Investing Questions and Answers

How does a mutual fund buy shares surrounded by a company?

Do they call their broker and speak "put in an lay down for 100,000 shares at $23.51?" Or do they have a broker surrounded by house thats connected to NYSE floor or that belongs to the electronic market. For that issue what does my broker do after I call him. I imply who does he call? And next who does the guy my broker called ring. For that matter where on earth are my shares, I never see them. Am I actually the shareholder or is my broker the shareholder?


Answers: It somewhat depends on the mutual fund. Fidelity Funds for example have its own brokerage arm. I would imagine that Fidelity routes adjectives of its trades through its own brokers. The smaller funds and those without brokerage businesses would use a broker similar to an individual would. But there is a difference. Mutual funds trade deeply more shares than most individuals so brokerage firms generally give them very attractive commission rates and also other services not in general available to individuals. Their broker might buy the shares they have requested over a time of year of time so as not to disrupt the market. That is what a fitting broker would do.

Your broker is the shareholder. The shares are held in its label and kept as a ledger entry under your tale. You can request delivery of your shares from your broker if you desire.

When you phone your broker he gets on his computer terminal and enter your order and if it is a open market order it is executed in a few seconds.
So much of the current bazaar is electronic that mutual funds merely do their own 'on-line' trading. The same for brokers.

When you buy a stock, you are the shareholder. If you want to see the actual shares, get your broker to deliver them to you.
Great question. Mutual funds are a strange investment, well as far as they are structured. Mutual funds are an start on issue, meaning they issue topical shares all the time. If someone sell shares, those are cancelled and vice versa if someone buys new shares, the verbs agent for the fund simply creates new shares.

As far as how the fund purchases shares, the fund boss determines which stocks, bonds, etc. are good investments according to the structure of the investmet strategy. They can any call a broker to place the trades or distribute the order contained by through online access.

Lastly, regarding if you own the stock or does the fund go, the fund owns the stock directly you own a right to share in the profits and losses of the activities of the assets held by the fund.

I hope that helps.

Is there any software by which we can perdict share prices ,which uses past data and business cycles?




Answers: I've seen a system called Investools that offers what you've described, but it is very costly. I did some research on this topic myself a while back, and if I recall correctly, MSN also offers a predictive-type of service for stocks that is free, but I don't recall the name.
I posses that software.

It is called SENSEX RISING.

This s/w was developed by P Chidambaram
and co-othered by Mannu Singh.
Nothing can predict markets with any degree of accuracy greater than throwing darts. This is because markets are largely random and unpredictable. Read "Fooled by Randomness" by mathematical trader Nassim Taleb.

Even professionals cannot predict trends and lose money.

You may buy some software that "appears" to do a good job giving you buy and sell points. This is dangerous because you may come to rely heavily on this software and later when the software gives you bad signals you stand to wipe your account out or suffer heavy losses.

You want to know what the best market entry (ie "buy") signal is for trading? The 50% retracement rule.

To learn how to trade this rule, G00GLE for it. It is the single most reliable and simple rule for trading.
Exactly, it is impossible that a predict system can draw a moneymaking conclusion, otherwise the software compositor would never sell it in market at all. Therefore, the moneymaking secret is just in your mind which cannot be copied and published. In fact, there are many software so call make money in China too. But I think they are of service to those lazy people who issue money to the work-hard people winning in stocks.

Is it comfortable to buy a shared ownership home, or does it complicate matter?

I cant decide if to buy a small house for lb90,000 or a generous 50% shared ownership for the same money?


Answers: If you wish to buy a shared home, make sure you enjoy a rock solid agreement that covers anything and everything that could come up in the adjectives. You may want to have a legal representative draft it. You could end up near some serious legal problems if you don't own a good agreement that covers you and your housemate.
I know of two option.

1) A "single property ownership trust" (SPOT). A solicitor can draw this up for you. You would own shares in a trust (which would own the house). This will allow a division of the asset and also allow you to avoid property gains levy (even if you don't live in the property). This is a bit unusual so choose you solicitor judiciously.

2) A "declaration of trust". This is a permitted document that confirms what you and your partner put into the house. When the house is sold (assuming you and your partner have salaried your mortgage equally) you would divide the sale proceeds according to the ratio agreed contained by the deed.

Shared ownership is a bit more complicated, but surrounded by terms of superfluous legal costs these should not be more than a few hundred pounds. I also do not agree that a shared mortgage would necessarily be harder to immobilize than a private mortgage. My partner and I secured a shared mortgage with Nationwide ultimate year with no problems .

By sharing the financial burden of a mortage you are smaller number likely to become unqualified to pay your mortgage and see the house repossessed. However if your partner become impossibe to live with or default the arrangement will be at risk anyway.

I would weigh up the benefits in jargon of having a lower mortage against the how much you trust your partner. Bear surrounded by mind that with the property bazaar the way it is you must be prepared to live next to the proposed arrangement for at least 4 or so years to avoid any risk of neg equity.

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