instruction stringlengths 15 21.6k |
|---|
If I buy 1 share of a company's stock, do I get to attend and vote at the next shareholder meeting? |
The whole Gamestop debacle has proved how profitable short squeezes can be. It essentially allows you to blackmail large hedge funds who shorted too hard.
So I was wondering, why aren't there already automated systems in place by other funds that monitor the short interest of different stocks and look for opportunitie... |
Why aren't there automated systems already in place to recognize potential short squeezes and capitalise on them? |
I read in lots of places that you pay an overnight financing/margin fee for CFDs, making them not suitable for long term holding - as the overnight fees add up. What I don't understand is, what is the overnight fee on - since the underlying assets are neither bought nor sold?
The CFD is just a wager on the differenc... |
Why is there a financing fee for holding a CFD overnight? |
I deposited $6k in 2019, and $6k in 2020, but converted $4k to Roth in 2019, and $8k to Roth in 2020. Will this differ any benefit? Will I be taxed differently? |
I'm having trouble finding an answer to this and given all the turmoil in the markets recently, I'm having a hard time understanding what constitutes manipulation.
Question: Is it illegal to purchase a billboard and advertise a specific stock ticker?
Example: Someone from r/wallstreetbets claims to have purchased... |
I am trying to understand Sharpe Ratio and I have tried to calculate it and compare it with Sharpe Ratio value from Yahoo Finance.
I took daily closing prices for SPY from February 1st, 2018 till January 29, 2021 (inclusive).
Date
2018-02-01 281.579987
2018-02-02 275.450012
2018-02-05 ... |
How does Sharpe Ratio work and what are the disadvantages of using it? |
All the Sharpe Ratio measures is how much excess return (meaning return above a "risk-free" investment like US Treasury Bonds) you get for each "unit" of risk. In this case a unit is 1 standard deviation. So portfolios with a higher sharpe ratio use risk more effectively.
>Why I am getting a different value other th... |
> What I don't understand is, what is the overnight fee on - since the underlying assets are neither bought nor sold?
The affect of a CFD is supposed to be the same as if the underlying assets were bought and sold except that you get some leverage. So reasoning on the basis that the underlying assets aren't bought o... |
I am a bit confused as to why DTCC is needed in the market. For instance, if I want to buy (as a retail investor) a stock listed under NYSE, does my broker ever have to deal directly with the NYSE or is everything performed by DTCC? How is it that the NYSE is not the entity that transfers entitlement from a seller to a... |
Could anyone clarify the role of the clearing corporation (DTCC) vs. the role of Stock Exchanges? |
I'm currently self-employed and I have insurance through Massachusetts Health Connector, which is what the Affordable Care Act is called in Massachusetts. I have a good income level so I don't qualify for any financial assistance.
I have been offered a job that includes health insurance. If I take this job, am I n... |
Every resource I've read about how a publicly-traded stock's spot price is determined says that supply and demand is a major *component* but not the whole pie. I've read about naked shorts (which are now illegal among stocks but apparently still exist in practice in other dubious manifestations) and how counterfeit sha... |
In reality, is the spot price of a publicly-traded stock determined by a central algorithm as a best guess? |
Potential answer: https://money.stackexchange.com/questions/5594/is-leveraging-notoriety-to-raise-stock-prices-illegal-in-the-us?rq=1
I'm having trouble finding an answer to this and given all the turmoil in the markets recently, I'm having a hard time understanding what constitutes manipulation.
Question: Is it ... |
> What I don't understand is, what is the overnight fee on - since the underlying assets are neither bought nor sold?
The affect of a CFD is supposed to be the same as if the underlying assets were bought and sold except that you get some leverage. So reasoning on the basis that the underlying assets aren't bought o... |
You can ask your potential new employer several questions related to their employment benefits:
- Do they offer health care, and can they give you information about the plan? You are interested in costs, deductibles, co-pays and the like. Some companies have great plans, others not so great plans; some companies pi... |
From my understanding in a short ladder attack investors bid lower and lower prices to drive down the stock value. I assume in many cases this will scare retail investors into selling further compounding the downward price.
Specifically, in the case of GME last week the price went from ~468 to ~120 in nearly a hour.... |
> What I don't understand is, what is the overnight fee on - since the underlying assets are neither bought nor sold?
The affect of a CFD is supposed to be the same as if the underlying assets were bought and sold except that you get some leverage. So reasoning on the basis that the underlying assets aren't bought o... |
How come shares of GME or AMC are not available to borrow for short selling during a short squeeze? |
Why would the put option price go down when the stock goes down? 3/19 $20 strike down 30% when gme stock down $50. Can someone explain why the put isn’t gaining value? |
GME put option price going down as stock price declines...WHY? |
>is that number identical across all other brokers in real time?
It should be very close, or only deviate for a very short time. otherwise there's be an arbitrage opportunity (buy a stock from one broker and sell it through another) that would bring the prices in line. High-frequency traders actually exist to take ... |
I'm currently self-employed and I have insurance through Massachusetts Health Connector, which is what the Affordable Care Act is called in Massachusetts. I have a good income level so I don't qualify for any financial assistance.
I have been offered a job that includes health insurance. If I take this job, do I l... |
The fundamental problem with your question is how to determine what a precious metal, or indeed any other good, is worth. The only way to do that is to find out what a willing buyer will pay a willing seller. By that definition, silver is not over-valued.
Now it's possible that if the WSB people buy up a lot of si... |
> What I don't understand is, what is the overnight fee on - since the underlying assets are neither bought nor sold?
The affect of a CFD is supposed to be the same as if the underlying assets were bought and sold except that you get some leverage. So reasoning on the basis that the underlying assets aren't bought o... |
I am trying to understand Sharpe Ratio and I have tried to calculate it and compare it with Sharpe Ratio value from Yahoo Finance.
I took daily closing prices for SPY from February 1st, 2018 till January 29, 2021 (inclusive).
Date
2018-02-01 281.579987
2018-02-02 275.450012
2018-02-05 ... |
All the Sharpe Ratio measures is how much excess return (meaning return above a "risk-free" investment like US Treasury Bonds) you get for each "unit" of risk. In this case a unit is 1 standard deviation. So portfolios with a higher sharpe ratio use risk more effectively.
>Why I am getting a different value other th... |
1. I bought a stock for lets say $100.
2. I sold it for $200.
3. I then immediately bought it again for $200 (in a different broker).
All of this happened in the same tax year. The reason why I sold the stock in the first place was to change broker.
Am I liable to pay capital gains tax for this tax year on t... |
I bought a stock which I then sold for a profit and then bought it again same price. Am I liable for capital gains tax? |
You can ask your potential new employer several questions related to their employment benefits:
- Do they offer health care, and can they give you information about the plan? You are interested in costs, deductibles, co-pays and the like. Some companies have great plans, others not so great plans; some companies pi... |
I think in US stock market, it is common to be able to borrow 100% and buy the stock, and the margin requirement is 30%.
So if the stock is $100 and I borrow $100 from the brokerage to buy another share, what is the exact price that the stock drops to, when it exact triggers a margin call at that price?
I am gues... |
Is there an exact percentage drop for a stock for it to trigger a margin call? |
My understanding is that IBR payment is a percentage of your household income if married. In that case can the payment actually be more than your individual income if your spouse earns more? (Especially if you are unemployed and have $0 income).
I read somewhere that marrying someone does not make you responsible ... |
Can Income Based Repayment payment exceed your income when married? |
I think in US stock market, it is common to be able to borrow 100% and buy the stock, and the margin requirement is 30%.
So if my account doesn't have any stock yet, and the stock is $100 and I put in $100 cash and borrow $100 from the brokerage to buy a total of two shares, what is the exact price that the stock dr... |
I think in US stock market, it is common to be able to borrow 100% and buy the stock, and the margin requirement is 30%.
So if my account doesn't have any stock yet, and the stock is $100 and I put in $100 cash and borrow $100 from the brokerage to buy a total of two shares, what is the exact price that the stock dr... |
I'm trying to wrap my head around the recent events of [NYSE:GME](https://finance.yahoo.com/quote/GME/key-statistics?p=GME), that [quote](https://www.fool.com/investing/2021/01/27/short-squeezes-everything-you-need-to-know-about-t/) the *short interest* to be `140.3%`. I have not been able to find any satisfactory expl... |
I think in US stock market, it is common to be able to borrow 100% and buy the stock, and the margin requirement is 30%.
So if my account doesn't have any stock yet, and the stock is $100 and I put in $100 cash and borrow $100 from the brokerage to buy a total of two shares, what is the exact price that the stock dr... |
Let's imagine I have a house which makes me profit because I have tenants. Would you buy a part of the house (less than 50%), if I keep all the profit myself and you know I would never sell it? Is't it would be a same that buying a share in a company with no dividend paid? |
Would you buy a share of my house? |
Does this analogy accurately explain stock ownership? |
There's an article which claims that short sellers + brokers + DTCC sometimes manufactures counterfeit shares through legal and less-than-legal means to attack vulnerable companies and profit from their demise. Some redditors have claimed that GME may have more shares outstanding than it should, and thus that there ex... |
GME counterfeit shares? |
I think this question makes false assumptions that are prevalent at the moment in the WSB rhetoric and echoed in the media. The claim that short squeeze "allows you to blackmail large hedge funds who shorted too hard", is not only sloppy/inaccurate (it can help you win a trade, not "blackmail" anyone?), but the over-t... |
I think this question makes false assumptions that are prevalent at the moment in the WSB rhetoric and echoed in the media. The claim that short squeeze "allows you to blackmail large hedge funds who shorted too hard", is not only sloppy/inaccurate (it can help you win a trade, not "blackmail" anyone?), but the over-t... |
There's an article which claims that short sellers + brokers + DTCC sometimes manufactures counterfeit shares through legal and less-than-legal means to attack vulnerable companies and profit from their demise. Some redditors have claimed that GME may have more shares outstanding than it should, and thus that there ex... |
I think this question makes false assumptions that are prevalent at the moment in the WSB rhetoric and echoed in the media. The claim that short squeeze "allows you to blackmail large hedge funds who shorted too hard", is not only sloppy/inaccurate (it can help you win a trade, not "blackmail" anyone?), but the over-t... |
1. I own 100 shares of XYZ.
2. I sold a call option on XYZ at a strike of $100.
3. I bought a call option on XYZ at a strike of $110.
4. The price of XYZ expired at $120.
Will my 100 XYZ shares be sold and a another set of 100 XYZ shares be assign to me?
This matters for tax purpose I believe. |
Would my shares be sold if the price expired at above my call spread? |
After a Ryanair flight cancellation and several e-mails, they've sent a cheque.
Well, I have no physical bank account in UK and have no idea how to claim money from a cheque. Plus, I suspect I will have to pay a fee to do it if I go in a bank.
Basically Ryanair is trying to rape me, metaphorically.
[Assuming I... |
Can I convert a cheque to money in any bank? Is there a fee? |
Last week, I bought 4 shares of emicro gold futures (https://www.cmegroup.com/trading/metals/precious/e-micro-gold_contract_specifications.html) worth about 70k. I got a margin call for owning those gold despite having 400k worth of equities and having no other margin debt in my account.
Why did I get this margin c... |
Can I use equities as margin for collateral in a equites for commodities futures? |
[Social Security][1] benefits increase with [Inflation][2].
So I am wondering what does prevent law makers in making [FDIC][3] and [SIPC][4] limit increase with inflation?
[1]: https://en.wikipedia.org/wiki/Social_Security_(United_States)#Reducing_cost_of_living_adjustment_(COLA)
[2]: https://en.wikipedia.... |
Why SIPC and FDIC limit does not increase? |
There's an article which claims that short sellers + brokers + DTCC sometimes manufactures counterfeit shares through legal and less-than-legal means to attack vulnerable companies and profit from their demise. Some redditors have [claimed][1] that GME may have more shares outstanding than it should, and thus that the... |
Can I use stocks as margin for commodities futures? |
According to various sources, such as [this article][1], Biden has plans to increase the Child Tax Credit to $3000. As I'm aware, this is part of Biden's stimulus plan, which is still being negotiated. Since it hasn't passed yet, is it best to hold off on filing taxes, as that could result in a filer owing less taxes o... |
Should filers hold off on filing taxes for Biden's $3000 tax credit? |
"Why" questions like this are hard or impossible to answer, but I would argue that there is much more practicality in adjusting Social Security benefits and other items like IRA maximums, since _those limits are continually relevant_. When is the last time you heard about a bank or brokerage failure that triggered an F... |
According to https://www.cnn.com/2021/02/01/investing/gamestop-robinhood-stocks-explained/index.html the people who made GameStop shares surge in value may be moving onto silver. So let's say the value of silver surged 1600% for a few hours. What would be the best way to sell, say, 1,000oz of silver in the form of coin... |
The company is so tiny, it's hard to say it is worth anything yet. What if either of the partners quits the company, e.g. if it stops growing and they lose interest?
That said, you could look at valuations on BizBuySell.com and on this Inc.com [chart][1]. This chart is very detailed; even if it is ten years old, you... |
In line with https://money.stackexchange.com/a/7985, why don't corporations with skyrocketing share prices issue shares immediately? Famous examples this past week are AMC, BBBY, GME. They were all at risk of bankruptcy but their share prices skyrocketed.
Do they just need time to hire corporate lawyers and investme... |
Why don't GameStop, AMC issue shares? |
I am reading about the differences between Roth and traditional 401k. The big deciding factor seems to be relative tax % between now and retirement. An example from this article:
> Imagine Sally and Sam max out their 401(k)s one year by each contributing $19,500. While Sally places her $19,500 contribution into a Roth... |
What might contribute to income during retirement? |
> Do they just need time to hire corporate lawyers and investment bankers? Do the corporate lawyers and investment bankers just need time to prepare the documents and find buyers?
Yes to both.
Just as importantly, the existing owners of the company need to vote to dilute their ownership.
Also, when the price i... |
how to sell my silver coins for spot price? |
According to https://www.cnn.com/2021/02/01/investing/gamestop-robinhood-stocks-explained/index.html the people who made GameStop shares surge in value may be moving onto silver. So let's say the value of silver surged 1600% for a few hours. What would be the best way to sell, say, 1,000oz of silver in the form of coin... |
I am reading about the differences between Roth and traditional 401k. The big deciding factor seems to be relative tax % between now and retirement. An example from this article:
> Imagine Sally and Sam max out their 401(k)s one year by each contributing $19,500. While Sally places her $19,500 contribution into a Ro... |
Can you perform consulting services that would be useful to the company? You could gain ownership by consulting in exchange for stock options, much like an employee is compensated in stock options.
Allowing you to invest would seem to be legally onerous for the company, whether you are considered [non-accredited][1]... |
The other answers explain why you can trust an SIPC-backed broker. As for being scared, what about simply printing out your brokerage statement every month? If having all the information only online is scary to you, then maybe those printouts will give you peace of mind.
Better yet, don't check the 'paperless' chec... |
> What am I missing here?
The example is for **one year**: two people each accumulating $19500 for 30 years is $1,170,000. If it earned 3.73% (the rate at which money triples in 30 years) the whole time, they'd have just under $2.1 million.
4% of *that* is $83,650/year, which puts you in the 24% bracket.
Whil... |
Can an issuing company of an ETF decide to offer more units to the market to raise cash? If not, then how does it expand? |
Do ETFs suffer dilution like shares? |
I wanted to add the method I use and the equation here as formatted by MathJax, but looks like unlike Stack Exchange Physics , MathJax cannot be used, so here is plain text equation version:
I am just using a stock that is $1, and we borrow $1 from the brokerage to buy another share for $1. `x` is the amount of pri... |
Imagine there are two companies. Company A invests £1m in Company B. Company B stock price goes up. Company B now has £1m and decides to Invest in company A.
Company A stock price goes up and with the newly invested £1m invests again in company B etc etc
What are the rules to stop this false increase in company... |
What is a company allowed to do with investors funds? |
Your logic doesn't match exactly, because the stock price going up isn't going to happen (because, why should it?)
But let's simplify it a bit:
Imagine there are two companies. For the sake of simplicity, Company A has £1m, Company B has nothing (or nearly nothing, or maybe just £1).
Company A invests these £1... |
I am using TD Ameritrade platform. Supposed I write a put option (cash backed), and the option expires in the money. Buyer of the option decided the exercise right to buy...
I am okay with getting assigned. As I wanted to get the stock at lower price anyway. In case the put option is OTM, then, I get to keep the pre... |
I'm trying to make sense of this option:
```
Type: put
Expiry: 2021-02-05 (= this week's Friday)
Bid: 580.4
Ask: 584.9
Contract size: 100
Strike: 800
```
The underlying trades at $225 (yeah). If I understand correctly I could buy the put at $584.9 and immediately exercise at $800 (for an instant profit o... |
I'm trying to make sense of this option:
```
Type: put
Expiry: 2021-02-05 (= this week's Friday)
Bid: 580.4
Ask: 584.9
Contract size: 100
Strike: 800
```
The underlying's last price is $225.
Buying this put for $584.9 will give me the right to sell 100 shares of underlying at $800/share.
If I bought ... |
"Is there a reason this wouldn't work?"
Yes; there is nothing magical about 100%.
Let's imagine a company with a float of 100 shares.
Investor1 through Investor6 each lends 10 stocks to shortSeller1 through shortSeller6, who sells that stock on. The short to float ratio is now 60%.
You come along and buy 50 ... |
"Is there a reason this wouldn't work?"
Yes; there is nothing magical about 100%.
Let's imagine a company with a float of 100 shares.
Investor1 through Investor6 each lends 10 stocks to shortSeller1 through shortSeller6, who sells that stock on. The short to float ratio is now 60%.
You come along and buy 50 ... |
The whole Gamestop debacle has proved how profitable short squeezes can be. It essentially allows you to pressure large hedge funds who shorted too hard.
So I was wondering, why aren't there already automated systems in place by other funds that monitor the short interest of different stocks and look for opportunities... |
I am using TD Ameritrade platform. Suppose I write a cash secured short put and the option expires in-the-money. The owner of the option then decides to exercise his right to sell.
I am okay with getting assigned since I wanted to get the stock at lower price anyway. In case the put option is OTM, I then get to keep... |
A long put gives you the right to sell the stock at the strike price.
The 2/05 '21 $800 put costs $584.90. You have the ability to sell the stock for $800 and based on today's price of $225, the counterparty agrees to overpay you $575. That is called the intrinsic value of the option. Since your put costs $584.... |
My friend's income in the period apr 1, 2020 - mar 31, 2021 will be around rs. 875,000 (eight lakh seventy five thousand) only. He is a self employed business professional in information technology segment.
My friend is a resident of India.
1. When should my friend file income tax returns? before mar 31, 2021
... |
When should my friend file income tax? |
I think in US stock market, it is common to be able to borrow 100% and buy the stock, and the margin requirement is 30%. (some firms call it "Margin Maintenance Requirement" or "MMR").
So if my account doesn't have any stock yet, and the stock is $100 and I put in $100 cash and borrow $100 from the brokerage to buy ... |
Recently while shopping on-line, a store sent me an E-mail to say in short, "The transaction failed to verify, please send us a copy of your ID and a photo of the credit card you used for the payment." They suggest driver's license or passport.
While in-person, I know businesses will sometimes check ID and credit ... |
After a Ryanair flight cancellation and several e-mails, they've sent a cheque.
Well, I have no physical bank account in UK and have no idea how to claim money from a cheque. Plus, I suspect I will have to pay a fee to do it if I go in a bank.
[Assuming I don't find a way to force Ryanair to pay me with a transfe... |
After a Ryanair flight cancellation and several e-mails, they've sent a cheque.
Well, I have no physical bank account in UK and have no idea how to claim money from a cheque. Plus, I suspect I will have to pay a fee to do it if I go in a bank.
[Assuming I don't find a way to force Ryanair to pay me with a transfe... |
So, I'm enrolled in a local community college as a dual-credit student (basically that mean I can complete high school courses in college to get a college degree and high school diploma simultaneously), and as such, I'm a minor.
A few weeks ago I received an email from the college saying that they needed someone to... |
Is it legal for me to "sell" my notes from college? |
I am interested in buying a small business for $150K. In order to finance the acquisition, I plan to use funds from my personal brokerage account (TD Ameritrade). I will sell $150K in stocks from the brokerage account then use the cash proceeds to purchase the assets of the target business. This will result in my havin... |
Can I exchange the shares of an index ETF for the assets of a small business? |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.