With the us dollar so low against nearly adjectives currencies why does it verbs to do capably against the Yen?
Question:
I don't understand the strength of the dollar against the yen. How come it does so capably against the yen? Is it the fact they enjoy low interest rates in japan? I am making money contained by the stock market, but am finding that I am making more dollars that are worth smaller number v other currencies. Any opinions on of late buying yen and betting they'll appreciate against the dollar or the yen's weakeness some sort of statistical or mathematical imbalance/anamoly. I doubt that...a moment ago wondering what the math whizzes have an idea that about it.
Answers:
The yen have the lowest interest rates, so many intercontinental investors borrow in yen (having to remuneration almost no interest) and invest in other higher-yielding currencies and asset classes -- the so-called "convey trade." Thus, the yen is being sold remarkably heavily around the world.
Meanwhile, US Treasuries are still considered by many to be the safest securities surrounded by the world, so many investors (including sovereign states) breed a nice, safe concede differential in USD/JPY.
There are two relevant factor when it comes to currency valuations: interest-rates and purchasing power.
Trends keep on far longer than most people anticipate, so I wouldn't kick into the yen until it actually reverses. You could be waiting for a while.
But I agree, the yen is due for a come back, and when that happens, you're going to see a foul fallout in almost adjectives asset classes. I would also say that USD is due for a spring back. A statistical analysis might find the euro to be overvalued, if anything.
there are two strategies... when one currency going up and other going down...
1. If one conuntry's discount no good its currency going down.aginst others...
2. If both countries not doing ably , it does not make big difference...
Not singular yen but swiss franc is also weak aginst U.S.
At this time, Canada, India, china , european cutback is excellent..so thats why big difference between U.S $...
Because they are printing more money than us
Why do different countries enjoy different kind of money? Like, the dollar, the euro and the yen.?
Question:
"The bank of Japan spent $20 billion to push the yen down against the U.S. dollar." I totally do not think through this statement. I also don't understand how the Chairman on GM said, " The Japanese are keeping their currency artificially unconvincing against the dollar and the euro and really reducing the competitve position" of U.S. and European companies.
Can anyone put this is in better words so that I can get the message why keeping "currency artificially weak" is a good piece?
Answers:
The world used to be on a Gold standard which made things MUCH less complicated.
There are give or take a few 185 central bank around the world. These are regulated by the IMF:
http://dsbb.imf.org/applications/web/res...
The central bank are allowed to regulate the value of their own currency, contained by most cases, however they have to show the IMF their asset liability books, above.
One instrument to push the Yen down would be for the bank of Japan to simply issue 20 billion superfluous Yen therefore diluting the Yen already within circulation.
Another way would be to help yourself to 20 billion Yen off their symmetry statement by exchange ing an asset for a liability {non-performing loans in default}
Keeping a currency artificially frail means they lowered the significance of the currency to make the stuff they export cheaper to overseas buyers.
The Chinese are doing the same item they are not adding their dollars earn into their official set off sheets keeping the Yuan artificially low. They have the dollars but hold them in a different hill. That's called a trade surplus.
Hope this is defensible.
If your currency is weak, afterwards your imports of foreign commodities are expensive for your citizens, while the cost of your products abroad is low. This tend to increase your exports (bringing foreign currency into your economy) and discourages your own people from buying things made in a foreign country. It therefore improve your market position within world trade, at the expense of possibly encouraging inflation at home.
it's my understanding that countries (i.e. Japan) hang on to their currency artificially weak so that their products hold prices that are competitive. For instance Japan manufactures heaps different kinds of cars and if their currency be too strong against the U.S. dollar it's possible that US based consumers would become fainter to buy Japanese cars because they are 'too expensive' hence it's in Japan's interest to cause their currency weak so that U.S. consumers would buy more of their products. Other countries buy much U.S. debt (i.e. China, Saudi, etc) so that the U.S. cutback remains strong or stable and they can continue purchasing their commodities (i.e. electronics, oil, etc).
I hope this help.
How to compensate toll when company is aquired?
Question:
I bought a stock this January. Now it will be acquired by another company. There are three option: one is to exchange stock for some cash and consequently some share of the purchasing company. Second is to exchange all for shares. Third one is to procure all change. I do not want to pay toll this year. But if possible, I'd approaching to get some lolly. Can anybody explain the taxing situation and what's the best choice for me?
Answers:
If you get adjectives stock then no taxes will be due. [ I similar to this option as I close to to postpone taxes as long as possible.] The new cost idea will be the same as if zilch happened.
If you catch all brass, then you'll settle short term funds gains on any profit.
If you go and get a mixture of cash and stock. Figure that what you really did be exchanged some of your existing shares for new company stock and the rest your sold for lolly. Allocate (in some reasonable agency (the IRS allows some leeway on this)) respectively of your of old shares into any a cash or exchange pile. Normally, I would do this on a percentage reason and the number of shares in respectively pile may not be a whole number.
Figure the cost reason on a per share basis of your weak shares.
On form D, report that you sold the shares allocated into the cash pile, for the amount of bread you received. Report your cost basis as the cost per (old) share (calculated above) times the number of shares surrounded by the cost pile. Pay short term taxes on any profit.
Record, for adjectives use, the total cost basis of the clean shares as equal to the cost basis as the cost per (old) share (calculated above) times the number of shares surrounded by the exchange pile.
Do you know of anyone that lives past its sell-by date of option trading?
Question:
just trying to win a idea where on earth the options trading business is at, is it profitable, is it something you can do as a full time mission??
Answers:
I know, through message boards, some who make a living trading option. Some work for large companies trading near their money.
Most, if not adjectives, who are independent
(1) have be doing it less than 10 years, and
(2) started next to portfolios in the mid to large six digits.
I would not try to support myself trading options beside a portfolio under $500,000.
Option trading can without a doubt be profitable, but remember it is a zero sum proposition. For every dollar you create on an option someone else lost a dollar on indistinguishable option. You hold to be better than other traders to make a profit. Remember the professional traders enjoy access to the best information and the best tools, and that you will be competing against them.
It is highly speculative, and as a consequence unlikely to be a good agency to earn a living. Even professionals employed by investment companies struggle to keep ahead surrounded by the options bazaar. An individual will find it next to impossible.
some folks live short residence off option trading, most go broke and travel to another source of income when the market does something they don't expect, which is frequently. Brokers breed a lot from option, trading other peoples money.
Risk nouns?
Question:
Oren Wells, the financial manager for Winston Enterprise,wishes to evaluate three prospective investments X,Y AND Z.Currently,the firm earn 12 percent on its investments,which have a risk index of 6 percent.The three investments beneath consideration are profiled in the following table surrounded by terms of expected return and expected risk.If Oren Owells is risk-averse,which investment,if any will he select? explain why.
Investments Expected return Expected risk index
X 14% 7%
Y 12% 8%
Z 10 % 9%
Answers:
Risk Index is not a adjectives term I've come across .. I'm going to assume it's simple defined as 'percentage risk of not achieve the expected out come' ...
Using the values given it's possible to calculate a 'mean expected return' .. however 'risk averse' vehicle he wants to choose the LOWEST risk IRRESPECTIVE of return .. surrounded by this event, plainly 'X' wins out.
The single 'fly in the ointment' is the 'if any' clasue .. immediately you will need to makle a good point judgement ... is 7% RISK acceptable to some-one who is RISK AVERSE ? ...
If you give attention to 'yes', then 'X', if you guess 'no' then the answer is 'none of them'.
Do your own homework you ill-behaved naughty boy!
X the expected return is the peak and the risk in the lowest
What is the lowest amount that can be put within a compact disc (Certificate of Deposit)?
Question:
I know different financial institutions might do different things, but on average, what is usually the lowest amount of money a person could put surrounded by a CD to spawn it worthwhile? Or what is the lowest amount most banks will adopt for a CD explanation to be opened?
Answers:
I would agree that $500 is standard for the minimum harmonize. However, the better the rate (long term CD) the highly developed the min. deposit, so you could go to sandbank of america, and 3 different CD language could have 3 different min. deposits. mine be 1k for a year
Each bank offer its own CD's, so it is up to the individual banks. I hold seen them as low as $500, but one of my organization found one with no minimum if she be opening it for her minor son.
At my wall the minimum is 2000. But there is also a steady saver's cd that you can start near 100. minimum then automically 50.00 a month is deposited and the rate is close to 3% on a 12 month term.
Investment - What dictates the stock price of "Company A" when it is purchased by another company?
Question:
For example, say the price of "Company A " stock price is at $50/share and "Company B" offer to purchase "Company A" at $55/share. Will the stock go better than $55? Then lets utter another company offers $60/share for "Copany A". Is nearby a limit to how giant the stock can go and what dictates the final price of the stock if "Company A" is bought out?
Answers:
The stock might especially well trade above $55 after Company B's bid for the unbelievably reason you cite, someone else might come along and bid more.
Theoretically, there's no ceiling to how high it might step.
The final price will be the ultimate large bid.
Stock prices move based on supply and constraint and on the fact that nearby is a limited number of shares available for trading.
When Company B offer $55 a share, the price will usually run up to $55 because other investors will purchase the stock up to $54.99 - trying to make a $0.01 to $5.00 profit on the buy-out. The stock can travel higher than $55, but most investors would never pay packet $55.50 for a stock that is around to be bought out for $55.
There is no limit as to how illustrious the price can go; but, the company i.e. buying Company A knows how much they want to take-home pay and will not offer more than their preferred price.
The final price is determined by how heaps shares the purchasing company can buy - at what price. If Company B can not acquire 51% of Company A at $55 a share because the shareholders don't agree or because nobody is selling, Company A will have to preserve buying. This would push the stock price higher until Company B have a majority ownership.
In practice, Company B will usually make a "tender offer" to buy Company A at, voice, $55 a share. Company A will put it to a shareholder vote. If the shareholders agree, the transaction is done at $55 a share - regardless of the actual stock price. Company B acquires Company A and Company A shareholders receive a check for $55 x the number of shares they held, or they receive shares surrounded by Company B.
Is it possible to hold IRA funds contained by foreign currency?
Question:
Given the falling dollar and my plans to return to India, I am debating about my retirement funds. Is it possible to hold it surrounded by an IRA, but in non-US currency (such as GBP, Euro) to after that convert to Indian Rupees (when I withdraw)
Answers:
There are a number of mutual funds investing surrounded by foreign currency and plenty of stocks are of foreign companies. These are opportunities to put off against the falling US dollar.
Foreign stocks are likely to own a better return than currency funds.
Yes, there are foreign currency ETFs, foreign bonds and stocks you can invest surrounded by.
Is PAN number requisite for small investors contained by Mutual fund? Most rural investors doesn't own PAN.?
Question:
Answers:
Yes it is mandatory for all exotic investors who wish to buy mutual funds. The extension by SEBI for PAN card for every investor til december is applicable to existign mature investors.
How to get a PAN Card:
http://www.rediff.com/money/2003/jul/11p...
its mandatory to allege a PAN number for all investors . it keep the country safe from money launderers. here are lots of people who hold robbed the countries hard earn money by showing fake details. hence a PAN number act as an identity of your investment and tracks how all you order your fund and the source of your fund.
Pan number is required for investments in MF for rs 50,000//- and above. u canstill suscribe upt rs 49,999/- within a MF without vessel number.
PAN NO: IS NOT NECESSARY TILL INVESTMENTS OF 50,0000.
PAN is emerging as the Indian Equivalent of the US Social Security Number[SSN] that helps track money movement and hold the economy verbs. For investing in Mutual Funds or any other instrument PAN is mandatory. However, this is applicable solitary for investments of Rs. 50,000 or above and can be avoided. For example, if you want to invest around Rs. 2,00,000 in Mutual Funds but don't own a PAN, you can do it by simply filling up 4 different applications of Rs. 49,999 within 4 different Mutual Funds or 4 different dates surrounded by the same fund. Also details that getting a PAN card is now really easy beside different banks and NSDL helping this drive. You can newly apply online through NSDL site and courier the documents. You'll get your PAN card surrounded by 10-20 days.
It is now mandatory to provide a copy of PAN card for investment surrounded by Mutual funds along with self attestation.
You can also unite my group
http://in.groups.yahoo.com/group/nshadv/...
For investment in Mutual funds Pan card details are not required and the human being need not enjoy Pan Card, provided if the investment is less than 50 thousands rupees. Thanking you and adjectives the best Yours VRVRAO
IShares Canada Index ETF and Currencyshares Canadian Dollar ETF-OPTIONS?
Question:
I have be buying iShares Canada index ETF options the finishing 3 months and they have perform well (except the ultimate 2 weeks). Yesterday i added a Currencyshares Canada Dollar option in need being to adapted with it (most of the charts look fitting though).My question?: By tally a CURRENCY ETF OPTION to a INDEX ETF OPTION does it make my investment more speculative and volatile?
Answers:
MORE speculative? You can't get hold of much more speculative then currency option. But that's beside the point.
It sounds like one of your option tracks the Canadian stock market and the other tracks movement contained by the canadian dollar on the foreign exchange market. These two market are linked but not tremendously much so. That is to say, is the stock open market goes down, that doesn't necessarily stingy the the currency will also drop.
So, I would say no, your portfolio is not more volatile as a result of have those two investments in it.
What are some factor this year that could clear inflation suddenly rise or nose-dive?
Question:
Answers:
Good question: Energy prices are a huge risk factor, and could be pushed up curtly by conflicts in the Middle East or elsewhere. Hurricanes that disrupt grease drilling in the Gulf are also a risk factor.
A stronger dollar could product foreign goods more expensive.
Our national debt is another factor for inflation.
A strong US reduction could drive up prices also.
this year and any.when money becomes worthless convenience ,then every one increases cost cast every one back into, where on earth are we going to get more money!
Oil and Ethanol.
As Yardbird have already mentioned, a good examine. I am of the opinion that the organization does not report a true record of inflation and it is much better than reported so depending on how the govenment chooses to report will make it properly rise or fall.
Now down to brass tack.
The government ethanol fiasco will enjoy a very immense effect on inflation for the worse I might add. They enjoy driven the price of corn through the roof. Corn is one of the backbones of food prices. Soybeans is the other. Acrage will be switched from soybeans to corn so both will dance up dramatically. Look for food prices in the subsequent year to go up and up.
Interestingly plenty ethanol requires more energy input than is received surrounded by output, therefore look for ethanol production to drive up the constraint for oil which as you would expect will also drive up its price. Only the U S government could come up near such a cockamamie scheme. But the farmers and John Deere should both do very well. Oh yes, also amonia.
Then on the other hand we enjoy falling home prices. This could prove very interesting. People refinanced their homes to carry money to spend on crap they did not need. Now those homes are loosing helpfulness and if they have non fixed interest rate loans, their payments are rising. Or they bought McMansions they can not afford to fry or air condition or wage the taxes on or they live in Florida and their home owner insurance is more than their mortgage. There may be a really big exit from these homes. Stampede is probably an exaggeration but possibly not. Could conceivably cause the house of cards cutback to totally collapse.
Then there is GWB. Sort of a loose canon. You know why they own that expression? Back in the days of wooden hulled sailing ships, a 12 pound canon weigh about 2000 pounds and be on wheels. If they get loose on a rocking ship they could do very serious harmed and there be no stopping them once they did got loose. The with the sole purpose hope was that they would eventually punch a unbroken through the side of the ship and fall overboard. I can conceivably believe him nuking Iran and saying better them than us. What that could do to the country and reduction I can not even imagine.
Rising bond rates not single cause food (or the CRB Index) to become more expensive, they signal a scarcity of liquidity by the consumer, i.e. no money.
Non-liquidity by the consumer, in and of itself, is judgment alone for inflation to rise. But non-liquidity by the consumer could spur the Fed into printing more money, which to say the tiniest, is also inflationary.
Inflation fears are eased by a steady bull-market, even one contained by a comfortable range, along beside a flourishing economy and honest employment.
Does Anyone know what the current gold ingots price is?
Question:
Thanks!
Answers:
Here's where you can win the price of gold coins or bullion...
https://online.kitco.com/sellprice/selli...
...
Last week it be about $650 per ounce
Gold price.. what do you connote? Be more specific damnit! Real gold? World of Warcraft gold ingots? what!?
about 650
Last closing price be $650.90 an ounce.
Where is a biddable place to start for greenhorn investors?
Question:
I have some extra money that I wanna invest to generate more money. Where should I start? What kind of investing is apposite for beginners. Thankyou for your answers!
Answers:
First of all, Congratulations! Investing is a big and responsible step that will minister to secure your adjectives.
The first thing you want to do is numeral out how much risk you are willing to pinch. Higher risk investments can have hefty gain, but you can also lose it all. Is this a winter sport you are willing to play? Or, would you similar to to earn a guaranteed income that might not pay so much but will patently net you a profit contained by the end?
Savings accounts beside interest are the safest of all, but the interest rates are so low currently, its hardly worth it.
I found CD's and Money Market accounts to be righteous to start with... superior interest rates than savings, but justly certain gain (usually definite next to CD's.)
Then there are riskier propositions similar to stocks, etc. These can be difficult to get started contained by because you often hold to have a broker or salary a fee to use an online investment company. Also, it truly is gaming.
If you do want to give stocks a run, a solid blue chip might be a good track to start. (A solid company that's been around for years and have a steady history of turning a profit.) Even if you can only afford vote... 2 shares, its a good ground floor to bring in on. In my inference, be sure to re-invest your dividends. Otherwise you'll get a chance check every now and later for a few dollars that you'll be tempted to forget just about and not ever cash. If you re-invest, the money will automatically walk to buying you more stock. It will compound your earnings faster.
I would importantly recommend signing up for Motley Fool. (motleyfool.com) I was totally intimidated when I first started investing, and the website help a lot. The website is adjectives about investing. They update constantly and transport out monthly newsletters (electronic). Its one place that I found that spoke about money within a way that I embedded (slightly dumbed down and it felt close to a person be writing the articles, not a calculator.)
Whatever you do, ALWAYS read the fine print. Find out if the investment opportunity is insured. Get all of the information and never get the impression like you can't ask question.
If anyone tries to put you off, or won't answer your question. Walk away.
If it seems to suitable to be true. It is.
Walk away.
Make a list of question to yourself before you get going so you know what you need, too.
What plane of risk am I willing to pilfer?
Is this a long term or a short occupancy investment?
Do I need to hold access to this money?
Am I ok with individual locked into terms for X amount of time?
etc.
Good luck to you.
Go to Investopedia.com and read the tutorials.
I am also a pupil and after researching from days have come to a conclusion: that stock market is the best preference, but its very risky for beginners resembling us so in writ to learn around this big game of making money..we hold to start from basics, which are mutual funds.
Some race have suggested next to some useful websites. I am working on them and you can also own a look.
most imp. source is vanguard for mutual funds http://www.vanguard.com
http://www.lucky-dog-investing...
http://www.investopedia.com
http://www.motleyfool.com
I would suggest you to plain an account at Scottrade, and buy a few shares of SPY and GLD. Two months subsequently, repeat. Buy again. If you continually invest some money in these two funds, your money will grow. Just remember, don't deal in your shares no matter how dismal catastrophy or disaster happens. If you vend your shares in a nouns, you'll lose your money. You'll have more money if you do not put up for sale your shares.
SPY is the S&P500 index fund. When you invest in SPY, you are buying the 500 best American companies. GLD is the gold ingots index fund. Ten shares of GLD = 1 oz of pure gold.
In olden times 20 years, the S&P 500 index appreciated 400%:
http://chart.bigcharts.com/bc3/intchart/...
In the past 20 years, gold ingots appreciated about 70%. In other words: In days gone by 20 years, the US dollar lost almost half of its worth compared to gold.
This chart shows the price of gold ingots in the recent past 20 years:
http://chart.bigcharts.com/bc3/intchart/...
If you turn the chart upside down, you'll see how the dollar has lost its plus against gold.
If you are interested contained by small caps, try:
http://finance.groups.yahoo.com/group/tr...
- check out accounts listed on the front page and cram the rest from people who are doing it right in a minute.
Here are some principals to maximize your investments:
1) Educate: Learn about stocks, bonds and mutual funds
Here is a place to start
http://www.bobbrinker.com/pitopics.asp?t...
2) Diversify: Spread your risk among masses companies or bond funds. Index funds are best...As an example vanguards total stock market index fund invests contained by every stock in the US bazaar. There is no commission, No load(or upfront or back expire charge) and .25 % management excise. That is $2.50 cents per thousand you invest per year.
3) Be frugal:: Buy only no nouns low expense funds. paying commissions reduces your returns. Total expense on the fund is push button...there are adjectives types of fees companies charge...avoid all of them! Buy from a no nouns, low expense mutual company!
4) Use a low cost mutual fund company -True mutual fund companies are low expense, no commission and are owned mutually by investors...The best of the best is Vanguard, but Fidelity is also good.
check this
https://flagship.vanguard.com/vgapp/hnw/...
Midigate timing risk: Dollar cost average: Invest small amounts on a monthly idea into the mutual fund
Lastly: Use a low tax approach: Open an Roth IRA near Vanguard -This will be tax free upon retirement
First, start on a brokerage account. Once you hold the account number you can fund it by writing a check and mail it to the brokerage, set up automatic transfers from you checking account, or drop within and deposit directly. I have/had accounts with Fidelity, Schwab, Scottrade, and eTrade and own had no problems next to any.
Next, I would recommend reading William O'Neil's "The Successful Investor" as a good starting point. Follow that up near Peter Lynch's "Beating the Street". That should provide you with two strategies that you can swot from in building your own investment strategy.
Other right books include "The Motley Fool Investment Guide" by Tom and Dave Gardner or "Real Money" by James Cramer.
I have read adjectives these books and many others and devised a strategy that adopt a bit from each one.
Another item you can do is invest using a fictional portfolio. Let that run for a few months to see if you are in position to start trading with tangible money. In the meantime, invest in mutual funds. Once you are all set, sell the fund and invest on your own.
Remember, the time spend erudition about investing is far smaller amount then the money lost by not human being prepared.
---
The best place to start is education, read some books etc,
or try this cousre highly easy to twig and follow a great base to start trading within any form and to see if trading is for you
Mutual funds are an easy instrument to invest in stocks and bonds. However, to specifically answer your query, we will need two celebrated pieces of information: 1) Your goal for this money? 2) Your time horizon?
For example, if you want to invest for college contained by 3 years, our answer will be dramatically different than if you want to invest for retirement in 30 years.
Check the following books for more info:
1) Mutual Funds for Dummies, by Eric Tyson. This is the quintessential beginner's book.
2) I hold a free downloadable book at http://www.invest-for-retirement.com...
3) http://www.investopedia.com has excellent tutorials
I freshly want to let everyone know roughly speaking the great investment opportunity going on with McGee Investment and Mortgage Group. They are going to be flipping an apartment complex surrounded by Greensboro, North Carolina starting on Tuesday. If you invest before next, the return on your investment is 165%. Email them or call them and take the information. Don’t miss out on this, they don’t have deal like this one coming around adjectives the time. Email them at McGee.hp@gmail.com or call them at 336-491-5693. The Branch Presidents given name is Thomas McGee. Also, they are open on Sundays, so you don’t enjoy to wait to telephone.
Trading Stock online?
Question:
If the online company I am with charges say-so $9 for a trade, does that mean if I buy a $10 stock it will in actual fact cost me $19? Or is the fee when I get rid of? Or am I totally wrong?
Answers:
That $9 is per trade.
so if you buy 100 shares at $10 per share, they will still only charge $9 , so you would recompense $1009.00
The brokerage company makes money whether you win or lose!
When you purchase a $10.00 stock - you will be buying at tiniest
100 shares for $1,000.00 plus the commission of $9.00.
The $9 fee is an extra cost you settle whenever you trade, which means buying or selling.
If you buy a $10 stock, it will in reality cost you $19.
If you sell a $10 stock, you will catch $10 and pay $9 to the online company.
The $9 tax applies to both buying and selling. Depending on you broker, you may buy or sell up to 1000 shares of stock. So if you buy 1000 shares of a stock at $10, after you would need to own $10,009 to cover the expense (plus a few cents for the SEC).
---
It will cost you $19.00 and another $9.00 when you sell it.
this money your stock has to dance as high as $30.00 if you want to kind $2.00
That can take years.
On the other appendage if you buy TWO SHARES in alike company at $10.00 then you will pay envelope $29.00 and $9 when you sell them and your stock merely has to rise to $20.00 if you want to cause $2.00
That can take months.
Do adjectives companies take-home pay dividends to shareholders?
Question:
If not, what are the reasons why you should buy stocks from companies that don't repay dividends?
Answers:
Not all companies are currently paying dividends to stockholders. This is without a flaw natural. In the valise of a start-up company, we often see the company skip dividend payments to reinvest adjectives profits for growth. Investors are cool with this so long as the company's growth lead to large dividends surrounded by the future, once the company starts paying them. However, any stock whose price is above nil reflects the certainty that somebody thinks this company will eventually wage dividends at some future time.
Ethical companies will eventually pay packet dividends. No company in their right mind would issue stocks and later say to themselves, "Foolish shareholders! We will never payment them dividends, even to our grave." Eventually shareholders would take catch sight of and a backlash of negative publicity would engulf that company. Not to mention, the board of directors (who are shareholder's liaisons) would transport action against the CEOs. Also, that company would never know how to issue any new stocks to put on a pedestal money. In fact, if a company announced that it would never issue dividends, the price of that stock would instantaneously drop to nothing.
One exception to this is the stock buy-back. Sometimes companies will use their profits to buy back outstanding stocks at a premium. This is surrounded by lieu of paying dividends. Fine by me. But this is fundamentally no different than a dividend. The company is still giving me income which comes from their profits. Dividends are income spaced out over many years, while a stock buy-back give me the income as a lump sum. Think of a stock buy-back as the company paying those future discounted dividends adjectives at once to you.
CEOs run the business of the company while the board of directors oversees their actions and act on behalf of the stockholders. The board may consist of people outside the company, to ensure a nonbiased celebration is involved. The board declares dividends and how much they settle. Typically, a board of directors will allow a company to earn profits for several years before declare or increasing dividends. Likewise, they are reluctant to decrease dividends, even if the company have one or two bad years. They know that an offhand decrease contained by dividends will shake stockholder's confidence, so the board is conservative with their change.
How does the board of directors decide what to do beside profits? Simple. A good director asks the grill, "Who would earn a better return with the money - the stockholders or the company?" The director will reinvest profits back into the company if she think the company can grow and make even more profit down the road. If the director, though, feel the company cannot grow fast satisfactory to give shareholders a competitive rate, she will use profits to clear dividends instead. This returns equity back to the shareholders so that they can invest the money contained by something else. Many older and established companies settle generous dividends because - although the companies are strong - their growth have reached a plateau.
no bearing
just because they dont take-home pay dividends doesnt mean you shouldnt buy a stock. remember, stocks also can increase and reduce in expediency
No
if your a shareholder, yes u get salaried...or some of them you can set it up , so the dividance is re invested to get more shares..
Some do some don't. If they do not they later take those profits and reinvest them into the company making it more profitable. Dividends are an open thing.
Some companies pride themselves on saw they have be paying out dividends for so many years, but the actual stock may not be worth as much as a comperable company who didn't payout.
Investing surrounded by Stocks is a complicated issue, and even after a year of accounting classes, I still don't understand it that resourcefully.
Many companies do not pay dividends. Some of the ones that do enjoy such a small dividend that it isn't worth considering. (My opinion.)
Dividends should be a lower consideration to stock selection. Your prime goal should be to find stocks that you believe will walk up in importance. Otherwise the dividend only manner you won't loose as much money.
Many companies do not pay dividends as they are contained by the expansionist stage and are using income to promote internal growth. You would buy stocks in these companies surrounded by the expectation of future profits.Of course if a company have no prospects of expanding and does not pay dividends consequently you would not want to buy into them.
No, not all companies money dividends, but that is not a intention to not buy them. Most, but not all, non-dividend paying companies are growth orient and reinvest the money that they would pay contained by dividends back into the corporation to stimulate research and nouns and stay in the growth mode. This is what Microsoft did for the first 15 years of their natural life. Now that they are maturing, they are paying dividends to entice investors.
If your interested, here's a dividend screener where you can query for dividend growth stocks.
http://www.dividendinvestor.com/...
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No. For example, Microsoft didn't for a long time, although they have very soon paid out a couple dividends.
You might buy the non-dividend stocks because you presume the value of the stock itself will appreciate.
Ok, I've done ample home work this week.!! A company has roughly two types of shareholder, prefernce and ordinary. Preference gain a dividend every year at a set a rate and it may be deferred, but any non-payment have to go as a creditor (debt to the comapany) and corrected. Ordinary shareholders are not automatically given dividends. It depends on the profits of the company, and what they receive is undependable. The only other loosley term holder is a debenture holder who get fixed rate no issue what. Preference shareholders after debenture holders are paid since ordinary shareholders.
1) No
2) If you are already a millionaire after you don't really need any dividends.