Investing Questions and Answers

Please answer the following question for me. Thanks?


Question:
The dividend growth model (textbook, p. 214) given as P0 = [D0 x (1 + g)]/(r - g) can sometimes be used to determine the current price of a stock.

a. Under what circumstances would you consider this model appropriate?
b. Under what circumstances would you consider this model inappropriate?
c. Explain your answer.
d. Why is the model more common than it first appears?


2. The formula for the PV tax shield on CCA - Define respectively term and explain why it is surrounded by the formula and when it might be left out.

Answer:
Glad to comfort you do your homework or takehome test:

a. Under what circumstances would you consider this model appropriate?

When you expect a constant growth rate.

b. Under what circumstances would you consider this model rude?

When the firm is not in a stable point of its business existence cycle. You need a multi-stage growth model to traffic with the introduction, maturation and on the way out phases.

c. Explain your answer.
d. Why is the model more general than it first appears?

You can separate the cyle into different period and apply the approach to the appropriate stage.




Dividend date??


Question:
What date to I need to hold my shares if I am to recieve the subsequent divided, I got the following info from the companies website:

This dividend will be payable on March 14, 2007 to those member whose names are on the Register on February 9, 2007. The shares become ex-dividend on February 7, 2007.

If I put on the market them today, will I still recieve the dividend?

Answer:
If you sell the shares on or after February 7, consequently you will get the dividend. If you bought it on or after that date, later you will not.

Owners of record on the 9th acquire the dividend. But when you trade, it takes a couple of days to settle. So -- someone who sell on the 7th will still be the owner of record on the 9th. If you sold on the 6th, you would no longer be the owner of transcript on the 9th.

The ex-dividend date is the day that it starts trading short the dividend. So -- if you buy on the 7th, you are buying it ex-dividend (without dividend).

If you sell them today -- you will seize the dividend.
Yes. The record date be Feb 9 and your name be on the list so you will recieve the dividend
if you held the shares from february 7 to 9th after the dividend is paid for even if u sold the shares on 10th..
NO
Taranto's answer is exactly right, the stock is already trading ex-dividend so you'd still receive it.




zulma essam almoraissi.his dune?


Question:
i want to know everything about zlma essam almoraissi woh live contained by malayisa.his account within bank

Answer:
You involve to talk to his Mom.




Online broker for Canadian, Australian trades at discount price?


Question:
Need online broker that can place online (NOT broker assisted) trades for stocks that have no bid or ask price. Also, I don't want to reimburse $50 per trade, I'm hoping for trades in the 7 to 20 dollar collection.

Answer:
Zecco.com V V V

You can make up to 10 trades within any one day up to a total of 40 trades a month at no cost, and after that you solitary have to pay packet a paltry $3.50 per stock trade. Please keep surrounded by mind that only the first justification of any account type is eligible for our Free Trading program.

Contact Zecco Trading
Need to contact Zecco Trading? Here you will find instructions to go and get in touch next to us, to fund your account, and to answer standard questions around your account.

* To contact standard Customer Services, please send an email to: customerservice@zeccotrading.c...
* For question about your New Account, please convey an email to: newaccounts@zeccotrading.com

Our fax number is: (909) 657-6638
Our phone number is: (909) 657-6655

Customer Service business hours
Customer Service at Zecco Trading is open from 9:00am-8:00pm (EST) Monday through Friday. Our office are closed on Saturday and Sunday.

Zecco Trading
P.O. Box 4328
Ontario, CA 91761




What does it tight when they voice long or short on a stock?


Question:


Answer:
When someone buys a stock, they are said to be "long".

Its also possible to sell a stock you dont own by borrowing it from a broker. You afterwards owe the broker the stock. Thats called person "short".

People are long a stock if they expect the value to appreciate.
But an investor will short a stock if they believe it is overvalued and will decline in price. They variety money by purchasing the stock when it falls in price and giving the stock posterior to the broker they borrowed it from.
Long is when you buy the stock (you actually in a minute own some), short is when you sell it even though you don't hold any (you'll have to purchase it to cram the order when it have dropped in price, - hopefully).
Long stock is purchased when the stock is going up or within the in the up cycle and can be traded (or purchased and sold).Short stock is purchased when the stock is on the decline (or going down from a long cycle) you can engineer money in any direction Long or short.I am giving you a simple answer it is much more involved than that .
it means you will lose abundantly of money on the stock market , if you don't study up more . try subscribing to wall street bulletin for a few months first . long is a bet stock price will rise , short is a bet it will drop .
When you go short on a stock, you're anticipating that the price of the stock will decline. If the price does turn down, you make money.
This is how it works -
--The transaction is call a "short sale".
--Bill owns XYZ.
--XYZ is worth $50.
--You "borrow" 1 share of XYZ from Bill. No money changes hand. Your only responsibility to Bill, is to return 1 share of XYZ.
--Ted buys your 1 share of XYZ for $50 - You now hold $50 in your pocket.
--The price of the stock drops and is immediately worth $25.
--Joe want's to sell his stock and obtain rid of it.
--You buy 1 share of XYZ from Joe for $25. This transaction is called "buy to cover".
--You own $25 left surrounded by your pocket from your short sale to Ted ($50 minus $25 = $25) and you enjoy one share of XYZ that you just bought from Joe.
--You return 1 share of XYZ to Bill who you originally borrowed it from.
--You're in a minute $25 richer.

You don't actually borrow from Bill. You borrow shares from your broker. Your broker is holding Bill's and everyone's shares until he/they trade them. The only excise you pay, is your broker's usual transaction allowance.

Here's a glossary of investor terms -
http://www.investorwords.com/




Which industry would be the best performing stock contained by 2007?


Question:
The industry that I feel would outperform other industries is beefy construction. Share your views and why?

Answer:
shift green
hershey choclate
apple
Coal mining might be worth a look as well. In the US an awful lot of electricity is fueled by coal. (Oh, and be sure to include FuelTek, FTEK, within your looking, they make coal more environmentally-friendly back burining).
Blue Chip stocks.

They have be pulling in text profits and improving their efficiencies. This could be a emblem year for Blue Chip stocks in the US.

I also verbs to like the emerging market as a whole. Separately a couple of the market will probably struggle this year, but as a whole they should thrive!
If history will repeat itself, its imagined to be the industry with the top 12 months trailing RSI with a P/S below 3.
No one can predict such an outperforming industry. Indeed, within case actor in the bazaar would know that an industry would outperform the market, stocks of this industry would be directly bought so that no opportunity exists anymore.

Nevertheless, to know what industry is more credible to outperform the market, check volatilities. The more risk, the more return. Hence, I ruminate industries like small cap on biotech or IT start-up are the more risky and so, with the peak EXPECTED return. Of course, this may not be true, but this is EX-ANTE true.

(I speak here about industry, not investments. Indeed, stall funds and derivatives market are more interesting surrounded by what concerns expected return)
In my opinion, and I'm not giving proposal here, but I think consumer durables will be honourable.

GE, P&G, etc. Those types of stocks.
I have done severely well for former times 3 years. I have 75% of my investments surrounded by the steel & iron sectors. Latin America. These companies did a super 50+% increase for me and am sticking to these again this year.

DON
Try this stock:

China Mobile (CHL). Growth surrounded by population in China as economically as expanding economy gross this sleeping giant a perfect play. The stock is $43 near a forward p/e of 17 and pays a 4% divvy.

CHL has 1 billion contained by potential new customers. It's also beat about the bush against the falling dollar. Chinese people normally don't have computers so the phone they buy will be their access to the Internet. G00GLE and CHL a short time ago inked a deal that let's CHL suscribers get hold of on the internet via phones.

CHL is a monopoly that is protected by the Chinese administration. CHL is also the industry leader near 65% market share. Superb symmetry sheet. It's stock price is trading at a discount to its growth rate.

China is where the growth is right very soon, you want to be in this stock. By 2010, this stock will double and you procure the divvy to boot.




True or False?


Question:
You believe that the possible returns on stock A will be either 25% or –15% over the coming year. Given some probabilities of the adjectives state of the economy, you compute the standard deviation of the possible returns. To receive the dispersion of the possible outcomes in impossible to tell apart units as the outcomes themselves (i.e., contained by percent), you must then compute the variance.

True or False?

Answer:
False. Standard deviation is already contained by the same language. Variance is the square of standard deviation so the terms would be %-squared, which isn't really terrifically intuitive.
true
Whatever floats your boat.
true i think
true i presume




Who is the best online broker for a small time trader?


Question:
I am looking for very low commissions and hoping to find an online brokering firm where on earth I can trade small amounts of stocks easily and in need losing money to fees. Also, my starting balance is small so I inevitability a low minimum requirement.

Lastly, I really need to be capable of trust the firm with my money, so not a soul that I haven't heard of.

Thanks!

Answer:
There are seriously of good brokerages depending on what you similar to and how you trade.

Barron's has a great article on brokerages that they publish respectively year. (Latest one I have a contact to was contained by March 6, 2006, but March 5, 2007 "just" came out). Kiplinger does one too.

Here’s the intermingle to the Barron’s article.
http://webreprints.djreprints.com/155028...

Here’s the link to the Kiplinger’s July 2006 article which isn’t doomed to failure either.
http://www.kiplinger.com/magazine/archiv...


For simple stuff, E*Trade, Ameritrade, and Scottrade are sufficient. For more complex trades, I'd recommend Optionsxpress, ThinkorSwim, or interactivebrokers.

Based on what you put in your ask, I'd recommend one of the first three, but all are highly good. Cheapest probably is scottrade (of the larger online firms). Yes here are cheaper like interactivebrokers, but you'll enjoy to get used to their software base platform (which is doable). They're only give or take a few $1/contract on options!

Brokerages close to Fidelity are horrible for anyone with any clad experience.

So, decide what's far-reaching to you as a trader and compare the brokers! You can use the article, or go to respectively website as they all appear to have comparison charts!

And if nearby are particular things that you want to mention as anyone most important to you (such as executions, cust svc, cheapest trade - which you mentioned, flexibility on allowing you to do clear in your mind types of trades, stop and stop limit directions, contingent orders, great graphing, what if scenario, training, etc), I'll be glad to help discuss this near you too!

If you have any question, let me know.

Hope that help!

P.S. I just found a cooperation to a review of reviews as well! Here it is:
http://www.consumersearch.com/www/intern...
very well, I have be with buyandhold.com for 7 years. Here is why I approaching them. It is $6.99 a month and that includes 2 free trades. Any additional trade is 2.99. That is the indisputable key because if you are investing $100 later paying $14 for a trade your stock has to dance up 28% to make 14% since your investment is so low. In the contact listed you can read just about it under financials.

What I similar to is you can buy partial shares and they automatically reinvest the dividend for free. I do not get a referral and I am a personal user.

They lately added a few closed bond funds which pay a dividend monthly.
Zecco.
Most trading firms such as CyberTrader require a min investment of $25,000 to bequeath you 4 to 1 intraday buying power. My firm, www.rematatrading.com has several relationships next to such firms, one being CyberTrader which is owned by Charles Schwab. Anyway we also bring contained by traders with small amounts of property and then impart them leverage, we have have traders come to us with as little as $2,500. Anyway check us out on our net page, email me if you would like more info, tlanzana@rematatrading.com
I started beside 200 dollars and I love my broker they have no obscured expences and they are very reliable. They enjoy real time quotes for free when you trade a few times a month. I also approaching their anylists and the way the site is set up. Email me at franksprung@yahoo.com and I will dispatch you right to them so you can see for your self.
scottrade hands down
I really close to sharebuilder.com. There are no minimums and trades are only $4 a piece. Selling is a moment or two more expensive, at 15.95 per trade, but they are trying to encourage you to invest for the long tug.

Their IRA maintenance fees are exceedingly low as well, and they own now added option trading and margin loans. You should look into them.
I judge http://sogoinvest.excellentabc.com... would be a good fit for you. I use them and the most I reimburse per trade is $3 and the account minimum is singular $500 which is lower than most of the other brokers. Plus they are regulated by all the majority agencies for stock brokers so I feel protected having my money in attendance.

Good luck trading




Which is the best NRI hill vindication (linked beside Indian banks) one can sympathetic here contained by US?


Question:
I am aware of CITIBANK and some local Indian communities which offer those services.any other services which you hold felt beside service...

Answer:
Yes CITI offers NRI vindication. You can try ICICI Bank. My friend has an NRI reason with ICICI and it score well within Online facilities. Transferring of money, transactions online are some of the best features of ICICI Bank.
Similarly you can try out HDFC Bank. They present a very flawless service.
Also check out UTI Bank. As always apposite service is a hallmark of UTI Bank.
Yes SBI has a immensely big network and a honourable bank to promise with. I am not sure of their online ability.
Hope this information is useful.
Happy Banking :)
NRI commentary with State Bank of India which have Branch in US is best since SBI is the largest Indian Bank have more than 12000 branches in India.
ICICI sandbank also giving best service.
indian overseas bank,federal edge,has get branches in u.s.a
Citibank is really pushing this NRE information very concrete and currently offering good deal. Try them but shop around first.
icici is good for services
SBI if you want more branches and ICICI Bank if you want better online services.
uti bank is best services later other bank they are most foremost in the mutual fund and uti dune has adjectives over service in india
YOu enjoy a lot of answers above. But, it is what you want to do beside it that is high-status.

If you want to open FDs, any of them are angelic. Find the one that is closest to your home or close to a home of a relative where on earth you may visit. You may inevitability to get at hand for certain services.

If you want to do more than a short time ago CDs, then plain an account at ICICI Bank since they are principal the industry in expressions of 'creative ideas' and 'online processes'. They have an 800 number here to ring up and they operate 24 hours a day. You will know how to send them emails if you turn to icicibank.com and ask questions. If after passage an account, you gross a complain or have a suggestion (I tried the suggestion part), they will send for you at your convenience and their cost!

I have an information at ICICI and therefore am competent to give you this honest feelings. My sister opened it near Citi and she is hardly competent to do all of these services.

Good luck.

KKP_Investor




What is the expected return for the following stock?


Question:
The average state has a probability of occurring of 55% and an expected return of 20%; the recession state have a 20% chance of occurring and an expected return of 10%; and the depression state have a 25% chance of occurring and an expected loss of 20%.

a. 0.055
b. 0.080
c. 0.095
d. 0.105
e. 0.110

Answer:
The correct answer is 8%.
(.55*.20)+(.20*.10)+(.25*-.20) = .08 or 8%




I use Yahoo Finance to acquire quotes for adjectives stock equity Put and Call Options.?


Question:
Currently I am not able to access Option Quotes for the months expiring surrounded by October 2007 or November 2007. Is this information available on Yahoo or has Yahoo made a loose change and this information no longer provided?

Answer:
Yahoo is not a good source for option quotes. The may not display options that do exist, may show option than do not exist, and may display incorrect information.

I suggest you use another source for option quotes, such as

http://www.cboe.com/delayedquote/quoteta...




Which company is the best to start an IRA beside?


Question:
More specifically, a Roth IRA.

I need to find out if there's a difference surrounded by the various companies that proposition IRA's. I assume it depends on where the money will be invested once surrounded by the IRA account. Are mutual funds the place to look for my IRA money next?

Answer:
When you are just starting out next to an IRA account, surrounded by my oppinion a mutual fund would be best. The trouble is there are thousands to choose from. So enjoy very glorious minimum investment amounts so those can be eliminated. The type of mutual fund that you choose to invest in would also be an celebrated consideration. There are probably a hundred different flavors. Many investors have in reality given up on mutual funds per se and are investing in index funds, a sub category of mutual funds that own become very popular within the last 5 years. The advantages of index funds are that they enjoy very low expense ratio and in nonspecific outperform 70% of the broad category of mutual funds.

It is very straightforward to buy index funds also. ETF index funds do not have any minimum, so you can buy a few of this and a few of that. A IRA brokerage rationalization with Scottrade, Etrade, TDAmeritrade is what you involve to buy ETF index funds. Those brokerage accounts will also allow you to purchase many mutual funds.
I've other heard polite things about Vanguard Roth IRA's. Their fees are really low.
Try going to a World Savings Bank. Tell them what your interested on, and they will endow with you information about their accounts. They also hold a sister company called Atlas, and within is always a rep surrounded by the branch that can answer all your question about IRAs and Mutual Funds.
who you hold the account next to will not matter so much as what you put contained by it. What will matter as far as who you travel with will be things similar to:
minimum balances
annual or monthly fees
trading cost
facilitate with investing

Remember, as far as the type of tale that you want, it wont matter unless you hold other factors. Just similar to opening a checking depiction. All banks enjoy them, but which is most convenient for you & does what you want it to do? Some things to consider are, do you need online access, are you going to trade actively or hold? Do you want to invest or do an annuity.
I am assuming that you do not hold significant holdings.

I would find a low cost broker, Etrade, TD Ameritrade, or something like that. They own very low minimum balance and offer a wide-ranging selection of investments.

As far as your sound out about mutual funds. Mutual funds are most expected amoung the best investment choices you can make. Find a Mutual fund near low costs and investments you like. Invest over time and you will expected have appropriate returns.

Personally, I have an IRA beside Trowprice, that has automatic deposits made monthly, You are set to Trowprice mutual funds but it is hassel free and they have markedly low fees. I have have good luck beside them and can reccomend the company.
Take a look at this from the Securities and Exchange Commission. The North American Securities Administrator's Association PDF "Cutting through the Confusion" has some flawless information and links as well.

As for companies, try these links:
http://www.dodgeandcox.com/funds/how_to_...
https://www.putnam.com/individual/...
If have a wide series of investment choices is important, later opening an IRA next to a brokerage firm like Schwab, Fidelity, ETrade, Ameritrade, etc is your best choice. By going next to a brokerage firm (as opposed to a single mutual fund family) you can invest contained by mutual funds, individual stocks or bonds.

If you are not interested in individual stocks and you want to invest contained by mutual funds, then gap an IRA with Vanguard is great style to go. They own some of the lowest fees around and a great selection of index funds and bond funds. Index funds are a great choice for most individuals who just starting to invest within equities.
You can set up an IRA with Fidelity through their website... next you can slect on-line where exactly you want your money to be placedthey enjoy an extensive line of funds (theirs and other companies) that enjoy " no fee" to purchase or trade
You can also use the same explanation to begin trading stocks or ETF's if you want to " grasp into" investing.
Mutual funds would be your best starting point...and they have excellent research tools contained by that dept.
Another place to look would be:
http://moneycentral.msn.com/beginnerguid...
Explains many of the "ins and outs" of mutual funds.
Easy to read and have a handle on




Multiple Choice/Fill contained by the blanks?


Question:
No matter how several risky assets we invest in, we cannot trim down our risk below the level of ____________ risk surrounded by our portfolio.

a. market
b. systematic
c. systematic and nondiversifiable
d. flea market and systematic
e. market, systematic, and nondiversifiable

Answer:
e
B
c




What is forex?


Question:


Answer:
This is just the first to paragraph of information that i have found from the links below. I found them completely helpful when first study about the fundamentals of forex-trading.

Are you researching the topic of Forex and the foreign exchange open market for education? Or are you a trader who is looking for other market to play around with? Well hopefully, we will afford you an introduction to the Forex markets that will accommodate both your requirements and inform you of the basic concepts and issues that intertwine next to the world’s currency exchange market. Foreign exchange market are always contained by a constant state of flux, and for the budding forex trader, it can be a rather daunting place to invest and trade your money, or for the student it is a a bit confusing topic to master. We introduce you into the world of the foreign exchange market.

The Australian foreign exchange souk alone turns over some $US81 billion daily. And that numeral only represents a fraction of the worldwide forex bazaar. The foreign exchange rate can be defined as the agreed price of one currency expressed in language of another currency. For example, the EURO and USD (EUR/USD) currency pair can be quoted as “1.2204”. This would suggest one EURO can be exchanged for $1.2204 US dollars. On the other hand, the (mathematical) inverse relationship is that one US dollar would fetch 0.8194 EURO. As you can see dealing beside the foreign exchange market can receive confusing pretty quickly except for some simple high university arithmetic: some fractions and ratios.
The foreign exchange (currency or forex or FX) bazaar exists wherever one currency is traded for another. It is by far the largest flea market in the world, within terms of change value traded, and includes trading between voluminous banks, internal banks, currency speculators, multinational corporations, government, and other financial markets and institutions. The trade occurring in the forex market across the globe currently exceeds $1.9 trillion/day (on average). Retail traders (individuals) are currently a outstandingly small part of this marketplace and may only share indirectly through brokers or banks and may be target of forex scams
Forex is currency trading. You can trade currency pairs 24 hours/6 days a week. Checkout our website and carry a free demo of forex trading, www.phantomtrading.com
It is currency trading but what it really is, is a way to lose alot of money efficient. beware of the programs that guarentee you ways to make millions, if they made millions why wouldn't the population just kind millions a day and verbs
Forex is short for Foreign Exchange. Exchange of one currencies for another.
How does Forex work ? Or
What does a Forex Trader do ?
check out
http://www.geocities.com/lcming/forexfor...
Until fairly just now trading in the Forex flea market was restricted to investment bankers, corporations and large investors. A few years ago the bazaar was open to the average investor.

The concern is that many race put there money into Forex trades as thought they be sitting down at the blackjack table in Las Vegas. They are abiding to lose their money, probably sooner rather than subsequently.

If you want to be successful at Forex trading it is important to any study intensely or align yourself with a successful trader that will assist you within reducing risk and maximizing your pains.

Forex is a great way to label money or to lose money.

Which one would you like to do?

Let me know your answer and if you get the right choicei can probably assist you.

Paul
pupp52@yahoo.com
the fastest place to loose all your money contained by the fastest time
Forex is really complicated to explain in simply a few paragraphs. I outstandingly suggest going to http://www.babypips.com that site will walk you through respectively step of the Forex market and is highly in depth. I also significantly recommend http://www.wiseforexinvestor.com... because once you have a minimal considerate of what the Forex is you are most likely going to want to contribute. The second site is a great place to learn almost a software program that saves you the headache of one at your computer 24 hours a day monitoring the flea market. It wouldn't be doing forex if it were not for http://www.wiseforexinvestor.com... If you own any questions I am available through email or you can hail as me directly.

Best Regards,

Rex White
503-922-1475
rexwhiteforextrading@gmail.com




XM or Sirius--Are any honourable long-term investments? Other cheap, non-penny stocks worth betting on?


Question:
I'll do homework on the suggestions, but I enjoy audible range them, along with any supporting reasoning. Thanks.

Answer:
Sirius seem to be gaining open market share on XM. It also has reported that it is in a minute cash flow posititve. Personally, both are too speculative for me.

I do know of a cheap stock that might own some potential. It is on my watch record but not my buy list. LQMT. Unfortunately, it is getting cheaper every sunshine. The company does have a product and also customers. What they are scarce is earnings.
From what I hear, you simply have to skulk a bit because talk is that they will merge. Meanwhile, XMSR is without a doubt the bigger fish than SIRI. If I were buying into any it would be XM, but my first rule is does it make a profit? (neither do), and second rule is save is it likely to? (I suspect XM will up to that time Sirius, as it looks to me).




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