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Wow. After reading your question, I just watched 2 episodes of Shark Tank to be sure, and you're absolutely correct. **The Sharks got the valuation wrong every time a number was spoken.** The company owner makes a request, such as:
> I'm seeking $300K in return for a 30% stake in my company.
Then the sharks will ... |
I heard somewhere on a market commentary forum that the current SEC regime is "activist." I paused and tried to figure out what that meant, but I couldn't -- at least to a meaningful degree. Clearly, the top ranks of the regulatory body will have some influence on the overall direction of enforcement/areas of focus. I ... |
What to deduct first from the discount? Is it the percentage or amount? |
The 2nd check is only since January 2021, you can still deposit the check. Do so ASAP.
The first check is older. You should try and deposit it.
The IRS sent the checks. You shouldn't claim on you didn't get them. Try to deposit them first.
So what happens if the check was lost? the IRS has a FAQ, this is p... |
I have a (probably very simple) question to which I haven't been able to wrap my head around.
Say I have a company, and I am told that it is worth 1 USD (100% of the company).
My friend, who has 1 USD, asks me if we can join forces. He puts in 1 USD, I put in my company (1 USD), and we now each own 50% of the com... |
If have 3,000,000 shares at an average price of 10.8¢ per share and want to purchase another 50,000 shares at 60¢ per share in same company, what will my average price per share change to? |
Please help. I am stuck. I am still pretty new to investing, so please be nice and a simple explanation is much appreciated. I want to calculate the capital gains (NO DIVIDEND) annual return of a stock. Which calculator should I use to do it: the CAGR or Compound Interest calculator? I am confused...for the latter, one... |
Welcome.
Why is such a calculation important to you? How accurate does it need to be?
While not accurate it may be close enough to divide total return by the time period. In this case 150%/5 = 30%. The actually return is a bit lower, but is close. I like this method as it is pretty simple to find the approx... |
I found on [investopedia][1] how inflation will affect companies profits & standard of living: ` high inflation can also impact corporate profits [...] reducing the standard of living of individuals, especially those on fixed incomes` they also explained how it will impact stock prices.
**But how will hiperinflati... |
How hiperinflation inpacts home prices? |
I'm not seeing a difference between "CAGR" and "compound interest calculator" in this example. They should give the same results - an initial investment P grows by X% per year - how much will it grow over T years? The answer should be
F = P * (1+X)^(T)
So reversing that to find the annual growth gives
... |
Inflation is good if you have debt. The amount of debt stays the same, but the money you owe is worth a lot less. Additionally, the value of material assets tends to increase with inflation, may it be expensive art or homes.
However, there are some caveats to this. First is interest rate. High inflation typically co... |
It says so in the article:
> **Reserve Bank of India (RBI)** has announced that it will purchase four government securities (G-Secs) that amount to **₹20,000 crores**.
So G-Secs is just an abbreviation for Government Securities.
What is this? This question is also answered by the article:
> What are governm... |
I found on [investopedia][1] how inflation will affect companies profits & standard of living: ` high inflation can also impact corporate profits [...] reducing the standard of living of individuals, especially those on fixed incomes` they also explained how it will impact stock prices.
**But how will hyperinflati... |
How hyperinflation inpacts home prices? |
Reference: https://smartasset.com/estate-planning/massachusetts-estate-tax
The MA estate tax has an exemption of 1 million, but once you are over, it looks like the estate tax is applied to the entire amount and not just the amount over the exemption. That creates a bizarre scenario: If your estate is $1M you pay no... |
I found on [investopedia][1] how inflation will affect companies profits and standard of living:
> high inflation can also impact corporate profits [...] reducing the standard of living of individuals, especially those on fixed incomes`
They also explained how it will impact stock prices.
**But how will hyper... |
How does hyperinflation impact home prices? |
Let's say an individual invests a sum of money on an index, say, through Vanguard (e.g. VFIAX or VTSAX):
1. How does the allocation of this investment get distributed across shares of the companies in the index?
E.g. is it, evenly across all shares of the index? or does this
depend on the index?
2. ... |
How are investments distributed across an index? |
Misplaced IRS EIP **3rd** payment. How does one have check re-issued?
Not seeing scenario here...
[IRS FAQ][1]
[1]: https://www.irs.gov/coronavirus/get-my-payment-frequently-asked-questions |
When buying certain small businesses goodwill is the largest intangible asset.
For an example company,
Purchase Price: 1,000,000
Tangible assets: 200,000
Goodwill: 800,000
If the company's value stays the same or grows can the acquirer amoritize goodwill on their taxes as a deduction?
Or can they only do th... |
What does this mean,"Reinvigorating Human Capital"? |
I cashed out a taxable mutual fund in January. It is a long held fund. I got an activity history of all the transactions so that I can figure out an estimated tax to send in to the IRS as currently, I'm pretty close to paying what I owe via work withholding. So, I'm definitely going to owe. So, I've added up all the a... |
Is this the right way to calculate capital gains when cashing out a mutual fund? |
could someone explain how come a company has an Enterprise value number higher than their Market cap, when enterprise value equals market cap + net debt? I might be stubid but I do not understand how... also the same company is not profitable, has negative net income (for the last quarter and even the last five years) ... |
Misplaced IRS EIP **3rd** payment check. How does one have check re-issued?
Not seeing scenario here...
[IRS FAQ][1]
[1]: https://www.irs.gov/coronavirus/get-my-payment-frequently-asked-questions |
I expect that in 2022, my income will exceed the [deduction limits](https://www.irs.gov/retirement-plans/ira-deduction-limits) for a traditional IRA, so any contributions I make to it will be non-deductible. My understanding is that once I make a non-deductible contribution to my traditional IRA, I could, in the future... |
During 2020, my permanent address from January 2020 to August 2020 was in New York City. From September 2020 to December 2020, my permanent address was in Pennsylvania. Here are some notes:
1. From January 2020 to August 2020 I was staying in hotels in New Jersey.
2. From August 2020 to December 2020 I was stayin... |
The other comments have explained the accounting valuations of investments in *large*, *steady* businesses, but I want to a perspective that's more specific to Shark Tank.
Let's say a shark accepts 30% of a business for $300k. The business is worth $1M after, so it was worth $700k before, right? Not so fast.
The ... |
Wow. After reading your question, I just watched 2 episodes of Shark Tank to be sure, and you're absolutely correct. **The Sharks got the valuation wrong every time a number was spoken.** The company owner makes a request, such as:
> I'm seeking $300K in return for a 30% stake in my company.
Then the sharks will ... |
I have a question for those familiar with the wash sale rule. I understand what it is, basically, if you sell shares of XYZ at a loss and buy it again within 30 days, you can't claim those losses on your taxes for the filing year. That part I understand.
My question: Let's say I buy 100 shares of XYZ at $2 ($200) an... |
I’m trying to calculate the present value of an investment scheme I was suggested with.
The scheme is, I have to invest say $100 in every quarter perpetually. Now I know how to calculate it (the present value of the investment) if the interest was also calculated quarterly.
But according to my adviser the interes... |
I made a decent amount in short term capital gains in 2020. As I was filing my taxes this year, Turbotax informed me that I needed to pay a penalty for underpayment of estimated tax. I don't totally understand this. Is the reason for this that I obtained capital gains during the year, but did not withhold/pay any money... |
Do capital gains taxes need to be paid throughout the year to avoid underpayment of estimated tax penalty? |
I am learning about the stock market. I found a special chart for a stock ZOM. Why it is so special? It is the result of AI traders?
[![enter image description here][1]][1]
[1]: https://i.stack.imgur.com/3FXQe.png |
Why is this stock's chart so special? |
I'm not seeing a difference between "CAGR" and "compound interest calculator" in this example. They should give the same results - an initial investment P grows by X% per year - how much will it grow over T years? The answer should be
F = P * (1+X)^(T)
So reversing that to find the annual growth gives
... |
**tl;dr**: You asked: *Can someone help me understand this?* No, because you understand it perfectly already! From a purely mathematical point of view on its own, the sharks are indeed ripping them off. (But it's probably still worth it!)
**Details:** Wow. After reading your question, I just watched 2 episodes of Sh... |
I don't see an answer that gives a clear explanation of the difference between "pre-money" and "post-money" valuations, which is critical to understanding this kind of scenario.
> Say I have a company, and I am told that it is worth 1 USD (100% of the company).
So far, so good.
> My friend, who has 1 USD, asks... |
Well, it's a penny stock, so it's always subject to "pump-and-dump" schemes, which is why many investors avoid these kinds of stocks. The company has no revenues, heavy losses, and just announced it's increasing the size of its float (issued shares) by about 7 times in order to raise more money.
It looks to me like... |
## "The simplest possible answer."
I have thought a LOT about the pedagogy here and I am now attempting to put in the simplest possible answer.
Say Mr. Wonderful does a transaction, he writes a cheque for $1m and he now owns 20% of the company.
## Is the million bucks *in the company*?
Friends! For now, le... |
my girlfriend is in Taiwan and like every month I will transfer 800 dollars to her via BOA. Is it illegal? Will it be considered money laundering? |
Is it illegal to transfer money to my girlfriend in Taiwan? |
My girlfriend is in Taiwan. Every month, I will transfer 800 dollars to her via BOA. Is it illegal? Will it be considered money laundering? |
Do I pay taxes on only the $6000 or on both the 1.2mill and the 6000?
[enter image description here][1]
[1]: https://i.stack.imgur.com/1RUXN.jpg |
Wash sell issue. I’m a bit confused new to trading. Question is do I pay taxes on that disallowed as profit? |
Do I pay taxes on only the $6000 or on both the 1.2mill and the 6000?
![enter image description here][1]
[1]: https://i.stack.imgur.com/1RUXN.jpg |
I think you are confusing a couple of things. How do you do the valuation of your company? If you sold 50% of your company for $1, then the buyer thought it was worth $2. You can sell part of your company for any amount that the buyer and seller agree on.
If you are doing a valuation of your company and it's only... |
Do I pay taxes on only the $6000 or on both the 1.2mill and the 6000? USA
![enter image description here][1]
[1]: https://i.stack.imgur.com/1RUXN.jpg |
Are you completely set on selling the underlying position? A third option would be to roll the call up and out to a longer expiration with a higher strike to collect more premium against the underlying. That way you could avoid the large capital gains on the stock altogether while collecting more premium. Kind of a sid... |
What would happen to my futures contracts such as S&P500 futures if the counterparty of my contracts gets liquidated due to a heavy use of leverage? Since futures contracts are made between two parties entirely, if one party gets liquidated, the contracts should be cancelled I guess. However, I have not heard of any in... |
Where would my futures contracts go if the counterparty gets liquidated? |
The actual counterparty to an exchange-traded futures contract is a central clearing firm. The central clearing firm acts as a intermediary between buyers and sellers in a futures market. This is so that traders do not have to worry about counterparty risk (i.e. you don't have to worry about the bankruptcy of the other... |
The actual counterparty to an exchange-traded futures contract is a clearing firm. The clearing firm acts as a intermediary between buyers and sellers in a futures market. This is so that traders do not have to worry about counterparty risk (i.e. you don't have to worry about the bankruptcy of the other party). Clearin... |
The actual counterparty to an exchange-traded futures contract is a clearing firm. The clearing firm acts as a intermediary between buyers and sellers in a futures market. This is so that traders do not have to worry about counterparty risk (i.e. you don't have to worry about the bankruptcy of the other party). Clearin... |
> I'm becoming more interested in buying gold / silver coins as a hedge against inflation and especially hyperinflation. I know very little about this, and there are thousands of sites on the internet about this. I'm sure many of them are a little less than honest.
Don't.
A good strategy against inflation / hyper... |
How some broker make revenue without collecting commission? |
On [this Wikipedia page about value at risk][1], at the end of the second paragraph, it says "This assumes mark-to-market pricing, and no trading in the portfolio."
What exactly does "trading in the portfolio" mean here? I tried to google it, but no seemingly relevant result was yielded.
[1]: https://en.wiki... |
What does "trading in portfolio" mean? |
How Do I Calculate Average Share Price? |
Money laundering is when you try to hide where your money came from. Are you doing that? No.
If the police try to see where your girlfriend's money came from, they can see she got it from your account by a wire transfer, and they can look at your account and see that you got it from your job. They might even intervi... |
I've started an LLC and have an EIN. I'm the sole employee, but have zero revenue as it has just been founded. I want to get a credit card to put a clear barrier between my personal spending and the company's.
I have a credit history of over 11 years and a credit score of over 800 according to Chase's "credit journe... |
Why can't I get a credit card with credit history and a good credit score? |
I'm from EU and home prices in my city went up by 10% each year before pandemic, when pandemic started everyone said that home prices will go down, but it didn't, quite opposite it keeps rising.
Stock market went down, people loosing their jobs, everyone is working from home (and most moved to smaller cities, becau... |
Will home prices ever stop rising or go down? |
**You didn't specify where your LLC is (U.S. or otherwise, but I'll assume U.S.)**
You could be hurting yourself by submitting so many credit card applications, which can be a red flag in many systems regardless of your personal credit score. I realize you say that *according to Chase* your score is over 800, but... |
Money laundering is when you try to hide where your money came from. Are you doing that? No.
If the police try to see where your girlfriend's money came from, they can see she got it from your account by a wire transfer, and if they have a good reason, they can ask the American police to look at your account and see... |
The guarantee of what would cause home prices to stop rising would be an inflation spike serious enough to push the Fed into raising interest rates, which would put a major crimp in mortgage and refinance lending.
If you look at the history of housing prices, they *always* rise and fall on a somewhat cyclical basis,... |
**You didn't specify where your LLC is (U.S. or otherwise, but I'll assume U.S.)**
You could be hurting yourself by submitting so many credit card applications, which can be a red flag in many systems regardless of your personal credit score. I realize you say that *according to Chase* your score is over 800, but... |
I am a bit confused by this specific scenario of buys, sells and how to calculate the cost basis for the lots I'm holding:
- Day1, buy 100 shares at $10
- Day2, buy 100 shares at $11
- Day3, buy 100 shares at $12
- Day4, buy 100 shares at $13
- Day5, sell 200 shares at $9
Assuming FIFO for determining... |
The premise of your question is already false. Home prices are not every increasing everywhere. There are regions that have crazy low housing prices, unfortunately there are not many good reasons to live there. People are moving away from those places, selling homes with few buyers available. These are the structurally... |
Money laundering is when you try to hide where your money came from. Are you doing that? No.
*If the police wanted* to see where your girlfriend's money came from (they probably don't), they can see she got it from your account by a wire transfer. And if they have a good reason, they can ask the American police to l... |
The premise of your question is already false. Home prices are not every increasing everywhere. There are regions that have crazy low housing prices, unfortunately there are not many good reasons to live there. People are moving away from those places, selling homes with few buyers available. These are the structurally... |
I've started an LLC (US-based) and have an EIN. I'm the sole employee, but have zero revenue as it has just been founded. I want to get a credit card to put a clear barrier between my personal spending and the company's.
I have a credit history of over 11 years and a credit score of over 800 according to Chase's "cr... |
We recently moved out of an apartment. Our lease term was completed with no dues on utilities etc. I was never late on paying rent etc.
The lease was ending on Feb-27th, but we returned keys on Feb-24th. Landlord has sent a bill that has a line item - early move out (3 days), for $177.
There is no such thing in t... |
I received the IRS EIP **3rd** payment via paper check, but lost it. How does one have check re-issued?
Not seeing scenario here on the [IRS FAQ site][1]
[1]: https://www.irs.gov/coronavirus/get-my-payment-frequently-asked-questions |
I'm from EU and home prices in my city went up by 10% each year before pandemic, when pandemic started everyone said that home prices will go down, but it didn't, quite opposite it keeps rising.
Stock market went down, people losing their jobs, everyone is working from home (and most moved to smaller cities, becaus... |
I've started an LLC (US-based) and have an EIN that I'm bootstrapping myself and self-funding. All my addresses and details are registered in the US. I'm the sole employee, but have zero revenue as it has just been founded. It's a software company that is conducted 100% online. I want to get a credit card to put a clea... |
You could be hurting yourself by submitting so many credit card applications, which can be a red flag in many systems regardless of your personal credit score. I realize you say that *according to Chase* your score is over 800, but what does TransUnion or Equifax say your score is? Do you belong to any of the sites t... |
Is there a limit to how many companies you can create or own? Such as google owns Facebook, YouTube, Twitter, Google Play Store, Google Games, Ect. but those are all branches of Google and not actual companies. What i want to know is can I buy an unlimited amount of companies, or will someone stop me from doing it? |
Owning Unlimited Companies? |
Currently, some banks in Greece propose their depositors (via financial consultants) to invest their money in foreign mutual funds.
Their main argument is that deposit interest rates are close to zero because banks are not interested in any more deposits, thus the interest of their clients would be to invest them v... |
Why a bank would propose a depositor to invest part of their money to mutual funds, instead of bank doing it itself? |
## "The simplest possible answer."
I have thought a LOT about the pedagogy here and I am now attempting to put in the simplest possible answer.
Say Mr. Wonderful does a transaction, he writes a cheque for $1m and he now owns 20% of the company.
## Is the million bucks *in the company*?
Friends! For now, le... |
Banks investing their depositors money is extremely, and systemically, risky. What if those investments lose money, even if just for a little while? The bank could collapse and the depositors could lose their money, or could trigger a bailout from a government.
This is why - historically in the US - there is a legal... |
I understand that stock prices change partly based on supply and demand.
In theory, could you convince a large group of people to buy a large portion of the stock so that the price would "artificially" rise up. Are there any legal restrictions on this, and would this also work in practice?
And if it did work in ... |
are there any legal restrictions on "artificially" changing the price of a stock? |
I made a decent amount in short-term capital gains in 2020. As I was filing my taxes this year, Turbotax informed me that I needed to pay a penalty for underpayment of estimated tax. I don't totally understand this.
Is the reason for this that I obtained capital gains during the year, but did not withhold/pay any mo... |
I understand that stock prices change partly based on supply and demand.
In theory, could you convince a large group of people to buy a large portion of the stock so that the price would "artificially" rise? Are there any legal restrictions on this? And would this also work in practice?
And if it did work in pra... |
Are there any legal restrictions on "artificially" changing the price of a stock? |
The premise of your question is already false. Home prices are not every increasing everywhere. There are regions that have crazy low housing prices, unfortunately there are not many good reasons to live there. People are moving away from those places, selling homes with few buyers available. These are the structurally... |
I am a beneficiary and executor of estates of two relatives that died in WV. I reside in another state, which also has state income taxes.
Do I claim the executor income in my state of residence? or do I file state income tax return in WV, claiming the income there? My state's tax rate is ~25% less than WV's. I have... |
which state income taxes apply on executor income (executor resident state or state in which probate occurs)? |
I have watched many movies where people who want to rob a load of money, Just wait until the federal reserve pulls money back to them and right in between them removing the serial numbers, and burning the bills, they go in and take it all. My question is, Are the movies accurate? Do they really put the bills in an inci... |
Can my sibling double his portion of our inherited property by buying us out and then selling? |
I am a bit confused by this specific scenario of buys, sells and how to calculate the cost basis for the lots I'm holding. This question is for USA tax purposes.
- Day1, buy 100 shares at $10
- Day2, buy 100 shares at $11
- Day3, buy 100 shares at $12
- Day4, buy 100 shares at $13
- Day5, sell 200 shares... |
I'm reviewing the 10-K filing of a company I'm thinking about investing in, and I came across some confusing information in my research. For FY20Q1/2/3 the EPS you can get from Fidelity, Yahoo, etc., refer to the EPS provided in their respective 10-Q. The *Condensed Consolidated Statements of Operations and Comprehensi... |
Do Banks Really Dispose of Old Currency The Way It's Shown In Movies? |
Do central banks really dispose of old currency the way it's shown in movies? |
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