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> So is there another way of doing this that would also let me calculate the future equity gained based on overpayments?
The equity immediately gained based on an overpayment is exactly the amount of that overpayment.
In general, your regular payment schedule will pay off all the interest for the month in questio... |
Suppose there is a market price of shares, say 1$ per share. The company decides to emit more shares. At what price should they be sold? And who determines the price? The company itself or the market?
I am not about IPO, imagine the company worked for a year, and then it emits more stocks. |
I performed a SHORT SELL for MRNA stock sometime back and then performed a BUY to cover the SHORT. Even after many days of buying the stock I still see the SHORT position in my Fidelity portfolio. I performed both SHORT and BUY in Margin account. Has someone faced this issue or can suggest a solution for this?
Just in... |
When you're looking at the expense ratio of a fund, that "expense" is not from the _broker_ but from the _fund_ itself. Meaning if the value of the constituents of the fund rises 10% in one year but the fund has a 1% expense ratio, your _net_ return for that fund is around 9%. The realization of those fees is not as tr... |
I performed a SHORT SELL for MRNA stock sometime back and then performed a BUY to cover the SHORT. Even after many days of buying the stock I still see the SHORT position in my Fidelity portfolio. I performed both SHORT and BUY in Margin account. Has someone faced this issue or can suggest a solution for this?
Just in... |
>At what price should they be sold? And who determines the price?
It's the same as an IPO. The _market_ (meaning the people that buy the shares) determines the price. There will typically be an _underwriter_ in the middle that will agree to buy the shares for a specific price (based on what they _think_ the market ... |
Suppose there is a market price of shares, say 1$ per share. The company decides to issue more shares. At what price should they be sold? And who determines the price? The company itself or the market?
I am not about IPO, imagine the company worked for a year, and then it issues more shares. |
>At what price should they be sold? And who determines the price?
It's very similar to an IPO. The _market_ (meaning the people that buy the shares) determines the price. There will typically be an _underwriter_ in the middle that will agree to buy the shares for a specific price (based on what they _think_ the mar... |
As many of you may know, [this morning Robinhood][1] (among other brokerages) shut down trading of several stocks, including Gamestop (GME) and AMC Entertainment (AMC).
Recently, Justin Kan on Twitter posted the following [tweet][2], implying that Robinhood may have been working behind the scenes with Citadel to man... |
What would happen to account holders if a brokerage gets shut down? |
Do I pay vat on digital goods from EU in the UK? |
I'm not familiar with your broker, with the security you mentioned, your currency or your locale so this is a U.S. centric answer.
If you buy a security such as a stock, option or ETF with 100% cash (no margin), you have no risk beyond the cost of your investment.
In the case of a fully paid 100% cash purchase ... |
Today this ETF went Ex -Div: HSBC FTSE 100 ETF HUKX.L
It dropped by the amount of the FTSE decline (tracking), plus it's own ex-div amount.
So far, so good.
However - The instrument is designed to track the FTSE 100 - the underlying instrument (FTSE 100) is adjusted for dividends at other times, and loses valu... |
Index ETFs an Ex Divided Dates - Why do ETFs fall on Ex Div date? |
Suppose there is a market price of shares, say $1 per share. The company decides to issue more shares. At what price should they be sold? And who determines the price? The company itself or the market?
I am not asking about IPO. Rather, imagine the company has already been public for a year, and then it issues more ... |
When a company decides to issue more shares in a secondary offering, how is the price determined? |
According to https://www.cnn.com/2021/01/27/investing/gamestop-reddit-stock/index.html /r/wallstreetbets/ is buying, en masse, stocks that are being shorted by institutional investors.
My question is... how does this benefit the members of the /r/wallstreetbets/ ? Once they decided to move onto another stock them a... |
how does the WallStreetBets community benefit from buying poorly performing stocks? |
> how does this benefit the members of the /r/wallstreetbets/ ?
To simplify:
1. Institutional investors short stock A
2. Massive purchase from WSB of stock A
3. WSB members (on average) profit during the subsequent short squeeze.
|
> Does the last point actually have credibility? Couldn't short traders wait for many more months before closing their positions, giving the company plenty of time to collapse?
Yes, because of either getting margin called or rather untenable positions (e.g., a >1G USD potential loss).
In the case you mention, WSB... |
> Is it possible for a skeptical third-party observer to somehow confirm if this claim is true and their portfolio is now indeed free of $GME shorts?
No. However, [the number of shorted shares for a given company is publicly known](https://quant.stackexchange.com/q/36701/2183). |
> Does the last point actually have credibility? Couldn't short traders wait for many more months before closing their positions, giving the company plenty of time to collapse?
Yes, because of either getting margin called or rather untenable positions (e.g., a >1G USD potential loss).
In the case you mention, WSB... |
What I understand from the whole Game Stop soaring stock prices event is that Game Stop stocks were in essence shorted too heavily, there were more stocks borrowed/shorted than in existence. This enabled people from the WallstreetBet community and others to inflate the stock price massively by buying it. What I want to... |
How did the WallstreetBet community know that Game Stop was shorted so heavily? |
> Or did/could they get information from other sources too about how much the stock was shorted?
[The number of shorted shares for a given company is publicly known](https://quant.stackexchange.com/q/36701/2183). E.g. see https://finance.yahoo.com/quote/GME/history?p=GME ([mirror](https://archive.vn/oLaKw)). |
According to
- Allison Morrow, [Everything you need to know about how a Reddit group blew up GameStop's stock][1], CNN Business, January 28, 2021.
the subreddit [r/wallstreetbets][2] is buying, en masse, stocks that are being shorted by institutional investors. How does this benefit the members of [r/wallstreetb... |
How does the WallStreetBets community benefit from buying poorly performing stocks? |
It's both.
Consider the entire stock market as one giant pool of *cash* in various bank accounts. Forget the stock 'values'. That's just numbers on a screen. You haven't made money until you have more cash in your account than when you started.
-----------
New cash only ever enters this market one way: Compani... |
So with this whole GameStop issue going on right now one of the common themes I've seen being espoused is that the amateur traders are morally right and the hedge funds who shorted are morally evil, the argument goes that by heavily shorting GameStop stocks the people who are short are actively driving the company to f... |
Can shorting a company's stock lead to said company failing? |
I find it hard to understand your question - it's rather disjointed, in particular it's not possible to run out of money as long as you don't put in new money. The folks on WSB bought the stock (or bought call options). As long as they don't buy more, they are not putting in new money, so they cannot run out of money.
... |
Nope, not per definition.
You have a company. It makes a profit. The lower the stock price goes, the - well - more interesting it is for investing.
Gamestop? That company is not failing due to the shorts - people are short because the company is failing. It is not a growing profitable business, technically it is ... |
Nope, not per definition.
You have a company. It makes a profit. The lower the stock price goes, the - well - more interesting it is for investing.
Gamestop? That company is not failing due to the shorts - people are short because the company is failing. It is not a growing profitable business, technically it is ... |
>Does the last point actually have credibility? Couldn't short traders wait for many more months before closing their positions, giving the company plenty of time to collapse?
They can, *if* they have enough money (and can demonstrate it to the broker).
Let's say you sell a stock short at $10, but later it rises ... |
I have a $500C Jan 29 GME option expiring tomorrow. I bought it when this contract was at $9.30. If the stock goes to say $400 or $450 tomorrow and the stock price is still under my strike price of $500 will I still be able to trade that option?
I think I should be able to trade that option for a higher price giv... |
Can you sell out-of-the-money option on last day of expiration? |
Not necessarily,
A stock is share in the company, and its value for the investor is based on its expected future profit. Gamestop has been in decline for years, a not uncommon retail trend in the face of online retail (think about how easy its been to bet against retail in a pandemic). Ideally a stocks value "prices i... |
Not necessarily,
A stock is share in the company, and its value for the investor is based on its expected future profit. Gamestop has been in decline for years, a not uncommon retail trend in the face of online retail (think about how easy its been to bet against retail in a pandemic). Ideally a stocks value "prices i... |
per [nacha][1] , USA banks are suppose to be processing [ACH][2] fast, but I have not seen any improvement in ACH with either brokerage or bank accounts since year y003. What is the reason or if any member has seen faster ACH ?
[1]: https://www.nacha.org/rules/same-day-ach-moving-payments-faster-phase-3
[2]: ... |
I worked for a bit over 4 months under a verbal agreement that I would be paid off the books for purposes of still collecting unemployment during the pandemic.
My employer recently let me know that I'll be receiving a 1099 for the compensation that was paid to me during those 4 months.
The money received was exchang... |
"Short positions currently make up an impossible 140% of GameStop’s float, which is the result of a flaw in how short interest is calculated, a flaw that’s getting greatly magnified in the case of GameStop, [according to Dusaniwsky](https://www.marketwatch.com/story/gamestop-and-amc-stocks-soar-on-another-day-of-wild-t... |
I worked for a bit over 4 months under a verbal agreement that I would be paid off the books for purposes of still collecting unemployment during the pandemic.
My employer recently let me know that I'll be receiving a 1099 for the compensation that was paid to me during those 4 months.
The money received was exchang... |
> Is there a way for a 1099 to show that I was working during unemployment benefits?
The only date on a 1099 is the calendar year. If the IRS audits the company, they might see the company paying you cash, ask about it, and "discover" that you were getting unemployment at the time.
Prepare to pay back all that u... |
I just saw on an ad that PayPal now do "something" with "cryptocurrency".
In spite of searching around everywhere on my PayPal account (unfortunately I have one) I just cannot fathom what connection they now have to cryptocurrency.
This is clearly a somewhat major consumerization event for cryptocurrency (which o... |
PayPal now offering some sort of crypto connection? |
Like many of us, I found myself making basically zero use of company-provided office space for the final eight months of 2020, and instead using various places in my home as an "office".
I'm a salaried employee, not a contractor.
Having never worked from home before, I'm unfamiliar with what, if any, tax implicat... |
What general guidelines should the newly-working-from-home be aware of with regard to home office deductions? |
"Short positions currently make up an impossible 140% of GameStop’s float, which is the result of a flaw in how short interest is calculated, a flaw that’s getting greatly magnified in the case of GameStop, [according to Dusaniwsky](https://www.marketwatch.com/story/gamestop-and-amc-stocks-soar-on-another-day-of-wild-t... |
I just saw on an ad that PayPal now do "something" with "cryptocurrency".
In spite of searching around everywhere on my PayPal account, I just cannot fathom what connection they now have to cryptocurrency.
This is clearly a somewhat major consumerization event for cryptocurrency (which one?) but what actually is ... |
Here is what I see when I connect to my US account on the main page https://www.paypal.com/myaccount/summary:
[![enter image description here][1]][1]
https://www.businessinsider.com/paypal-officially-launches-crypto-service-in-us-2020-11 says that the feature is first made available for US customers only.
---... |
Here is what I see when I connect to my US account on the main page https://www.paypal.com/myaccount/summary:
[![enter image description here][1]][1]
https://www.businessinsider.com/paypal-officially-launches-crypto-service-in-us-2020-11 ([mirror](https://web.archive.org/web/20210129044629/https://www.businessin... |
I've been reading about the GameStop situation, so naturally I googled the stock, and saw this:
[![GameStop blip at 2pm][1]][1]
The stock appears to have more than doubled at around 2pm, then went back to exactly where it was before after a few minutes (see the picture). What happened here?
I get that it is in... |
What caused this huge blip in GameStop stock at 2pm? |
I am using Turbo Tax to file my taxes for 2020. In Turbo Tax it asked if I received stimulus payments and how many. I received one payment in May 2020 and one payment in January 2021. I entered both payments in Turbo Tax and suddenly my tax owed jump $3000.
Any ideas why is that? |
I started using GnuCash and have learned the basics of double entry booking for managing rental income. I have managed to create a working Chart of Accounts that works well and accurately (includes concepts like depreciation and withholding tax etc)
The only thing I haven't been able to do is: the tax authority wher... |
How to enter a tax credit/deduction/exempton in double entry system? |
How to enter a tax credit/deduction/exemption in double entry system? |
I started using GnuCash and have learned the basics of double entry bookkeeping for managing rental income. I have managed to create a working Chart of Accounts that works well and accurately (includes concepts like depreciation and withholding tax etc)
The only thing I haven't been able to do is: the tax authority ... |
> how does this benefit the members of the /r/wallstreetbets/ ?
To simplify:
1. Institutional investors short stock A
2. Massive purchase from WSB of stock A
3. WSB members (on average) profit during the subsequent [short squeeze](https://en.wikipedia.org/wiki/Short_squeeze).
|
I use IPMT formula in google spreadsheets to compute interest payment after 1st month like this:
**IPMT**(annualRate/12, 1, loanYears*12, loanReceived) - this return for my specific case, 40568 loan for 3.52%, 22 years - **119**
Now I try to cumulate the interest (for 1 month) with following formula:
**CUMIPMT**... |
I know the brokers are now introducing interventions to stop this situation from happening but theoretically this could happen.
If borrowed shares can be reshorted which in this case is by many institutions, how are they going to cover the positions if let's say GME goes to $1,000? They would be facing a weird situa... |
How does GameStop short sellers going to close their positions when there is an insufficient float? |
I know the brokers are now introducing interventions to stop this situation from happening but theoretically, this could happen.
If [borrowed shares can be re-shorted][1] which in this case is by many institutions, how are they going to cover the positions if let's say GME goes to $1,000? They would be facing a weir... |
How do GameStop short sellers going to close their positions when there is an insufficient float? |
I am aware that [brokers are now introducing interventions][1] to stop this situation from happening but theoretically, this could happen.
If [borrowed shares can be re-shorted][2] which in this case is by many institutions, how are they going to cover the positions if let's say GME goes to $1,000? They would be fac... |
How are GameStop short sellers going to close their positions when there is an insufficient float? |
I am currently 24 and looking to start purchasing share for the long term investment of retirement saving.
I am a little bit nervous about the entire process and I would hope somebody could explain a few concepts me that google doesn't seem to explain at the moment.
My first confusion is simply being scared. When I... |
How can I verify ownership of shares bought using an application? |
Redditors successfully [attack hedge funds][1] because they know that GME is being held short by them. But how do they know this? Where do they get this information?
According to [older posts][2], you can check the number of short interest on [NASDAQ's site][3]. However, GME is not listed on NASDAQ, so we can't chec... |
In general I understand the mechanism of Gamestop event(short squeeze), but I am a bit confused as to why it happened only when reddit investors got involved.
I would presume that anybody with enough money(and there is plenty of rich people on Wall Street) could have done the same.
Or there was something unique a... |
Could have some of the other funds did what reddit did with Gamestop? |
If a UK citizen (only citizen in the UK, having no residency in the US or any other connection with the US) opens a Vanguard Stocks and Shares ISA and buys US stocks (e.g. in the form of VUSA), does that person have to pay tax in the US? |
Short squeezes and gamma squeezes (the option counterpart) are not unprecedented. They are however quite risky.
An example of this happening before is the [Volkswagen Short Squeeze.][1]
[JP Morgan squeezed the aluminium market back around 2015.][2]
[Here's Goldman squeezing aluminium back in 2011.][3]
To so... |
> what the ramifications are for those whose money Wall Street was managing?
Nothing drastic will happen to people who are reasonable: people who are not going to retire for another 10 years and decided to invest their retirement money into "dynamic" (read: risky) financial instruments have lost some of their money.... |
The recent/current GameStop situation with r/WSB vs Wall Street reminds me in some ways of the Low Orbit Ion Cannon, a tool in the 2000s that 4chan/Anonymous used to DDoS sites using the home connections of many willing users.
While it seems that the consensus is that the current situation is not market manipulation... |
Is a Low Orbit Gamma Cannon illegal? |
This is one of those things that comes around sometimes in the market and is the number 1 risk of shorting stocks - a short squeeze.
To recap really quick as others have already stated, shorting a stock is where you borrow it from someone else, sell it in the market and then hope to buy it back at a lower price lat... |
This is the story WSB is telling:
There are two PS4s. Alice has one, Eve has one.
Herbert knows that with the PS5 release, the price of a PS4 is going to fall from $300 to $100.
So, Herbert borrowed Alice's gadget and sold it to Bob for $300. He planned to buy it back off Bob when the price fell and give it back t... |
As I have written before, `I have never understood how the short interest could exceed 100% because I always thought that a share could only be loaned out once. The only reason that I could come up with is that they can be loaned multiple times and that seems illogical.`So assuming that the latter is true, let me expan... |
As I have written before, `I have never understood how the short interest could exceed 100% because I always thought that a share could only be loaned out once. The only reason that I could come up with is that they can be loaned multiple times and that seems illogical.`So assuming that the latter is true, let me expan... |
Trading stocks on Robinhood is free. That's nice.
But Robinhood also provides various funds and ETFs. They usually have an expense ratio which can range from 0.04% for a Vanguard ETF to 1% range for actively managed ETFs.
- Does Robinhood charge for these expenses?
- How?
- Are the shown somewhere in the app... |
When you're looking at the expense ratio of a fund, that "expense" is not from the _broker_ but from the _fund_ itself. Meaning if the value of the constituents of the fund rises 10% in one year but the fund has a 1% expense ratio, your _net_ return for that fund is around 9%. The realization of those fees is not as tr... |
Trading stocks on Robinhood is free. That's nice.
But Robinhood also provides various funds and ETFs. They usually have an expense ratio which can range from 0.04% for a Vanguard ETF to 1% range for actively managed ETFs.
- Does Robinhood charge for these expenses?
- How?
- Are the shown somewhere in the app... |
It's not likely that normal people's 401k, college funds and other assorted savings are invested in hedge funds. Hedge funds typically attract large institutional investors like pension plans, university endowments, and family foundations. You may also get some individual investors, but by law, only "qualified investor... |
Let's suppose a hedge fund that's short on a bunch of shares goes bankrupt. As I understand it, shorted shares are borrowed (because naked shorts are illegal), so I'm guessing the lender will loose money just like a bank that made a bad loan.
* Are brokerages typical lenders of short shares, and are they typically ... |
Who is liable when a short seller goes bankrupt? |
### The biggest piece of information to understand is this: the number of shares short-sold actually exceeds the number of stocks in existence! ###
Gamestop wasn't chosen at random by the WSB folks - it had the record of the most shorted stock, at about 140% (a crazy high number).
All those short-sold stocks? Th... |
Suppose a hedge fund that's short on a bunch of shares goes bankrupt. As I understand it, shorted shares are borrowed (because naked shorts are illegal) so I'm guessing the lender will lose money just like a bank that made a bad loan.
* Are brokerages typical lenders of short shares and are they typically liable?
... |
The way that the current short-squeeze of GameStop stock works has been well covered elsewhere and the position of the two investment sides has also been quite clearly documented, but what impact is it likely to have on GameStop as a company in the medium-term and what can they actually do about it?
The board of dir... |
What are the implications for GameStop as a company in the aftermath of the current share price surge? |
I attempted to put in a small short sell order for GME (since I believe the price is currently way overvalued at >$300), but it said the order could not be performed because there are no available shares to borrow. How can this be? Is it because of the current (volatile) situation with GME? Have brokerages placed tempo... |
Why can’t I short Game Stop right now? |
I can't know why *your brokerage*, specifically, disabled shorting, but the reason seems very obvious to me, like common sense.
Nobody knows how high the stock will go, especially not you. A month ago it was about $20, and it certainly wasn't ever going to be $50. But now it's $300. A 15x increase. Are you prepared ... |
Questions and answers involving "bad data":
- https://money.stackexchange.com/questions/135546/what-caused-this-huge-blip-in-gamestop-stock-at-2pm
- https://money.stackexchange.com/questions/130213/what-is-a-large-sudden-jump-or-dip-and-instantaneous-recovery-in-a-stock-price/130214#130214
- https://money.stackexc... |
Why is "bad data" such a common occurrence? |
I am aware that [brokers are now introducing interventions][1] to stop this situation from happening but theoretically, this could happen.
If [borrowed shares can be re-shorted][2] which in this case is by many institutions, how are they going to cover the positions if let's say GME goes to $1,000? They would be fac... |
Can this happen? If I own 100 shares in a company, held at a brokerage firm, and someone borrows them to sell, and if I am in fact the buyer, my account would show I own 200 shares. Since 100 of those were actual shares I loaned out and bought back, can those be lent out again, and if I am the buyer, my account would ... |
Does short selling increase the number of shares of a stock? |
> Surely the exchange knows exactly what price the stock was traded at, and the system is automated from then on, right? How do mistakes get into the data so frequently?
One would think that since all of this is computerized (online broker order to exchange for execution to data provider) then there would be reliabl... |
If a naked call expires Friday does the issuer of that call have to pay the 4:00 Friday price for the 100 shares or can they wait for a better price after hours, or the next day before settling? |
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