What are some discouraging inventions of 2007?
just somewhat curious.Answers: Japanese toy maker TOMY released a piggy dune that explodes if you don't put coins in it on a day by day basis. Once you put battery in the annoying bastard it beep on an hourly basis to remind you to nurture it. It costs about $27 and is a very bad idea unless you don't put battery in it and really simply want a bomb-shaped piggy bank. Then it's okay I guess. But let's be honest, who the hell save money these days anyway? If for any principle I do have any unspent dollars at the stop of the week (rarely) I run straight to the strip club. Sure the dancers hate dimes and nickels, but they do take-home pay attention to quarters -- but mostly simply to make sure you're not wing them at their head anymore.
idk... why do u wanna know the worst, ancestors usually want to know the best not the worst..
Live your live
Divya
not sure about inventions/innovations, but the worst trend have to be celebrities making personal and private sex recordings so they can go them.
Where does a stock's convenience come from?
If you can directly answer this question, I'll be the happiest man alive.As a preface to my quiz, read the following:
Imagine two men, John and Tom, start up separate corporations. They both earn enough money to buy adjectives the building, equipment, and so on in lay down to start their businesses. John decides to administer the stockholders dividends from the corporation's profits. Tom, on the other hand, decide to reinvest the corporation's profits back into the corporation. After several years, both corporations become exceptionally successful and profitable. The dividends that John's corporation gives increase; the stockholders of Tom's corporation still hold ownership in the company, but ownership contained by the company doesn't really do anything.
My question is this: In proposal, where does the appeal for a stock that does NOT pay dividends really come from? I realize general public can sell them to others contained by order to brand name a profit, but where does its expediency come from if it doesn't really DO anything?
Answers: A stocks value comes from it total return potential, which includes growth contained by earnings and dividends. The nonspecific theory is that if a company can reinvest its returns and earn a return on that reinvestment that is greater than the dividend rate the benefits will accrue to the stock holders. That is the premise. Companies recently however enjoy preferred to reinvest their earnings into greater compensation for their executives
I fathom out your question, and it perplexed me a bit during my MBA days, since the first steps of valuation be to discount all dividends to present worth to determine the value of the company.
Theoretically, adjectives companies, even high growth companies which distribute little to no dividends, will eventually matured and begin to distribute dividends when it no longer finds reasonable investments internally. These are the most difficult companies to ascertain value, but within is a method. The link below illustrate one of those methods in subdivision III. I didn't test it, nor did I vet it to see if it is accurate, but the description of its method should be of benefit to you.
moneyguy976(a)gmail.com
I'll pick up you alot of reading.
It comes from how much the company would be worth if someone bought it.
As many shareholders find out, their stock could tremendously quickly reimburse out a really nice dividend when their company is bought and the sales proceeds catch sent to them. (G00GLE: Alcan)
Honestly it's a lot similar to the price of a house in that luggage. Most houses don't pay dividends (unless they are rentals). So how much are they worth? What ever someone is likely to pay. Sound aware?
There is a lower bound for the price of a stock -- it is either the expediency of it's liquidation value (less transaction cost) or it's going concern helpfulness (if the going concern value is smaller number than it's liquidation value, you can other buy the company and sell it parts approaching an LBO or MBO!). There is no upper limit for the price of a stock due to the greater fool argument as evidenced by financial bubbles.
Now, if you ask what is the intrinsic value of a company, later allow me to quote Warren Buffett: "It is the discounted value of the bread that can be taken out of a business during its remaining life." (Source: Owner's Manual). Please make a note of the VALUE of a company IS NOT THE SAME as the PRICE of a company. The intrinsic value is the discounted meaning of its future "free currency flow." Another way to describe the meaning of the firm is:
The market expediency of equity + the market attraction of debt - the surplus cash. OR
The merit of the firm plus surplus cash = The flea market value of equity + the marketplace value of debt
Now, if you ask how is expediency created at a company, then it's when a company generate a greater return on its assets than the opportunity cost of the assets (commonly call the cost of capital). Buffett recommends that associates evaluate business on rolling 4 (or more) year cycles. For example, Buffett's super-cat insurance business is profitable but will occasionally have a lose due to extreme events and 9/11 be one of those events. You wouldn't evaluate the business when it has a loss, but you do want to evaluate the business during a conventional cycle and against its future returns.
Now that I've explained the range of stock prices, how a stock should be valued and valuation creation, I can in a minute answer your question in the region of dividends and it's role in valuation and why it costs you so much consternation.
The dividend issue is a myth and be solved by (I believe) a noble prize champ named Merton Miller. Let right to be heard two companies are identical and you happen to own 100 shares of each company. If the first company pays a dividend equal to 5 shares and the second company doesn't, below Miller's theory, you can create your own dividends within the second company by selling 5 shares of stock. Therefore, it doesn't matter if a stock issues dividends or not as the sharesholder can (synthetically) create it's own dividends by selling fractional shares of the company. When a company pays out a dividend, the worth of the company declines by the dividend amount when the dividends be paid from surplus brass (you have a lower surplus currency value and for this reason the value of the company decline in lock-step).
The subsequent important issue is the timing of the dividend --- you can put up for sale shares at any time to create this dividend. Therefore, there really should be no difference if a company pays dividends or not since the individual shareholder can create his own dividends as to the amount and timing of the dividend by selling shares contained by the company. However, since an investor he wants to maximize his returns he doesn't want to exhaust his holdings if he can get more money contained by the future. That routine for a non-dividend paying stock, so long as the company continues to earn a return above its cost of capital, the investor would prefer the company to reinvest the money and not pay cheque a dividend (or from the investor perspective, not create dividends by selling shares).
In summary, it's not about dividends -- it's in the order of valuation creation. Let's go hindmost to the John and Tom scenario. Shareholders in Tom's Corporations do own the ability at any time to deal in shares to create (synthetic) dividends. The fact that Tom is doing a great career reinvesting the earnings routine (assuming it earns a return above it's cost of capital) that Tom's Corporation is worth closely more than John's Corporation (one reason John's Corporation is worth smaller number is because it had smaller number capital to use to grow over time due to its dividend payments). Remember the power of compounding over time -- you can see it within Tom's Coporation.
There is a reason why Berkshire Hathaway doesn't pay cheque a dividend because Buffett believes he can generate a better return to shareholders if the money was reinvested contained by the company. When Buffett can't find good investments, consequently he will return the money to the investors and let them wish how to invest their money (many would still want Buffett to invest the money on their behalf).
Your problem is the same face by everyone -- we can observe the price of a company from the stock souk, but you have no opinion about it's efficacy. People like Buffett know how to discern value versus price and he is a billionaire as a result. It's not give or take a few dividends it's about John or Tom as manager (I prefer to use caretakers) of your investment money and generating a return above it's opportunity costs, respectively.
Good luck.
How do you get involved with buying stocks?
Answers: Hi, It's important that we all know about investing.. much more then it was for our parents.
more and more we are become solely responsible for our selves. company pentions are just about a thing of the past. there is much talk about privatizing social security, we are taking on a greater share of medical and disability and long term care by way of higher premiums, copays and lower levels of service
so... you must learn to be an effective investor. Here are the necessary steps to get started
Step 1.
First decide what kind of brokerage you want to work with. You can open a brokerage account in your bank,
with a large full service brokerage or an internet brokerage. I find when I get help, most people want to sell me
things that are better for them then they are for me…. So I use http://www.scottrade.com because it’s cheap and
easy with low frills. I like their streaming quotes and I do my own research and make my own investments. But
any low cost internet brokerage service is fine.
Step 2. get a subscription to Barrons or Investors Business Daily… Don't worry about the cost, and don’t skip
this step. Do this for at least 6 months or a year. At first, It seems a bit mysterious, but pretty soon you start to
understand the terms and things that investors are looking for and what they are afraid of.
Step 3. If you have some money to invest, put it in 3 month CD’s right now. First the market is unstable and
second you have some homework in Step 4 to do before you do any investing.
Step 4. Go out to the internet and search on the following subjects. Become very familiar with the concepts.
Asset allocation
Long term investing
asset correlation
dollar cost averaging
inflation
Roth ira vs ira
Large med small cap stocks
Value vs growth stocks
Indexed funds
No load mutual funds
ETF (also ETN and CEF all similar but with special differences)
Sector funds
Bonds, CD, preferred stock
dividends
International funds
emerging markets
commodities
Market cycles
volatility
Fundamental analysis
Technical analysis
Life insurance term vs whole
In most cases, I think it is wise to use indexed mutual funds and ETF to build the base of your portfolio.
Step 5 go to http://clearstation.etrade.com/ and sign up for a free account. Play around there by looking at
graphs and fundamentals. If you click on the graph names, you will get clear information about what the graph
is based on and how to interpret it. I think it’s also a good idea to pretend you have $10,000 and start buying
and selling on paper. Keep track of where you are each day for a month… It’s a lot easier to lose play money
then real money….
WARNING: don’t rely on technical analysis alone. These graphs are good at telling you WHEN to buy and sell,
but now WHAT to buy.
Step 6. It’s always a good Idea to see a CFP (certified financial planner) especially if you have a family. But be
sure to go to one who charges a fee, rather then one who gets paid a commission on your investments. Their job
is to work for your benefit, not to sell you investments. They can cover subjects like employee benefits,
insurance, budgeting, living trusts, 401k, taxes and real estate as well as investment types and investment types
to keep away from.
But you can buy the CFP study guide at any book store and learn a lot about those topics yourself.
Always strive to do your own research… you’ll find everyone sounds like an expert so take everything people
tell you with a grain of salt. It’s not easy in the beginning but soon you will be the expert.
Don’t get involved with futures, currency, options (unless you get stock options at work), commodities,
annuities or other derivative type investments at this time.
Good Luck
you can buy stocks through a stock broker or
for diversification through a mutual fund.
Very carefully.
Education is key. I've been a trader and investor for 12 years. And if it's one thing I tell people over and over again. Education.
I don't mean going to college or taking courses. I mean research. Learning what the markets are. How they work. How you buy. How you sell. What are the risks. Where the scams lay. Successful proven strategies. Above all - account equity money management principles. An individual really needs to think about what they are doing.
2 Words - "Motley Fool"
Their website:
http://www.fool.com
If you want to read stuff in paper...
Here is the *perfect* book for you:
http://www.amazon.com/Motley-Fool-Invest...
Why the Fool? Let me put it this way, when congress wanted info on what was going on with the markets during the Enron nonsense, they called Bill Mann, a Key writer for the fool.
The guys are 100x more trustworthy than any other site I've found. (unlike that Jim Cramer guy).
Another nice plus about the site is they've got a free "Stock Market Game" kinda thing at http://caps.fool.com
Check me out I'm ranked like 10th - Flitt12
You've got a great chance, starting early, I didn't get to start till I was out of college.