I just got hired at a company that is private but would like to be bought out eventually, how would stock options work being that the company is a private company but could eventually be bought out by a company that is public?|||Companies issue stock and stock options even before they are public. This means that when the company is successful and has an IPO or gets bought out, the stocks and the options, which are nothing more than portions of the company given to you, will be worth more.
Ka ching.|||It doesn't matter whether the co is private or public. if you are given options you will have the option to buy the underlying shares some time in the future. When that time arrives you will have to decide whether the options are worth taking up. If the company is quoted by then it will be easy. If not you will have to find out if shares have changed hands privately and at what price or if the company will let you sell them or they may have buyers. One would hope that as options are used as an incentive they would turn out to be profitable.
Tuesday, September 27, 2011
What usually happens to a stock after a stock split?
i know that they split the shares, but what are the effects of that on the stock itself? I just looked at some charts of stocks and saw that some stocks were split at a point in time. Does that mean that a stock might go up or down? Or is there no correlation between that whatsoever?|||Stock split refers to a corporate action that increases the number of shares in a public company. The price of the shares are adjusted such that the before and after market capitalization of the company remains the same and dilution does not occur. Options and warrants are included.
Take, for example, a company with 100 shares of stock priced at $50 per share. The market capitalization is 100 脳 $50, or $5000. The company splits its stock 2-for-1. There are now 200 shares of stock and each shareholder holds twice as many shares. The price of each share is adjusted to $25. The market capitalization is 200 脳 $25 = $5000, the same as before the split.
Ratios of 2-for-1, 3-for-1, and 3-for-2 splits are the most common, but any ratio is possible. Splits of 4-for-3, 5-for-2, and 5-for-4 are used, though less frequently. Investors will sometimes receive cash payments in lieu of fractional shares.
It is often claimed that stock splits, in and of themselves, lead to higher stock prices; research, however, does not bear this out. What is true is that stock splits are usually initiated after a large run up in share price. Momentum investing would suggest that such a trend would continue regardless of the stock split. In any case, stock splits do increase the liquidity of a stock; there are more buyers and sellers for 10 shares at $10 than 1 share at $100.
Other effects could be psychological. If many investors believe that a stock split will result in an increased share price and purchase the stock the share price will tend to increase. Others contend that the management of a company, by initiating a stock split, is implicitly conveying its confidence in the future prospects of the company.|||Absolutely no guarantees, but a study done about a year back showed that split stocks averaged an 8% better gain than the overall market in the first year...and 12% better in the next three.
Most recent example doing way better than those numbers: RIMM.
...but it was a great company before the split, anyway.|||Usually seems to go up a bit, but that is DEFINITELY not guaranteed.
Take, for example, a company with 100 shares of stock priced at $50 per share. The market capitalization is 100 脳 $50, or $5000. The company splits its stock 2-for-1. There are now 200 shares of stock and each shareholder holds twice as many shares. The price of each share is adjusted to $25. The market capitalization is 200 脳 $25 = $5000, the same as before the split.
Ratios of 2-for-1, 3-for-1, and 3-for-2 splits are the most common, but any ratio is possible. Splits of 4-for-3, 5-for-2, and 5-for-4 are used, though less frequently. Investors will sometimes receive cash payments in lieu of fractional shares.
It is often claimed that stock splits, in and of themselves, lead to higher stock prices; research, however, does not bear this out. What is true is that stock splits are usually initiated after a large run up in share price. Momentum investing would suggest that such a trend would continue regardless of the stock split. In any case, stock splits do increase the liquidity of a stock; there are more buyers and sellers for 10 shares at $10 than 1 share at $100.
Other effects could be psychological. If many investors believe that a stock split will result in an increased share price and purchase the stock the share price will tend to increase. Others contend that the management of a company, by initiating a stock split, is implicitly conveying its confidence in the future prospects of the company.|||Absolutely no guarantees, but a study done about a year back showed that split stocks averaged an 8% better gain than the overall market in the first year...and 12% better in the next three.
Most recent example doing way better than those numbers: RIMM.
...but it was a great company before the split, anyway.|||Usually seems to go up a bit, but that is DEFINITELY not guaranteed.
How does the stock market really work? I have a few questions?
I want to know how the stock market really works in terms of:
1. Investors Buying %26amp; Selling shares; how does the trading volume, here, of individual buys %26amp; sells affect a company's stock price?
2. How can you tell how many people/investors are buying or selling a company's stock in order to go long or short and put the odds in your favour - is there any specific technical analysis indicator that can tell you this, or what else can?
3. How does news affect stock prices?|||1. Individual investors are really only a small percentage of the volume traded daily. Big money like financial institutions, and mutual funds represent most of the volume and therefore are the ones who have a chance to really affect the stock price.
2. Because volume is an indicator of the amount of shares traded, there will be equal buying and selling. I know you want to find out if the sentiment is leaning towards selling off or loading up, and I do not know another indicator than the stock's price. If the volume is more than 150% of the average volume traded, then there is probably a reason someone is buying or selling, so watch the stock's price to indicate whether they're loading up or selling off.
3. News usually has a very large impact on the stock's prices. The type of news is directly related to the movement in price. So if its bad news, the stock will likely fall, if its good news the stock will likely rise. The problem with making a decision on news alone is that the stock does not always move the way you expected because of news. If a company says they have had a great quarter with high earnings, the stock may not even rise if they expected to have an even better quarter with higher earnings.|||1.Stock markets work on the principle of Demand and supply.
Stock price goes up if demand is higher than supply and vice-versa.
Trading volumes plays important role in identifying trend of particular stock.
2. Technical Analyst can give you long or short call on the basis of technicals of particular stocks,
There are many technical indicators, chart patterns available in technical analysis. Each technical analyst follows some combination of technical indicators, these combinations may vary from one tech. analyst to another tech.analyst.
Try google to find info on technical analysis. You can learn.
All the best,
trendpower|||1. Trading volume is like a truth detector....higher the volume....the more the price movement can be believed. Lower the volume...price moves are not to be trusted.
2. How to put odds in your favor...monitor price movements and develop a system for buying and selling based on the price movement of the stock. Example of a simple system. Buy S%26amp;P 500 position when it trades above 200 moving average....sell when it drops below.
3. News and stock prices...most news is already reflected in price of stocks by the time you read it. Price movements will show up before the news hits...elephants (big money) leaves footprints and you can hear them coming a mile away if you take the time to listen.
Good luck.|||if it is good stock nothing to be worried.
there are many tricks which share market people trap.
it is purely gambling.
1) when you buy the shares the value of the share decreases .
2)when you sell the shares sell at market price, if cote the price stock starts falling.
1. Investors Buying %26amp; Selling shares; how does the trading volume, here, of individual buys %26amp; sells affect a company's stock price?
2. How can you tell how many people/investors are buying or selling a company's stock in order to go long or short and put the odds in your favour - is there any specific technical analysis indicator that can tell you this, or what else can?
3. How does news affect stock prices?|||1. Individual investors are really only a small percentage of the volume traded daily. Big money like financial institutions, and mutual funds represent most of the volume and therefore are the ones who have a chance to really affect the stock price.
2. Because volume is an indicator of the amount of shares traded, there will be equal buying and selling. I know you want to find out if the sentiment is leaning towards selling off or loading up, and I do not know another indicator than the stock's price. If the volume is more than 150% of the average volume traded, then there is probably a reason someone is buying or selling, so watch the stock's price to indicate whether they're loading up or selling off.
3. News usually has a very large impact on the stock's prices. The type of news is directly related to the movement in price. So if its bad news, the stock will likely fall, if its good news the stock will likely rise. The problem with making a decision on news alone is that the stock does not always move the way you expected because of news. If a company says they have had a great quarter with high earnings, the stock may not even rise if they expected to have an even better quarter with higher earnings.|||1.Stock markets work on the principle of Demand and supply.
Stock price goes up if demand is higher than supply and vice-versa.
Trading volumes plays important role in identifying trend of particular stock.
2. Technical Analyst can give you long or short call on the basis of technicals of particular stocks,
There are many technical indicators, chart patterns available in technical analysis. Each technical analyst follows some combination of technical indicators, these combinations may vary from one tech. analyst to another tech.analyst.
Try google to find info on technical analysis. You can learn.
All the best,
trendpower|||1. Trading volume is like a truth detector....higher the volume....the more the price movement can be believed. Lower the volume...price moves are not to be trusted.
2. How to put odds in your favor...monitor price movements and develop a system for buying and selling based on the price movement of the stock. Example of a simple system. Buy S%26amp;P 500 position when it trades above 200 moving average....sell when it drops below.
3. News and stock prices...most news is already reflected in price of stocks by the time you read it. Price movements will show up before the news hits...elephants (big money) leaves footprints and you can hear them coming a mile away if you take the time to listen.
Good luck.|||if it is good stock nothing to be worried.
there are many tricks which share market people trap.
it is purely gambling.
1) when you buy the shares the value of the share decreases .
2)when you sell the shares sell at market price, if cote the price stock starts falling.
What are some examples of stock characters in theatre?
Hi, I'm wondering what type of stock character I am. What are different types of stock characters? I know about ingenue and soubrette, but are there any others? And any examples of them from popular musical theatre would be great. Thank you!|||You should really research commedia del'arte characters which kind of form a basis for most theatre. Even looking at a Shakespeare play - all the same types of characters are around today. For example you could say there's the lover, the fool, the menace, the naive, the hero, the elder, the loyal, the traitor... Most theatre/film have the same characters in one form or another. It's a good experiment to spot them. George Lucas studied all ancient myths, legends and stories when constructing his characters for the first Star Wars movies. You can see you have the naive (Skywalker), the elder (Kenobi), the meance (Vader), the fool (C3PO), the loyal (Chewbacca), the traitor (Han - but he changes his mind at the end, quite a common theme), the lover (both Leia and Luke), and on the list goes... It seems that such broad characteristics are part of Human existence and therefore part of our art also.
What happens if I own stock in a company that is purchased by another company?
What happens if I own stock in a company that is purchased by another company? Do they "cash out" my shares and give me the same amount of money's worth of the new stock? Or do I get the same number of shares in the new company as I had in the one that was purchased?|||When companies merge, or are bought outright, then any existing stock will be converted into stock for the new "parent" company. This is not done on a 1-to-1 ratio, as it would devalue the parent company's stock; instead, it's done based upon the relative stock prices as of a given date (usually the date of acquisition). So if you have 1,000 shares of Bear Sterns (worth $10,000 per JP Morgan Chase's offer), then you'd find yourself with 217 shares of JP Morgan Chase (as their stock was trading at $46.06 as of last quote).
To determine this, divide the acquired company's stock price (or trade price, if it's a straight stock acquisition like the Bear Sterns/JPMChase deal) by the acquiring company's price. So you'd divide $10 by $46.06. This will tell you just how many shares one share of your stock will be worth in the new stock. Then you take that number and multiply it by the number of shares you currently have of the acquired company.
So it'll look like this:
(10/46.06)*1000 = 217.1....which leaves you with 217 shares in our example.|||Depends on the terms of the agreement between the companies. If its a buyout including shares you would get an equivalent amount of $ amount shares in the new company. So for arguments sake let's say the JPM deal goes through and they purchase BSC for $10/share. If JPM stock were trading for $40 (let's keep it simple) you would receive one share of JPM stock for every 4 shares of BSC you owned. So if you had 100 shares of BSC you would receive 40 shares of JPM in return. If it was a cash transaction, and you owned 100 shares of BSC, JPM would just send you a check for $1000.
Hope that helps.|||LOl, This was exactly what was going on my mind today. Let's say you own stocks at $10 in bear stearns, and JP morgan buys the company. What is gonna happen?
I will be checking for the answersof your question. GOOD QUESTION. I did not get to post the question myself today.
To determine this, divide the acquired company's stock price (or trade price, if it's a straight stock acquisition like the Bear Sterns/JPMChase deal) by the acquiring company's price. So you'd divide $10 by $46.06. This will tell you just how many shares one share of your stock will be worth in the new stock. Then you take that number and multiply it by the number of shares you currently have of the acquired company.
So it'll look like this:
(10/46.06)*1000 = 217.1....which leaves you with 217 shares in our example.|||Depends on the terms of the agreement between the companies. If its a buyout including shares you would get an equivalent amount of $ amount shares in the new company. So for arguments sake let's say the JPM deal goes through and they purchase BSC for $10/share. If JPM stock were trading for $40 (let's keep it simple) you would receive one share of JPM stock for every 4 shares of BSC you owned. So if you had 100 shares of BSC you would receive 40 shares of JPM in return. If it was a cash transaction, and you owned 100 shares of BSC, JPM would just send you a check for $1000.
Hope that helps.|||LOl, This was exactly what was going on my mind today. Let's say you own stocks at $10 in bear stearns, and JP morgan buys the company. What is gonna happen?
I will be checking for the answersof your question. GOOD QUESTION. I did not get to post the question myself today.
What happens if you own stock in a company and it get bought by another company?
I am curious what happens if you buy stock in a company, and another company buys it out. Do I lose the stock I currently have? Will I have the oppourtunity to sell it?|||You usually get a letter from company X (the company shares you own) stating that they are being taken over by someone else, company Y. The letter will also tell you what exactly will happen happen with your shares of company X.
Typically, you will get new shares of company Y( in this case the company that bought X).
Everything will be clearly stated in the letter.
If you are really anxious, call company Y and ask them how many shares you will get.|||You still own stock in the subsiduary company, and often it becomes more valuable.|||That happened to me. I held on to it and the stock split. Initially the price of each share dropped, then it gradually climbed back up. I quadrupled my money in 5 years. I am one happy camper but it depends on the companies involved, the industry outlook etc.
Just saying that it can be swe-e-e-e-et!! : )|||I believe you will loss all your shares. I suggest selling before you they steal it from you|||you keep it. however if the goodwill value of the old company was over priced, the value of stocks will go down. if own stocks you shud follow closely on the buyout |||"Go directly to Jail" - Monopoly
Typically, you will get new shares of company Y( in this case the company that bought X).
Everything will be clearly stated in the letter.
If you are really anxious, call company Y and ask them how many shares you will get.|||You still own stock in the subsiduary company, and often it becomes more valuable.|||That happened to me. I held on to it and the stock split. Initially the price of each share dropped, then it gradually climbed back up. I quadrupled my money in 5 years. I am one happy camper but it depends on the companies involved, the industry outlook etc.
Just saying that it can be swe-e-e-e-et!! : )|||I believe you will loss all your shares. I suggest selling before you they steal it from you|||you keep it. however if the goodwill value of the old company was over priced, the value of stocks will go down. if own stocks you shud follow closely on the buyout |||"Go directly to Jail" - Monopoly
How are stock anyalysts selected and how influential are they to the price of a share in a company?
Also who pays the stock analysts?
Indirectly and directly?
Does this not create suspicions that these "analysts" are bribed?
And dont say the SEC , we all know who first started overlooking that operation (Joe Kennedy one of the biggest weasels on Wall Street ever!)|||Like any job, stock analysts apply for the job generally with brokerage outfits, but also commercial and investment banks and independent research shops. The analysts are paid by the firms they work for. Are they influential. Yes, to a certain degree. But if a person has a poor track record, he/she is generally dimissed in the market place.
Indirectly and directly?
Does this not create suspicions that these "analysts" are bribed?
And dont say the SEC , we all know who first started overlooking that operation (Joe Kennedy one of the biggest weasels on Wall Street ever!)|||Like any job, stock analysts apply for the job generally with brokerage outfits, but also commercial and investment banks and independent research shops. The analysts are paid by the firms they work for. Are they influential. Yes, to a certain degree. But if a person has a poor track record, he/she is generally dimissed in the market place.
What stocks should i buy in a stock market game?
playing a stock market game for school. want to buy stock in companies that will hold steady or go up. suggestions? is apple a good buy?|||Generally, the people or teams that do well in stock market games tend to pick companies with high volatility (i.e. companies who's prices swing wildly up or down). You can find the most volatile stocks in the "over the counter" market. I have been pretty successful with my investment in Animas Resources, Inc. (ANIMF). The company mines gold. However, it's not a game - I actually bought the stock. It's gone up over 300% since I bought it. The price has been pretty steady for the last several months, but I think it's set to take off again soon.|||The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare. These are DEFENSIVE stocks that will survive through good and bad times. Most of my positions are in these stocks. Some names include 3M, Procter %26amp; Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco. Everybody's got to eat and wipe their butts regardless of the state of economy. Many of these companies survived through the Great Depression.
That's the benefits. You can sleep at night knowing your money is doing well. There are NO guarantees that you won't lose money. It's just that these stocks are the best. They pay good dividends too.|||If the markets suffer a major correction, then all your big stocks like AAPL, GOOG, JNJ, WMT etc... will roll over with them.
If you can't short in the game, then I would also look at penny stocks that move independently of the markets. Take over chatter in the pharma industry still causes pretty good pops. What you could do is use a screener at google finance or finviz.com to narrow down your search for a bunch of low price stocks, then read the news headlines on them.
It's basically gambling, but could help you with the game.|||Tech stocks like Apple are typically a good buy, especially this time a year as they are selling a lot of product.
That's the benefits. You can sleep at night knowing your money is doing well. There are NO guarantees that you won't lose money. It's just that these stocks are the best. They pay good dividends too.|||If the markets suffer a major correction, then all your big stocks like AAPL, GOOG, JNJ, WMT etc... will roll over with them.
If you can't short in the game, then I would also look at penny stocks that move independently of the markets. Take over chatter in the pharma industry still causes pretty good pops. What you could do is use a screener at google finance or finviz.com to narrow down your search for a bunch of low price stocks, then read the news headlines on them.
It's basically gambling, but could help you with the game.|||Tech stocks like Apple are typically a good buy, especially this time a year as they are selling a lot of product.
What can you learn from investing in stock market?
It's for a project I have to do. What exactly can you learn from investing in the stock market?
I wrote how unpredictable it is and how hard it is to choose what stock to buy. You can never know for sure how the stock will do over an extended period of time.|||There is a difference between what one can learn and what one does learn.
For me, I learned the hard way to cut ones losses rapidly, take a little of your profits off the table after a significant rise in stock prices, avoid high PE stocks like the plegue, avoid speculative stocks for the most part, avoid tech stocks also for the most part, put a fair portion of you money into index funds and mutual funds so you don't have to spend too much time baby sitting it, try not to have more than 30 stocks in your portfolio because it takes too much effort to keep track of them, keep weeding out the underpeformers and replacing them with stocks with greater potential. Alway have a healthy cash reserve and add to it as stock prices rise, so that when they drop you can take advantage of the situation.|||You can reference sites like economicinvest.com that does research for investors, and identifies what investments are poised for the best growth and returns.
good luck on the project.|||Playing the stock market is like playing poker...you not only play your cards, you play the other players at the table.
Many lousy company's stock skyrocket because of investor/analyst hype. Many great compay's stock go nowhere because the company/industry is "boring" to the hyping market makets.
To make $$$ in the market, get in on the leading edge of the hype %26amp; sell when all newswires and analysts love the stock because soon this stock will crash when the anaysts and marketmakers start to court the next stock.
In other words, the stock market is not a numbers game, it's game of reading human nature.|||You learn how news and politics effect business. You learn about companys. "The only gurantee in the stock market is change" It goes up, down side ways but what effects it most is news and politics.|||You can say you learn discipline. Meaning you make out a plan and you stick to the plan. If you think you will keep making money without re-evaluating your positions, you will problably lose money.|||You should also add to your list the following:
a. How to develop a disciplined thought process
b. Money management because you have to chose between alternative investments and determine how much to allocate to each investment
c. Understanding of risk and return trade-offs
d. Quick decision making processes because you have to read extensively, digest the material read, understand it and make an investment decision quickly based on that information
e. Great research skills because you have to find and process so much information in order to be a good investor.
I could go on and on but those are five on which you can write at least one page.
Good luck with the project.|||you can lose all your money|||You can learn how to lose alot of money real fast, but on the other hand you can also make money real fast....it's unpredictable...you never know what the next day holds.|||u must be displine. stop hogging on to losses and admit your mistakes.
I wrote how unpredictable it is and how hard it is to choose what stock to buy. You can never know for sure how the stock will do over an extended period of time.|||There is a difference between what one can learn and what one does learn.
For me, I learned the hard way to cut ones losses rapidly, take a little of your profits off the table after a significant rise in stock prices, avoid high PE stocks like the plegue, avoid speculative stocks for the most part, avoid tech stocks also for the most part, put a fair portion of you money into index funds and mutual funds so you don't have to spend too much time baby sitting it, try not to have more than 30 stocks in your portfolio because it takes too much effort to keep track of them, keep weeding out the underpeformers and replacing them with stocks with greater potential. Alway have a healthy cash reserve and add to it as stock prices rise, so that when they drop you can take advantage of the situation.|||You can reference sites like economicinvest.com that does research for investors, and identifies what investments are poised for the best growth and returns.
good luck on the project.|||Playing the stock market is like playing poker...you not only play your cards, you play the other players at the table.
Many lousy company's stock skyrocket because of investor/analyst hype. Many great compay's stock go nowhere because the company/industry is "boring" to the hyping market makets.
To make $$$ in the market, get in on the leading edge of the hype %26amp; sell when all newswires and analysts love the stock because soon this stock will crash when the anaysts and marketmakers start to court the next stock.
In other words, the stock market is not a numbers game, it's game of reading human nature.|||You learn how news and politics effect business. You learn about companys. "The only gurantee in the stock market is change" It goes up, down side ways but what effects it most is news and politics.|||You can say you learn discipline. Meaning you make out a plan and you stick to the plan. If you think you will keep making money without re-evaluating your positions, you will problably lose money.|||You should also add to your list the following:
a. How to develop a disciplined thought process
b. Money management because you have to chose between alternative investments and determine how much to allocate to each investment
c. Understanding of risk and return trade-offs
d. Quick decision making processes because you have to read extensively, digest the material read, understand it and make an investment decision quickly based on that information
e. Great research skills because you have to find and process so much information in order to be a good investor.
I could go on and on but those are five on which you can write at least one page.
Good luck with the project.|||you can lose all your money|||You can learn how to lose alot of money real fast, but on the other hand you can also make money real fast....it's unpredictable...you never know what the next day holds.|||u must be displine. stop hogging on to losses and admit your mistakes.
What is the typical stock only compensation for a sales position in an internet start-up?
I am considering working for a internet start up in the Spring and I have been offered stock only as compensation until the "Angel" round or funding is completed which won't be until late December. Is this typical? Has anyone else worked for an internet start-up that offered only stock options in the beginning? Anyone have any guidance where I can get information on whether or not the compensation being offered is fair? Thanks in advance!!!|||It's typically not a good sign. Stock (or equity) financing is the most expensive to finance a company. This is because of the opportunity cost associated with the stock is high. It's a desperate move.
Obviously this is done because the company is not generating enough cash to pay out its employees (This is another bad sign). I'm not sure how many employees the company has, but the more it's paying out in stock the more the stock is being diluted and the more control the owners are loosing. This was typical of internet start-ups in the 90's when investors thought internet companies could do no wrong.
http://www.youtube.com/watch?v=hyM3HVdH1鈥?/a>
There is also the possibility that the Angel investor backs out or changes his or her mind. If I understand your time line right, the company will not secure financing until December 2010. That is a long time for a company that cannot afford to pay its employees.
That being said, it has worked out for some people. It's risky, but if it works out it has the potential to reward those who were there earning stock. However, this reward may or may not be significant. Just know what your getting into. Can you afford to work without getting paid. How much will it effect you if the company were to go belly up. If that is a risk that you cannot afford, I do not recommend it.
Also, take a look at their business. Do you think its got a shot? Do you believe in the technology? Are there other companies doing the same thing? If so, how are they doing?
Hope that shed some light on the situation. Best of luck to you.
Obviously this is done because the company is not generating enough cash to pay out its employees (This is another bad sign). I'm not sure how many employees the company has, but the more it's paying out in stock the more the stock is being diluted and the more control the owners are loosing. This was typical of internet start-ups in the 90's when investors thought internet companies could do no wrong.
http://www.youtube.com/watch?v=hyM3HVdH1鈥?/a>
There is also the possibility that the Angel investor backs out or changes his or her mind. If I understand your time line right, the company will not secure financing until December 2010. That is a long time for a company that cannot afford to pay its employees.
That being said, it has worked out for some people. It's risky, but if it works out it has the potential to reward those who were there earning stock. However, this reward may or may not be significant. Just know what your getting into. Can you afford to work without getting paid. How much will it effect you if the company were to go belly up. If that is a risk that you cannot afford, I do not recommend it.
Also, take a look at their business. Do you think its got a shot? Do you believe in the technology? Are there other companies doing the same thing? If so, how are they doing?
Hope that shed some light on the situation. Best of luck to you.
What is a reasonable ratio of preferred stock to common stock when starting a corporation?
When forming a corporation, what is a common practice for issuing preferred stock %26amp; common stock. Is there a specific % of one to the other ? Are there any benefits / drawbacks ?|||Not really.
If it is an S-Corp, do not issue preferred shares. Just 1 type of stock, common stock that has voting rights and the right to receive the net assets of the corporation upon dissolution.
If it is an S-Corp, do not issue preferred shares. Just 1 type of stock, common stock that has voting rights and the right to receive the net assets of the corporation upon dissolution.
What is the typical stock only compensation for a sales position in an internet start-up?
I am considering working for a internet start up in the Spring and I have been offered stock only as compensation until the "Angel" round or funding is completed which won't be until late December. Is this typical? Has anyone else worked for an internet start-up that offered only stock options in the beginning? Anyone have any guidance where I can get information on whether or not the compensation being offered is fair? Thanks in advance!!!|||It's typically not a good sign. Stock (or equity) financing is the most expensive to finance a company. This is because of the opportunity cost associated with the stock is high. It's a desperate move.
Obviously this is done because the company is not generating enough cash to pay out its employees (This is another bad sign). I'm not sure how many employees the company has, but the more it's paying out in stock the more the stock is being diluted and the more control the owners are loosing. This was typical of internet start-ups in the 90's when investors thought internet companies could do no wrong.
http://www.youtube.com/watch?v=hyM3HVdH1鈥?/a>
There is also the possibility that the Angel investor backs out or changes his or her mind. If I understand your time line right, the company will not secure financing until December 2010. That is a long time for a company that cannot afford to pay its employees.
That being said, it has worked out for some people. It's risky, but if it works out it has the potential to reward those who were there earning stock. However, this reward may or may not be significant. Just know what your getting into. Can you afford to work without getting paid. How much will it effect you if the company were to go belly up. If that is a risk that you cannot afford, I do not recommend it.
Also, take a look at their business. Do you think its got a shot? Do you believe in the technology? Are there other companies doing the same thing? If so, how are they doing?
Hope that shed some light on the situation. Best of luck to you.
Obviously this is done because the company is not generating enough cash to pay out its employees (This is another bad sign). I'm not sure how many employees the company has, but the more it's paying out in stock the more the stock is being diluted and the more control the owners are loosing. This was typical of internet start-ups in the 90's when investors thought internet companies could do no wrong.
http://www.youtube.com/watch?v=hyM3HVdH1鈥?/a>
There is also the possibility that the Angel investor backs out or changes his or her mind. If I understand your time line right, the company will not secure financing until December 2010. That is a long time for a company that cannot afford to pay its employees.
That being said, it has worked out for some people. It's risky, but if it works out it has the potential to reward those who were there earning stock. However, this reward may or may not be significant. Just know what your getting into. Can you afford to work without getting paid. How much will it effect you if the company were to go belly up. If that is a risk that you cannot afford, I do not recommend it.
Also, take a look at their business. Do you think its got a shot? Do you believe in the technology? Are there other companies doing the same thing? If so, how are they doing?
Hope that shed some light on the situation. Best of luck to you.
How much should a stock repaint paintjob on a car cost?
I don't want Earl Scheib or Maaco.
I don't want to change colors or repaint the door jams, engine bay, etc.
How much is it usually to just repaint a car with no rust, dents, etc the exact same color as stock and have the quality be the same as stock?|||A paint job equivalent in quality to a factory paint job will not cost any less than $2500 if the body of the car is perfect.
I don't want to change colors or repaint the door jams, engine bay, etc.
How much is it usually to just repaint a car with no rust, dents, etc the exact same color as stock and have the quality be the same as stock?|||A paint job equivalent in quality to a factory paint job will not cost any less than $2500 if the body of the car is perfect.
What is the best stock to buy before the bailout?
I want to buy a stock tomorow (sept 25) or soon after, then wait for the bailout. Which stock should benefit most from this news?|||Washington Mutual (WM)|||I wouldnt buy Washington Mutual. Their stocks fell 25% today with the word they are trying to find a buyer or some or some other way out of their financial situation. I dont see the worth at all.
Also they cant even find a buyer Standard %26amp; Poor鈥檚 Ratings Services downgraded them again yesterday
|||Oops. WaMu go bye-bye.
|||NEVER take advice about money from someone who isnt your financial advisor.
youll probably end up regretting it in the end.
|||I hate to pick one stock for you, then have it be the ONE that does not participate in a rally. I would suggest an ETF that covers the financial sector - IYF (ishares DJ Financial), UYG (ULTRA financial proshares - 200% of the financial ETF), etc.
Research all of them and see which you feel comfortable with.
Good luck!|||Goldman Sachs
Also they cant even find a buyer Standard %26amp; Poor鈥檚 Ratings Services downgraded them again yesterday
Report Abuse
|||Oops. WaMu go bye-bye.
Report Abuse
|||NEVER take advice about money from someone who isnt your financial advisor.
youll probably end up regretting it in the end.
Report Abuse
|||I hate to pick one stock for you, then have it be the ONE that does not participate in a rally. I would suggest an ETF that covers the financial sector - IYF (ishares DJ Financial), UYG (ULTRA financial proshares - 200% of the financial ETF), etc.
Research all of them and see which you feel comfortable with.
Good luck!|||Goldman Sachs
I have Absolutely NO experience in the stock market how should I and where should I start?
All right Im 14 years old and i know nothing about stocks or the stock market. Im a TOTAL noob. Tell me everything a newbie needs to know about starting in the stock market. Please.|||Put as much money as you possibly can into "Socially conscious stocks" and anything related to GREEN industries.
They are going to SKYROCKET.|||get a book like from the "for dummy's series" or buy a few magazines
like money magazine....read financial columns in your local newspaper
check into investment clubs...there may be one at your school...ask
economics teachers
Be careful as there is a lot of bad information in the above answers. Now is an excellent time to invest as the market has already crashed and there are now lots of bargains out there....good stocks at low prices...an accounting course is good knowledge to aquire but will not teach you anything about the stock market. Also you cannot just take a course in managerial accounting without taking several other accounting courses (prerequisites) first. better course would be something in finance, but you do not have to take a whole course in business in order to learn the basics of investing.
The advice of Trevor S. is more akin to day trading which is the bain of serious investors. Too much panic selling causes wild fluctuations in the marketplace. If you are buying and selling all the time you incurr excess commission charges and you also have the potential of creating a nightmare for yourself when tax time rolls around and you have to account for all these transactions. it is better to purchase good value stocks or mutual funds with money you do not need in the short term and hold these stocks for several years.|||The trend is your friend. If the markets are moving up, go long (buy). If the markets are heading down, sell short.
Never allow any position to run more than 10% against you.
Read several good books on technical analysis before you make any trades.
Read Reminiscences of a Stock Operator by Edwin Lefevre. It's the Jesse Livermore story. Livermore was considered the greatest trader of all time.
IMPORTANT
Those are just a few of the basics. The stock market will clean you out if you're ill-prepared. It is a cut-throat game.|||go to amazon or barnes and noble and look for the book "Complete Money %26amp; Investing Guidebook" by dave kansas and the wall street journal. it's an awesome book for this stuff. and actually, it's a good time to invest in the market. Think about it this way... if you invest money into the market now (when everything is cheap) you can buy more shares. When those shares eventually return to their profitable state (high) then you will have made yourself a lot of money. Our economy is too strong, when we come out of it we will be stronger than ever. Think about it.|||14 years old and you are interested in the stock market? Wow, that must be some paper route you have.
The main thing to know about the market is that people make money from people who have less knowledge, experience and information than they do. In your case, who might such people be?
Actually, you are spared from such folly at this stage because you cannot enter into a contract until you are 18.|||Since you are only 14 I suggest that you study the stock market and stock trading.
A good website is www.investors.com
Locate the "How To Invest" section, click on "Investor's Corner".
On the next screen click on "View Archive".
Read the articles in the archive.
Also, in the "How to Invest" section there is a "Financial Dictionary" you can use to look up the definition of terms that you are not familiar with.
Other good websites:
www.investopedia.com
www.optiontradingpedia.com
www.etfguide.com
www.mutualfundplanning.com
www.dripwizard.com
www.sec.gov/answers/options.htm
Some good books on the subject:
How To Buy Stocks
Written by Louis Engel and Henry R. Hecht.
All About Exchange-Traded Funds
Written by Archie Richards, Jr.|||I don't know what you have to invest, but I wouldn't try putting any money in until you read something or attend schooling, trading seminars, or webinars, you are 100% guaranteed to lose money fast.
The book that made me understand the basics of the market is "Jim Cramer's Mad Money, Sane Investing in an Insane World" good thing about the book...It's not boring as hell. (for an investing book)
If you don't read William J. O'neil's How To Make Money In Stocks, you're definitely cheating yourself but check out the other one first, if you're 14, it'll sound like alot of jibberish until your familiar with terms. I'd love to sit here and actually explain some stuff, but it would take a long time.
go to this cheap website www.alibris.com for books, some of them cost like $1 some may run ten or so.
Good luck!|||I suggest Motleyfool.com to learn all you can. You need your parents to open a broker account. The best bet is to find a crappy stock under $10 (most are) and short it (that is bet it will go down). Even if you get unlucky and it shoots straight up, I guarantee you it will crash just as fast. Most stocks just plain suck.|||do you have any money? is it money you can afford to lose? if not I would start reading up on the stock market but put your money in CDs or high yield savings for now.|||Try nocostinvest.com to schedule an free seminar. I can also help. But not sure about teh age requirements. You can talk to someone in some brokerage firm like Ameritrade.|||Now is a horrible time to start in the market with the crash save you money in a cd.|||Take an accounting class, more specifically, Managerial Accounting
They are going to SKYROCKET.|||get a book like from the "for dummy's series" or buy a few magazines
like money magazine....read financial columns in your local newspaper
check into investment clubs...there may be one at your school...ask
economics teachers
Be careful as there is a lot of bad information in the above answers. Now is an excellent time to invest as the market has already crashed and there are now lots of bargains out there....good stocks at low prices...an accounting course is good knowledge to aquire but will not teach you anything about the stock market. Also you cannot just take a course in managerial accounting without taking several other accounting courses (prerequisites) first. better course would be something in finance, but you do not have to take a whole course in business in order to learn the basics of investing.
The advice of Trevor S. is more akin to day trading which is the bain of serious investors. Too much panic selling causes wild fluctuations in the marketplace. If you are buying and selling all the time you incurr excess commission charges and you also have the potential of creating a nightmare for yourself when tax time rolls around and you have to account for all these transactions. it is better to purchase good value stocks or mutual funds with money you do not need in the short term and hold these stocks for several years.|||The trend is your friend. If the markets are moving up, go long (buy). If the markets are heading down, sell short.
Never allow any position to run more than 10% against you.
Read several good books on technical analysis before you make any trades.
Read Reminiscences of a Stock Operator by Edwin Lefevre. It's the Jesse Livermore story. Livermore was considered the greatest trader of all time.
IMPORTANT
Those are just a few of the basics. The stock market will clean you out if you're ill-prepared. It is a cut-throat game.|||go to amazon or barnes and noble and look for the book "Complete Money %26amp; Investing Guidebook" by dave kansas and the wall street journal. it's an awesome book for this stuff. and actually, it's a good time to invest in the market. Think about it this way... if you invest money into the market now (when everything is cheap) you can buy more shares. When those shares eventually return to their profitable state (high) then you will have made yourself a lot of money. Our economy is too strong, when we come out of it we will be stronger than ever. Think about it.|||14 years old and you are interested in the stock market? Wow, that must be some paper route you have.
The main thing to know about the market is that people make money from people who have less knowledge, experience and information than they do. In your case, who might such people be?
Actually, you are spared from such folly at this stage because you cannot enter into a contract until you are 18.|||Since you are only 14 I suggest that you study the stock market and stock trading.
A good website is www.investors.com
Locate the "How To Invest" section, click on "Investor's Corner".
On the next screen click on "View Archive".
Read the articles in the archive.
Also, in the "How to Invest" section there is a "Financial Dictionary" you can use to look up the definition of terms that you are not familiar with.
Other good websites:
www.investopedia.com
www.optiontradingpedia.com
www.etfguide.com
www.mutualfundplanning.com
www.dripwizard.com
www.sec.gov/answers/options.htm
Some good books on the subject:
How To Buy Stocks
Written by Louis Engel and Henry R. Hecht.
All About Exchange-Traded Funds
Written by Archie Richards, Jr.|||I don't know what you have to invest, but I wouldn't try putting any money in until you read something or attend schooling, trading seminars, or webinars, you are 100% guaranteed to lose money fast.
The book that made me understand the basics of the market is "Jim Cramer's Mad Money, Sane Investing in an Insane World" good thing about the book...It's not boring as hell. (for an investing book)
If you don't read William J. O'neil's How To Make Money In Stocks, you're definitely cheating yourself but check out the other one first, if you're 14, it'll sound like alot of jibberish until your familiar with terms. I'd love to sit here and actually explain some stuff, but it would take a long time.
go to this cheap website www.alibris.com for books, some of them cost like $1 some may run ten or so.
Good luck!|||I suggest Motleyfool.com to learn all you can. You need your parents to open a broker account. The best bet is to find a crappy stock under $10 (most are) and short it (that is bet it will go down). Even if you get unlucky and it shoots straight up, I guarantee you it will crash just as fast. Most stocks just plain suck.|||do you have any money? is it money you can afford to lose? if not I would start reading up on the stock market but put your money in CDs or high yield savings for now.|||Try nocostinvest.com to schedule an free seminar. I can also help. But not sure about teh age requirements. You can talk to someone in some brokerage firm like Ameritrade.|||Now is a horrible time to start in the market with the crash save you money in a cd.|||Take an accounting class, more specifically, Managerial Accounting
What happens to employee stock options when a company is bought out?
My current company just announced that it is being purchased. What happens to my employee stock options? Do they convert to the new stock or do they immediately vest at the current price?|||Typically, they convert to the takeover company's stock. That is what happened with mine.|||The answer is to be found in the stock option plan availabvle from your HR department.
Typically options vest immediately upon a change of control and are converted to cash.
Typically options vest immediately upon a change of control and are converted to cash.
Is it possible to buy and sell stocks without a stock broker?
I want to invest in stocks, but I want to do it myself and get into the action of the stock market. I don't want a stockbroker.|||Im a trader that had similar questions to what your asking - the answer is YES - thats what ameritrade, etrade, scott trade etc do for you - allow you to directly control your action.
Apparently you're just learning and thats actually what i do - i help teach people like yourself. Take a look at my group of 13,000 people that i started on myspace 2 years ago for this reason - just started a new one for stocks too.
I will personally help you set up your trading account.
groups.myspace.com/NYMA|||You can buy stocks direct through the company but you have to own a few shares first usually. Set up a stock brokerage acct. buy the stock who sells direct (DRIP) w/ the certificate in your name and go from there.|||of course. just set up an account and go at it|||You can buy it from the company's DPP ( Direct Purchase Program ). But I truly suggest you use a broker because you can give him orders, like day order, GTC (good till canceled), stop orders, market orders, etc. This will help you monitor stocks with less effort and obviously, reduce losses.|||Hi, i suggest a great site with plenty of Issues related to your Investing and everything around it. it also provide clear and accurate answer to many common questions.
http://investing.sitesled.com/
I am sure that you can get your answers in this website.
Good Luck and Best Wishes!|||Yes.|||I have used BuyandHold dot com. The broker is the website, but if you don't want to deal with anybody, it will eliminate a real live broker. There's a small fee too. I don't think you could completely go around a broker unless you were one yourself and able to walk your requests onto the NYSE floor.|||There are ways to purchase stocks in some companies without a broker call DPP. But they most likely would not be the companies that you would want to purchase stocks in. There are not many. You could also buy mutual funds, which do not require a broker. You can buy them directly from the mutual fund companies if they are open ended funds.
All others require a broker. There are many internet brokers that provide the brokerage service at a very reasonable price. In fact Bank of America is now providing the service for free with strings attached of course. There are other advantages to having an on line broker besides that of buying and selling stocks. They also handle all of your book keeping tasks for you. Most people do not realize the value of this service.|||Keep its simple and go with one of the best online! http://www.tdameritrade.com with tdameritrade you can buy and sell stock on any computer. They let you open an account right online and put funds in the account. Then they have a lot of tools to help you find great stocks to invest. To find great stocks you can also go to http://www.thestreet.com. If you need any help feel free to email me and I wouldn't mind helping you over the phone if your seriouse about getting started. Don't worry I'm not trying to sell you anything I'm just in a giving mood this holiday season. Good luck!|||You can buy directly from the company. I own Sara Lee directly. But keep in mind that you still incur fees.
I also have a discount broker for stocks I cannot buy direct. I also use this vehicle to buy Exchange Traded Funds. Scottrade is whom I'm referring to.
Apparently you're just learning and thats actually what i do - i help teach people like yourself. Take a look at my group of 13,000 people that i started on myspace 2 years ago for this reason - just started a new one for stocks too.
I will personally help you set up your trading account.
groups.myspace.com/NYMA|||You can buy stocks direct through the company but you have to own a few shares first usually. Set up a stock brokerage acct. buy the stock who sells direct (DRIP) w/ the certificate in your name and go from there.|||of course. just set up an account and go at it|||You can buy it from the company's DPP ( Direct Purchase Program ). But I truly suggest you use a broker because you can give him orders, like day order, GTC (good till canceled), stop orders, market orders, etc. This will help you monitor stocks with less effort and obviously, reduce losses.|||Hi, i suggest a great site with plenty of Issues related to your Investing and everything around it. it also provide clear and accurate answer to many common questions.
http://investing.sitesled.com/
I am sure that you can get your answers in this website.
Good Luck and Best Wishes!|||Yes.|||I have used BuyandHold dot com. The broker is the website, but if you don't want to deal with anybody, it will eliminate a real live broker. There's a small fee too. I don't think you could completely go around a broker unless you were one yourself and able to walk your requests onto the NYSE floor.|||There are ways to purchase stocks in some companies without a broker call DPP. But they most likely would not be the companies that you would want to purchase stocks in. There are not many. You could also buy mutual funds, which do not require a broker. You can buy them directly from the mutual fund companies if they are open ended funds.
All others require a broker. There are many internet brokers that provide the brokerage service at a very reasonable price. In fact Bank of America is now providing the service for free with strings attached of course. There are other advantages to having an on line broker besides that of buying and selling stocks. They also handle all of your book keeping tasks for you. Most people do not realize the value of this service.|||Keep its simple and go with one of the best online! http://www.tdameritrade.com with tdameritrade you can buy and sell stock on any computer. They let you open an account right online and put funds in the account. Then they have a lot of tools to help you find great stocks to invest. To find great stocks you can also go to http://www.thestreet.com. If you need any help feel free to email me and I wouldn't mind helping you over the phone if your seriouse about getting started. Don't worry I'm not trying to sell you anything I'm just in a giving mood this holiday season. Good luck!|||You can buy directly from the company. I own Sara Lee directly. But keep in mind that you still incur fees.
I also have a discount broker for stocks I cannot buy direct. I also use this vehicle to buy Exchange Traded Funds. Scottrade is whom I'm referring to.
How to automatically buy stock when the price drops below a certain point?
How do you automatically buy stock when it drops a certain price?
The past few days stocks have gone up a lot and I believe some are overpriced. I think a few of the ones I want will go down in price and that when I want to buy it but I won't be at a computer for most of monday and tuesday. I was wondering if there is some way that I can set a price that I believe it will go down to and then automatically purchase it?|||You can buy or sell stocks at any price you want. If you use a broker, just tell him the price you want to buy or sell the price at, he will take care of it. If you want to buy a stock eg; Ford (F) at $4.75, and it is presently trading at $5.00. you put in a limit buy or sell order at the price you want. List the number of shares, and when it hits your price it automatically executes. When I buy a stock, I immediately put in my sell order, knowing what price I think the stock will reach. Here is some info that might help you:
Do you have a strategy? What rate of return are you expecting? (not hoping) Do you have at least 5 active web sites to do your strategy check. I liked the strategy of short term trading, vs day trading. Short term trading I would execute 1 trade every 5-8 trading days. I set up to make a profit of 8-15% every trade. I developed my strategy over years of trading then found out that Wade Cooke used a similar but refined strategy. He invests in rolling stocks. Finding a stock that rolls 8-12% over a short period of time, alway repeating the highs and lows. I would average 40 -55% a year in good trading years. Stocks are volatile, but in a bear market right now, and that is good and bad for this strategy. I suggest buying the book on Amazon.com "Wallstreet Money Machine" by Wade Cooke. The work comes in finding the stocks that roll. YOu can buy a hard cover for less than $1.00 used.
|||It's called a "limit order".
You place your order on line now, with instructions "Buy when the price is under $8.75"
That order will stay in the queue, waiting for the price to drop.
The past few days stocks have gone up a lot and I believe some are overpriced. I think a few of the ones I want will go down in price and that when I want to buy it but I won't be at a computer for most of monday and tuesday. I was wondering if there is some way that I can set a price that I believe it will go down to and then automatically purchase it?|||You can buy or sell stocks at any price you want. If you use a broker, just tell him the price you want to buy or sell the price at, he will take care of it. If you want to buy a stock eg; Ford (F) at $4.75, and it is presently trading at $5.00. you put in a limit buy or sell order at the price you want. List the number of shares, and when it hits your price it automatically executes. When I buy a stock, I immediately put in my sell order, knowing what price I think the stock will reach. Here is some info that might help you:
Do you have a strategy? What rate of return are you expecting? (not hoping) Do you have at least 5 active web sites to do your strategy check. I liked the strategy of short term trading, vs day trading. Short term trading I would execute 1 trade every 5-8 trading days. I set up to make a profit of 8-15% every trade. I developed my strategy over years of trading then found out that Wade Cooke used a similar but refined strategy. He invests in rolling stocks. Finding a stock that rolls 8-12% over a short period of time, alway repeating the highs and lows. I would average 40 -55% a year in good trading years. Stocks are volatile, but in a bear market right now, and that is good and bad for this strategy. I suggest buying the book on Amazon.com "Wallstreet Money Machine" by Wade Cooke. The work comes in finding the stocks that roll. YOu can buy a hard cover for less than $1.00 used.
|||It's called a "limit order".
You place your order on line now, with instructions "Buy when the price is under $8.75"
That order will stay in the queue, waiting for the price to drop.
How to avoid capital gains from a stock spilt?
I own stock expected to spilt later this year. Is there any way to avoid paying capital gains if I move the funds non-stock based investment? My concern is the stability of the stock market as I approach retirement age in the next 10-12 years. I would most like the money in an FDIC insured account of some type.|||No, you can't avoid capital gains tax. Unless it is in an IRA if you sell it you pay taxes. That may not be that bad. If it is a long term gain bite the bullet and pay the 15%. The 15% maximum capital gains tax is a big windfall to someone in your situation. No one likes to pay taxes but in your case it is pay me a little now or a lot later.
If it isn't a long term gain yet then certainly wait until it is.|||Simply owning a stock during a split does not ensure capital gains. Technically, the share price of the stock you own goes in half, but you own twice as many stock. It's kind of like having ten dimes and exchanging them for twenty nickels. You sill have a dollar.|||Usually, a stock split itself won't cause your gains to be recognized. However, if you sell the shares then the capital gains are difficult to avoid, especially if you want to convert to a fixed income type of investment. Remember, though, that the tax rates on long-term capital gains are fairly low now (maximum of 15% at the federal level).|||There is no additional tax from the stock split. Your cost basis will drop and your quantity will go up in a typical split. You just list the split-adjusted price when you sell.
The main pay to lower capital gains is to have some capital losses in the same year to offset some of the gains, so if some of your stocks have lost money, you can offset a few gains. Then, you can move your money into a different investments.
If you can hold on to the stocks for a period of time and get them treated as long-term capital gains, they'll be taxed at 15% max instead of at the ordinary income rate.|||You have to think about capital gains before you BUY the stock, not after the fact. If you don't want to pay capital gains, you would have needed to buy it inside an IRA account. At this point, it's too late for any of that. The only realistic way to avoid paying taxes now would be to give the entire stock holding to a non-profit charity, and from the sound of things, you want this money for yourself.
The split, itself, will have no effect on capital gains. The gain comes as a result of the difference between what you paid for the whole purchase and what you sell it for as a whole. That is your profit, and that's what you'll pay tax on.
Just as a side comment: 10-12 years is a long time to have your money sitting in a bank account doing nothing. I hope you have something invested in productive securities like stocks.
If it isn't a long term gain yet then certainly wait until it is.|||Simply owning a stock during a split does not ensure capital gains. Technically, the share price of the stock you own goes in half, but you own twice as many stock. It's kind of like having ten dimes and exchanging them for twenty nickels. You sill have a dollar.|||Usually, a stock split itself won't cause your gains to be recognized. However, if you sell the shares then the capital gains are difficult to avoid, especially if you want to convert to a fixed income type of investment. Remember, though, that the tax rates on long-term capital gains are fairly low now (maximum of 15% at the federal level).|||There is no additional tax from the stock split. Your cost basis will drop and your quantity will go up in a typical split. You just list the split-adjusted price when you sell.
The main pay to lower capital gains is to have some capital losses in the same year to offset some of the gains, so if some of your stocks have lost money, you can offset a few gains. Then, you can move your money into a different investments.
If you can hold on to the stocks for a period of time and get them treated as long-term capital gains, they'll be taxed at 15% max instead of at the ordinary income rate.|||You have to think about capital gains before you BUY the stock, not after the fact. If you don't want to pay capital gains, you would have needed to buy it inside an IRA account. At this point, it's too late for any of that. The only realistic way to avoid paying taxes now would be to give the entire stock holding to a non-profit charity, and from the sound of things, you want this money for yourself.
The split, itself, will have no effect on capital gains. The gain comes as a result of the difference between what you paid for the whole purchase and what you sell it for as a whole. That is your profit, and that's what you'll pay tax on.
Just as a side comment: 10-12 years is a long time to have your money sitting in a bank account doing nothing. I hope you have something invested in productive securities like stocks.
What happens to the stock of a publicly traded pink sheet company?
It is currently in chapter 11 with DIP financing. Will they issue new stock? Will they continue to have the same stock? What could possibly happen?|||It totally depends on what happens in bankruptcy court, in some cases the shareholders would receive some sort of compensation if there was any money left after everyone else is taken care of, but in Ch. 11 restructuring that almost always results in a company restructuring in new stock issued afterwards. DIP financing simply allows current debt holders specifically those who participated in the DIP financing the opportunity to have a stake in the new company's equity. 100% of the time when DIP financing is undertaken the company intends to restructure with new stock issued after the process, so current stock in the company will be dissolved as part of the bankruptcy proceedings.|||They will have to merge with the Purple sheet company. Or maybe even the Orange sheet company...|||the bankruptcy court is in charge.
shares may prove to be worthless. or they may not.
place your bets now -- cash only, please.
shares may prove to be worthless. or they may not.
place your bets now -- cash only, please.
What is the difference between option on stock index and option on a stock index future?
I understand what an option is. But what is the difference between option on the stock index and option on the stock index futures?|||The difference is that an option on a stock index has the cash index as the underlying instrument. So, for the S%26amp;P 500 (SPX) options listed on the CBOE, the underlying instrument is the actual S%26amp;P 500 index, the one that gets quoted a lot on TV and in newspapers. These options are cash-settled.
On the other hand, an option on a stock index future has the actual index futures contract as the underlying. So, for the options on the S%26amp;P 500 index futures (e.g. e-mini, ticker ES) that are listed on the CME, the underlying instrument is the e-mini futures contract. These options are either settled into cash (quaterly options) or into the nearst futures contract (serial options). For example, September options have the September futures contract as the underlying and will settle into cash as the options expire at the same time as the underyling futures contract. August options, have the same September futures contract as the underlying, but since August options expire 1 month earlier, they will settle into the September futures contract.
This doesn't seem like a big deal, until you have a calendar spread on, where the two options may have different underlying contracts and thus you have additional basis risk. This risk doesn't exist in cash index options, as all maturities have the same underlying.
There are also differences in the way cash index options and futures options are margined. Cash index options fall under Reg. T., while futures options are under SPAN margining.
Another difference, this applies if you pay tax in the US, is that futures options like futures have favourable tax treatment (40/60).|||the difference is its underlying assets. The first one's value is based on stock index price and the second one's value is based on stock index future.|||It's a useful website for beginners, I suggest you to bookmark it.
http://www.investopedia.com/articles/opt鈥?/a>
On the other hand, an option on a stock index future has the actual index futures contract as the underlying. So, for the options on the S%26amp;P 500 index futures (e.g. e-mini, ticker ES) that are listed on the CME, the underlying instrument is the e-mini futures contract. These options are either settled into cash (quaterly options) or into the nearst futures contract (serial options). For example, September options have the September futures contract as the underlying and will settle into cash as the options expire at the same time as the underyling futures contract. August options, have the same September futures contract as the underlying, but since August options expire 1 month earlier, they will settle into the September futures contract.
This doesn't seem like a big deal, until you have a calendar spread on, where the two options may have different underlying contracts and thus you have additional basis risk. This risk doesn't exist in cash index options, as all maturities have the same underlying.
There are also differences in the way cash index options and futures options are margined. Cash index options fall under Reg. T., while futures options are under SPAN margining.
Another difference, this applies if you pay tax in the US, is that futures options like futures have favourable tax treatment (40/60).|||the difference is its underlying assets. The first one's value is based on stock index price and the second one's value is based on stock index future.|||It's a useful website for beginners, I suggest you to bookmark it.
http://www.investopedia.com/articles/opt鈥?/a>
What happens to my shares of a stock if it is dual and is removed off one exchange?
I currently only a stock that is listed on the NYSE and the Toronto Stock Exchange. As of Friday, the stock is being delisted from the NYSE and the company is going to discontinue its dual listing. What happens to my NYSE shares I own if I hold?|||You may need to change the depository from US to Canada. Or at least when you sell them specify where your shares are held. There may be less liquidity.
In the stock market, what are the general dynamics when there is a company acquisition?
Let's suppose that 2 companies are listed in the stock market, and there is an acquisition:
- What dynamic trends do we see? Does the buyer stock go up or down?
- What happens to the stock of the company that is being bought? Do the companies merge in one stock symbol?
- Any other stuff you wish to share about your acquisition experience?|||purchasing company stock goes down. target company goes up. Simple as that.
It is based on the idea that during the negotiation, the company being bought always knwo more about its prospects and will seek to extract as much value as possible out of the transaction, leaving the acquirer with the situation of having overpaid.
- What dynamic trends do we see? Does the buyer stock go up or down?
- What happens to the stock of the company that is being bought? Do the companies merge in one stock symbol?
- Any other stuff you wish to share about your acquisition experience?|||purchasing company stock goes down. target company goes up. Simple as that.
It is based on the idea that during the negotiation, the company being bought always knwo more about its prospects and will seek to extract as much value as possible out of the transaction, leaving the acquirer with the situation of having overpaid.
Wife sold and repurchased stock she has had for a while, what percent is it taxed?
I got married last year. Earlier that year, my wife had sold stock that she has had for quite a few years, 5+, and repurchased different stock. Basically, she shifted her portfolio around, is this taxable and if so, at which rate? Thanks.|||Yes, it is taxable. The excess of what she sold the stocks for and what she bought them for is long-term (1+ year) capital gain subject to 15% tax rate. She can offset the gain using capital loss, if any. If not, it's taxable.|||Any gain that resulted from the sale is taxable. You are not able to move to one stock from another and avoid tax.|||You didn't say what kind of account the stock was in. If it was in a tax-advantaged (really should be called "tax-deferred) account like an IRA or 401(k), the gain from the stock is not taxable now. Withdrawals will be taxed when she makes them.
If the stock she sold was in a regular brokerage account, then the sale has already been reported to the IRS by the brokerage and needs to be reported on your wife's tax return as well.
If the stock she sold was in a regular brokerage account, then the sale has already been reported to the IRS by the brokerage and needs to be reported on your wife's tax return as well.
What happens to small stock holders when a co, initiates a stock repurchase plan?
Will stock owned have to be relinquished to the company?|||probably not.
most repurchase operations are done in the open market.
***
if you are affected, you'll receive a letter and instructions at your usual address.|||bought, that is. You get cash
most repurchase operations are done in the open market.
***
if you are affected, you'll receive a letter and instructions at your usual address.|||bought, that is. You get cash
How much of the stock solution do you need to add to make 1000 microliters of 1 picomolar plasmid DNA?
In a DNA cloning experiment, the plasmid DNA concentration for the transformation reaction is supposed to be 1 picomolar. A stock solution of 1 micromolar was ordered. How much of the stock solution do you need to add to make 1000 microliters of 1 picomolar plasmid DNA?|||When solutions are diluted or
concentrated, the equality is:
Ms x Vs = M x V
where,
Ms = molarity of stock
Vs = volume of stock
M = new molarity
V = new volume
----------------------------------
For this problem,
M stock x V stock = M plasmid DNA x V plasmid DNA
Solving for V stock:
V stock = (M plasmid DNA x V plasmid DNA) / (M stock) ~(eq1)
where,
M stock = 1 micromolar = 1 碌M = (1x10^-6 M)
M plasmid DNA = 1 picomolar = 1 pM = (1x10^-12 M)
V plasmid DNA = 1000 microliter = 1000 碌L = 1000路(1x10^-6 L)
Substituting numbers into ~(eq1):
V stock = (1 pM x 1000 碌L) / (1 碌M)
canelling-out/dividing 碌
= (1 pM x 1000 L) / (1 M)
canelling-out/dividing M
= 1 p x 1000 L
= 1000 pL
Answer:
*** 1000 pL ***
concentrated, the equality is:
Ms x Vs = M x V
where,
Ms = molarity of stock
Vs = volume of stock
M = new molarity
V = new volume
----------------------------------
For this problem,
M stock x V stock = M plasmid DNA x V plasmid DNA
Solving for V stock:
V stock = (M plasmid DNA x V plasmid DNA) / (M stock) ~(eq1)
where,
M stock = 1 micromolar = 1 碌M = (1x10^-6 M)
M plasmid DNA = 1 picomolar = 1 pM = (1x10^-12 M)
V plasmid DNA = 1000 microliter = 1000 碌L = 1000路(1x10^-6 L)
Substituting numbers into ~(eq1):
V stock = (1 pM x 1000 碌L) / (1 碌M)
canelling-out/dividing 碌
= (1 pM x 1000 L) / (1 M)
canelling-out/dividing M
= 1 p x 1000 L
= 1000 pL
Answer:
*** 1000 pL ***
How do I delete stock symbols and information from my list of stocks in my portfolio?
I want to add and delete stock info from my Yahoo main page. I can add but I can't delete.|||Next to the Portfolio name click on the small [Edit] link this brings you to the edit page.
Under Step 1 make sure the correct Portfolio is showing
Step 2 Symbols (look up symbol):
Use your cursor or the delete key to erase the symbol you no longer want to track. Type in any symbols you want to add.
MOST IMPORTANT Click on the FINISH button.
Go back to your main page and refresh your page. The changes should be there.
Under Step 1 make sure the correct Portfolio is showing
Step 2 Symbols (look up symbol):
Use your cursor or the delete key to erase the symbol you no longer want to track. Type in any symbols you want to add.
MOST IMPORTANT Click on the FINISH button.
Go back to your main page and refresh your page. The changes should be there.
Did the stock market crash because the banks were failing? How do failing stocks affect the economy?
In words that I will be able to understand, can anyone explain to me the correlation between the banks, the housing crisis, and the stock market. And how does the stock market affect the economy itself? I am just beginning to understand what the stock market is, so numbers and statistics are really not helpful.|||Basically it comes down to this:
1. Banks loaned money or gave credit to so-called 'high risk' people who were less likely to pay their debts, hoping that they would run into difficulty and be forced to pay a higher interest rate on the loans and increase the profitability of the loan.
2. Instead of being able to pay when the interest rates increased, lots of these people were unable to continue to pay the higher interest payments, so they defaulted on their loans and were forced into bankruptcy.
3. The banks, who expected customers to keep paying the high interest, were faced with credit cards and loans that were losing money due to huge amounts of bankruptcy.
4. The banks had no money to loan to home buyers.
5. As businesses get into deeper credit trouble, they start laying people off in an attempt to cut costs. As they lose money, the stock market, which is basically a betting shop based on confidence in businesses, is filled with people selling their stock.
6. As the stock prices go down, the companies are perceived as being worth less. That means they will not be able to get loans as easily. In order to stop this, a company may lay off even more people in an effort to appear more profitable.
The result - people and businesses owe more interest than they can pay, businesses go under, the housing market collapses, banks go under, the stock market crashes, unemployment goes through the roof creating a vicious circle (i.e. even more people defaulting on credit and loans) that could have (and still could) result in a 1929-style crash.|||Actually, there is little relation between the two. A rising stock market is a good sign, and a falling market is a bad sign, but most investors are primarily interested in short-term gain, so the market is not much of a measure of the economy as a whole.
Some commentators mistakenly have argued that the return of market levels to those of two years ago means the recession is over. Some truly believe this, but others are cynical who simply want to preserve their own wealth. Most commentators on both TV and radio have incomes that far exceed the average income in the US, and it is in their interest to have the market improve, even as thousands are unemployed, forced into bankruptcy, or lose their homes.|||The falling housing prices meant that people could not pay off their mortgage by selling their house, so many just waked away and let the banks take the loss. The decline also made people less "wealthy" so the reduced their consumption even if they had no change in their income which hurt the economy and profits of companies
The banks lost so much money on the mortgages, and derivatives that many became insolvent so they stopped making loans for home mortgages and businesses. The difficulty getting mortgages reduces sales and made housing prices fall more and Many businesses depend on bank loans so they had to cut back which slowed the economy more and all businesses made less profits.
What people will pay for stocks depends on there expected profits so with profits down the prices of stocks fell. Because of the uncertainty there was some panic and they fell more than they should have just based on the reduced profits
The fall in the stock market also made people feel less wealthy so it further reduced spending causing the economy to get still worse and profits and home price to decline more. For the next step go back to top.|||None of them were the cause. They were all the effect of a larger force.
Economist Harry Dent figured out and wrote in "The Great Boom Ahead" that recessions and depressions are caused by the dominant generation passing it's peak spending years, which is ages 45 to 50. By then their kids are out of the house and out of their wallets. They start saving for retirement. Savers don't boost the economy.
The Great Depression was caused by the Henry Ford generation passing peak spending and it was cured by the Bob Hope generation moving into their peak spending years.
Our current situation is caused by the Baby Boomers passing their peak spending and it will be cured in about 8 to 12 years by the Echo generation entering their peak spending.
New Deals and stimulus packages have only transitory effects.|||The banks was just one of the problems. But you're right. It's mainly the problem. The banks were making bad loans to people who can't afford to pay it back. So, people who have mortgages to their homes have to default. That drops home values. Some people who's house has drop in value significantly decide to just stop paying. So banks are not getting any money from these people. So they can't use the money to loan to businesses who need it. This causes businesses to laid off more people and close down. Since people lost their jobs, they decide to save money instead of spend. If people don't spend, nothing in the economy works.
1. Banks loaned money or gave credit to so-called 'high risk' people who were less likely to pay their debts, hoping that they would run into difficulty and be forced to pay a higher interest rate on the loans and increase the profitability of the loan.
2. Instead of being able to pay when the interest rates increased, lots of these people were unable to continue to pay the higher interest payments, so they defaulted on their loans and were forced into bankruptcy.
3. The banks, who expected customers to keep paying the high interest, were faced with credit cards and loans that were losing money due to huge amounts of bankruptcy.
4. The banks had no money to loan to home buyers.
5. As businesses get into deeper credit trouble, they start laying people off in an attempt to cut costs. As they lose money, the stock market, which is basically a betting shop based on confidence in businesses, is filled with people selling their stock.
6. As the stock prices go down, the companies are perceived as being worth less. That means they will not be able to get loans as easily. In order to stop this, a company may lay off even more people in an effort to appear more profitable.
The result - people and businesses owe more interest than they can pay, businesses go under, the housing market collapses, banks go under, the stock market crashes, unemployment goes through the roof creating a vicious circle (i.e. even more people defaulting on credit and loans) that could have (and still could) result in a 1929-style crash.|||Actually, there is little relation between the two. A rising stock market is a good sign, and a falling market is a bad sign, but most investors are primarily interested in short-term gain, so the market is not much of a measure of the economy as a whole.
Some commentators mistakenly have argued that the return of market levels to those of two years ago means the recession is over. Some truly believe this, but others are cynical who simply want to preserve their own wealth. Most commentators on both TV and radio have incomes that far exceed the average income in the US, and it is in their interest to have the market improve, even as thousands are unemployed, forced into bankruptcy, or lose their homes.|||The falling housing prices meant that people could not pay off their mortgage by selling their house, so many just waked away and let the banks take the loss. The decline also made people less "wealthy" so the reduced their consumption even if they had no change in their income which hurt the economy and profits of companies
The banks lost so much money on the mortgages, and derivatives that many became insolvent so they stopped making loans for home mortgages and businesses. The difficulty getting mortgages reduces sales and made housing prices fall more and Many businesses depend on bank loans so they had to cut back which slowed the economy more and all businesses made less profits.
What people will pay for stocks depends on there expected profits so with profits down the prices of stocks fell. Because of the uncertainty there was some panic and they fell more than they should have just based on the reduced profits
The fall in the stock market also made people feel less wealthy so it further reduced spending causing the economy to get still worse and profits and home price to decline more. For the next step go back to top.|||None of them were the cause. They were all the effect of a larger force.
Economist Harry Dent figured out and wrote in "The Great Boom Ahead" that recessions and depressions are caused by the dominant generation passing it's peak spending years, which is ages 45 to 50. By then their kids are out of the house and out of their wallets. They start saving for retirement. Savers don't boost the economy.
The Great Depression was caused by the Henry Ford generation passing peak spending and it was cured by the Bob Hope generation moving into their peak spending years.
Our current situation is caused by the Baby Boomers passing their peak spending and it will be cured in about 8 to 12 years by the Echo generation entering their peak spending.
New Deals and stimulus packages have only transitory effects.|||The banks was just one of the problems. But you're right. It's mainly the problem. The banks were making bad loans to people who can't afford to pay it back. So, people who have mortgages to their homes have to default. That drops home values. Some people who's house has drop in value significantly decide to just stop paying. So banks are not getting any money from these people. So they can't use the money to loan to businesses who need it. This causes businesses to laid off more people and close down. Since people lost their jobs, they decide to save money instead of spend. If people don't spend, nothing in the economy works.
How about a poll to predict the stock market?
How about a poll to predict the stock market? If these pollsters think they're so smart that they can predict the outcome of the presidential election weeks in advance, why don't they do something useful and have a poll to predict the stock market or something? I'd be curious to know what the stocks will be weeks in advance. |||That would be great!!!|||I would guess it will go up and down like an up-and-downy-thing, just as it always has done.|||Where's the fun in that?!
What's the difference between capital stock and retained earnings?
I am stuck using the accounting equation...
When you pay rent it decreases cash but does it decrease capital stock or retained earnings?
If you receive cash for fees earned, it increases cash but does it increase capital stock or retained earnings?
If you pay salaries does it decrease retained earnings or capital stock?
If you pay dividends it decreases cash but what else?
If you pay interest what does it decrease?
These are questions in the book that it says I should know how to do but I don't. If you feel that you don't want to give me the answers, than just tell me how? PLEASE, THANKS.|||When you pay rent, it decreases cash and increases a rent asset, or it decreases a rent liability if rent were paid after the fact.
Retained earnings doesn't decrease. It is merely a running total of the profit that the company keeps at the end of each accounting year. It is only changed once per year after you close out your accounts, so it won't change when all of these little accounts change mid-year.
Capital stock and retained earnings have nothing to do with the items posted, but I'm not sure about the dividends one. I don't know what other account would be affected.
When you pay rent it decreases cash but does it decrease capital stock or retained earnings?
If you receive cash for fees earned, it increases cash but does it increase capital stock or retained earnings?
If you pay salaries does it decrease retained earnings or capital stock?
If you pay dividends it decreases cash but what else?
If you pay interest what does it decrease?
These are questions in the book that it says I should know how to do but I don't. If you feel that you don't want to give me the answers, than just tell me how? PLEASE, THANKS.|||When you pay rent, it decreases cash and increases a rent asset, or it decreases a rent liability if rent were paid after the fact.
Retained earnings doesn't decrease. It is merely a running total of the profit that the company keeps at the end of each accounting year. It is only changed once per year after you close out your accounts, so it won't change when all of these little accounts change mid-year.
Capital stock and retained earnings have nothing to do with the items posted, but I'm not sure about the dividends one. I don't know what other account would be affected.
How does Investing in stock exchange work?
I'm planning to invest in stock exchange someday.
Help me understand how stock exchange works. What are the things I need to know?|||Well you can invest in a stock exchange now because some of them are publicly traded but I think you meant invest in a stock. There are lots of good books and online information for doing this but I like some of the free information you can get from the Motley Fool web site or their books. Don't be fooled by the name.
http://www.fool.com/how-to-invest/index.鈥?/a>
The first thing you will need is a brokerage account, preferably with a discount broker. The Motley Fool can help with that too.
Then you need a reason to invest in some company, mutual fund or ETF. Until you know what you want to invest in and why, you will just be gambling. Nothing wrong with that but your returns will be probably be random.
You may have to do some reading to find your reason but that's part of the fun. Good luck!
Oh, I almost forgot. It also helps to have some money that you can put into that brokerage account to start with.
Help me understand how stock exchange works. What are the things I need to know?|||Well you can invest in a stock exchange now because some of them are publicly traded but I think you meant invest in a stock. There are lots of good books and online information for doing this but I like some of the free information you can get from the Motley Fool web site or their books. Don't be fooled by the name.
http://www.fool.com/how-to-invest/index.鈥?/a>
The first thing you will need is a brokerage account, preferably with a discount broker. The Motley Fool can help with that too.
Then you need a reason to invest in some company, mutual fund or ETF. Until you know what you want to invest in and why, you will just be gambling. Nothing wrong with that but your returns will be probably be random.
You may have to do some reading to find your reason but that's part of the fun. Good luck!
Oh, I almost forgot. It also helps to have some money that you can put into that brokerage account to start with.
How do you know the Grant Date of a Stock you sold?
We buy stocks thru my husbands company and 2006 we sold the stock, I am trying to do our taxes thru Turbo Tax and it keeps asking for the grant date of the stock. I am not sure what this means? I have always used Turbo Tax and I am now stuck because of this stock sale, I can not figure it out. I do not really want to pay someone to do my otherwise easy taxes. Thanks.|||"Grant date" is not the usual term for the purchase date of stock. This suggests to me that you're answering a question about stock options.
In any case, I think what you're asking is "what is the purchase date?" You husband, I'm sure, kept records. If the stocks were purchased automatically through a payroll deduction, the information is available on his pay stubs.
However, the date the amount was deducted may not be the purchase date. For this, he'll need to broker's statements. If he hasn't kept copies, he can request them (for a small fee) from the broker.
If these were repeated purchases, you do not need to specify every purchase. You can simply put "various" as the purchase date. However, in doing so, you'll be paying the "short term" gain rate, which is higher than the "long term" rate. If he has shares that were held for over a year, it's best to create two sets: held for under a year (mark as "various") and held over a year (use the most recent purchase date). Then, split up the sale to correspond to the number of shares in each set.
Hope this helps. Double check that you'll filling out stock and not options. If you're using Turbo Taxes "employee stock purchase plan (ESPP)" section, it should provide help to answering the questions. Use TT's online help.|||It sounds like it's a stock option that he exercised. The grant date is on the stock option award paperwork that he received from his employer.|||You should have paperwork from the years you purchased the stock (or rewarded the stock). If not, if the stock grants through your husbands employer is handled through HR you should be able to get that info from them. Will it accept "various" ?
http://www.irs.gov/irb/2004-16_IRB/ar10.鈥?/a> Hope this helps.
good luck %26amp; bless
In any case, I think what you're asking is "what is the purchase date?" You husband, I'm sure, kept records. If the stocks were purchased automatically through a payroll deduction, the information is available on his pay stubs.
However, the date the amount was deducted may not be the purchase date. For this, he'll need to broker's statements. If he hasn't kept copies, he can request them (for a small fee) from the broker.
If these were repeated purchases, you do not need to specify every purchase. You can simply put "various" as the purchase date. However, in doing so, you'll be paying the "short term" gain rate, which is higher than the "long term" rate. If he has shares that were held for over a year, it's best to create two sets: held for under a year (mark as "various") and held over a year (use the most recent purchase date). Then, split up the sale to correspond to the number of shares in each set.
Hope this helps. Double check that you'll filling out stock and not options. If you're using Turbo Taxes "employee stock purchase plan (ESPP)" section, it should provide help to answering the questions. Use TT's online help.|||It sounds like it's a stock option that he exercised. The grant date is on the stock option award paperwork that he received from his employer.|||You should have paperwork from the years you purchased the stock (or rewarded the stock). If not, if the stock grants through your husbands employer is handled through HR you should be able to get that info from them. Will it accept "various" ?
http://www.irs.gov/irb/2004-16_IRB/ar10.鈥?/a> Hope this helps.
good luck %26amp; bless
What happens to unvested stock options when a public company goes private?
If a public company gets taken over by private equity investors, what is the typical handling of employee stock options ? The stock options are given as incentive, so it would be unfair to ignore them even if they are unvested. On the other hand, determining a fair value for them is difficult. Would love to hear from people who have gone through this process or have the legal expertise to comment on this situation.|||You can keep them as unissued stock or you can delete them. It all depends upon how you set the company up legally.
What happens to my stock options after I leave a company?
If I had stock options and left a company and that company got bought. I had already excercised my grant, but did not "excersie" my options (sell the stock). Does it get converted into the stock of the other company? Or do I lose the ability to sell the stock after a certain date and basically lose it all once the other company has completed the sale of stock?|||Your employer may require you to sell your shares when you leave the plan. You can then roll the proceeds into an IRA or to your new employer鈥檚 plan. Or, if your old plan allows, you can roll your shares from the plan directly into a rollover IRA established through a broker.
Check with your former employer about the rules governing the buying and selling of company stock, as well as the tax consequences. It may be to your advantage to take your distribution in stock rather than cash.|||You were awarded stock options. You exercised them (purchased the stock). Is that correct?
Now the company has been bought out. You have the same rights as anyone who purchased stock in the original company.
If the new company purchased the old company, they would have issued you new stock in the name of the new company to replace what you had in the old company, since the old company no longer exists.
You should have received notification of this. If you are in question, call a stock broker and ask about your stock. Give the broker the information on your stock certificate(s) you received when you exercised your purchase option.
Check with your former employer about the rules governing the buying and selling of company stock, as well as the tax consequences. It may be to your advantage to take your distribution in stock rather than cash.|||You were awarded stock options. You exercised them (purchased the stock). Is that correct?
Now the company has been bought out. You have the same rights as anyone who purchased stock in the original company.
If the new company purchased the old company, they would have issued you new stock in the name of the new company to replace what you had in the old company, since the old company no longer exists.
You should have received notification of this. If you are in question, call a stock broker and ask about your stock. Give the broker the information on your stock certificate(s) you received when you exercised your purchase option.
How will the online websites get the stock prices from stock market?
e.g. yahoo finance, rediff site, icici website etc... get the stock quote of a given symbol. From where will they get the data and how will they get the data? Will somebody in the stock market sitting and seeing the board and sending the data? Or NSE/BSE is transmitting data on some port where these websites are listening and providing them?|||Thee stock tickers are public domain.....all they need do is subscribe to the service.. and BOOM they have them...
Remember back in the 1920's.. people actually had stock tickers in their offices.....|||I imagine they pay a fee to the exchange to be provided with stock quotes. Many places build in a delay, so that they are not responisble if the quotes are not real time.|||same place any broker gets it == off the internet for a fee!!!!
Remember back in the 1920's.. people actually had stock tickers in their offices.....|||I imagine they pay a fee to the exchange to be provided with stock quotes. Many places build in a delay, so that they are not responisble if the quotes are not real time.|||same place any broker gets it == off the internet for a fee!!!!
What is a cheap stock to invest a lot of money in?
If I had $200,000 dollars to invest all in ONE stock, what would be the best? Preferably a cheap one, 5$ or under. I am playing a virtual stock market game and I need to win to pass the class.|||The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare. These are DEFENSIVE stocks that will survive through good and bad times. Most of my positions are in these stocks. Some names include 3M, Procter %26amp; Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco. Everybody's got to eat and wipe their butts regardless of the state of economy. Many of these companies survived through the Great Depression.
That's the benefits. You can sleep at night knowing your money is doing well. There are NO guarantees that you won't lose money. It's just that these stocks are the best. They pay good dividends too.|||It is not desirable to invest in a stock just because it is cheap. You should consider the reputation of the company and also go through the quarterly statement to know in which direction the company is going.|||You misunderstand what the term "cheap stock" means. A stock is not "cheap" based on it's share price - it is "cheap" or "expensive" based on projected earnings and P/E ratio.|||pick a recent IPO. any industry that you think has good prospects.
IPOs have to be slightly underpriced when they're first offered, or the market wouldn't buy them -- the company, by definition, is less well known than firms already trading and thus more risky. Higher risk means lower relative price in order to allow for greater returns to the person who accepts the risk.|||try this:
http://www.insurance.2arz.com|||remember this....Most stocks sitting under $10.00 a share are there for a reason. Its cheaper to buy a $200 like AAPL than it is say a company like C @ $3.30
Its all in their bottom line and findamentals going forward.
That's the benefits. You can sleep at night knowing your money is doing well. There are NO guarantees that you won't lose money. It's just that these stocks are the best. They pay good dividends too.|||It is not desirable to invest in a stock just because it is cheap. You should consider the reputation of the company and also go through the quarterly statement to know in which direction the company is going.|||You misunderstand what the term "cheap stock" means. A stock is not "cheap" based on it's share price - it is "cheap" or "expensive" based on projected earnings and P/E ratio.|||pick a recent IPO. any industry that you think has good prospects.
IPOs have to be slightly underpriced when they're first offered, or the market wouldn't buy them -- the company, by definition, is less well known than firms already trading and thus more risky. Higher risk means lower relative price in order to allow for greater returns to the person who accepts the risk.|||try this:
http://www.insurance.2arz.com|||remember this....Most stocks sitting under $10.00 a share are there for a reason. Its cheaper to buy a $200 like AAPL than it is say a company like C @ $3.30
Its all in their bottom line and findamentals going forward.
What happens to a stock's price after the company increases the amount of common stock?
Lets say they double the amount of common stock, will the price fall? Will the price fall soon after they announce it or will it fall when they issue it? Will it fall at all?|||It depends whether investors figure they will invest that money wisely to expand their business and increase earnings. Some people "sell the news" before they figure out what is going on. Doubling the stock can make many people bail out thinking their stock is worth half as much, but if the announcement was in preparation for a stock split, you could end up with twice as many shares.
In some cases the dip can be a buying opportunity. I was looking at a stock that had made a run up after excellent earnings. Then they announced that they were going to sell $100 million in convertible notes. It dropped like a rock back to where it was just before earnings, so I bought some. But the business has been all cash (no borrowed money until now), and $56 million will pay for a plant to be completed in August that will double their capacity. The rest may be used for acquisitions. It shook out some weak hands for a couple of days and now is moving back up.|||Oh yes it falls alright. Its called being diluted. Its exactly the same thing as inflation with currency. When Sirius kpt issuing more shares I got clobbered. The only way to offset that was to keep buying more shares. Everytime the stock had a small bounce back, Clayton would issue another public offering. The stock hit a low of 37 cents per share as a result of the dilution. Because I kept buying all the way down, when the stock went back to $5 a share I made alot because my cost average was $2 a share on 50,000 shares. They usually fall the second the announcement of the public offering is made. The stock usually falls to about the amount of the price that the stock is being offered at in the announcement in the public offering.|||by increasing the amount of common stock a company is looking to get an influx of capital, the effect on price is a complicated senario. if you are looking to invest for the long haul then buy some mut funds or etf's. dont think that you can pick stocks and become rich overnite, investing is very complicated, the brightest minds on the planet are wrong many times|||All things being equal if supply goes up and demand stays the same, price will fall. It would also depend on what they intend to do with the proceeds from the sale of stock. If they invest it above the company's cost of capital it could rise.|||Try %26lt;---http://earn-cash-today.com/stock
Good luck!
In some cases the dip can be a buying opportunity. I was looking at a stock that had made a run up after excellent earnings. Then they announced that they were going to sell $100 million in convertible notes. It dropped like a rock back to where it was just before earnings, so I bought some. But the business has been all cash (no borrowed money until now), and $56 million will pay for a plant to be completed in August that will double their capacity. The rest may be used for acquisitions. It shook out some weak hands for a couple of days and now is moving back up.|||Oh yes it falls alright. Its called being diluted. Its exactly the same thing as inflation with currency. When Sirius kpt issuing more shares I got clobbered. The only way to offset that was to keep buying more shares. Everytime the stock had a small bounce back, Clayton would issue another public offering. The stock hit a low of 37 cents per share as a result of the dilution. Because I kept buying all the way down, when the stock went back to $5 a share I made alot because my cost average was $2 a share on 50,000 shares. They usually fall the second the announcement of the public offering is made. The stock usually falls to about the amount of the price that the stock is being offered at in the announcement in the public offering.|||by increasing the amount of common stock a company is looking to get an influx of capital, the effect on price is a complicated senario. if you are looking to invest for the long haul then buy some mut funds or etf's. dont think that you can pick stocks and become rich overnite, investing is very complicated, the brightest minds on the planet are wrong many times|||All things being equal if supply goes up and demand stays the same, price will fall. It would also depend on what they intend to do with the proceeds from the sale of stock. If they invest it above the company's cost of capital it could rise.|||Try %26lt;---http://earn-cash-today.com/stock
Good luck!
How to put pharmaceutical product company on stock exchange?
Hi.
I am looking to put a new pharmaceutical company on stock exchange.
We have a great brand new product that is already selling well.
We are looking to expand and wondering how and where put our company on stock exchange.
I heard about OTCBB.
Which stock exchange we should use?|||If you're asking on yahoo then you won't be able to.
You would go to an investment bank and they would offer your shares.
OTC isn't an exchange, it refers to stocks that are traded over the counter because they aren't eligible to trade on an exchange.
I am looking to put a new pharmaceutical company on stock exchange.
We have a great brand new product that is already selling well.
We are looking to expand and wondering how and where put our company on stock exchange.
I heard about OTCBB.
Which stock exchange we should use?|||If you're asking on yahoo then you won't be able to.
You would go to an investment bank and they would offer your shares.
OTC isn't an exchange, it refers to stocks that are traded over the counter because they aren't eligible to trade on an exchange.
What happens to a company when the stock becomes worthless?
For example, if you buy into a penny stock at $0.04 and then the companies stock decreases to 0.03 then 0.02, 0.01 and eventually 0.00. When a stock becomes valued at $0.00 what happens to the company? What happens to the investor?|||You've got that backwards, the company became worthless hence the stock becomes worthless not the other way around. Nothing happens to the investor, he just winds up owning shares in a worthless company, mind you the reason why they're trading for pennies is that the possibility that they might make it big multiplied by the probability that they might make it big results in mere pennies if you're lucky in value.
Note that penny stocks are difficult to trade in because of liquidity issues, the possibility of price manipulations, the fact that these companies are either barely starting up or on their way out, they're too small for most numerical indicators to have any meaning and the difficulty in researching relatively unknown companies. If you're asking something as basic as what happens when the stock becomes worthless, you really shouldn't be thinking of penny stocks.|||The simple mechanics of this are as follows:
1) Phone your broker, let them know you are holding a stock which has no market available. This only applies if you held a stock on a regulated exchange (IE Nasdaq), the company ceased operations and have stated as much publicly. Pink Sheets for example, generally always have a market.
2) Your broker will send you a "security disposition form" or something along those lines. In essence this form states that there is no market remaining in said security and/or there is a cease trading order in effect which prohibits your sale of said securities.
3) You must willingly gift said security to your brokerage and allow them to dispose of it by any means necessary.
4) Remember that any tax implications following said disposition are your responsibility.
Hope this helps|||Penny stocks are a waste of time to fool with. No serious investor messes with them. You want stocks with a min. value of AT LEAST $25. No one ever made good money with penny stocks. I suspect most of them are either scams or wannabes.|||Usually it's the company becoming worthless that CAUSES the stock to become worthless - not the other way around. As for the investor, he loses his investment.
Note that penny stocks are difficult to trade in because of liquidity issues, the possibility of price manipulations, the fact that these companies are either barely starting up or on their way out, they're too small for most numerical indicators to have any meaning and the difficulty in researching relatively unknown companies. If you're asking something as basic as what happens when the stock becomes worthless, you really shouldn't be thinking of penny stocks.|||The simple mechanics of this are as follows:
1) Phone your broker, let them know you are holding a stock which has no market available. This only applies if you held a stock on a regulated exchange (IE Nasdaq), the company ceased operations and have stated as much publicly. Pink Sheets for example, generally always have a market.
2) Your broker will send you a "security disposition form" or something along those lines. In essence this form states that there is no market remaining in said security and/or there is a cease trading order in effect which prohibits your sale of said securities.
3) You must willingly gift said security to your brokerage and allow them to dispose of it by any means necessary.
4) Remember that any tax implications following said disposition are your responsibility.
Hope this helps|||Penny stocks are a waste of time to fool with. No serious investor messes with them. You want stocks with a min. value of AT LEAST $25. No one ever made good money with penny stocks. I suspect most of them are either scams or wannabes.|||Usually it's the company becoming worthless that CAUSES the stock to become worthless - not the other way around. As for the investor, he loses his investment.
What happens if you are short a stock that gets acquired?
Say you short a stock in company A. Company A is being purchased by Company B a few months from now in a stock-for-stock merger transaction on Oct 1st.
What happens to the short position in company A, if an investor holds on up until the merger date (Oct 1)?|||You'll need to cover. No matter what's the price.|||This would be a bad position to be in. You'd have to cover the short position, and in the event of a merger, the acquired company's stock usually gets run up because the purchaser usually winds up paying a premium for it.|||The broker will call your position and demand you cover.
What happens to the short position in company A, if an investor holds on up until the merger date (Oct 1)?|||You'll need to cover. No matter what's the price.|||This would be a bad position to be in. You'd have to cover the short position, and in the event of a merger, the acquired company's stock usually gets run up because the purchaser usually winds up paying a premium for it.|||The broker will call your position and demand you cover.
Why might some stockholders be included to buy preferred stock rather than common stock? What are the advantag?
Why might some stockholders be included to buy preferred stock rather than common stock? What are the advantages of investing in preferred stock?|||Preferred Stock is alot like Bonds, they are mainly debt that never matures. The advantage is that sometimes they earn more then bonds and if the company goes bankrupt they will receive funds from the liquidation before common stock holders.|||I am assuming you meant inclined, not included. Preferred stockholders have a higher claim if the company goes bankrupt or liquidates. Common stockholders are the last in line to get paid off. Preferred holders are above them. Also preferred holders get paid dividends, if dividends are paid, before common stockholders And corporations who hold preferred stock can deduct at least part of the dividends paid to it.|||Dividends is the primary reason. Preferred stock generally pays higher dividends than the common stock. A second reason although probably of little real importance is that preferred share holders are ahead of common share holders in claims upon the assets of the company in case of liquidation.
What is the required rate of return on the stock?
Cartwright Brother's stock is currently selling for $40 a share. The stock is expected to pay a $2 dividend today. The stock's dividend is expected to grow at a constant rate of 7% per year forever. What is the required rate of return on the stock?|||Theoretically the stock price would grow related to earnings and dividend growth. But nothing is certain or guaranteed, so it can change in an instant based on what investors think will happen. You cannot count on anything happening forever.
What is the working hour and schedule of a stock trader and stock investor?
I would also be very grateful if someone would explain how stressful it is to be a stock trader and stock investor, if they are considered the same profession but 1 “trades” and the other “invests”, and if people with those jobs need stock brokers for transactions even if it’s their main profession. Also, is it better to have other jobs while having one of these occupations than not to have other jobs?|||Here's a good reference for financial terms and definitions:
http://www.investopedia.com/terms/t/time…
An investor has a longer time horizon than a trader;
What Does Time Horizon Mean?
The length of time over which an investment is made or held before it is liquidated. Time horizons can range from seconds, in the case of a day trader, all the way up to decades for a buy-and-hold investor. There is no "right" time frame - it depends on the investor's individual objectives. Investopedia explains Time Horizon
Knowing your time horizon is extremely important when it comes to choosing the type of investments you want and your asset allocation. All things being equal, you can afford to be more aggressive with a longer time horizon. For example, most advisors would recommend that the asset allocation of a 30 year old be more heavily weighted in equities than that of someone who is close to retirement.
That said, age isn't the only determinant of time horizon. A 30 year old who is saving money for a down payment on a house in one year would be investing with a one-year time horizon, despite the fact that retirement is years away. Given the short time frame, it would be prudent to invest more conservatively because there is little time to make up any losses.
What Does Trader Mean?
An individual who engages in the transfer of financial assets in any financial market, either for themselves, or on behalf of a someone else. The main difference between a trader and an investor is the duration for which the person holds the asset. Investors tend to have a longer term time horizon, whereas traders tend to hold assets for shorter periods of time in order to capitalize on short-term trends.
Investopedia explains Trader
One main problem with engaging in short-term trading is commission costs. Because traders frequently engage in short-term trading strategies to chase after profit; they often rack up large commission fees. However, an increasing number of highly competitive discount brokerages has made this cost less of an issue.
You don't seem to realize how general your questions are. Think for a moment if I were to ask you how stressful a job a doctor has? The question is too general.
Are we talking about a brain surgeon or a foot doctor? Some traders have screaming going on around them, I have the peace and quiet of my own home. It's still as stressful as an air traffic controller, and the hours are long; forget ever having a lunch break again or an evening with the kids. I have to check in and see what crisis has developed in Europe and update my charts and research my stocks and draw my trendlines, and a whole bunch of other stuff before the market opens again. I also like to trade the British Pound at the London open, which is in the middle of the night here in the US.
An investor can look at his stock investments on the weekend and work a different job during the week.
http://www.investopedia.com/terms/t/time…
An investor has a longer time horizon than a trader;
What Does Time Horizon Mean?
The length of time over which an investment is made or held before it is liquidated. Time horizons can range from seconds, in the case of a day trader, all the way up to decades for a buy-and-hold investor. There is no "right" time frame - it depends on the investor's individual objectives. Investopedia explains Time Horizon
Knowing your time horizon is extremely important when it comes to choosing the type of investments you want and your asset allocation. All things being equal, you can afford to be more aggressive with a longer time horizon. For example, most advisors would recommend that the asset allocation of a 30 year old be more heavily weighted in equities than that of someone who is close to retirement.
That said, age isn't the only determinant of time horizon. A 30 year old who is saving money for a down payment on a house in one year would be investing with a one-year time horizon, despite the fact that retirement is years away. Given the short time frame, it would be prudent to invest more conservatively because there is little time to make up any losses.
What Does Trader Mean?
An individual who engages in the transfer of financial assets in any financial market, either for themselves, or on behalf of a someone else. The main difference between a trader and an investor is the duration for which the person holds the asset. Investors tend to have a longer term time horizon, whereas traders tend to hold assets for shorter periods of time in order to capitalize on short-term trends.
Investopedia explains Trader
One main problem with engaging in short-term trading is commission costs. Because traders frequently engage in short-term trading strategies to chase after profit; they often rack up large commission fees. However, an increasing number of highly competitive discount brokerages has made this cost less of an issue.
You don't seem to realize how general your questions are. Think for a moment if I were to ask you how stressful a job a doctor has? The question is too general.
Are we talking about a brain surgeon or a foot doctor? Some traders have screaming going on around them, I have the peace and quiet of my own home. It's still as stressful as an air traffic controller, and the hours are long; forget ever having a lunch break again or an evening with the kids. I have to check in and see what crisis has developed in Europe and update my charts and research my stocks and draw my trendlines, and a whole bunch of other stuff before the market opens again. I also like to trade the British Pound at the London open, which is in the middle of the night here in the US.
An investor can look at his stock investments on the weekend and work a different job during the week.
How does this work when you buy stock and then the company is sold?
I recently bought stock in a troubled bank, cheap. The troubled bank has been bought buy another, larger bank, their stock is much more expensive. Will my stock now grow to the higher price? How does this work?
Thanks for your input.
|||Based on the merger agreement of your previous bank, you will receive prorated shares of the new bank. Read the merger agreement which you should receive in the mail. Usually, the first page describe the ratio under which the old shares are converted to the new shares.
For example, you owned 300 shares of the acquired bank. The merger agreeement specified the shares would be converted 3 to 1 ratio. You then will receive 100 shares of the new bank. If the purchase by the large bank is a "Cash Merger," you will receive a check based on how much the acquiring bank agreed to pay to the shareholders of the acquired bank.|||It will not grow to the same price of the other company, but you may get one share of the new company for every fifty or sixty shares of the old company. If this comes out to be less than one share, they will pay you for the fractional share.
If they only got a controlling interest, the old stock may still be traded on the pink sheets for just a few cents per share.
Thanks for your input.
|||Based on the merger agreement of your previous bank, you will receive prorated shares of the new bank. Read the merger agreement which you should receive in the mail. Usually, the first page describe the ratio under which the old shares are converted to the new shares.
For example, you owned 300 shares of the acquired bank. The merger agreeement specified the shares would be converted 3 to 1 ratio. You then will receive 100 shares of the new bank. If the purchase by the large bank is a "Cash Merger," you will receive a check based on how much the acquiring bank agreed to pay to the shareholders of the acquired bank.|||It will not grow to the same price of the other company, but you may get one share of the new company for every fifty or sixty shares of the old company. If this comes out to be less than one share, they will pay you for the fractional share.
If they only got a controlling interest, the old stock may still be traded on the pink sheets for just a few cents per share.
What is the difference between share price movements and stock exchange?
I know share price movements is the fluctuations or change in share price of a company in a given time period right?
I've been searching around for stock exchange (share market) and know that share price and stock exchange is somehow related.
If i am correct, is share price movements of a company will be shown in a stock exchange report?
I am confuse about what is stock exchange and what does it actually means..
|||Muffin,
If a company is publicly owned (i.e., you can buy and sell the shares with relative ease), the shares of ownership usually will be sold on a stock exchange, like the NYSE, NASDAQ, over the counter bulletin board, etc. There are stock exchanges all over the world, like the FTSE, DAX, etc. Google any of these abbreviations and you'll get a number of hits.
The stock exchange is merely a place where the shares or stock of a company are bought and sold - hence the word "exchange."
The stock exchange regularly reports the activity of buying and selling of all the stocks on their exchange (all the companies that have their stock bought or sold on the exchange - also known as listed on the exchange).
So the share price isn't related to exchange - the share price is what is agreed to between a buyer and a seller. The interesting thing is the buyer and seller don't meet to consumate the transaction - they do it through the exchange. A buyer may buy at the market price (what is being asked by the seller) or may issue a limit order (I won't pay more than X amount). Likewise the seller has the same options as a buyer - issue a market or a limit order.
Here's a link that you examine:
http://ezinearticles.com/?How-Does-the-S鈥?/a>
Good luck.
I've been searching around for stock exchange (share market) and know that share price and stock exchange is somehow related.
If i am correct, is share price movements of a company will be shown in a stock exchange report?
I am confuse about what is stock exchange and what does it actually means..
|||Muffin,
If a company is publicly owned (i.e., you can buy and sell the shares with relative ease), the shares of ownership usually will be sold on a stock exchange, like the NYSE, NASDAQ, over the counter bulletin board, etc. There are stock exchanges all over the world, like the FTSE, DAX, etc. Google any of these abbreviations and you'll get a number of hits.
The stock exchange is merely a place where the shares or stock of a company are bought and sold - hence the word "exchange."
The stock exchange regularly reports the activity of buying and selling of all the stocks on their exchange (all the companies that have their stock bought or sold on the exchange - also known as listed on the exchange).
So the share price isn't related to exchange - the share price is what is agreed to between a buyer and a seller. The interesting thing is the buyer and seller don't meet to consumate the transaction - they do it through the exchange. A buyer may buy at the market price (what is being asked by the seller) or may issue a limit order (I won't pay more than X amount). Likewise the seller has the same options as a buyer - issue a market or a limit order.
Here's a link that you examine:
http://ezinearticles.com/?How-Does-the-S鈥?/a>
Good luck.
Friday, September 23, 2011
What stops a company from selling unlimited stock to the public?
what stops a company from selling a lot of stock to the public? (lets say this company is really popular and lots of people want to buy their shares of this company, so there is no shortage of buyers in primary and secondary market)? I guess it could devalue the price of the stock, but still, that company would get a lot of money, especially if it sells a huge amount of stock in one shot.|||What stops them? The basic answer is state law, stock market rules and SEC regulation.
When each company is formed, they draw up governing documents, called a charter and bylaws, that dictate how the company is structured and the specific rights of shareholders. The charter specifically states the total number of shares that company may issue. Once a company has issued that total number of shares, they can not, by the laws of the state that they are incorporated in, issue any more.
A company can increase the number of shares authorized, but this will require shareholder approval. Shareholders are not apt to allow companies to drastically increase the number of shares they can issue, as this will dilute the existing shareholder's stake in the company. What dilute means is that each additional share that is issued will decrease the ownership stake represented by each share - thus shrinking the value of a shareholder's stake.
Even if a company has a lot of authorized, but unissued shares, a company listed on any of the major US exchanges can not just issue out a load of shares. The exchanges have rules that prevent companies from issuing new shares that would represent 10% or more than the current outstanding shares without shareholder approval. As stated before, shareholders are hesitant to allow a company to dilute their holdings outside of extraordinary circumstances.
The SEC also prevents companies from just continuously issuing out shares as well. The SEC requires companies to register shares before they can be offered for sale in the public markets. This process is usually expensive and lengthy, which will give existing shareholders plenty of time to dump any company's stock that is planning on undergoing a major dilution.|||A share is called a "share" because it entitles the owner to a claim on a share of the future earnings of the company. Issuing ten times as many shares gives each shareholder only one tenth of the rights. Your question assumes that the potential buyers are stupid and won't be able to figure this out and will pay way more than the share is worth.|||no one will want to buy stock in a company with so many shares outstanding, making it less likely to gain value and create additional value.
check out price fluctuations between GOOG and C as an example. similar market size (give or take) but C has 28.97B shares outstanding, compared to 318.71M of Google|||If you create more stock... to meet demand the shares become "diluted" (worth less)... if you continue to do this.... the buyers would no longer look at the stock as a good "buy"... since they'd see it's earnings per share drop.... they'd be afraid that they'll do it again %26amp; in effect scare off buyers (which ultimately drives the price down)...........................
When each company is formed, they draw up governing documents, called a charter and bylaws, that dictate how the company is structured and the specific rights of shareholders. The charter specifically states the total number of shares that company may issue. Once a company has issued that total number of shares, they can not, by the laws of the state that they are incorporated in, issue any more.
A company can increase the number of shares authorized, but this will require shareholder approval. Shareholders are not apt to allow companies to drastically increase the number of shares they can issue, as this will dilute the existing shareholder's stake in the company. What dilute means is that each additional share that is issued will decrease the ownership stake represented by each share - thus shrinking the value of a shareholder's stake.
Even if a company has a lot of authorized, but unissued shares, a company listed on any of the major US exchanges can not just issue out a load of shares. The exchanges have rules that prevent companies from issuing new shares that would represent 10% or more than the current outstanding shares without shareholder approval. As stated before, shareholders are hesitant to allow a company to dilute their holdings outside of extraordinary circumstances.
The SEC also prevents companies from just continuously issuing out shares as well. The SEC requires companies to register shares before they can be offered for sale in the public markets. This process is usually expensive and lengthy, which will give existing shareholders plenty of time to dump any company's stock that is planning on undergoing a major dilution.|||A share is called a "share" because it entitles the owner to a claim on a share of the future earnings of the company. Issuing ten times as many shares gives each shareholder only one tenth of the rights. Your question assumes that the potential buyers are stupid and won't be able to figure this out and will pay way more than the share is worth.|||no one will want to buy stock in a company with so many shares outstanding, making it less likely to gain value and create additional value.
check out price fluctuations between GOOG and C as an example. similar market size (give or take) but C has 28.97B shares outstanding, compared to 318.71M of Google|||If you create more stock... to meet demand the shares become "diluted" (worth less)... if you continue to do this.... the buyers would no longer look at the stock as a good "buy"... since they'd see it's earnings per share drop.... they'd be afraid that they'll do it again %26amp; in effect scare off buyers (which ultimately drives the price down)...........................
What happens to the stock of shareholders if the company files for bankruptcy?
I am a Sirius XM stock holder, and I'm curious what would happen to my stock if the company filed for bankruptcy.|||As shareholders receive a share of the profits of a company, if there are no profits, the shareholder gets nothing. And if the company goes bankrupt, it is wound down and any assets are liquidated and paid to the creditors. If there is anything left it will be distributed to shareholders. However, that is extremely unlikely - companies usually only file bankruptcy if liabilities exceed assets.|||I have written and warned about avoiding this on or about the fall of 2007 and thereafter.
The answer is the stock will go to zero.
The debt exceeds the assets of the (combined) company. Therefore shareholder value will be wiped out when any bankruptcy is filed then complete.
Don't kid yourself, there is no opportunity here, unless you are looking for deliberate tax losses.
Sold XMSR around $12 or so on or about Dec'ish 2007. Avoided since.
last post on this subject:
"What do you think about SIRI, satelite radio stock?"
http://answers.yahoo.com/question/index;鈥?/a>|||The common shares to "money heaven." They are worthless. I guess you could keep the paper stock certificate as a collector's item like some people keep newspaper articles. Some of my ancestor's had a stock certificate of a Cuban based company which had no value after the Castro revolution.|||I recently sold my shares of siri for .12.. if they dont do a r/s (reverse split) or issue more shares to cover their debt, they will most likely file. Although bankruptcy is not necessarily a bad thing (depending on what chapter they file), in the eyes of the common shareholder its a bad sign and they panic and will well hence a very rapid drop in pps.|||it is going to be " 0" if there is no company ermerge ( or buy ) it. but there is great opportunity if there is company to buy it!
suggestions: do not be greedy in stock market! run asa you get your target profit!
i am from china with 18 years trading experiences . i would like to share it with you if u need in future.
good luck!|||99.44% of the time it becomes worthless. This will most likely be the case with Sirius.
The answer is the stock will go to zero.
The debt exceeds the assets of the (combined) company. Therefore shareholder value will be wiped out when any bankruptcy is filed then complete.
Don't kid yourself, there is no opportunity here, unless you are looking for deliberate tax losses.
Sold XMSR around $12 or so on or about Dec'ish 2007. Avoided since.
last post on this subject:
"What do you think about SIRI, satelite radio stock?"
http://answers.yahoo.com/question/index;鈥?/a>|||The common shares to "money heaven." They are worthless. I guess you could keep the paper stock certificate as a collector's item like some people keep newspaper articles. Some of my ancestor's had a stock certificate of a Cuban based company which had no value after the Castro revolution.|||I recently sold my shares of siri for .12.. if they dont do a r/s (reverse split) or issue more shares to cover their debt, they will most likely file. Although bankruptcy is not necessarily a bad thing (depending on what chapter they file), in the eyes of the common shareholder its a bad sign and they panic and will well hence a very rapid drop in pps.|||it is going to be " 0" if there is no company ermerge ( or buy ) it. but there is great opportunity if there is company to buy it!
suggestions: do not be greedy in stock market! run asa you get your target profit!
i am from china with 18 years trading experiences . i would like to share it with you if u need in future.
good luck!|||99.44% of the time it becomes worthless. This will most likely be the case with Sirius.
Can i make chicken stock from a cooked chicken carcass and raw chicken parts ?
I cooked a chicken last night and want to use the carcass for stock but i've also got extra uncooked chicken parts. Can i chuck it all in the same pot to make stock?|||Absolutely! This makes the best chicken stock for soup or even when you need a little bit of chicken broth for something.
I put everything in a big pot of water, get it boiling, then I lower the temperature and boil for about 2 hours on low. I also cover it, but that is not absolutely necessary. After it is done, I let it cool down a little and start getting all the bones and parts out. The easiest way is through a metal strainer, but getting some of the bigger parts out first with tongs helps.
You should immediately use it or refrigerate if if you plan to use it in the next day or so. If not, I let it cool down a bit more and pour it into ice cube trays and freeze it. Once they are frozen, I empty the cubes into freezer safe ziplock bags and put them back in the freezer. This way you can easily use a little or a lot when you need it.|||Yes. For a deeper more flavor stock, you should "paint" the cooked carcass and raw bones with tomato paste before you roast them. I would roast at 350F for 30 minutes. The tomato paste should be a deep maroon color, not burnt. After you have roasted the bones proceed as usual with the stock. For even more flavor. Hack the larger (leg and thigh) bones with a meat cleaver so the marrow is exposed before roasting. The natural gelatin in the bones will add a better palate feel to your finished soup or sauce. Happy cooking!|||Yes, you can. That's a great way to use up the carcass as well as the other uncooked parts.....except..............the liver and gizzard. They are organ meat and will impart a different flavor into the stock. I recommend adding in some carrots, celery, onion, bay leaf, salt and pepper for the most flavorful stock possible.|||yes you can, I often do. Just chuck your chicken in a nice big pan with an onion, quartered, a carrot chunkily cut, a couple of bay leaves, a few pepper corns and a couple of cloves. barely cover with water, bring to a boil then simmer, gently for 3 hours.
Strain into a large jug.
I then fill those little ice cube bags with the stock and freeze. Then you can defrost just the right amount when needed.|||Just simmer the parts (assuming you want to eat them and not just use them for stock). If you boil them, it will be tough. The carcass can be added at the same time. Remove the parts after about 40 minutes and remove the meat to do something else with and put the bones back in the stock pot.|||Certainly you can. It's best to add some chopped onion, leeks and carrots to it though, along with some salt and some ground black pepper. Bring to the boil, then let it simmer for around a half hour or so. Strain to recuperate just the liquid, (bouillon), it will be really tasty made this way.|||I am not "skint", but always bung the carcass into a big pot with stuff like lentils, rice, sweetcorn, peas, spuds, whatever.
Let it simmer away for a good while, and it is called "Dads bone stew"
It works !|||Sure you can. Brown that carcass in the oven for a nice brown chicken stock. Cover with water and simmer away. Its gonna be even better since you saved them bones!|||yes just boil it foe 50 min then drain
I put everything in a big pot of water, get it boiling, then I lower the temperature and boil for about 2 hours on low. I also cover it, but that is not absolutely necessary. After it is done, I let it cool down a little and start getting all the bones and parts out. The easiest way is through a metal strainer, but getting some of the bigger parts out first with tongs helps.
You should immediately use it or refrigerate if if you plan to use it in the next day or so. If not, I let it cool down a bit more and pour it into ice cube trays and freeze it. Once they are frozen, I empty the cubes into freezer safe ziplock bags and put them back in the freezer. This way you can easily use a little or a lot when you need it.|||Yes. For a deeper more flavor stock, you should "paint" the cooked carcass and raw bones with tomato paste before you roast them. I would roast at 350F for 30 minutes. The tomato paste should be a deep maroon color, not burnt. After you have roasted the bones proceed as usual with the stock. For even more flavor. Hack the larger (leg and thigh) bones with a meat cleaver so the marrow is exposed before roasting. The natural gelatin in the bones will add a better palate feel to your finished soup or sauce. Happy cooking!|||Yes, you can. That's a great way to use up the carcass as well as the other uncooked parts.....except..............the liver and gizzard. They are organ meat and will impart a different flavor into the stock. I recommend adding in some carrots, celery, onion, bay leaf, salt and pepper for the most flavorful stock possible.|||yes you can, I often do. Just chuck your chicken in a nice big pan with an onion, quartered, a carrot chunkily cut, a couple of bay leaves, a few pepper corns and a couple of cloves. barely cover with water, bring to a boil then simmer, gently for 3 hours.
Strain into a large jug.
I then fill those little ice cube bags with the stock and freeze. Then you can defrost just the right amount when needed.|||Just simmer the parts (assuming you want to eat them and not just use them for stock). If you boil them, it will be tough. The carcass can be added at the same time. Remove the parts after about 40 minutes and remove the meat to do something else with and put the bones back in the stock pot.|||Certainly you can. It's best to add some chopped onion, leeks and carrots to it though, along with some salt and some ground black pepper. Bring to the boil, then let it simmer for around a half hour or so. Strain to recuperate just the liquid, (bouillon), it will be really tasty made this way.|||I am not "skint", but always bung the carcass into a big pot with stuff like lentils, rice, sweetcorn, peas, spuds, whatever.
Let it simmer away for a good while, and it is called "Dads bone stew"
It works !|||Sure you can. Brown that carcass in the oven for a nice brown chicken stock. Cover with water and simmer away. Its gonna be even better since you saved them bones!|||yes just boil it foe 50 min then drain
Can I transfer appreciated stock to a minor child with no income, sell it, then pay taxes at their rate?
I have appreciated company stock that I have held over one year. I purchased it with the intention of using it for my childrens (age15 and 16) college education. I would like to gift it to them, then they could sell it. Since capital gains tax goes to 0% in 2008 for low income people, and at best they will have part time jobs, I could save the capital gains tax on the gain, allowing them more for college. This will lower their chance of grant money, but I think we make too much anyway (combined $130,000).
Could I do this to avoid paying capital gains? The stock is in my name, can my wife and I each gift $12,500 per year (or do I need to transfer some to her first)? Would she have to wait to gift it? Do the kids need to hold it an additional year to get long term capital gains?|||The gift amount is $12,000. You can gift it to them, and you would be gifting it to them at current market value, but their basis would be your original cost basis. The only thing is, since the stock is not in your wife's name at all, she can't gift it, because she doesn't own any of it. I also don't know about adding her name to the stock to make it joint, and then gifting it to your kids, as the IRS may say it's just a sham transaction done to avoid taxes, and disallow it.
Also, unearned income for a childer under age 18 that exceeds an annual inflation-adjusted amount generally is taxed at the parents highest marginal rate. This is done to lessen the effectiveness of intra-family transfers of income-producing property that would shift income from the parents' high marginal tax rate to the child's generally lower tax bracket. The age used to be under age prior to 2006, but was increased to 18 as part of Tax Increase Prevention and Reconciliation Act of 2005.
For 2006 the amount that could be shielded was $1,700 ($850 standard deduction for a child without earned income, and $850 used to calculate the net unearned income reported on the "kiddie tax" return.)
Looks like you're possibly out of luck on getting it taxed at your kids' rates since they are under 18.|||You could try - but you should probably get a lawyer/accountant to look it over to make sure you've got your ducks in a row.
Give me some money while you are at it.|||been a while and congress certainly has changed the law. But used to be you and your wife could "transfer" a total of $10,000 each year to each child Without triggering the "gift tax" clause of the estate tax section.
Could I do this to avoid paying capital gains? The stock is in my name, can my wife and I each gift $12,500 per year (or do I need to transfer some to her first)? Would she have to wait to gift it? Do the kids need to hold it an additional year to get long term capital gains?|||The gift amount is $12,000. You can gift it to them, and you would be gifting it to them at current market value, but their basis would be your original cost basis. The only thing is, since the stock is not in your wife's name at all, she can't gift it, because she doesn't own any of it. I also don't know about adding her name to the stock to make it joint, and then gifting it to your kids, as the IRS may say it's just a sham transaction done to avoid taxes, and disallow it.
Also, unearned income for a childer under age 18 that exceeds an annual inflation-adjusted amount generally is taxed at the parents highest marginal rate. This is done to lessen the effectiveness of intra-family transfers of income-producing property that would shift income from the parents' high marginal tax rate to the child's generally lower tax bracket. The age used to be under age prior to 2006, but was increased to 18 as part of Tax Increase Prevention and Reconciliation Act of 2005.
For 2006 the amount that could be shielded was $1,700 ($850 standard deduction for a child without earned income, and $850 used to calculate the net unearned income reported on the "kiddie tax" return.)
Looks like you're possibly out of luck on getting it taxed at your kids' rates since they are under 18.|||You could try - but you should probably get a lawyer/accountant to look it over to make sure you've got your ducks in a row.
Give me some money while you are at it.|||been a while and congress certainly has changed the law. But used to be you and your wife could "transfer" a total of $10,000 each year to each child Without triggering the "gift tax" clause of the estate tax section.
How do capital gains work for transferred stock?
I received IBM stock as a gift from my grandmother (under the taxable gift amount). We cashed the stock in shortly after. When we went to have our taxes prepared, we were told we would need the cost basis from when my grandmother purchased the stock. When I called IBM, they told me I would only need the cost from the date of transfer. Who is accurate?|||The recipient's cost basis of stock received as a gift is the lower of cost or Fair Market Value at the time of the gift.
A person on the phone at IBM is not going to understand tax law, which is obvious from their erroneous advice.
I use "Historical Stock Quotes" often. Especially in situations like this, where the actual cost of the stock might not be available because it was so long ago, if you can come up with a date, you can search for historical stock quotes to find out what the price was on a given day.
Try http://bigcharts.marketwatch.com/.|||The tax preparer is correct. You need to check historical quotes for the stock and figure out the best you can how much your grandmother paid for the exact stock that she gave you. That is it's basis. I am sure that IBM did not understand you question.
This year I sold some stock that my grandfather bought in 1912. The basis of the stock was its value in 1969 when my mother inherited it because inheriting stock does change it's basis to the value at that time. When she gave it to me in1985, it's basis did not change. It ended up that the basis dropped below 0 due to non-dividend distributions. That's like saying I was paid to take the stock.|||Granny can claim from purchase price to transfer price (to you) loss or gain
You would value the stock on the effective date of transfer to you and the value
when you received payment for the stock - if more than date of transfer you have
a capital gain - if less - you have a loss -
Most likely the little time you kept the stock - there was not that much change in
value|||Gifts are valued at the price that the person who gave them to you paid?
Inheritances are valued as of the date of death.
Your tax preparer is correct.|||since it was gift to you, your basis is 0
had you inherited the stock the basis at the transfer would be effective but you say this is a gift, and I don't know anyone who pays for a gift (other than Jesus Christ)
A person on the phone at IBM is not going to understand tax law, which is obvious from their erroneous advice.
I use "Historical Stock Quotes" often. Especially in situations like this, where the actual cost of the stock might not be available because it was so long ago, if you can come up with a date, you can search for historical stock quotes to find out what the price was on a given day.
Try http://bigcharts.marketwatch.com/.|||The tax preparer is correct. You need to check historical quotes for the stock and figure out the best you can how much your grandmother paid for the exact stock that she gave you. That is it's basis. I am sure that IBM did not understand you question.
This year I sold some stock that my grandfather bought in 1912. The basis of the stock was its value in 1969 when my mother inherited it because inheriting stock does change it's basis to the value at that time. When she gave it to me in1985, it's basis did not change. It ended up that the basis dropped below 0 due to non-dividend distributions. That's like saying I was paid to take the stock.|||Granny can claim from purchase price to transfer price (to you) loss or gain
You would value the stock on the effective date of transfer to you and the value
when you received payment for the stock - if more than date of transfer you have
a capital gain - if less - you have a loss -
Most likely the little time you kept the stock - there was not that much change in
value|||Gifts are valued at the price that the person who gave them to you paid?
Inheritances are valued as of the date of death.
Your tax preparer is correct.|||since it was gift to you, your basis is 0
had you inherited the stock the basis at the transfer would be effective but you say this is a gift, and I don't know anyone who pays for a gift (other than Jesus Christ)
Which of the following statements regarding distributions of stock is not true?
Which of the following statements regarding distributions of stock is not true?
a. Distributions of stock and stock rights are never treated as property.
b. Stock rights are distributions by a corporation of rights to acquire its stock.
c. Distributions of stock dividends and stock rights are generally tax free to shareholders.
d. Expenses of issuing a stock dividend are not deductible but must be capitalized.|||c
a. Distributions of stock and stock rights are never treated as property.
b. Stock rights are distributions by a corporation of rights to acquire its stock.
c. Distributions of stock dividends and stock rights are generally tax free to shareholders.
d. Expenses of issuing a stock dividend are not deductible but must be capitalized.|||c
What are the best stock market sectors for 2006?
What sectors of stock market are the best for 2006? Drug, Energy, Tech or what? Will it be a good year for stock?|||environmental - alternative energy|||Buy some Yahoo!
What happens to the stock a person owns in a company that goes private?
I bought stock in a company- they emerged from bankruptcy and took the company private. What happens to my stock?|||When they filed for bankruptcy you lost your "ownership" interest in the company, so your stock does not exist any more. If you still have the paperwork, your broker may buy all your shares from you for a penny, so you can record your loss on your taxes...
(This is just a wild guess, but hopefully that convinced you that "penny stocks", ie stocks that trade at less than $5 a share, are not worth buying...)|||The stock may have been worthless when they filed bankruptcy after paying off all the debts. Then the stock would have been canceled. You lost everything and they started over as a private company with new capital. Or they paid you for your shares when they went private. It sounds like the former|||worthless.
(This is just a wild guess, but hopefully that convinced you that "penny stocks", ie stocks that trade at less than $5 a share, are not worth buying...)|||The stock may have been worthless when they filed bankruptcy after paying off all the debts. Then the stock would have been canceled. You lost everything and they started over as a private company with new capital. Or they paid you for your shares when they went private. It sounds like the former|||worthless.
How does the stock exchange arrive at the price of a particular stock on the exchange?
For instance: if the stock of Company A opened at say $10 and at the end of the day it price was $11. How did the exchange arrive at this exact price?|||Suppose i own some stock of the said company, i offer to sell it for $10.50. Another person, willing to put money in that stock, will buy the stock at $10.50. So, the stock is now trading at $10.50. This scenario continues and the stock reaches $11 by the close of the day.
Its purely based on supply and demand. More demand, the prices will zoom up!|||simple, my dear friend.
the market influence-that of demand and supply.
always remember that a stock is a commodity.
cheers.|||its not exchanges which arrives at a prices,its the seller and buyer which arrive at that price for a stock.|||It depends on the requirements.
If there is a demand then the price of the stock will increase, if there is no demand then the price will decrease.
At what price that the share traded in a day while closing time of the market, that price is the closing price of that share on that day|||It all depends are how much of the stock was bought and sold for that day. That is the main factor.|||it depends on the traders who buy and sell this stock in the exchange. It is called the demand - supply theory. If people feel that the price of a stock is going to increase in the future due to some factor, then the demand for this stock increases and the supply decreases. In such a case, the price of the stock goes up.
Similarly if traders feel that the price of the stock should come down fro some reason, then the supply increases and demand for this stock comes down. Thus the price of the stock comes down.
Its purely based on supply and demand. More demand, the prices will zoom up!|||simple, my dear friend.
the market influence-that of demand and supply.
always remember that a stock is a commodity.
cheers.|||its not exchanges which arrives at a prices,its the seller and buyer which arrive at that price for a stock.|||It depends on the requirements.
If there is a demand then the price of the stock will increase, if there is no demand then the price will decrease.
At what price that the share traded in a day while closing time of the market, that price is the closing price of that share on that day|||It all depends are how much of the stock was bought and sold for that day. That is the main factor.|||it depends on the traders who buy and sell this stock in the exchange. It is called the demand - supply theory. If people feel that the price of a stock is going to increase in the future due to some factor, then the demand for this stock increases and the supply decreases. In such a case, the price of the stock goes up.
Similarly if traders feel that the price of the stock should come down fro some reason, then the supply increases and demand for this stock comes down. Thus the price of the stock comes down.
How does the stock market influence our quality of life?
So I would really like to know how does the stock market influence your quality of life or just people in general. What are some negatifs and some positifs effects of stocks in our lives? Any answer welcomed~~!
THANKS a bunch!|||I am a pensuioner and I live off the income from stocks and shares from the stock market. If no one invested ever no one woudl be able to take risks and we woudl never havd any innovation or make any progress. Just as the government invests for us in road so we can drive on them, money is investe din companies so they can build houses, develop a new car, market a new flavour of pepsi .... then often years later when they make a profit the companies share out the profit to the shareholders (like me). The Banks also lend money but they charge more than shareholders 9we give our money "free") and they pay themselves too much leaving too little to keep the machine going ... thats roughly how it works...|||....sounds like an essay. :) I'll try to be brief. Stock markets show a rough indication of hour our economy is doing. If stocks are low, buyer confidence is low. If companies aren't proving to be generally strong, then there might be budget cuts, layoffs, etc.|||It effects our ability to spend money on economic-wise choices...
Negatives= some people invest their whole belongings into it, and lose all of their possesions
Sorry, I can't think of any positives|||It's huge. But it's funny because it's all politics. One person sneezes and the market goes down.
You might be too young to get that...meh, I'll post it anyway.|||The same way a casino effects you. it's merely a mirror of the real economy nothing more.|||It doesn't. The best measure of how an economy is doing is gold and silver inverse to the currency.
THANKS a bunch!|||I am a pensuioner and I live off the income from stocks and shares from the stock market. If no one invested ever no one woudl be able to take risks and we woudl never havd any innovation or make any progress. Just as the government invests for us in road so we can drive on them, money is investe din companies so they can build houses, develop a new car, market a new flavour of pepsi .... then often years later when they make a profit the companies share out the profit to the shareholders (like me). The Banks also lend money but they charge more than shareholders 9we give our money "free") and they pay themselves too much leaving too little to keep the machine going ... thats roughly how it works...|||....sounds like an essay. :) I'll try to be brief. Stock markets show a rough indication of hour our economy is doing. If stocks are low, buyer confidence is low. If companies aren't proving to be generally strong, then there might be budget cuts, layoffs, etc.|||It effects our ability to spend money on economic-wise choices...
Negatives= some people invest their whole belongings into it, and lose all of their possesions
Sorry, I can't think of any positives|||It's huge. But it's funny because it's all politics. One person sneezes and the market goes down.
You might be too young to get that...meh, I'll post it anyway.|||The same way a casino effects you. it's merely a mirror of the real economy nothing more.|||It doesn't. The best measure of how an economy is doing is gold and silver inverse to the currency.
Why does the stock market grow faster than the US or the world economy?
The stock market is supposed to be a reflection of the economy. But the US or the world economy grow at a much slower rate than that of the stock market. Will this trend continue forever, barring a few bear years?|||The FED drives equities higher. It can't fix structural problems.|||The valuation of a stock has changed over time.
A long time ago, the price of a stock was supposed to be liked to the present value of the stream of payments you'd expect to receive over time. This encompassed the dividends as well as the stock price, which was again linked to future performance. It also reflected the risk involved.
However, over the recent years, this has changed. The price people are willing to pay for a stock is basically linked to how much they think they can sell the stock for; it is more speculative rather than based on facts. That's why traditional measures such as Price Earnings ratios, are vary varied among different stocks irrespective of the risk.
The value of stocks, and the stock indices are more an indication of what people expect. If they expect good times, stock prices go up across the board, and vice versa. The fluctuations in the stock market are larger than the economy itself sice it is possible to use the current value of a stock portfolio as collateral for borrowing. If you believe the stock market is going up, you manage to get your hands on some extra cash, wouldn't you reinvest it in the stock market. This magnifies the ups and downs of the stock market.
Hope that helped.|||A stock is a share of a business that makes profits and they pay dividends as your share of the profits and use the rest to expand to meet the need of a growing economy which increase the stock price Broad stock indexes do not grow faster than the economy if you look very long term, it only seem that way if you look at the data from recent decades. The inflation of the 70's caused stock prices to fall relative to GDP and when the inflation subsided stock prices rose to recover their lost value. The S%P index GDP ratio is about the same now as it was the last time we had and an extended period low inflation in the 1960's and even in the 1920's. The chart only goes back to 1970 but it does illustrate what has been happening. The peak in the late 90's is the dot com bubble http://www.economagic.com/em-cgi/charter鈥?/a>|||Do you understand what the stock market it is?
http://en.wikipedia.org/wiki/Stock_marke鈥?/a>
It is sort of economic bubble by means of the creating the nominal value and hard to understand derivatives.
http://www.fintools.com/docs/Warren%20Bu鈥?/a>
The US economy is based on the wrong Keynesian approach of macroeconomics which has nailed by many scholars and economists.
http://search.yahoo.com/search?p=Many%20鈥?/a>
US treasury should have implemented the good and save policy by the once Nobel Prize winner, Milton Friedman argued that the inflation is the monetary phenomenon. If so, America wouldn't have turned from the No. 1 world creditor to become the No. 1 debtor.
http://www.oswego.edu/~edunne/340chapter鈥?/a>
Are you aware that America has already bankrupt?
http://search.yahoo.com/search?p=Is%20Am鈥?/a>
Why many gamblers have lost their life savings so quick in the casino, race track, or stock market investment. Its only because the human sins of greed and selfishness, coupled with the most of their ignorance.
Do you have the good intent to save the global economy? If so, you should suggest to your president or prime minister to follow what the once best premier of China, Zhu Rongji. His good deeds included the elimination of 14 million China civil servants worked for the China Enterprises country wide and additional one million members of the Liberation Army was the ways of turning the China economy from bad to stablized and with the annual GDP growth exceeded 10% for more than one decade and still on-going good. The great Zhu Rongji did bust the economic bubbles of the China stock market and real estate completly and turned China into a corruption free China during his regime.
England has the intent to cut the military spending now.
http://search.yahoo.com/search?p=Zhu%20R鈥?/a>
America is no longer afford the cost of the Iraq war for the bill of one billion US dollars per day.
http://cintabuku.com/three-trillion-doll鈥?/a>
http://search.yahoo.com/search?p=Clearin鈥?/a>
I personally think America is obliged to destroy the US and global stock markets directly and indirectly, but wisely. The NY Dow Jones and Hong Kong Heng Sang index must be declined to 4,000 and 8,000 respectifully, the sooner the better.|||not sure if this answers your question but it might have to do with the fact money is becoming worth less and less because our country's debt is increasing
A long time ago, the price of a stock was supposed to be liked to the present value of the stream of payments you'd expect to receive over time. This encompassed the dividends as well as the stock price, which was again linked to future performance. It also reflected the risk involved.
However, over the recent years, this has changed. The price people are willing to pay for a stock is basically linked to how much they think they can sell the stock for; it is more speculative rather than based on facts. That's why traditional measures such as Price Earnings ratios, are vary varied among different stocks irrespective of the risk.
The value of stocks, and the stock indices are more an indication of what people expect. If they expect good times, stock prices go up across the board, and vice versa. The fluctuations in the stock market are larger than the economy itself sice it is possible to use the current value of a stock portfolio as collateral for borrowing. If you believe the stock market is going up, you manage to get your hands on some extra cash, wouldn't you reinvest it in the stock market. This magnifies the ups and downs of the stock market.
Hope that helped.|||A stock is a share of a business that makes profits and they pay dividends as your share of the profits and use the rest to expand to meet the need of a growing economy which increase the stock price Broad stock indexes do not grow faster than the economy if you look very long term, it only seem that way if you look at the data from recent decades. The inflation of the 70's caused stock prices to fall relative to GDP and when the inflation subsided stock prices rose to recover their lost value. The S%P index GDP ratio is about the same now as it was the last time we had and an extended period low inflation in the 1960's and even in the 1920's. The chart only goes back to 1970 but it does illustrate what has been happening. The peak in the late 90's is the dot com bubble http://www.economagic.com/em-cgi/charter鈥?/a>|||Do you understand what the stock market it is?
http://en.wikipedia.org/wiki/Stock_marke鈥?/a>
It is sort of economic bubble by means of the creating the nominal value and hard to understand derivatives.
http://www.fintools.com/docs/Warren%20Bu鈥?/a>
The US economy is based on the wrong Keynesian approach of macroeconomics which has nailed by many scholars and economists.
http://search.yahoo.com/search?p=Many%20鈥?/a>
US treasury should have implemented the good and save policy by the once Nobel Prize winner, Milton Friedman argued that the inflation is the monetary phenomenon. If so, America wouldn't have turned from the No. 1 world creditor to become the No. 1 debtor.
http://www.oswego.edu/~edunne/340chapter鈥?/a>
Are you aware that America has already bankrupt?
http://search.yahoo.com/search?p=Is%20Am鈥?/a>
Why many gamblers have lost their life savings so quick in the casino, race track, or stock market investment. Its only because the human sins of greed and selfishness, coupled with the most of their ignorance.
Do you have the good intent to save the global economy? If so, you should suggest to your president or prime minister to follow what the once best premier of China, Zhu Rongji. His good deeds included the elimination of 14 million China civil servants worked for the China Enterprises country wide and additional one million members of the Liberation Army was the ways of turning the China economy from bad to stablized and with the annual GDP growth exceeded 10% for more than one decade and still on-going good. The great Zhu Rongji did bust the economic bubbles of the China stock market and real estate completly and turned China into a corruption free China during his regime.
England has the intent to cut the military spending now.
http://search.yahoo.com/search?p=Zhu%20R鈥?/a>
America is no longer afford the cost of the Iraq war for the bill of one billion US dollars per day.
http://cintabuku.com/three-trillion-doll鈥?/a>
http://search.yahoo.com/search?p=Clearin鈥?/a>
I personally think America is obliged to destroy the US and global stock markets directly and indirectly, but wisely. The NY Dow Jones and Hong Kong Heng Sang index must be declined to 4,000 and 8,000 respectifully, the sooner the better.|||not sure if this answers your question but it might have to do with the fact money is becoming worth less and less because our country's debt is increasing
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