether the $1,200 should come first because of the interest rate, but in the end it doesn't matter - either one should be paid off very quickly, so the interest saved is negligible) Maybe you can get one of them paid off, get yourself some breathing room, then loosen up a little bit, but extending the pain for an additional two years is not wise. Some more drastic measures:",
"title": ""
},
{
"docid": "8dd55b46d9c07218fb9f8baf97aa6c57",
"text": "There is Free employer money on both sides of the tax fence for some employees. On the pretax side, your employer may provide you a match. If so, invest the maximum to get 100% of the match. On the after tax side, many companies offers a 15% discount on ESPP plans and a one year hold. My wife has such an employer. The one year hold is fine because it allows us to be taxed at Long Term Capital gains if the stock goes up which is lower than our current income bracket. After creating a seasoned pool of stocks that we could sell after the one year hold, we are then able to sell the same number of stocks purchased each month. This provides a 17.6% guaranteed gain on a monthly basis. How much would you purchase if you had a guaranteed 17.6% return. Our answer is 15% (our maximum allowed). The other trick is that while the employer is collecting the money, you will purchase the stock at the lowest day of the period. You will usually sell for even more than the purchase price unless the day purchased was the lowest day of month. The trick is to reinvest the money in tax free investments to balance out the pretax investing. Never leave the money in the plan. That is too much risk.",
"title": ""
},
{
"docid": "67f1e3d6f0554611cc1f6864f874b742",
"text": "If your plan permits loans, deposit enough through the year to maximize the match and then take a loan from the plan. Use the loan portion to pay your student loan. Essentially you have refinanced your debt at a (presumably) lower rate and recieved the match. You pay yourself back (with interest) through your payroll. The rates are typically the prime rate + 1%. The loans are subject to a lesser of 50% vested account balance or $50,000 provision.",
"title": ""
},
{
"docid": "6cc7118948c58336c684479e9e60faa0",
"text": "\"Your initial plan (of minimizing your interest rate, and taking advantage of the 401(k) match) makes sense, except I would put the 401(k) money in a very low risk investment (such as a money market fund) while the stock market seems to be in a bear market. How to decide when the stock market is in a bear market is a separate question. You earn a 100% return immediately on money that receives the company match -- provided that you stay at the company long enough for the company match to \"\"vest\"\". This immediate 100% return far exceeds the 3.25% return by paying down debt. As long as it makes sense to keep your retirement funds in low-risk, low-return investments, it makes more sense to use your remaining free cash flow to pay down debts than to save extra money in retirement funds. After setting aside the 6% of your income that is eligible for the company match, you should be able to rapidly pay down your debts. This will make it far easier for you to qualify for a mortgage later on. Also, if you can pay off your debt in a couple years, you will minimize your risk from the proposed variable rate. First, there will be fewer chances for the rate to go up. Second, even if the rate does go up, you will not owe the money very long.\"",
"title": ""
},
{
"docid": "4ac06d29174fb08de0840360fe7e7576",
"text": "If you leave your employer at age 55 or older, you can withdraw with no penalty. Mandatory 20% withholding, but no penalty. You reconcile in April, and may get it all back. If you are sub 55, the option is a Sec 72t withdrawal. The author of the article got it right. I am a fan of his.",
"title": ""
},
{
"docid": "2d0ca4aa62e63f9d94c1702c75d5c991",
"text": "\"Unless your 401(k) plan is particularly good (i.e. good fund choices with low fees), you probably want to contribute enough to get the maximum match from your employer, then contribute to an IRA through a low-cost brokerage like Vanguard or Fidelity, then contribute more to your 401(k). As JoeTaxpayer said, contributions to a Roth IRA can be withdrawn tax- and penalty-free, so they are useful for early retirement. But certainly use your 401(k) as well--the tax benefits almost certainly outweigh the difficulty in accessing your money. JB King's link listing ways to access retirement money before the traditional age is fairly exhaustive. One of the main ways you may want to consider that hasn't been highlighted yet is IRS section 72(t) i.e. substantially equal periodic payments (SEPP). With this rule you can withdraw early from retirement plans without penalties. You have a few different ways of calculating the withdrawal amount. The main risk is you have to keep withdrawing that amount for the greater of five years or until you reach age 59½. In your case this is is only 4-5 years, which isn't too bad. Finally, in addition to being able to withdraw from a Roth IRA tax- and penalty-free, you can do the same for Roth conversions, provided 5 years have passed. So after you leave a job, you can rollover 401(k) money to a traditional IRA, then convert to a Roth IRA (the caveat being you have to pay taxes on the amount as income at this point). But after 5 years you can access the money without penalty, and no taxes since they've already been paid. This is commonly called a \"\"Roth conversion ladder\"\".\"",
"title": ""
},
{
"docid": "43a78fcd31371bbbbdbcf6739ea5f36a",
"text": "All other things being equal, you might be better off contributing to a IRA that is a brokerage account. You will have lots of flexibility in your investments and there would probably not be fees for the account itself. You might incur commissions for trading and/or owning mutual funds that are charged by the funds themselves. You won't be able to borrow from an IRA, as opposed to a 401K. IMHO, that is a good thing. Are you suggesting that you would withdraw early from a retirement account? You'd probably be better off not doing that. Assuming a large salary, you would be paying 43% to withdraw your money early. Would you accept a loan at 43% interest? You are probably better off not putting the money in in the first place to accomplish your goals, then withdrawing it early. Most people opt for a 401K for two reasons. The company match and ease of investment make a compelling argument. Keep in mind if a 401K is available to you, regardless if you particpate, you start phasing out your IRA deduction at 60K a year (single) or 96K (married). Given your huge salary comments I imagine an IRA would not be an option in your scenario. Given that, if you leave a job, you can roll your 401K balance into a trading account.",
"title": ""
},
{
"docid": "f2c4eab2810ccc0b15655f56cb180ce9",
"text": "Specifically on the subject of maxing out your 401k, there are several downsides: The employer match usually only applies to the first 6%. Some employers offer no match at all. You listed the match as a pro, but I think it should be pointed out that you can usually get this benefit without maxing out your plan. The investment options are limited. Usually there is at least one fund available from all the common investment classes, but these may not be your preferred funds if you were able to choose for yourself. Fees can be very high. If you are working for a small to medium size company, the fees for each fund will often be higher than for the same funds in a plan offered by a large company. Fees are usually related to the dollar amount of assets under management. Each person has a different tax situation, so if you are single and making 6 figures, you might still be in the 25% bracket even after maxing out your 401k, but the same person filing jointly with a spouse that makes less could get down to the 15% bracket with a smaller contribution. I meet my retirement savings goals without maxing out the 401k. As long as the amount is above the employer match amount, my second priority is to funnel as much money as possible in to my IRA (because I get lower fees and better investment options from Vanguard).",
"title": ""
},
{
"docid": "45b65cd59a4b30d804d43bdb6d402be5",
"text": "Here's my thoughts on the subject:",
"title": ""
}
] |
fiqa
|
1b660efce20ad803699393b08a091e91
|
Can I buy IPO stock during the pre-market trading on the day of IPO?
|
[
{
"docid": "9823767759e3d43146cfab231ab5ed36",
"text": "The first moment of trading usually occurs even later than that. It may take a few hours to balance the current buy/sell orders and open the stock. Watch CNBC when a hot IPO is about to open and you'll see the process in real time. If you miss it, look at a one day Yahoo chart to see when the open occurred.",
"title": ""
}
] |
[
{
"docid": "d842df2edcb6060ea67ec2da23855a0c",
"text": "The best thing to do is not worry about what time is best to buy but put in a conditional order before the market opens. If your conditions are met during the trading day your order will go through and you will buy the shares. This keeps your emotions out of your trading and will stop you from either chasing the market or buying when you consider the wrong time. As you have already done your analysis and made your decision before market open, thus you should place your conditional orders and stop losses before market opens as well.",
"title": ""
},
{
"docid": "4e469e94c4147cd6d8400187f1aef89c",
"text": "\"In a sense, yes. There's a view in Yahoo Finance that looks like this For this particular stock, a market order for 3000 shares (not even $4000, this is a reasonably small figure) will move the stock past $1.34, more than a 3% move. Say, on the Ask side there are 100,000 shares, all with $10 ask. It would take a lot of orders to purchase all these shares, so for a while, the price may stay right at $10, or a bit lower if there are those willing to sell lower. But, say that side showed $10 1000, $10.25 500, $10.50 1000. Now, the volume is so low that if I decided I wanted shares at any price, my order, a market order will actually drive the market price right up to $10.50 if I buy 2500 shares \"\"market\"\". You see, however, even though I'm a small trader, I drove the price up. But now that the price is $10.50 when I go to sell all 2500 at $10.50, there are no bids to pay that much, so the price the next trade will occur at isn't known yet. There may be bids at $10, with asking (me) at $10.50. No trades will happen until a seller takes the $10 bid or other buyers and sellers come in.\"",
"title": ""
},
{
"docid": "81274911372a5638c5f3fdc2923a01e8",
"text": "Yes, an investment can be made in a company before IPO. The valuation process is similar as that done for arriving at IPO or for a normal listed company. The difference may be the premium perceived for the idea in question. This would differ from one investor to other. For example, whether Facebook will be able to grow at the rate and generate enough revenues and win against competition is all a mathematical model based on projections. There are quite a few times the projection would go wrong, and quite a few times it would go correct. An individual investor cannot generally borrow from banks to invest into a company (listed or otherwise) (or for any other purpose) if he does not have any collateral that can be kept as security by the bank. An individual can get a loan only if he has sufficient collateral. The exceptions being small personal loans depending on one's credit history. The Private Equity placement arm of banks or firms in the business of private equity invest in start-up and most of the time make an educated guess based on their experience. More than half of their investments into start-ups end up as wiped out. An occasional one or two companies are ones that they make a windfall gain on.",
"title": ""
},
{
"docid": "61bc645ef3b01771149a23f8141b68c6",
"text": "\"IPO's are priced so that there's a pop\"\" on the opening day.\"\" If I were IPOing my company and the price \"\"popped\"\" on the open, I would think the underwriter priced it too low. In fact if I were to IPO, I'd seek an underwriter whose offerings consistently traded on the first day pretty unchanged. That means they priced it correctly. In the 90's IPO boom, there were stocks that opened up 3X and more. The original owners must have been pretty upset as the poor pricing guidance the underwriter offered.\"",
"title": ""
},
{
"docid": "98ca4d549287c7ab43dc505cd88d3e6b",
"text": "Not that I am aware. There are times that an option is available, but none have traded yet, and it takes a request to get a bid/ask, or you can make an offer and see if it's accepted. But the option chain itself has to be open.",
"title": ""
},
{
"docid": "e2af9972a68c96a38eb32a69ff0d49fc",
"text": "The stock tends to drop by the amount of the dividend -- or if you prefer to think of it this way, the stock price has been pushed up by the amount of the dividend before it was paid out. Really, all this shift does is factor out the impending dividend's effect on the real purchase cost of the stock. As such it's pretty much irrelevant except that, of course, the dividend is short-term gain that you have to pay taxes on almost immediately. Which also tends to get figured into the price folks are willing to pay for the stock. Conclusion: no, there's no real opportunity here. There's a slight tax reason to avoid buying right before dividends are paid, but that's about it. Basic principle: If it's simple and obvious,the market has already accounted for it.",
"title": ""
},
{
"docid": "1dc5ad53dbebd7ef9cc8e2a028298b67",
"text": "\"You are probably going to hate my answer, but... If there was an easy way to ID stocks like FB that were going to do what FB did, then those stocks wouldn't exist and do that because they would be priced higher at the IPO. The fact is there is always some doubt, no one knows the future, and sometimes value only becomes clear with time. Everyone wants to buy a stock before it rises right? It will only be worth a rise if it makes more profit though, and once it is established as making more profit the price will be already up, because why wouldn't it be? That means to buy a real winner you have to buy before it is completely obvious to everyone that it is going to make more profit in the future, and that means stock prices trade at speculative prices, based on expected future performance, not current or past performance. Now I'm not saying past and future performance has nothing in common, but there is a reason that a thousand financially oriented websites quote a disclaimer like \"\"past performance is not necessarily a guide to future performance\"\". Now maybe this is sort of obvious, but looking at your image, excluding things like market capital that you've not restricted, the PE ratio is based on CURRENT price and PAST earnings, the dividend yield is based on PAST publications of what the dividend will be and CURRENT price, the price to book is based on PAST publication of the company balance sheet and CURRENT price, the EPS is based on PAST earnings and the published number of shares, and the ROI and net profit margin in based on published PAST profits and earnings and costs and number of shares. So it must be understood that every criteria chosen is PAST data that analysts have been looking at for a lot longer than you have with a lot more additional information and experience with it. The only information that is even CURRENT is the price. Thus, my ultimate conclusive point is, you can't based your stock picks on criteria like this because it's based on past information and current stock price, and the current stock price is based on the markets opinion of relative future performance. The only way to make a good stock pick is understand the business, understand its market, and possibly understand world economics as it pertains to that market and business. You can use various criteria as an initial filter to find companies and investigate them, but which criteria you use is entirely your preference. You might invest only in profitable companies (ones that make money and probably pay regular dividends), thus excluding something like an oil exploration company, which will just lose money, and lose it, and lose some more, forever... unless it hits the jackpot, in which case you might suddenly find yourself sitting on a huge profit. It's a question of risk and preference. Regarding your concern for false data. Google defines the Return on investment (TTM) (%) as: Trailing twelve month Income after taxes divided by the average (Total Long-Term Debt + Long-Term Liabilities + Shareholders Equity), expressed as a percentage. If you really think they have it wrong you could contact them, but it's probably correct for whatever past data or last annual financial results it's based on.\"",
"title": ""
},
{
"docid": "29050af1eb0ce23eddc1386d2c84678b",
"text": "Publicly traded companies perform dilution via an FPO (Follow-up Public Offer). It is a process similar to IPO, with announcements, prospectus, etc. You will know ahead of time when that happen. Stocks traded OTC are not required to file a lot of regulatory documents that publicly traded stocks are required to file, and may not disclose dilutions or additional issues. By buying OTC you agree to these terms. You will probably get a notice and a chance to vote on that in your proxy statement, but that happens when you already own the stock.",
"title": ""
},
{
"docid": "d18a0ebdd505f1bbcec3d7ff88ceaf59",
"text": "\"No, assuming by \"\"public company\"\" you mean a corporation. The shareholder's individual liability is limited to their investment. Your shares can go to zero value, but that's the limit. EDIT In regard to the follow-up question in the comments: \"\"Are all companies in the stock market corporations?\"\" the answer is definitely \"\"no.\"\" I cannot say much about other countries, but the US markets have some entities which are known as \"\"master limited partnerships.\"\" These trade shares on the market by the usual rules, but if you buy you become a partner in the company rather than a shareholder. You still have limited liability in this case, but there will be differences, for example, in how you're are taxed.\"",
"title": ""
},
{
"docid": "7398abe8544fccf27a34b60e839f28b3",
"text": "You can check whether the company whose stock you want to buy is present on an european market. For instance this is the case for Apple at Frankfurt.",
"title": ""
},
{
"docid": "0ca405224c5eb80b97e9c9a2ecccc177",
"text": "\"Yes, this is possible with some companies. When you buy shares of stock through a stock broker, the shares are kept in \"\"street name.\"\" That means that the shares are registered to the broker, not to you. That makes it easy to sell the stock later. The stock broker keeps track of who actually owns which shares. The system works well, and there are legal protections in place to protect the investors' assets. You can request that your broker change the stock to your name and request a certificate from the company. However, companies are no longer required to do this, and some won't. Your broker will charge you a fee for this service. Alternatively, if you really only want one share for decoration, there are companies that specialize in selling shares of stock with certificates. Two of them are giveashare.com and uniquestockgift.com, which offer one real share of stock with a stock certificate in certain popular companies. (Note: I have no experience with either one.) Some companies no longer issue new stock certificates; for those, these services sell you a replica stock certificate along with a real share of electronic stock. (This is now the case for Disney and Apple.) With your stock certificate, you are an actual official stockholder, entitled to dividends and a vote at the shareholder meeting. If this is strictly an investment for you, consider the advantages of street name shares: As to your question on buying stock directly from a company and bypassing a broker altogether, see Can I buy stocks directly from a public company?\"",
"title": ""
},
{
"docid": "ec97ff8dff0ff6e13b83af5bc0991dcf",
"text": "\"There are no \"\"rules\"\" about how the price should act after an IPO, so there are no guarantee that a \"\"pop\"\" would appear at the opening day. But when an IPO is done, it's typically underpriced. On average, the shares are 10% up at the end of the first day after the IPO (I don't have the source that, I just remember that from some finance course). Also, after the IPO, the underwriter can be asked to support the trading of the share for a certain period of time. That is the so called stabilizing agent. They have few obligations like: This price support in often done by a repurchase of some of the shares of poorly performing IPO. EDIT: Informations about the overallotment pool. When the IPO is done, a certain number of client buy the shares issued by the company. The underwriter, with the clients, can decide to create an overallotment pool, where the clients would get a little more shares (hence \"\"overallotment\"\"), but this time the shares are not issued by the company but by the underwriter. To put it another way, the underwriter oversell and becomes short by a certain number of shares (limited to 15% of the IPO). In exchange for the risk taken by this overallotment, the underwriter gets a greenshoe option from the clients, that will allows the underwriter to buy back the oversold shares, at the price of the IPO, from the clients. The idea behind this option is to avoid a market exposure for the underwriter. So, after the IPO: If the price goes down, the underwriter buys back on the market the overshorted shares and makes a profits. If the price goes up, the company exercise the greenshoe option buy the shares at the IPO prices (throught the overallotment pool, that is, the additional shares that the clients wanted ) to avoid suffering a loss.\"",
"title": ""
},
{
"docid": "23497b6f874834bdef745b5d043aa47b",
"text": "\"I have an account with ETrade. Earlier this week I got an offer to participate in the IPO proper (at the IPO price). If Charles Schwab doesn't give you the opportunity, that's a shortcoming of them as a brokerage firm; there are definitely ways for retail investors to invest in it, wise investment or no. (Okay, technically it wasn't an offer to participate, it was a notice that participation was possibly available, various securities-law disclaimers etc withstanding. \"\"This Web site is neither an offer to sell nor a solicitation to buy these securities. The offer is by prospectus only. This Web site contains a preliminary prospectus for each offering.\"\" etc etc).\"",
"title": ""
},
{
"docid": "9e3ff70d673ea0b90ebb4dfad1c9e4e6",
"text": "I didn't say only the IPO I just said public offerings. Trades between secondary investors would be taxed at a higher level. I also understand the difference between loaning money to a company and investing in equity. Personally I think that loans are underused in today's investment world because people are too focused on getting the most out of the few big winners.",
"title": ""
},
{
"docid": "e3542af0fa7a035b01c65284f3a39088",
"text": "Investment banks don't have to buy anything. If they don't think the stock is worth buying - they won't. If they think it is - others on the secondary market will probably think so too. Initial public offering is offering to the public - i.e.: theoretically anyone can participate and purchase stocks. The major investment firms are not buying the stocks for themselves - but for their clients who are participating in this IPO. I, for example, receive email notifications from my brokerage firm each time there's another IPO that they have access to, and I can ask the brokerage to buy stocks from the IPO on my behalf. When that happens - they don't buy the stocks themselves and then sell to me. No, what happens is that I buy a stock, through them, and they charge me a commission for the service. Usually IPO participation commissions are higher than regular trading commissions. Most of the time those who purchase stocks at IPO are institutional investors - i.e.: mutual funds, pension plans, investment banks for their managed accounts, etc. Retail investors would probably not participate in the IPO because of the costs, limited access (not all the brokerage firms have access to all the IPOs), and the uncertainty, and rather purchase the stocks later on a secondary market.",
"title": ""
}
] |
fiqa
|
a5c1ee9fc0bc954d8e4b4677b916af3e
|
What are the tax implications on selling the Share ISA portfolio?
|
[
{
"docid": "9d0d5b0d1bc8154d735d76a1fd2eed2a",
"text": "Assets held within an ISA or New ISA are completely free of CGT, so you won't have to pay either income tax or capital gains tax.",
"title": ""
}
] |
[
{
"docid": "4cdfa5eb579e2b1f99667e415dc13ca6",
"text": "An order is not a transaction. It is a request to make a transaction. If the transaction never occurs (e.g. because you cancel the order), then no fees should be charged. will I get the stamp duty back (the 0.5% tax I paid on the shares purchase) when I sell the shares? I'm not a UK tax expert, but accorging to this page is seems like you only pay stamp tax when you buy shares, and don't get it back when you sell (but may be responsible for capital gains taxes). That makes sense, because there's always a buyer and a seller, so if you got the tax back when you sold, the tax would effectively be transferred from the buyer to the seller, and the government would never collect anything.",
"title": ""
},
{
"docid": "c19b78f78af7693dd861a52545445c8a",
"text": "It is a very good idea to spread your ISAs over more than one stock broker. However now that a lot of stock brokers charge an admin fee it can get expensive if you use too many. There is no need to tell your last year’s ISA provider that you are using a different one, however you MUST ONLY pay into one ISA provider in each tax year.",
"title": ""
},
{
"docid": "86c02effdb691f1d65361e398e167b86",
"text": "According to HMRC it seems that if you overpay, then at least part of the interest generated by that ISA is taxable (emphasis mine): If, by mistake, you put more than £10,680 into your ISAs in a tax year, the excess payments are invalid, and you are not entitled to any tax relief on investments purchased with the excess payments. You should not try to correct this mistake yourself. Instead, you should call the ISA Helpline and explain the problem to them. They will advise you what action you need to take. However, as AlexMuller pointed out, HMRC also states (in section 6.1 here) that the ISA Manager (ie. the bank/building society) should not allow you to overpay. Managers’ systems must ensure that ... no more than the cash ISA subscription limit can be subscribed to a cash ISA in a tax year and that no more than the overall subscription limit can be subscribed to a stocks and shares ISA in a tax year. As to what an individual ISA Manager would do should you attempt to over-pay, I imagine it would vary from Manager to Manager. ING Direct, for example, has the following policy (Taken from Section 12.5 here): ...f you send us a payment for an amount which would take you over the ISA investment limit under the ISA Regulations, we will send the excess above the investment limit, or, if you sent us the payment by cheque, the whole of that payment, back to you.",
"title": ""
},
{
"docid": "ab34b60120cf23ddbbbff6347b3fc837",
"text": "I believe your last requirement is the main problem. AIUI the law requires that ISA providers allow withdrawals. They can require a notice period and they can penalise you (e.g. via lost interest) for withdrawing but they cannot prevent you accessing your money for an extended period.",
"title": ""
},
{
"docid": "55b1341a3a982569d7c490daba32c0b2",
"text": "\"I don't think blanket answers are very helpful. You are asking the right question when you are young! You have a large number of investment options and Australia has the Superannuation system that you can extract significant tax value from. I've not attempted to grade these with regard to \"\"risk\"\", as different people will rate various things with different levels, depending on their experience and knowledge. Consider the following factors for you:-\"",
"title": ""
},
{
"docid": "271b245c66784da2295c00234b95afee",
"text": "Not knowing the US laws at all, you should worry more about having the best stock portfolio and less about taxes. My 0,02€",
"title": ""
},
{
"docid": "6ff9928c031afb43520082e791325731",
"text": "(I'm assuming the tag of United-states is accurate) Yes, the remaining amount is tax free -- at the current price. If you sell at exactly the original price, there is no capital gain, no capital loss. So you've already payed the taxes. If you sell and there is a capital gain of $3000, then you will pay taxes on the $3000. If 33% is your marginal tax rate, and if you held the stock for less than a year, then you will keep $7000 and pay taxes of $1000. Somehow, I doubt your marginal tax rate is 33%. If you hold the stock for a year after eTrade sold some for you to pay taxes, then you will pay 15% on the gain -- or $450. eTrade sold the shares to pay the taxes generated by the income. Yes, those shares were considered income. If you sell and have a loss, well, life sucks. However, if you sell something else, you can use the loss to offset the other gain. So if you sell stock A for a loss of $3000, and sell stock B at a gain of $4000, then you pay taxes on the net of $1000.",
"title": ""
},
{
"docid": "bc1e558425d3536d26b4dd208926dff9",
"text": "You can't actually transfer shares directly unless they were obtained as part of an employee share scheme - see the answers to questions 19 and 20 on this page: http://www.hmrc.gov.uk/isa/faqs.htm#19 Q. Can I put shares from my employee share scheme into my ISA? A. You can transfer any shares you get from into a stocks and shares component of an ISA without having to pay Capital Gains Tax - provided your ISA manager agrees to take them. The value of the shares at the date of transfer counts towards the annual limit. This means you can transfer up to £11,520 worth of shares in the tax year 2013-14 (assuming that you make no other subscriptions to ISAs, in those years). You must transfer the shares within 90 days from the day they cease to be subject to the Plan, or (for approved SAYE share option schemes) 90 days of the exercise of option date. Your employer should be able to tell you more. Q. Can I put windfall or inherited shares in my ISA? A. No. You can only transfer shares you own into an ISA if they have come from an employee share scheme. Otherwise, the ISA manager must purchase shares on the open market. The situation is the same if you have shares that you have inherited. You are not able to transfer them into an ISA.",
"title": ""
},
{
"docid": "19ada7d27de09ad5f1e7666426b99453",
"text": "Good question - I know you can keep the ISA in the UK and it won't lose its tax free status but you're not able to contribute it while you're not a UK resident. Not that its tax free status buys you that much if you're a non-resident as you could apply to receive tax gross on pretty much any savings account anyway. Given that the idea of tax-free saving outside a retirement account doesn't really exist here in the US I would assume that you will have to declare the interest as income and, if you don't pay any other taxes in the UK that would cover the amount you'd have to pay on your ISA under the foreign tax credit, you'd end up giving the IRS their pound of flesh. As I mentioned in an answer to a previous question, you really need to talk to an US accountant/CPA, preferably one that is familiar with UK taxation law as well.",
"title": ""
},
{
"docid": "53720fddbf0df8c29e3e5b29b5020ce1",
"text": "Is selling Vested RSU is the same as selling a regular stock? Yes. Your basis (to calculate the gain) is what you've been taxed on when the RSUs vested. Check your payslips/W2 for that period, and the employer should probably have sent you detailed information about that. I'm not a US citizen, my account is in ETrade and my stocks are of a US company, what pre arrangements I need to take to avoid tax issues? You will pay capital gains taxes on the sale in Israel. Depending on where you were when you earned the stocks and what taxes you paid then - it may open additional issues with the Israeli tax authority. Check with an Israeli tax adviser/accountant.",
"title": ""
},
{
"docid": "2b133809001c7e3d3f51e49843bcb3d8",
"text": "I'm not going to tackle the 2nd part of your question, as any number of the questions tagged with international-transfer should cover you on that. There's no way to transfer an ISA into an Australian tax-free savings account, so no need to worry about anything special there. Don't forget that the FX rates change quite a bit over time, and different methods have varying fees, so moving at the wrong time could easily cost you more than the missed interest! For the first part, it depends. One thing you should seriously consider right away is switching your ISA money into one paying a better rate. Check the best-buy tables online or in a paper, as you can get a lot better than 0.1% on a transfer in, even with current depressed rates. At least that way you'll earn more interest while you decide. As for when to transfer, that's something you'll have to calculate for yourself, based on your marginal tax rate, and your view of how the FX rates will shift. If you're a 40% taxpayer, then 2% in an ISA is worth the same to you as 3.3% gross. Don't forget to consider both your UK and Australian tax rates in the year you move, as most likely you'll have to pay the higher of the two. The westpac rate looks like you might struggle to beat a decent ISA over the course of a year, were you a higher rate tax payer. Oh, and don't forget that you'll likely loose the tax-free status of your ISA once you're an Australian tax resident, so you'll need to start paying tax on interest earnt in the ISA once you're out there.",
"title": ""
},
{
"docid": "586200e8f685acbfec8ff09bf4bec44f",
"text": "If the portfolio itself is taxable, then yes; if you have two stocks and you're rebalancing them, without using new cash, you are forced to sell one stock to buy another. That sale is taxable, unless you're in some sort of tax deferred/deductible account, such as an IRA. If you're talking about you being in a mutual fund and the fund itself rebalances, the same rules apply as above, though indirectly; you'll have capital gains realized and distributed to you, those gains will be taxed unless, again, your account is a retirement account.",
"title": ""
},
{
"docid": "460ebdb56d37f72732e2748e258714c7",
"text": "1) You parents will have to pay tax on the gain as it wasn't their primary home. You don’t pay Capital Gains Tax when you sell (or ‘dispose of’) your home if all of the following apply: As I look at it, it is your parents are the ones who own the property and they will have to pay on £60000. But as you say you pay part of the mortgage, I would go to a tax advisor/accountant to confirm if they will only pay on the £15000. I couldn't find any guidance on that matter on gov.uk 2) Inheritance tax will not be levied on it as it is below £325000, but tax will be levied on £325000, less £3000 annual gift allowance. Two articles for further information - GOV.UK's Tax when you sell your home Money.co.UK's Gifting money to your children: FAQs",
"title": ""
},
{
"docid": "c6d3a46eb56646f68888503be0d54000",
"text": "Selling one fund and buying another will incur capital gains tax on the sale for the amount of the gain. I'm not aware of any sort of exemption available due to you moving out of the country. However, long-term capital gains for low-tax-bracket taxpayers is 0%. As long as your total income including the gains fits within the 15% regular tax bracket, you don't pay any long-term capital gains. Options for you that I see to avoid taxes are: Note that even if you do sell it all, it's only the amount of gains that would take your income over the 15% normal tax bracket that would be taxed at the long-term rate of 15%, which may not end up being that much of a tax hit. It may be worth calculating just how bad it would be based on your actual income. Also note that all I'm saying here is for US federal income taxes. The state you most recently lived in may still charge taxes if you're still considered a resident there in some fashion, and I don't know if your new home's government may try to take a cut as well.",
"title": ""
},
{
"docid": "baab9e968a5242addcfbf29340c1d5ce",
"text": "The mathematical answer is for you to have a diversified portfolio in your ISA. But that's easier said than done.",
"title": ""
}
] |
fiqa
|
537e132a674ca670a229c10e4aa93979
|
Does receiving a 1099-MISC require one to file a tax return even if he normally would not be required to file?
|
[
{
"docid": "f32d820d97c3f202be1a3c1a88a1820b",
"text": "\"Does he need to file a tax return in this situation? Will the IRS be concerned that he did not file even if he received a 1099? No. However, if you don't file the IRS may come back asking why, or \"\"make up\"\" a return for you assuming that the whole amount on the 1099-MISC is your net earnings. So in the end, I suspect you'll end up filing even though you don't have to, just to prove that you don't have to. Bottom line - if you have 1099 income (or any other income reported to the IRS that brings you over the filing threshold), file a return.\"",
"title": ""
}
] |
[
{
"docid": "57fbee9831e6442f6cf8d4f9f3c712b6",
"text": "I can't find specific information for Form 1099-DIV for this tax year. However, I found this quote for next tax season that talks about Form 1099-B: Due date for certain statements sent to recipients. The due date for furnishing statements to recipients for Forms 1099-B, 1099-S, and 1099-MISC (if amounts are reported in box 8 or 14) is February 15, 2018. [emphasis added] I know many brokerages bundle the 1099-DIV with the 1099-B, so one might assume that the deadlines are the same. February 15 seems consistent with the messages I got from my brokerages that said the forms will be mailed by mid-February.",
"title": ""
},
{
"docid": "cf1c0c8f4ce07239858da167fbbcade1",
"text": "You can and are supposed to report self-employment income on Schedule C (or C-EZ if eligible, which a programmer likely is) even when the payer isn't required to give you 1099-MISC (or 1099-K for a payment network now). From there, after deducting permitted expenses, it flows to 1040 (for income tax) and Schedule SE (for self-employment tax). See https://www.irs.gov/individuals/self-employed for some basics and lots of useful links. If this income is large enough your tax on it will be more than $1000, you may need to make quarterly estimated payments (OR if you also have a 'day job' have that employer increase your withholding) to avoid an underpayment penalty. But if this is the first year you have significant self-employment income (or other taxable but unwithheld income like realized capital gains) and your economic/tax situation is otherwise unchanged -- i.e. you have the same (or more) payroll income with the same (or more) withholding -- then there is a 'safe harbor': if your withholding plus estimated payments this year is too low to pay this year's tax but it is enough to pay last year's tax you escape the penalty. (You still need to pay the tax due, of course, so keep the funds available for that.) At the end of the first year when you prepare your return you will see how the numbers work out and can more easily do a good estimate for the following year(s). A single-member LLC or 'S' corp is usually disregarded for tax purposes, although you can elect otherwise, while a (traditional) 'C' corp is more complicated and AIUI out-of-scope for this Stack; see https://www.irs.gov/businesses/small-businesses-self-employed/business-structures for more.",
"title": ""
},
{
"docid": "54f174f29e2d2d7d644ab1b8ced2a5f7",
"text": "Form 10-K is filed by corporations to SEC. You must be thinking of form 1065 (its schedule K) that a partnership (and multi-member LLC) must file with the IRS. Unless the multi-member LLC is legally dissolved, it must file this form. You're a member, so it is your responsibility, with all the other members, to make sure that the manager files all the forms, and if the manager doesn't - fire the manager and appoint another one (or, if its member managed - chose a different member to manage). If you're a sole member of the LLC - then you don't need to file any forms with the IRS, all the business expenses and credits are done on your Schedule C, as if you were a sole propriator.",
"title": ""
},
{
"docid": "8c44c3df83ffe71f83ceaba813b6c91a",
"text": "\"Form W-9 (officially, the \"\"Request for Taxpayer Identification Number and Certification\"\") is used in the United States income tax system by a third party who must file an information return with the Internal Revenue Service (IRS). It requests the name, address, and taxpayer identification information of a taxpayer (in the form of a Social Security Number or Employer Identification Number). A W-9 is typically required when an individual is doing work, as a contractor or as an employee, for a company and will be paid more than $600 in a tax-year. The company is required to file a W-2 or a 1099 and so requests a W-9 to get the information necessary for those forms. I cannot say if it is incompetence on the part of the accounting department or a deliberate ploy to make the refund process more onerous, but do not comply. Politely nsist on a refund without any further information. If the company refuses, request a charge-back from the credit-card company, file a complaint with the consumer-protection department of the state where the company is located, and write a bad review on Yelp or wherever else seems appropriate.\"",
"title": ""
},
{
"docid": "d4e6fe0aa15ee2e3158e55925b69ad93",
"text": "No, do not file a Form 1099. You should not issue a form to yourself and you have no separate entity to issue one. The reporting obligation is Form 1040, plus Schedule C. You may have followed a wrong turn somewhere in the TurboTax questionnaire or it may not have picked up the subtleties of your situation. The business income is already yours. Some writers use vehicles to hold their royalties and pay themselves. The questionnaire may have been trying to get at this issue or may have wrongly assumed it. There are special rules around such entities, so getting an adviser is a good idea. For now, just file Schedule C, remember to deduct your costs (e.g. cost to print the books), and pay your self-employment tax.",
"title": ""
},
{
"docid": "df1e56fb20ac2062c3ea4d7c85015ded",
"text": "\"If you're single, the only solution I'm aware of, assuming you are truly getting a 1099-misc and not a W-2 (and don't have a W-2 option available, like TAing), is to save in a nondeductible account for now. Then, when you later do have a job, use that nondeductible account (in part) to fund your retirement accounts. Particularly the first few years (if you're a \"\"young\"\" grad student in particular), you'll probably be low enough on the income side that you can fit this in - in particular if you've got a 401k or 403b plan at work; make your from-salary contributions there, and make deductible IRA or Roth IRA contributions from your in-school savings. If you're not single, or even if you are single but have a child, you have a few other options. Spouses who don't have earned income, but have a spouse who does, can set up a Spousal IRA. You can then, combined, save up to your spouse's total earned income (or the usual per-person maximums). So if you are married and your wife/husband works, you can essentially count his/her earned income towards your earned income. Second, if you have a child, consider setting up a 529 plan for them. You're probably going to want to do this anyway, right? You can even do this for a niece or nephew, if you're feeling generous.\"",
"title": ""
},
{
"docid": "afbca4d29419bb73a19199c8112612b3",
"text": "\"If you are in the US, you legally must file taxes on any income whatsoever. How much you will pay in taxes, if any, will depend on your total taxable income. Now, for small transactions, the payments are often not reported to the IRS so some people do not file or pay. The threshold at which they payer is required to send a 1099 to the IRS is $600. Patreon considers each donation a separate transaction and therefore does not send a 1099 to the IRS unless you make more than $20,000 in a calendar year. If they do not report it, the IRS will not know about it unless they audit you or something. However, you are technically and legally responsible to report income whether the IRS knows about it or not. -------- EDIT ------- Note that the payer files a 1099, not the recipient. In order to report your patreon income you will either use schedule C or add it to the amount on 1040 line 21 (\"\"other income\"\") depending on whether you consider this a business or a hobby. If it's a business and it's a lot of money you should consider sending in quarterly payments using a 1040-ES in order to avoid a penalty for too little withholding.\"",
"title": ""
},
{
"docid": "e3ec07a7084d37b0262ffb6813149b45",
"text": "Residents pay tax on all of the income they receive during the calendar year from all sources, so you'll at least need to file and pay New York state income taxes on this money regardless. I can't answer whether you'll need to file and pay Colorado state income tax on this money as well. Generally speaking, you need to file a return for each state in which you live, receive income, or have business interests. If you are required to file a Colorado state income tax return, however, you can claim a credit for taxes paid to another state on your New York state income tax return using form IT-112-R (see the form and instructions).",
"title": ""
},
{
"docid": "dfa301d072f1ede64d7a19321e3d22e0",
"text": "You are not required to file a tax return in Canada if you have no taxable income. If you do not file a return you may be requested to by Canada Revenue Agency, and then you'll need to file one. There are hundreds of thousands of Canadian residents who do not file tax returns. The Minister who overlooks the CRA may assess any amount of taxes on any resident whether they file a return or not. There are penalties for failing to file a return or filing late. The penalties are based on a percentage of the taxes owed. If you owe no taxes, then the penalties are meaningless.",
"title": ""
},
{
"docid": "28526f65abdc2985664cffeb477ba4eb",
"text": "\"IRS Pub 554 states (click to read full IRS doc): \"\"Do not file a federal income tax return if you do not meet the filing requirements and are not due a refund. ... If you are a U.S. citizen or resident alien, you must file a return if your gross income for the year was at least the amount shown on the appropriate line in Table 1-1 below. \"\" You may not have wage income, but you will probably have interest, dividend, capital gains, or proceeds from sale of a house (and there is a special note that you must file in this case, even if you enjoy the exclusion for primary residence)\"",
"title": ""
},
{
"docid": "4645e910fa7f0f30aa582dcc00e85207",
"text": "In many cases, you are required to file your taxes by law even if you won't owe. If it's anything like in the US, it's quite possible your employer is not taking the right amount and you may owe more or may even be in line for a return. http://www.usatax.ca/Pages/filing_requirement_taxes_canada.html",
"title": ""
},
{
"docid": "fb32224abbecd0111b8671b4ed22d88a",
"text": "In Singapore, this is sufficiently common that the Singapore IRS has a page on their website dedicated to informing employers of how to properly pay this under Responsibilites of an Employer. Specifically, tax paid by employer is taxable income for the employee (as it's really the employee's responsibility), so they must pay tax for that tax. A tax-on-tax is computed for the tax paid, which also would be owed by the employer if they were paying the full tax rate for the employee. As a clarification, this is not the employer being truly responsible for the employee's income; this is the employer compensating the employee further to offset their taxable income. This is effectively a fringe benefit, although it may be particularly useful in countries where either tax evasion is common (and thus an employer must compete with employers willing to pay under the table) or where employers are competing with others in nearby countries with lower tax rates. It is not the same thing as the employer making your income nontaxable, though, and has implications for your tax filing. Significantly, it is likely that if you have additional income beyond income from that employer, it is likely to be taxed at your highest tax rate, as the employer will likely calculate the tax due based on their income being the only income you have in that year. *Edit based on emphasis in question: I'm not from Singapore nor am I a lawyer, but based on my reading of the IRAS website, it looks like you do not have to file if you have no other source of income, because they have a No-Filing Service which takes income information from your employer automatically and generates a tax bill, which presumably would be fully paid in your case. This only aplies if you have no other sources of income, however; you still have to file if you have other sources of income since your employer would not know about them. If you are eligible for this service, you should get a letter informing you as such. They also have a tool to check your filing status on their website.",
"title": ""
},
{
"docid": "f1e3a3be118b48d06cf556ed92c5945f",
"text": "They are a business. You're not a corporation. They paid you more than $600 during the year, so they're supposed to send 1099 to you and the IRS about it. They need your taxpayer certification (W9) for that. They were supposed to ask for it before they paid you, but yes - they're supposed to ask for it.",
"title": ""
},
{
"docid": "12a6603099f34cd972e1f9f95e9ab8b4",
"text": "I am not a lawyer or a tax accountant, but from the description provided it sounds to me like you have created two partnerships: one in which you share 50% of Bob's revenue, and another in which you share 50% of the revenue from the first partnership. If this is the case, then each partnership would need to file form K-1 and issue a copy to the partners of that partnership. I think, but I'm not sure, that each partnership would need an Employer Identification Number (EIN; you can apply for and receive these online with the IRS). You would only pay tax on the portion of profits that are assigned to you on the K-1. (If you've accidentally created a partnership without thinking through all the ramifications, you probably want to straighten this out. You can be held liable for the actions of your partners.) On the other hand, if your contract with Bob explicitly makes you a contractor and not a partner, then Bob should probably be issuing a 1099 to you. Similarly for you and Joe -- if your contract with Joe makes him a subcontractor, then you may need to get an EIN and issue him a 1099 at the end of the year. The money you pay to Joe is a business expense, and would be deducted from the profits you show on your Schedule C. In my opinion, it would be worth the $200 fee paid to a good CPA to make sure you get this right.",
"title": ""
},
{
"docid": "b80f37a9693776121b787c7f4caa04d8",
"text": "No, you probably do not need to file a tax return if you received no income, and if you meet a number of other criteria. The below is copied and pasted, slightly edited, from the CRA: You must file a return for 2014 if any of the following situations apply: You have to pay tax for 2014. We sent you a request to file a return. You and your spouse or common-law partner elected to split pension income for 2014. See lines 115, 116, 129, and 210. You received working income tax benefit (WITB) advance payments in 2014. You disposed of capital property in 2014 (for example, if you sold real estate or shares) or you realized a taxable capital gain (for example, if a mutual fund or trust attributed amounts to you, or you are reporting a capital gains reserve you claimed on your 2013 return). You have to repay any of your old age security or employment insurance benefits. See line 235. You have not repaid all amounts withdrawn from your registered retirement savings plan (RRSP) under the Home Buyers’ Plan or the Lifelong Learning Plan. For more information, go to Home Buyers' Plan (HBP) or see Guide RC4112, Lifelong Learning Plan (LLP) or You have to contribute to the Canada Pension Plan (CPP). This can apply if, for 2014, the total of your net self-employment income and pensionable employment income is more than $3,500. See line 222. You are paying employment insurance premiums on self-employment and other eligible earnings. See lines 317 and 430. In general, you will want to file a tax return even if none of the above applies. You could, for example, claim a GST/HST credit even with no income. Now, if you receive any income at all, you are going to have to pay taxes, which means you are obligated to file a tax return. If sufficient taxes were deducted from your paycheque, you are still obligated to file a tax return. However, you will not have to pay penalties if you file late, even if you file very late, at least not until the CRA sends you a request to file. But be aware, you won't likely be able to tell if you owe the CRA money until you do your taxes, and if you do end up owing, there are substantial penalties for filing late. In general, I'd strongly advise filing your tax return in almost all circumstances.",
"title": ""
}
] |
fiqa
|
059187191e5da247f62ba8ba286f2033
|
What does it really mean to buy a share?
|
[
{
"docid": "32778590fecaad9af44b55729a0b9ea3",
"text": "I have been careful here to cover both shares in companies and in ETFs (Exchange Traded Funds). Some information such as around corporate actions and AGMs is only applicable for company shares and not ETFs. The shares that you own are registered to you through the broker that you bought them via but are verified by independent fund administrators and brokerage reconciliation processes. This means that there is independent verification that the broker has those shares and that they are ring fenced as being yours. The important point in this is that the broker cannot sell them for their own profit or otherwise use them for their own benefit, such as for collateral against margin etc.. 1) Since the broker is keeping the shares for you they are still acting as an intermediary. In order to prove that you own the shares and have the right to sell them you need to transfer the registration to another broker in order to sell them through that broker. This typically, but not always, involves some kind of fee and the broker that you transfer to will need to be able to hold and deal in those shares. Not all brokers have access to all markets. 2) You can sell your shares through a different broker to the one you bought them through but you will need to transfer your ownership to the other broker and that broker will need to have access to that market. 3) You will normally, depending on your broker, get an email or other message on settlement which can be around two days after your purchase. You should also be able to see them in your online account UI before settlement. You usually don't get any messages from the issuing entity for the instrument until AGM time when you may get invited to the AGM if you hold enough stock. All other corporate actions should be handled for you by your broker. It is rare that settlement does not go through on well regulated markets, such as European, Hong Kong, Japanese, and US markets but this is more common on other markets. In particular I have seen quite a lot of trades reversed on the Istanbul market (XIST) recently. That is not to say that XIST is unsafe its just that I happen to have seen a few trades reversed recently.",
"title": ""
},
{
"docid": "4ff798af431d6755b22dcf6694af8ed0",
"text": "\"Ditto to MD-Tech, but from a more \"\"philosophical\"\" point of view: When you buy stock, you own it, just like you own a cell phone or a toaster or a pair of socks that you bought. The difference is that a share of stock means that you own a piece of a corporation. You can't physically take possession of it and put it in your garage, because if all the stock-holders did that, then all the company's assets would be scattered around all the stock-holder's garages and the company couldn't function. Like if you bought a 1/11 share in a football team, you couldn't take one of the football players home and keep him in your closet, because then the team wouldn't be able to function. (I might want to take one of the cheerleaders home, but that's another subject ...) In pre-electronic times, you could get a piece of paper that said, \"\"XYZ Corporation - 1 share\"\". You could take physical possession of this piece of paper and put it in your filing cabinet. I'm not sure if you can even get such certificates any more; I haven't seen one in decades. These days it's just recorded electronically. That doesn't mean that you don't own it. It just means that someone else is keeping the records for you. It's like leaving your car in a parking lot. It's still your car. The people who run the parking lot doesn't own it. They are keeping it for you, but just because they have physical possession doesn't make it theirs.\"",
"title": ""
}
] |
[
{
"docid": "61a6f11ae6c1166c8c224750b01862e4",
"text": "I think the correct statement is that Expedia wants to buy Orbitz for $12/share. The market price is $11, which means there is somebody willing to sell for that price. But you can't say that a stock price of $11 means that everybody is willing to sell for that price. And Expedia is unlikely to bid $12/share for just 40% of Orbitz shares; they'll want at least a controlling majority.",
"title": ""
},
{
"docid": "2a2880cc32f51a709d7cc91acef8eb9e",
"text": "\"Let's handle this as a \"\"proof of concept\"\" (POC); OP wants to buy 1 share of anything just to prove that they can do it before doing the months of painstaking analysis that is required before buying shares as an investment. I will also assume that the risks and costs of ownership and taxes would be included in OP's future analyses. To trade a stock you need a financed broker account and a way to place orders. Open a dealing account, NOT an options or CFD etc. account, with a broker. I chose a broker who I was confident that I could trust, others will tell you to look for brokers based on cost or other metrics. In the end you need to be happy that you can get what you want out of your broker, that is likely to include some modicum of trust since you will be keeping money with them. When you create this account they will ask for your bank account details (plus a few other details to prevent fraud, insider trading, money laundering etc.) and may also ask for a minimum deposit. Either deposit enough to cover the price of your share plus taxes and the broker's commission, plus a little extra to be on the safe side as prices move for every trade, including yours, or the minimum if it is higher. Once you have an account the broker will provide an interface through which to buy the share. This will usually either be a web interface, a phone number, or a fax number. They will also provide you with details of how their orders are structured. The simplest type of order is a \"\"market order\"\". This tells the broker that you want to buy your shares at the market price rather than specifying only to buy at a given price. After you have sent that order the broker will buy the share from the market, deduct the price plus tax and her commission from your account and credit your account with your share.\"",
"title": ""
},
{
"docid": "bf6ae9f8692786d01c25dbdbbf863086",
"text": "\"When people talk about \"\"the price\"\" of a stock, they usually mean one of the following: Last price: The price at which a trade most recently took place. If someone sold (and someone else bought) shares of XYZ for $20 each, then until another trade occurs, the last price of the stock will be quoted at $20. Bid price: The highest price at which someone is currently offering to buy the stock. Ask price: The lowest price at which someone is currently offering to sell the stock. As you can see, all of these are completely determined by the people buying and selling the stock.\"",
"title": ""
},
{
"docid": "6f0cb1b299c8902d05de659c56af9285",
"text": "\"In finance, form is function, and while a reason for a trade could be anything, but since the result of a trade is a change in value, it could be presumed that one seeks to receive a change in value. Stock company There may have been more esoteric examples, but currently, possession of a company (total ownership of its' assets actually) is delineated by percentage or a glorified \"\"banknote\"\" frequently called a \"\"share\"\". Percentage companies are usually sole proprietorship and partnerships, but partnerships can now trade in \"\"units\"\". Share companies are usually corporations. With shares, a company can be divided into almost totally indistinguishable units. This allows for more flexible ownership, so individuals can trade them without having to change the company contract. Considering the ease of trade, it could be assumed that common stock contract provisions were formulated to provide for such an ease. Motivation to trade This could be anything, but it seems those with the largest ownership of common stock have lots of wealth, so it could be assumed that people at least want to own stocks to own wealth. Shorting might be a little harder to reason, but I personally assume that the motivation to trade is still to increase wealth. Social benefit of the stock market Assuming that ownership in a company is socially valuable and that the total value of ownership is proportional to the social value provided, the social benefit of a stock market is that it provided the means to scale ownership through convenience, speed, and reliability.\"",
"title": ""
},
{
"docid": "e185bd487ce466eea430fe6c6c67a618",
"text": "If a deal is struck, you're part of that deal because you own shares. If someone offers $10/share for the entire company, you'll get that. If the stock price is $1.50 and someone offers $2/share, you'll get that.",
"title": ""
},
{
"docid": "b4b12e9aa94ea9a3c6df4c597cad3fa6",
"text": "I know what your saying. But I think there is a bit of hopes and feels in stocks also. If people feel like it's going to go down they sale. Causing it to go down right? Bad news article comes out about a stock or bitcoin. They go down. Good news article comes out they both go up. Even if the company changed nothing. Bit of hopes and feels involved. Edit: pose that as a question. Am I completely off the mark here?",
"title": ""
},
{
"docid": "5454e160157a86cd1775242c0efdbbb4",
"text": "Your understanding of the stock market is absolutely correct theoretically. However there is a lot more to it. A stock on a given day is effected by a lot of factors. These factors could really be anything. For example, if you are buying a stock in an agricultural company and there was no rainfall this year, there is a big chance that your stock will lose value. There is also a chance that a war breaks out tomorrow and due to all the government spending on the war, the economy collapses and effects the prices of stocks. Why does this happen? This happens because bad rainfall or war can get people to lose confidence in a stock market. On the other hand GDP growth and low unemployment rates can make people think positive and increase the demand in a stock driving the prices up. The main factor in the stock market is sentiment(How people perceive certain news). This causes a stock to rise or fall even before the event actually happens. (For example:- Weather pundits predicted good rainfall for next year. That news is already known to people, so if the weather pundit was correct, it might not drive the prices up. However, if the rainfall was way better than people expected it to be it would drive the price up and vice versa. These are just examples at a basic level. There are a lot of other factors which determine the price of the stock. The best way to look at it(In my personal opinion) is the way Warren Buffet puts it, i.e. look at the stock as a business and see the potential growth over a long period of time. There will be unexpected events, but in the long run, the business must be profitable. There are various ways to value a company such as Price to earnings ratios, PEG ratios, discounted cash flows and you can also create your own. See what works best for you and record your success/failure ratio before you actually put money in. Good Luck,",
"title": ""
},
{
"docid": "92174efaea066aa7b16d666a6d03c5b8",
"text": "\"I think I understand what you're trying to achieve. You just want to see how it \"\"feels\"\" to own a share, right? To go through the process of buying and holding, and eventually selling, be it at a loss or at a gain. Frankly, my primary advice is: Just do it on paper! Just decide, for whatever reason, which stocks to buy, in what amount, subtract 1% for commissions (I'm intentionally staying on the higher side here), and keep track of the price changes daily. Instead of doing it on mere paper, some brokers offer you a demo account where you can practice your paper trading in the same way you would use a live account. As far as I know, Interactive Brokers and Saxo Bank offer such demo accounts, go look around on their web pages. The problem about doing it for real is that many of the better brokers, such as the two I mentioned, have relatively high minimum funding limits. You need to send a few thousand pounds to your brokerage account before you can even use it. Of course, you don't need to invest it all, but still, the cash has to be there. Especially for some younger and inexperienced investors, this can seduce them to gambling most of their money away. Which is why I would not advise you to actually invest in this way. It will be expensive but if it's just for trying it on one share, use your local principal bank for the trade. Hope this gets you started!\"",
"title": ""
},
{
"docid": "3372ab2c637d4541156521cfb61737d7",
"text": "\"Learn something new every day... I found this interesting and thought I'd throw my 2c in. Good description (I hope) from Short Selling: What is Short Selling First, let's describe what short selling means when you purchase shares of stock. In purchasing stocks, you buy a piece of ownership in the company. You buy/sell stock to gain/sell ownership of a company. When an investor goes long on an investment, it means that he or she has bought a stock believing its price will rise in the future. Conversely, when an investor goes short, he or she is anticipating a decrease in share price. Short selling is the selling of a stock that the seller doesn't own. More specifically, a short sale is the sale of a security that isn't owned by the seller, but that is promised to be delivered. Still with us? Here's the skinny: when you short sell a stock, your broker will lend it to you. The stock will come from the brokerage's own inventory, from another one of the firm's customers, or from another brokerage firm. The shares are sold and the proceeds are credited to your account. Sooner or later, you must \"\"close\"\" the short by buying back the same number of shares (called covering) and returning them to your broker. If the price drops, you can buy back the stock at the lower price and make a profit on the difference. If the price of the stock rises, you have to buy it back at the higher price, and you lose money. So what happened? The Plan The Reality Lesson I never understood what \"\"Shorting a stock\"\" meant until today. Seems a bit risky for my blood, but I would assume this is an extreme example of what can go wrong. This guy literally chose the wrong time to short a stock that was, in all visible aspects, on the decline. How often does a Large Company or Individual buy stock on the decline... and send that stock soaring? How often does a stock go up 100% in 24 hours? 600%? Another example is recently when Oprah bought 10% of Weight Watchers and caused the stock to soar %105 in 24 hours. You would have rued the day you shorted that stock - on that particular day - if you believed enough to \"\"gamble\"\" on it going down in price.\"",
"title": ""
},
{
"docid": "b731769f380d1dbc187594d1070e9701",
"text": "I was thinking that the value of the stock is the value of the stock...the actual number of shares really doesn't matter, but I'm not sure. You're correct. Share price is meaningless. Google is $700 per share, Apple is $100 per share, that doesn't say anything about either company and/or whether or not one is a better investment over the other. You should not evaluate an investment decision on price of a share. Look at the books decide if the company is worth owning, then decide if it's worth owning at it's current price.",
"title": ""
},
{
"docid": "b32701eca361387d32f57d1bcda9f2b7",
"text": "I believe, I could be wrong, it has been a long day. By exercising this right you have the right to purchase the equivalent of their current share. Eg. Someone owns 50 of 100 shares. and the company does a rights offering and is expanding the shares to 200. That person has first right to purchase 50 more shares to keep his share from being diluted.",
"title": ""
},
{
"docid": "4675bd9a58984de643e21efc51fa8034",
"text": "For all practical purposes the words mean the same thing. Shares are just stock in a particular company whereas stock can refer to shares over many companies. Investopedia has a good explaination. If you are a financial journalist you might want to make sure you are using the right term at the right time, but otherwise they are synonyms.",
"title": ""
},
{
"docid": "084b6a7c6c93bb138202603fa9676eff",
"text": "You are misunderstanding what makes the price of a stock go up and down. Every time you sell a share of a stock, there is someone else that buys the stock. So it is not accurate to say that stock prices go down when large amounts of the stock are sold, and up when large amounts of the stock are bought. Every day, the amount of shares of a stock that are bought and sold are equal to each other, because in order to sell a share of stock, someone has to buy it. Let me try to explain what actually happens to the price of a stock when you want to sell it. Let's say that a particular stock is listed on the ticker at $100 a share currently. All this means is that the last transaction that took place was for $100; someone sold their share to a buyer for $100. Now let's say that you have a share of the stock you'd like to sell. You are hoping to get $100 for your share. There are 2 other people that also have a share that they want to sell. However, there is only 1 person that wants to buy a share of stock, and he only wants to pay $99 for a share. If none of you wants to sell lower than $100, then no shares get sold. But if one of you agrees to sell at $99, then the sale takes place. The ticker value of the stock is now $99 instead of $100. Now let's say that there are 3 new people that have decided they want to buy a share of the stock. They'd like to buy at $99, but you and the other person left with a share want to sell at $100. Either one of the sellers will come down to $99 or one of the buyers will go up to $100. This process will continue until everyone that wants to sell a share has sold, and everyone who wants to buy a share has bought. In general, though, when there are more people that want to sell than buy, the price goes down, and when there are more people that want to buy than sell, the price goes up. To answer your question, if your selling of the stock had caused the price to go down, it means that you would have gotten less money for your stock than if it had not gone down. Likewise, if your buying the stock had caused it to go up, it just means that it would have cost you more to buy the stock. It is just as likely that you would lose money doing this, rather than gain money.",
"title": ""
},
{
"docid": "bffdd2b0003ce358a8fc2bc569131763",
"text": "\"Price is decided by what shares are offered at what prices and who blinks first. The buyer and seller are both trying to find the best offer, for their definition of best, within the constraints then have set on their bid or ask. The seller will sell to the highest bid they can get that they consider acceptable. The buyer will buy from the lowest offer they can get that they consider acceptable. The price -- and whether a sale/purchase happens at all -- depends on what other trades are still available and how long you're willing to wait for one you're happy with, and may be different on one share than another \"\"at the same time\"\" if the purchase couldn't be completed with the single best offer and had to buy from multiple offers. This may have been easier to understand in the days of open outcry pit trading, when you could see just how chaotic the process is... but it all boils down to a high-speed version of seeking the best deal in an old-fashioned marketplace where no prices are fixed and every sale requires (or at least offers the opportunity for) negotiation. \"\"Fred sells it five cents cheaper!\"\" \"\"Then why aren't you buying from him?\"\" \"\"He's out of stock.\"\" \"\"Well, when I don't have any, my price is ten cents cheaper.\"\" \"\"Maybe I won't buy today, or I'll buy elsewhere. \"\"Maybe I won't sell today. Or maybe someone else will pay my price. Sam looks interested...\"\" \"\"Ok, ok. I can offer two cents more.\"\" \"\"Three. Sam looks really interested.\"\" \"\"Two and a half, and throw in an apple for Susie.\"\" \"\"Done.\"\" And the next buyer or seller starts the whole process over again. Open outcry really is just a way of trying to shop around very, very, very fast, and electronic reconciliation speeds it up even more, but it's conceptually the same process -- either seller gets what they're asking, or they adjust and/or the buyer adjusts until they meet, or everyone agrees that there's no agreement and goes home.\"",
"title": ""
},
{
"docid": "bcd6f38df9a8a466e7cc2fa5acde92d6",
"text": "\"In general, I think you're conflating a lot of ideas. The stock market is not like a supermarket. With the exception of a direct issue, you're not buying your shares from the company or from the New York Stock Exchange you're buying from an owner of stock, Joe, Sally, a pension fund, a hedge fund, etc; it's not sitting on a shelf at the stock market. When you buy an Apple stock you don't own $10 of Apple, you own 1/5,480,000,000th of Apple because Apple has 5,480,000,000 shares outstanding. When a the board gets together to vote on and approve a dividend the approved dividend is then divided by 5.48 billion to determine how much each owner receives. The company doesn't pay dividends out to owners from a pot of money it received from new owners; it sold iPhones at a profit and is sending a portion of that profit to the owners of the company. \"\"When you buy stock, it is claimed that you own a small portion of the company. This statement has no backing, as you cannot exchange your stock for the company's assets.\"\" The statement does have backing. It's backed by the US Judicial system. But there's a difference between owning a company and owning the assets of the company. You own 1/5,480,000,000 of the company and the company owns the company's assets. Nevermind how disruptive it would be if any shareholder could unilaterally decide to sell a company's buildings or other assets. This is not a ponzi scheme because when you buy or sell your Apple stock, it has no impact on Apple, you're simply transacting with another random shareholder (barring a share-repurchase or direct issue). Apple doesn't receive the proceeds of your private transaction, you do. As far as value goes, yes the stock market provides tons of value and is a staple of capitalism. The stock market provides an avenue of financing for companies. Rather than taking a loan, a company's board can choose to relinquish some control and take on additional owners who will share in the spoils of the enterprise. Additionally, the exchanges deliver value via an unbelievable level of liquidity. You don't have to go seek out Joe or Sally when you want to sell your Apple stock. You don't need to put your shares on Craigslist in the hope of finding a buyer. You don't have to negotiate a price with someone who knows you want to sell. You just place an order at an exchange and you're aligned with a buyer. Also understand that anything can move up or down in value without any money actually changing hands. Say you get your hands on a pair of shoes (or whatever), they're hot on the market, very rare and sought after. You think you can sell them for $1,000. On tonight's news it turns out that the leather is actually from humans and the CEO of the company is being indicted, the company is falling apart, etc. Your shoes just went from $1,000 to $0 with no money changing hands (or from $1,000 to $100,000 depending on how cynical you are).\"",
"title": ""
}
] |
fiqa
|
6196184cecfe67501d37503b228070e1
|
How can someone invest in areas that require you to be an accredited investor [without qualifying as an accredited investor]?
|
[
{
"docid": "b9ea9cf5c85d2271ea0ef94a55a5a5bf",
"text": "Unfortunately it is not possible for an ordinary person to become an accredited investor without a career change. Gaining any legal certification in investments typically require sponsorship from an investment company (which you would be working for). There are reasons why these kinds of investments are not available to ordinary people directly, and you should definitely consult an RIA (registered investment adviser) before investing in something that isn't extremely standardized (traded on an major exchange). The issue with these kinds of investments is that they are not particularly standardized (in terms of legal structure/settlement terms). Registered investment advisers and other people who manage investments professionally are (theoretically) given specific training to understand these kinds of non-standard investments and are (theoretically) qualified to analyze the legal documentation of these, make well informed investment decisions, and make sure that their investors are not falling into any kind of pyramid scheme. There are many many kinds of issues that can arise when investing in startups. What % of the company/ the company's profits are you entitled to? How long can the company go without paying you a dividend? Do they have to pay you a dividend at all? How liquid will your investment in the company be? Unfortunately it is common for startups to accept investment but have legal restrictions on their investors ability to sell their stake in the business, and other non-standard contract clauses. For example, some investment agreements have a clause which states that you can only sell your stake in the business to a person who already owns a stake in the business. This makes your investment essentially worthless - the company could run for an exponential amount of time without paying you a dividend. If you are not able to sell your stake in the company you will not be able to earn any capital gains either. The probability of a startup eventually going public is extremely small.. so in this scenario it is likely you will end up gaining no return investment (though you can be happy to know you helped a company grow!) Overall, the restrictions for these kinds of investments exist to protect ordinary folks from making investing their savings into things that could get them burned. If you want to invest in companies on FundersClub build a relationship with an RIA and work with that person to invest your money. It is easier, less risky, and not all that more expensive :)",
"title": ""
}
] |
[
{
"docid": "0b4d041501b889e30080b61b2a31216c",
"text": "You could certainly look at the holdings of index funds and choose index funds that meet your qualifications. Funds allow you to see their holdings, and in most cases you can tell from the description whether certain companies would qualify for their fund or not based on that description - particularly if you have a small set of companies that would be problems. You could also pick a fund category that is industry-specific. I invest in part in a Healthcare-focused fund, for example. Pick a few industries that are relatively diverse from each other in terms of topics, but are still specific in terms of industry - a healthcare fund, a commodities fund, an REIT fund. Then you could be confident that they weren't investing in defense contractors or big banks or whatever you object to. However, if you don't feel like you know enough to filter on your own, and want the diversity from non-industry-specific funds, your best option is likely a 'socially screened' fund like VFTSX is likely your best option; given there are many similar funds in that area, you might simply pick the one that is most similar to you in philosophy.",
"title": ""
},
{
"docid": "d19f5919f9a91c4219b84859430d0127",
"text": "Ok, that's totally different then. The legislation that you were mentioning doesn't apply to prop shops that trade derivatives. If you want to end up in the equities world, then a place that requires those licenses that will pay for it doesn't seem like a bad deal.",
"title": ""
},
{
"docid": "f954722876bfa4acb9331c336341e5db",
"text": "As other answers have pointed out, professional real estate investors do own residential investment properties. However, small residential units typically are not owned by professional real estate investors as your experience confirms. This has a fairly natural cause. The size of the investment opportunity is insufficient to warrant the proper research/due diligence to which a large investment firm would have to commit if it wanted to properly assess the potential of a property. For a small real estate fund managing, say, $50 MM, it would take 100 properties at a $500K valuation in order to fully invest the funds. This number grows quickly as we decrease the average valuation to reflect even smaller individual units. Analogously, it is unlikely that you will find large institutional investors buying stocks with market caps of $20 MM. They simply cannot invest a large enough portion of total AUM to make the diligence make economic sense. As such, institutional real estate money tends to find its way into large multi-family units that provide a more convenient purchase size for a fund.",
"title": ""
},
{
"docid": "9c2486bf10b899839d0c29cb649f96a3",
"text": "Yes, but only if they're looking for investors. You would need to contact them directly. Unless you're looking to invest a significant sum, they may not be interested in speaking with you. (Think at least 6 figures, maybe 7 depending on their size and needs). This is otherwise known as being a Venture Capitalist. Some companies don't want additional investors because the capital isn't yet needed and they don't want to give up shares in the profit/control. Alternatively, you could try and figure out which investment groups already have a stake in the company you're interested in. If those companies are publicly traded, you could buy stocks for their company with the expectation that their stock price will increase if the company you know of does well in the long run.",
"title": ""
},
{
"docid": "24b0b013a3385858eda59f1359a4f523",
"text": "You can't do what you would like to do, unless your business has another, unrelated investor or is willing to invest an equal amount of funds + .01 into a corporation which will employ you. You will then need to set up a self-directed IRA. Additionally, you will need a trustee to account for all the disbursements from your IRA.",
"title": ""
},
{
"docid": "ad563586bd99c80f736b254758cb0f82",
"text": "You can put it in a CD, or use a CD investment service like http://www.jumbocdinvestments.com/ (no affiliation).",
"title": ""
},
{
"docid": "8730be753a1406fab4444dcbb40296f3",
"text": "Here are the SEC requirements: The federal securities laws define the term accredited investor in Rule 501 of Regulation D as: a bank, insurance company, registered investment company, business development company, or small business investment company; an employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million; a charitable organization, corporation, or partnership with assets exceeding $5 million; a director, executive officer, or general partner of the company selling the securities; a business in which all the equity owners are accredited investors; a natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person; a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes. No citizenship/residency requirements.",
"title": ""
},
{
"docid": "7b9e1b14c98aa0813d39fed38251fb95",
"text": "\"My advice would be to invest that 50k in 25% batches across 4 different money markets. Batch 1: Lend using a peer-to-peer account - 12.5k The interest rates offered by banks aren't that appealing to investors anymore, at least in the UK. Peer to peer lending brokers such as ZOPA provide 5% to 6% annual returns if you're willing to hold on to your investment for a couple of years. Despite your pre-conceptions, these investments are relatively safe (although not guaranteed - I must stress this). Zopa state on their website that they haven't lost any money provided from their investors since the company's inception 10 years ago, and have a Safeguard trust that will be used to pay out investors if a large number of borrowers defaulted. I'm not sure if this service is available in Australia but aim for an interest rate of 5-6% with a trusted peer-to-peer lender that has a strong track record. Batch 2: The stock market - 12.5k An obvious choice. This is by far the most exciting way to grow your money. The next question arising from this will likely be \"\"how do I pick stocks?\"\". This 12.5k needs to be further divided into 5 or so different stocks. My strategy for picking stock at the current time will be to have 20% of your holdings in blue-chip companies with a strong track record of performance, and ideally, a dividend that is paid bi-anually/quarterly. Another type of stock that you should invest in should be companies that are relatively newly listed on the stock market, but have monopolistic qualities - that is - that they are the biggest, best, and only provider of their new and unique service. Examples of this would be Tesla, Worldpay, and Just-eat. Moreover, I'd advise another type of stock you should purchase be a 'sin stock' to hedge against bad economic times (if they arise). A sin stock is one associated with sin, i.e. cigarette manufacturers, alcohol suppliers, providers of gambling products. These often perform good while the economy is doing well, but even better when the economy experiences a 2007-2008, and 2001-dotcom type of meltdown. Finally, another category I'd advise would be large-cap energy provider companies such as Exxon Mobil, BP, Duke Energy - primarily because these are currently cheaper than they were a few months ago - and the demand for energy is likely to grow with the population (which is definitely growing rapidly). Batch 3: Funds - 12.5k Having some of your money in Funds is really a no-brainer. A managed fund is traditionally a collection of stocks that have been selected within a particular market. At this time, I'd advise at least 20% of the 12.5k in Emerging market funds (as the prices are ridiculously low having fallen about 60% - unless China/Brazil/India just self destruct or get nuked they will slowly grow again within the next 5 years - I imagine quite high returns can be had in this type of funds). The rest of your funds should be high dividend payers - but I'll let you do your own research. Batch 4: Property - 12.5k The property market is too good to not get into, but let's be honest you're not going to be able to buy a flat/house/apartment for 12.5k. The idea therefore would be to find a crowd-funding platform that allows you to own a part of a property (alongside other owners). The UK has platforms such as Property Partner that are great for this and I'm sure Australia also has some such platforms. Invest in the capital city in areas as close to the city's center as possible, as that's unlikely to change - barring some kind of economic collapse or an asteroid strike. I think the above methods of investing provide the following: 1) Diversified portfolio of investments 2) Hedging against difficult economic times should they occur And the only way you'll lose out with diversification such as this is if the whole economic system collapses or all-out nuclear war (although I think your investments will be the least of your worries in a nuclear war). Anyway, this is the method of investing I've chosen for myself and you can see my reasoning above. Feel free to ask me if you have any questions.\"",
"title": ""
},
{
"docid": "74aa3ca9abe89674b3ab4253d0438286",
"text": "\"I'm surprised at the tone of the answers to this question! Trading with insider information is corruption and encourages fraud. As in many areas, there's an ethical line where behavior the gap between \"\"ok\"\" and \"\"illegal\"\" or unethical is thin. The classic local government insider information example is when the local councilman finds out that a highway exit is being constructed in an area that consists mostly of farmland. Knowing this, he buys out the farmers at what they think is a premium, and turns around for 10x profit a few months later. In that context, do you think that the councilman acting on that insider information is committing a crime or ethical lapse? Most people say yes. Even in this case, the line is thin. If the same councilman has his finger on the pulse of growth patterns in the area, and realizes that the terrain makes a certain area a prime candiate for a highway and exit, buying up land would not be criminal -- but it would be risky as it creates a perception that he is abusing his position.\"",
"title": ""
},
{
"docid": "ed91e01409c3ff8b6efaf6c7585bd2d5",
"text": "I know some of the large banks have small regional offices in Calgary for Oil & Gas IBD. I'm American but from what I gather it's pretty tough to get into, so you'd need a top school for finance and network your butt off. Outside of that, you'll need to cold-email, cold-call, and try to get your foot in the door any way possible. [Send out hundreds of emails](https://www.mergersandinquisitions.com/investment-banking-email-template/) and follow up with the 5% that respond. Read [this](https://www.mergersandinquisitions.com/investment-banking-canada/), [this](https://www.mergersandinquisitions.com/investment-banking-calgary/), [this](https://www.mergersandinquisitions.com/investment-banking-vancouver-korea/), and [this](https://www.mergersandinquisitions.com/commodities-banking-western-canada/) to get started.",
"title": ""
},
{
"docid": "1ac350ec5c33d3492610d3b014ba7a37",
"text": "\"Yes, you can. You could either go through brokerages like Ameritrade or fund companies like Fidelity or Vanguard. Yes there are minimums depending on the fund where some retail funds may waive a minimum if you sign up for an \"\"Automatic Investment Plan\"\" and some of the lower cost funds may have higher initial investment as Vanguard's Admiral share class is different from Investor for example.\"",
"title": ""
},
{
"docid": "64c8523399599ed83c91cf32321369d1",
"text": "Thanks for the tip, I know of one or two privately backed incubators I can approach but have already reached out to local government for access to their funding streams. I just want to make sure I cover all of my bases and seek as much of the available capital as I can. Is there a good way to approach/meet private investors?",
"title": ""
},
{
"docid": "001bd856c730fa6fc8e49f45937cb647",
"text": "Here's a start at a high level: I have a few friends who have made a killing on GLD, and write options to make money off of the investment without incurring the capital gains penalties for selling. That's a little out of my comfort zone though.",
"title": ""
},
{
"docid": "52683fac8adacb6501cef0f04b28178d",
"text": "The best way I know of is to join an investment club. They club will act like a mutual fund, investing in stocks researched and selected by the group. Taking part in research and presenting results to the group for peer review is an excellent way to learn. You'll learn what is a good reason to invest and what isn't. You'll probably pick both winners and losers. The goal of participation is education. Some people learn how to invest and continue happily doing so. Others learn how to invest in single stocks and learn it is not for them.",
"title": ""
},
{
"docid": "cafd80031a7f88125c0fa2b02d28426a",
"text": "I work for an investment group in Central Asia in private equity/project investment. We use SPV and collateralized convertible loans to enter a project, we issue the loan at our own commercial bank. For each industry, the exact mechanisms vary. In most outcomes, we end up in control of some very important part of the business, and even if we have minority shares on paper, no decision is made w/o our approval. For example, we enter cosntruction projects via aquisiton of land and pledging the land as equity for an SPV, then renting it to the project operator. Basically, when you enter a business, be in control of the decisions there, or have significant leverage on the operations. Have your own operating professionals to run it. Profit.",
"title": ""
}
] |
fiqa
|
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