Shorting stocks?
If you want to short a stock, is it possible to short it to sell it or do you enjoy to buy it back? it say buy to cover so does that mean vend or buy it? my aim is to short the stock and get out.Answers: Shorting a stock is the slit transaction .
Buy to cover is the closing transaction.
If you short something and then simply use the regular "buy" you'll end up have to call your broker so they can fix it - typically not a big deal, but it is time misspent.
ps it is my recommendation that individual investors not short stocks but to some extent buy puts so you have predetermined risk. And if you really do want to short stocks then buy call to protect you from getting blown up.
To sell a stock short funds that you borrow the shares and sell them. When the price go down you buy the shares back and cover your short, i.e. the shares are returned to the owner from whom you borrowed them. The broker arranges the borrowing, so essentially adjectives you do is place an order to put up for sale shares that you don't have.
If you are selling stock you own, that is to grasp out, as you put it, that is not a short Dutch auction. The danger surrounded by selling short is that you may find the stock going in the wrong direction from what you hoped. You get rid of short if you think the stock is going down so that you can replace it at a lower price. But if the price go up, you still have to replace the stock someday. The problem is that the stock can run down only to nothing, but it can go up indefinitely, so in attendance is more risk in selling short.
Unless you enjoy alot of money the brokerage will want some collateral to short stock. Also if it pays a dividend you will be responsible for that .
If you want to short a stock by puts or select an index fund that offers you some sort of suffer situation.
Is this the wonderful time to increase my 401k contributions?
With the market down, should I consider increasing how much I contribute to my 401k so that I am buying more shares near the same amount of money? I currently contribute 5% (my employer match 8% for contributions 5%+, so I wouldn't get any added employer matching). I am considering increasing my contribution to 10%. Is there a better (non-real estate) investment beneath the current conditions?Answers: you answered your own question dollar cost averaging works
If you are youthful, stay fairly aggressive and add on more % if you can.
Something like 60% significant cap stock fund, 30 international and 10% small hat
I'd consider more about your present financial situation. Are you a home owner? If not, and you're considering buying your first home, you can reduce by 10,000 of your 401K balance in need penalty, so if your go together is below this amount, I'd contribute as much as possible so that you maximize the matching amount. It's close to free money.
Most people though contribute roughly 6% annually. Everything is relative though. If you contribute more now, you will patently get more stock for your dollar, but if you're not going to retire any time soon, it really won't formulate that much of a difference to your overall bottom line.
Personally, I'd a bit have the free change flow available to me now, even though the flea market is down, than lock my money up for 20+ years just to try to catch a few extra bucks out of it. Liquidity wise...it's newly not worth it.
You shouldnt change your allocation base on what the market does. You should metamorphosis it when your personal circumstances change, your goal, objectives and risk tolerence. The market will hold ups and downs over the years. A 401k is a long term investment. Dont invest for the long occupancy with a short residence view.
What give or take a few AIG stock??
What you think it should buy at this time?? how is it?? what smooth minimum expect in current condition??Answers: To be honest, I construe now is not the time to be getting into the open market. It's been hit thorny over the past few months and near fears of the economy going into (or already is) a recession, it's possible that the bottom is still a ways to move about.
With interest rates being cut and inflation still growing the Fed is pretty much stuck as to what it can do to oblige boost the economy.
But if you really want to invest the best suggestion is to trust yourself and do your homework. The worst thing to do is listen to someone else going on for stock advice and enjoy you lose money on it.
Wait awhile longer, it hasn't hit bottom yet:
http://money.cnn.com/2008/02/11/news/com...
Once it starts to come around it should be a devout long-term holding. It's already at a 3 year low and a P/E of 7.18, so it will be way undervalue by the time it hits bottom.