What are the costs associated beside starting and maintain a Morgage Merger Account (MMA)?
Question:
Answer:
THE site below may be helpful:
http://www.u1stfinancial.com/moneymergea...
MMA Introduction
Math Lovers here is one for you?
Question:
This is compounded semiannually..
P dollars is invested at annual interest rate R for 1 year. If the interest is compounded semiannually, then the polynomial
P(1+r/2)^2 represents the utility of investment after 1 year. Rewrite the expression without parenthesis. Evaluate the ploynomial if P=$200 and r = 10%
Answer:
200(1+.10/2)^2 or 200(1.05)^2 or 200 * ((1.05)(1.05)) or 200 * 1.1025 or $220.50
The elementary way to switch this equation is
P ((1+r/2)(1+r/2))
Using the FOIL method
P((1 + r/2+r/2+(r/2)*(r/2))
Switching the equation up a little to correct for command of operations (r/2=1/2 * r or r *1/2)
P((1 + r/2+r/2+((r * 1/2)*(r*1/2))) or P((1 + r/2 + r/2+((r^2)/4)
Combining close to fractions
P*(1 + 2r/2 + r^2/4)
Reducing fractions
P*(1 + r + r^2/4)
Distributing the P
P * 1 + P * r + P * r^2/4
Using numbers
200*1+200*.10+200*.10^2/4
or
200 + 20 + 200*.01/4
or
200 + 20 + 2/4
or
200 + 20 + .5
or
$220.50
Thank You, Ill be here all week
Is it a accurate strategy.?
Question:
to buy some affordable stock that has experienced a low dip hold on to it until it have risen to a peak and afterwards sell it. After that find a slightly more expensive stock that have experienced a decline but is starting to rise again and when it too has reach a nice peak to trade this stock for more expensive stock and keep doing this?
Answer:
I don't read why people are giving you so much flack.
Yes, it's a fully clad strategy as long as you know what you're looking for.
One prime example of this working is gold ending year. It was contained by a long term uptrend, later had a pullback. During the intermediate pullback, the price continued to decline.
Then, it bottomed out, and afterwards it broke the intermediate trend line and started rear up again. As such, it continued to rise and did quite ably.
This is a strategy used by many, but contained by general, you own to know what you're looking for in lay down to profit from it.
The same happened for heaps other stocks as well.
As I said above, the switch is knowing what to look for and being competent to spot it when it happens. That's the face! ;-)
Hope that helps!
P.S. The course many populace do spot this is to use support and resistance and generally a moving average crossover or stochastic crossover system. Generally, a stock or sector is set to resume its longer term trend when the stock/sector breaks the downtrending resistance vein in adding together to breaking back above a moving average row. Having the technical indicators crossing over as all right is a nice bonus. Good luck!
Well, except for the continually rising stock price part, that's exactly what every investor hopes for. Find honourable values on stock prices when good companies own a dip. Wait for it to go up to where on earth it should be, and cash contained by.
That being said, I'd only keep working until I could afford shares contained by Berkshire Hathaway. Their A shares closed at $106,800 today. Even their B shares are $3558 per share.
In case anyone be wondering, Berkshire Hathaway is Warren Buffett's company. He's the 2nd richest man on the planet, all that money made through his stake contained by that company, and his investments.
I know I'm not a better investor than he is. So why not just permit him do my investing for me?
Most will generally agree that your "revolutionary" strategy of buying low and selling glorious is a good one.
Most 3rd graders -that is.
And nearby again they could probably figure that out minus even using the internet.
Please move along.
The first problem that I see is that you appear to be evaluating stock, at least surrounded by part, on the price per share. If a stock is selling for $40 per share and have a 2:1 split it will then be selling for $20 per share but it will not be any better or worse contract than it was since the split.
The second problem that I see is that it appears you want to buy a stock because it has decline in price and flog a stock because it has gone up surrounded by price. While that strategy will work sometimes, I believe it is more likely to underperform the flea market. Stocks usually go up because within is good word about the company and travel down because there is discouraging news nearly the the company. If "the market" overreacts to bad communication it is true you can get some bargain that way, but you will find the marketplace is efficient satisfactory that a lot of the time when a stock go down the news be bad plenty that the stock will to keep going down.
how do you know a stock will travel back up? what if it is on its bearing down and hasnt gone down all the agency yet? what do you do if it become nothing? if you do this, adjectives the stocks you buy have a superior chance of bankrupt then stocks that are going upWhy dont you try buying stocks that are on its road up instead of buying stocks that are lower then usual...what is "usual" by the road? What if there's a split? 2 to 1 split? 3 to 1 split? And their prices go haywire...later how will you know? And furthermore...how do you know a stock is at its peak? Your strategy is not that worthy...Because Berkshire stocks are the most expensive stocks in the world I believe. and their stocks travel from 30 thousand to over 100 thousand..What if you were buying and selling..and you work your style up to like 1 or 2 Berkshire stock...You salaried 90k each..and next what happens when they be in motion down to 35k each? I ruminate you really need to hit accounts before you start buying and selling stocks. ...Stocks turn up and down all the time..You are not focusing on when they are lowI dont aid how low or high it is...you are supposed to buy it when its nearly to go upthats what you stipulation to focus on..and the second thing is...when its around to go down..or when it have hit its peak
No.
You will find that transactions costs guzzle into your profits. It is generally better to buy and hold.
No.
How Can I Start Invest Into Index Fund (ETF or QQQQ)?
Question:
I have $600 to start. I meditate i go beside ShareBuilder or Scottrade. Any Suggestion? I won't buy/sell very recurrently, so what plan should I choose?
Answer:
$600 is too little to buy ETFs. Even at the best prices you would lose $8 on the buy and sell, or 1.3%. I would invest that $600 contained by a no-load Index fund like Vanguard's. I estimate they have a $500 minimum. Also the QQQQ is debris, you want a real index close to the SPY, MDY, IWM, etc. Do a 5-yr performance comparison if you don't believe me.
Go beside Trade King. Sharebuilder charges arm and leg to sell.
It is a reputable company I know because I use it if you prefer to use it please email before you set up justification so I can get 50 for the referal. gratitude. they have no disguised fees plus you get actual time with a few trades a month for free.There are no extra costs for different types of directions. My email is franksprung@yahoo.com
Scottrade is good. Right presently the tech stocks are not so hot. I'd wait til deferred this summer to look at the QQQQ. Wait til you get a stocastic crossover of the MACD.
Trade King have a good reputation. Also Scottrade.
Index funds. There is something that you stipulation to know about index funds, especially QQQQ. It is capitalization weighted as are most but not adjectives. What does that mean? That system that about 10 stocks within QQQQ make up around 38% of the holdings of the fund. Bottom line is you are not as diversified as you might consider. 5 year annual return of QQQQ is about 5.45%. It may advance.
Now I do want to try to sell you anything. I a moment ago want to see if I can help. There are around 200 to 300 index funds available. As I said most are capitalization weighted but not all. RSP is an unweighted index on the S&P 500. That funds all 500 share duplicate amount in the portfolio and it is rebalanced quarterly. Has not be in existance 5 years, singular 3. Three year annual return is 12.2% twice the 3 year annual return of QQQQ. Also better than the capitalization weighted S&P 500 index funds SPY, etc.
Before you go jump into an index fund, check out this link which as adjectives the pertinent statistics on all the index funds.
http://www.etfconnect.com/select/rank/de...
$600 is nought I agree you need more however if you own a long term INVESTMENT plan after sharebuilder will suit you but for trading scottrade or Tradeking (haven't used) will be your better choice. The selling fees are too high for sharebuilder and thats why i switched to scottrade. As for QQQQ i also do not recommend buying it (I in fact sold my QQQQ's after Vista hit the market and after investing it for a few month prior made a fully clad little profit on it). I just don't see big movements contained by the qqq's right now.
ShareBuilder and Scottrade are too expensive for you.
I suggest you TradeKing, SogoInvest or Zecco.
What happen to Sirius stock if they merge beside XM?
Question:
Answer:
Someone else just asked this. The answer depends on how much Sirius pays. If it pays too mich, afterwards bad report. If it gets other, then honest news.
When companies buy another firm, they usually claim that in attendance are "synergies" and that the value of the combined firm is greater than the meaning of the individual firms. This extra value may come from have complementary product lines, from being competent to get rid of redundant administrative costs -- or from getting hold of enough bazaar share to be able to price more close to a monopolist.
Academic studies show that this is often true. The quiz is -- who gets the excess helpfulness. Prior to the Williams Act in the overdue 1960s, the acquiring firm usually get the excess value. This be because deals could close inwardly three days. Firms would make a control bid offering a decent price for 51% of the stock if the buy and sell closes by Monday. This gave companies self bought no time to respond. The 51% who sold by Monday made a small profit. The 49% who did not got screwed and the acquire firm's shareholders got adjectives the benefits.
After the Williams Act, companies have 30 days to respond. For this rationale, the firms that are acquired can capture a better deal for their shareholders. Academic studies show that when within is just one company making a bid -- the extra plus is shared between the shareholders of the acquiring firm and the acquire firm. However, those 30 days allow the firm that is one bought to seek other firms to buy it. The subsequent bidding time of war transfers the entire value of the surplus to the acquire firm -- creating a winner's curse for the company that wins the bidding time of war. On average, when more than one firm bids for a company -- the winning firm's stock price in reality drops. The losing firm drops while the deal is within process -- and then bounces wager on after they lose the deal.
Bottom string: XM stockholders will be winners. Sirius stockholders will be winner if no one else bids on XM and will probably be losers if someone else does.
That adjectives depends on the deal the two of them produce.
but since i own alot of sirius stock i hope they merge, no matter who take control both stocks should go up...
What is the difference between unsecured bonds and debentures?
Question:
I thought they were matching, but my textbook listed both as forms of liability.
Answer:
there isn't any difference at adjectives between the two, although there are secured debentures.
I want to invest some money on extraordinarily smaller quantity risk stocks. Any suggestions?
Question:
Answer:
If you invest money in newly one stock you are subject to a great deal of risk. Any darn article could happen to that one stock. Your best option are managed mutual funds and index funds. That course your money is invested on a large hotchpotch of stocks. Some index funds have more risk than others but they adjectives have smaller amount risk than investing in one stock. RSP is an index fund the invests equally contained by all the stocks of the S&P 500 and it is rebalanced quarterly. The leading risk to investing in i.e. that it invests only within U S companies and is subject to what happens contained by the U S. There might be more risk to that than you might think, especially since the pro of the dollar just keep falling.
All of the international index funds are more or less capitalizaton weighted I estimate. But there is absolutely something to be said for having ones assets contained by something oher that dollar based investments, considering risk. One to focus about is PID. Another to I don`t know consider is DIM, an international mid cap fund--capitalization plays smaller amount of a role in mid cap. Only been around 9 months but already have a 28% return.
I would go near blue chip stocks only, big companies, you know? Things similar to Coca-Cola and the such. STAY AWAY FROM OIL. Also, if you have money to spend, the gold ingots market is outstandingly profitable, at a reasonably low risk.
Call Vanguard Mutual Funds and report them you want to get started investing through a total stock souk index fund. It paid 15% second year. Good return and not a high risk, plus adjectives the stocks are here in the U.S. Good luck to you. You will do resourcefully.
CSCO or SUNW
The best stock it would seem for you would be one the provides a "dividend" explanation interest so you make money, near interest "dividends" while you are "invested" in the company. A exceedingly good stock of this make-up is AT&T. Stock symbol "T" which throws off around 5% a year. Also for saving money contained by paying commissions, you may what to use a "Sharebuilder" account, which offer $4.00 trades. A quick trellis search and you will find it. Good luck
Check out Honeywell (HON). It pays a 2.5% dividend and have been around for over a hundred years. The defense contracts merely keep rolling contained by and should continue for the subsequent couple of years.
Best of luck to you.
What products are used by people adjectives over the world, used every day, used up suddenly so they need to buy more?
my suggestion - soap, toothpaste, shampoo, cleaning supplies adjectives made by companies like Dial, Clorox, Colgate-Palmolive, Proctor & Gamble. Not with the sole purpose does a company like Proctor & Gamble engender enough money to afford out a dividend, but they have be able to increase their dividend respectively year for the past 50 years. I believe Colgate is around 30 years, the others I don't know. That shows me they should be around longer than I will be and is low risk. Just a suggestion, do you own research.
PS Electric power is another product.
i similar to northrop grumman (NOC) or Boeing (BA) which are in Aerospace and Defense; both pretty low risk. I own NOC and it's done me resourcefully the past month. clad dividends and NOC has a low P/E. I expect BA to possibly hit 105 by the running out of this year.
How long do you want to hold them?
Question going on for stock option?
Question:
When you buy a call or put likelihood, is it tied to the particular personality who wrote the option to you? What is to prevent the entity from running away and not fulfilling the option when you try to exercise it?
Answer:
To answer your quiz, no. The option is not tied to a individual option. In certainty, when someone exercises their option, it's almost illogical who gets to crawl the order.
And as one other character mentioned, you put up the monies ahead of time if you're a seller of an pick, so short of a stock dropping to zero and the human being skipping town, the monies always here to cover it. In the extreme case purely mentioned, I believe that the broker is liable to cover it (since they set their own margin requirements for traders).
Hope that help!
Someone will be held accountable..the other brokerage firm, the other broker who took the other writ, or the client. Also, make sure the brokerage frim you are working next to is credible.
Nobody can run away since when you write an option near a broker who executes your order he have to put up a front money with him contained by an account. This is the collateral sort of entity on which the options are written. The broker will execute on outside edge and he will liquidate the position if the market go against the writer prematurely before the expiry to close so the undue risk is avoided.
The previous answers are incorrect.
If it is an exchange traded route -- the counterparty is always the clearing house. The exchange/clearing house will put up for sale to you and buy from someone else -- but they take adjectives of the counterparty risk. The only style that you would not get paid/delivery is if the entire US prospect market default. That is not likely to ensue.
If you purchase options over the counter -- later you have exposire to the counterparty. This is what happen to the Long Term Capital hedge fund. When the crisis contained by Asian and Russian currency occurred, their counter party in the option and forwards markets default -- cause a cuff reaction that lost them $2 Billion.
For a small excise, you can have an over-the-counter opportunity assigned to your broker -- so that it will be the counterparty & will make worthy on the deal if the actual salesperson defaults.
I wanna create a portfolio, what are the best stocks to choose?
Question:
I wanna buy and hold for about six months and collect a nice dividen.
Answer:
Unless you know how to do valuation on companies, you should probably buy into an index fund. Index funds are nice because you don't pay adjectives the transaction fees that you would if you purchased your own stocks, and they tend to perform better than most other funds out here.
Go to www.morningstar.com and check out some of the funds. More specifically, look at the stock screeners at http://www.morningstar.com/cover/tools.h... You can get primary performance info, and, If you will, you can set up a trial account and really verbs in. You can sort by returns, dividends, segment, etc.
Even if you wish you want to invest in your own individual stocks, a clothed strategy is to look up some of the well-performing funds (indexed or even actively managed) and see what stocks they are investing in. After doing the initial blind on morningstar, click on "portfolio" and then click on the "top 25 holdings" tab. Then look up the individual stocks they hold within the fund and if you feel virtuous about the price, buy that stock for yourself and hold.
May I suggest, however, that you hold for 12 months or more? Your taxes on your gain are less (long-term assets gains taxes) if you own for more than a year.
Happy investing!
If you entail the money in smaller amount than 2 years, you should put it in a money flea market fund or high surrender savings description. Stocks are volatile and can rise and fall closely over one year. You may end up buying illustrious and selling low--losing money. Good money markets and money accounts are paying over 5% interest right now--a nice monthly payment, and potentially more than the stock souk will be paying out over that time frame.
How to determine the IPO stock price?
Question:
Given the initial earnings per share $4, network income growth 35%, and sales growth 15%, adjectives stock price (at par) $345,000.
Is it applicable to use CAPM for the industry average?
Answer:
The industry average beta is not generally a fitting move for IPO firms. The industry average usually contains mature firms & they feat differently to the market.
The best approach is to attain a few similar companies and look at their betas. Since betas are affected by the leverage, you obligation to unlever the betas. Take a market-weighted average of these betas (remember to include the value of debt -- most culture use the par value). Then you can assume that this value is the unlevered beta for the IPO firm. You stipulation to relever the beta to get the cost of equity for the IPO firm. You can catch the formula for levering & unlevering beta within any standard introductory finance book -- approaching Brealey & Myers.
Since IPOs are usually priced below true market appeal (on purpose) -- don't expect your answer to be a good predictor of the IPO price.
Closed End Mutual fund ?
Question:
Hi!
A year ago, a closed-end mutual fund had a NAV (net asset val) of $30/share and be selling at a 3% premium. Today, the same fund have a NAV of 31.20 and selling @ a discount of 2%. The fund just remunerated me a distrobution of income/cap gains of $1.50. What is the rate of return (ROR) when I purchased the fund one year ago, and what would enjoy been my ROR have I held the assets instead of the fund??
Thanks!
Answer:
Hard to answer all of these question. First of all you did not mention what the expense ratio of the fund is. If you want to know what your roi would own been have you held the assets, you need to know the expense ratio. There are other things you would also enjoy to know. What and when the assets of the fund were sold and purchased. To emulate their return you would own to emulate their actions.
Do you need to know your ROI before or after taxes. It make a difference? Before taxes including your unrealized gain is about 9%. After duty will be somewhat less depending on your duty bracket and your state and local tax rates. Also save in mind that your brokerage expenses incurred to emulate their movements might very all right be considerable on a pro rata basis. They are trading tens of thousands of shares at a time. You would be trading in recent times a few.
gain is 1.2, distribution of 1.5, so your total gain is 2.7 on investment of 30, so 2.7/30 is a return of 9%.
go to www.economicinvest.com and see what they proposal. The research is sound, and they identify investments that provide a great effectiveness, so there are flawless returns
they also provide investment philosophy and techniques that are advanced and used by institutional money mangers.
Financial statements of companies within Nigeria. Help!?
Question:
I am presently working on some companies in Nigeria. Does anyone know where on earth i can obtain the financial statements of the companies down in the Nigerian Stock Exchange? PLEASE HELP. Thank you surrounded by advance.
Answer:
Hmmm. Did you obtain scammed by some Nigerian company?
Link below to the Nigerian Stock Exchange. You'll have to do a flush for the company you're looking for. If it's not on there, it's probably a scam company.
I notice that their financial statements on the legitimate companies are not what we're used to looking at here on the NYSE or NASDAQ though.
Be tight-fisted some of foreign stock exchanges are not very undemanding to work with. You could contact the company , they should dispatch you annual reports. The problem is the rules that foreign markets follow may not enjoy the safeguards that we expect. You might contact a hill in Nigeria as they might hold brokers or at least make available you some contacts to use.
What would you do with these statements? I hope not believe them. You are pleading to be defrauded. Nigeria doesn't own the same standards as the US SEC or the UK SFA. And nearby is no extradition treaty with Nigeria, so if you capture ripped off, you can't sue and you can't prosecute.
Bob,
Your ignorance is showing. I'm sure you stroll around assuming EVERY Nigerian is trying to scam you.
Asker/OP,
For what it's worth, a company's financial statements differ depending on whether the bank is reporting to SEC [and they enjoy one in Nigeria which follows international standards], the Central Bank, the Federal Board of Inland Revenue, or for a public/private stock offering. You disclose just what the law requires and contained by the manner the tenet demands. I'm sure you know that the GAAP standards and the accounting regulatory standards in the U.S. and UK differ.
All Nigerian bank, for instance, have websites and I'm sure you should be capable of find some of their more recent financial information listed nearby. Below are the websites of some of the most trusted banks contained by the country. All have international office [either in West Africa, the UK, or New York].
If you want to know which companies are trustworthy to invest contained by, you can go to www.thisdayonline.com. There's a scrolling ticker above the newspaper's site next to current shareprices of listed companies. As a rule of thumb, anything below N5.00 should be avoided.
The fools that supply Nigeria a bad moniker with their scam are doing enough spoil. If commentators cannot add anything concrete to the stream of knowledge, at smallest do not dissemminate falsehoods.
If you need more info, discern free to post some more.
Number one place for worldwide scams: NIGERIA
Nike stock buy or deal in?
Question:
14yr old and trying to give a hand my family out assist plz
Answer:
Don't ever ask people online. 99.9% don't know what they are conversation about. Check out the website. They proposition free stock advice, lately ask the advisors and in a couple days they will hold an answer for you.
I vote sell.
buy
Keep! I expect.
____====
Big spike in volume today (3/23). Stock is expensive. I resembling Under Armor better or wait till a pullback for NKE.
---------
Sell.
The marketplace is on the verge of crashing; expected to come about in the second quarter (April - June). It is time to move to dosh.
sell and buy reebok
Is within an ETF or Mutual Fund that tracks the 'MSCI Emerging Markets Europe, Middle East and Africa Index'?
Question:
Answer:
See if EEM floats your boat:
Yes I believe it is EAF but go to etfconnect.com & ck beneath the Barclays bank sponsored funds & will find.
I chew over these are 2 different things (emerging market index AND the MSCI EAFE index)
EEM - Emerging Markets
EFA - MSCI EAFE
How do you Calculate annual and total return on corporate bonds?
Question:
Doing a class project and I'm having a easier said than done time understanding the prose of investing. I need back, or a formula, on how to calculate annual and total return of a corporate bond into dollar ammount. Here is adjectives the info. Please help! this is a foreign talking to me.
Investing $15,000 in this bond.
Price: 102.90
Coupon (%): 5.700
Maturity Date: 18-May-2020
Yield to Maturity (%): 5.390
Current Yield (%): 5.540
Fitch Ratings: AAA
Coupon Payment Frequency: Semi-Annual
First Coupon Date: 18-Nov-2005
Type: Corporate
Callable: Yes
Again, any backing would be amazing!! Thanks for your time!!
Answer:
OK, here we go!
A bond is a loan from the holder to the issuing company. It is characterized by several numbers. They are:
- Nominal effectiveness: the amount that will be paid to the holder at the bring to a close of the life of the bond. Ex. 5000 $
- Time to readiness: the years left in the past the bond will be paid stern. Ex. 15 years
- Coupon: the percentage of the nominal value that will be compensated annually as interest. Ex. 5.7%, therefore 5.7% of $5000 = $285 will be salaried per year.
Price: 102.90 This is the percentage of the nominal value you enjoy to pay if you want to buy the bond very soon on the secondary open market. Ex. 102.9% of $5000 =$5145.
Maturity Date: 18-May-2020 the day the nominal significance of the bond will be paid backbone to the bond holder.
Yield to Maturity (%): 5.390 A rate of return measuring the total execution of a bond (coupon payments as well as assets gain or loss) from the time of purchase until maturity. Ex. the bondholder have to pay $5145 today, and will receive $285 interest respectively year plus $5000 at maturity.
Current Yield (%): 5.540 Annual interest rate rewarded by a bond, expressed as a percentage of its current market price. Ex. $285/$5145 = 5.54%
Fitch Ratings: AAA The bondholder is risking that the company go bankrupt and that his bond will not be rewarded back. The Fitch rating measures the solidity of the company. AAA is the best rating, D is the worst.
Coupon Payment Frequency: Semi-Annual Ex. The $285 interest per year will be salaried in two times $142.5
First Coupon Date: 18-Nov-2005 Obvious
Type: Corporate The bond is issued by a company, fairly than a gouvernment.
Callable: Yes The company has to wages you interest each year. It might prefer to wage you back the $5000 on an before date than at maturity, for instance because the interest rates hold dropped and it can finance itself cheaper.