is really any small invester earn money in stock market?
i am doing online trading last two years.Before trading i have rs 500000 still now my money is just rs 6000.I am loss in equity and future&options.is really any small investor earn in stock market. can any body tell them to me about stockmatket euity,future & options.
You problem boils down to the fact that you were not an investor, but a trader or speculator. Investors generally do better than traders overall. That does not mean that they do not at times loose money, but when they do they tend not to loose so much.
I have been an investor for many decades. I have on occasions lost money as I did for much of last year for example, but overall that was only the second time that I have lost money ever. I am not exactly a small investor any longer but I certainly did start out small as everyone must initially.
I am not exactly a big investor either by the way. Sort of medium sized. Options and futures are not for investors. They are for speculators.
Many traders and speculators do make money but mostly those with little experience wind up going broke.
Which internship would look better for me in the eyes of future finance employers?
I want to be either a financial analyst for a bank or corporation or a credit analyst.
These are my two options as of now:
1. internship at local investment office/brokerage. Some "task" duties like calling clients, preparing for and leading morning meetings, and assisting with trading. Exposure to same software Wachovia Securities uses as a trading platform.
2. internship preparing taxes. Some marketing and customer service involved. Basic knowledge of small business and individual taxation gained. The advantage would be if i exceed some sales goal
Option 1 is unpaid so while a future prospective employer wouldn’t know or care it matters for my decision (but less so than the experience). Option 2 will pay reasonably well. Hopefully a third option at a private equity firm will present itself but I’m not counting on it.
Previously I interned at a consulting company in Shanghai, China and did some financial modeling as well as client interaction. I’m a senior finance major at a typical state school, 3.2 GPA.
It seems both options are not ideal, comparing to your goal of becoming a financial analyst or credit analyst. I would consider ‘employer’ be the determining factor. E.g. option 1, though unpaid, but if it is from a reputable bank, it will still be attractive, in case option 2 employer is less reputable.
from where I can know basics of Future & Option trading in NSE? & also can it be done from home?
I’m a retired person usually invest in equities now I want to invest through Future & Option trading as I’m now full day free.
1. There is a huge difference between Investing and Trading. You invest in something expecting returns depending on the fundamental values that it gives, be it shares, business etc. On the other hand, trading is a short term activity where you buy something with a view that the price will go up and want to profit from it in the short term. Hence, never look at trading as an investment.
2. F&O Trading is generally a ‘Gearing’ product wherein you take exposure on stocks by paying a margin. This would mean that your returns can be very high and the loss can equally be very high. For eg. you can take a position in the future of a stock for say INR 10 lacs by giving a margin of say INR 1 lac if you expect the price of the stock to go up from say Rs. 45 (22,222 units) to say Rs. 47. When the price actually goes to Rs.47, your value becomes INR 10.44 lacs thus benefiting by 0.44 lac for an investment of Rs. 1 lac which is 44%. On the other hand, if the price goes down to say 43 the value of Rs. 10 lacs becomes INR 9.55 lacs resulting in a loss of INR 45K on an investment of Rs 1 lacs thus resulting in a total loss of 45%. Thus, it is a high risk trading activity owing to the gearing available through margins.
3. Like a strike rate for a cricketer, in a ball, one may have scored a six representing 600% strike rate. However, in a long innings, the strike rate comes down to normal levels as many balls will have to be left without scoring. Similarly, when in a particular trade or set of trades people may have made 300% or 400%, it is never sustainable. Worse still, while in cricket you give dot balls in which you don’t score runs, in trading, you will end up getting negative runs (returns) thus diminishing not just the returns, but sometimes capital as well. In fact, in the recent stock market crash, it is those who have had a geared position (either through F&O or through taking margin funding) who were the worst affected.
Hence, it is not advisable to look at F&O Trading as an investment. That too, being a retired person, such gearing can be extremely harmful if it has not been planned correctly including having a proper personal finance plan.
Assuming you are extremely well off and can afford to take this high risk, then there are enough places to get information on the same. Brokers like Karvy, Sharekhan etc. provide necessary details and there are enough websites as well.
–
Fundu Vishy – Your ‘Mutual’ Friend
Follow me on twitter @funduvishy
I blog @ http://blog.powermf.com
Calculating Weighted Average Cost of Capital?
Hi all,
I really need help with this question . PLEASE HELP !!!!!!!
AAA Inc. is financed 60% with equity and 40% with debt. Currently, its debt has a before-tax interest rate of 12%. AAA’s common stock trades at $15 per share and its most recent dividend was $1. Future dividends are expected grow by 4%. If the tax rate is 34%, what is AAA’s Weight Average Cost of Capital (WACC)?
WACC= (weight of debt)*( debt rate)*(1-tax rate) + (weight of equity)*(cost of equity)
we are given rd=12% and wd=0.40 and tax rate=34%
to find cost of equity re=(dividend at end of year D1)/(price now P0) + growth rate
Dividend at the end of the year D1=$1.00*(1 + 0.04)=$1.04
Price now P0=$15.00
growth rate g=0.04
so re=1.04/15 + .04=10.93%
So WACC=[(0.40)*(0.12)*(1-0.34)] + [(0.60)*(0.1093)]=9.726%
Do corporations also receive the favorable 60/40 rate of taxation on futures profits, or just individuals?
I know that profits from trades of contracts defined in IRC § 1256 (futures, non-equity options, etc.) are taxed 60% long term capital gains and 40% short term gains. That rule applies to individual traders. Does it also apply to corporate trading accounts? Also, do the state tax boards (for my purposes, California) honor the 60/40 treatment like the Feds?
Corporate income is all the same. There is no differentiation between capital gains (long or short term) and any other income.
Most states don’t differentiate between capital gains and ordinary income or long and short term gains when it comes to the tax rates involved. CA is one such state, however CA does have some different rules in how gains are calculated. See the instructions for FTB Form 540, Schedule D for details on those differences.
economy text from english to serbian?
could you translate this text into serbian by tomorrow? please
The London Stock Exchange Limited (LSE) is the world’s oldest stock exchange and one of the top three stock exchanges in the world, after the New York and Tokyo exchanges. Founded in 1773 and reincorporated as a private limited company in 1986, the LSE is also the world leader in international share trading. The LSE operates a number of market products, including the main board listing, featuring more than 3,000 companies and including over 500 international companies, as well as the secondary AIM (Alternative Investment Market), established in 1995 as a vehicle for trades in small, high-growth companies. More than 70 companies are listed on the AIM board. After launching the Stock Exchange Electronic Trading Services (SETS) in 1997, the LSE introduced a new listing, techMARK, tailored to the specific needs of the high-technology sector and designed to compete with the NASDAQ index. With a total equity turnover value of more than £3.5 billion, the LSE achieved gross revenues of £149.8 million in 1999. The LSE is led by Chairman John Kemp-Welch and CEO Gavin Casey.
Founded in 1773, the LSE reflects more than 200 years of the development of share-based enterprise. The world’s first joint-stock company was created in the mid-16th century. Traditionally, companies were either owned by a single individual or through a partnership with two or more owners. While this arrangement sufficed for smaller businesses and stable market sectors, direct financial responsibility for riskier endeavors–such as the great trade exploration voyages of the period–were judged too precarious for an individual or limited group of investors. The organization of such a venture, that of a voyage to trace a northern sea route to the Far East from London in 1553, introduced the world’s first shareholder-based company. Selling shares to a larger number of investors reduced the financial risk for each individual investor, while enabling the company itself to raise the capital needed to fund its operations.
This first joint-stock company failed to find a northern sea route to the Far East. However, a meeting with Russian tsar Ivan the Terrible brought the company the exclusive rights to trade between Russia and England. The Muscovy Company, as it came to be called, became a commercial success, rewarded its shareholders with large profits, and inspired the creation of new investment ventures. The Muscovy Company served as the model for future shareholder-based companies. Investors contributed capital funding, while direction of the company’s operations remained in the hands of its management. The investors, who were allowed to sell their holdings or buy more shares, were given dividends according to the company’s profits.
As more companies were set up following the Muscovy model, a new profession came into being, that of the broker, who acted as a middleman for trades of shares, helping to boost not only the number of joint-stock companies but also the number of investors. Adding impetus to this movement was the foundation of the Bank of England as a joint-stock company by King William III in order to provide funding for England’s military campaign against France at the end of the 17th century. The shareholder system was given further support by legislation to limit and punish brokers for malpractice.
By the 18th century, a flourishing "market" for shares was in place–so much so that the period marked the first stock market crash in 1720. While trading took place at the Royal Exchange through the middle of the century, the rowdy behavior–itself to become something of a tradition on the market floor–of certain brokers led to their exclusion. Instead of leaving the business, these brokers began meeting at Jonathan’s Coffee House and other coffee shops in the Threadneedle Street area of London. In 1760, some 150 brokers founded their own club to buy and sell stock at Jonathan’s. The following decade, in 1773, the members of the club changed its name to the Stock Exchange.
As the individual broker members of the Stock Exchange began to establish brokerage firms, and the number of markets expanded, the Stock Exchange saw a need for new quarters. In 1801, the Stock Exchange began construction on a new building at what was to become its permanent London location. The following year, the Stock Exchange published a Deed of Settlement, formally outlining the operating rules and procedures of the stock market.
If the original joint-stock companies were formed to provide funding for the many voyages of discovery, overseas trading, and foreign military campaigns, the shareholder-based company structure showed itself easily adaptable to the changing economic landscape of the 19th century. The Industrial Revolution, coupled with such major infrastructure undertakings as the building of a national railroad system, provided the basis for the modern period of shareholder-b
I would have to concur with Dr A. Von Lichtenstein.
This text contains 3 translation pages. You would have to pay at least 30-40 euros to a serious translator in Serbia to have the work done. I doubt anyone would do it here for free. It takes a lot of time too.
economy text from english to serbian?
could you translate this text into serbian by tomorrow? please
The London Stock Exchange Limited (LSE) is the world’s oldest stock exchange and one of the top three stock exchanges in the world, after the New York and Tokyo exchanges. Founded in 1773 and reincorporated as a private limited company in 1986, the LSE is also the world leader in international share trading. The LSE operates a number of market products, including the main board listing, featuring more than 3,000 companies and including over 500 international companies, as well as the secondary AIM (Alternative Investment Market), established in 1995 as a vehicle for trades in small, high-growth companies. More than 70 companies are listed on the AIM board. After launching the Stock Exchange Electronic Trading Services (SETS) in 1997, the LSE introduced a new listing, techMARK, tailored to the specific needs of the high-technology sector and designed to compete with the NASDAQ index. With a total equity turnover value of more than £3.5 billion, the LSE achieved gross revenues of £149.8 million in 1999. The LSE is led by Chairman John Kemp-Welch and CEO Gavin Casey.
Founded in 1773, the LSE reflects more than 200 years of the development of share-based enterprise. The world’s first joint-stock company was created in the mid-16th century. Traditionally, companies were either owned by a single individual or through a partnership with two or more owners. While this arrangement sufficed for smaller businesses and stable market sectors, direct financial responsibility for riskier endeavors–such as the great trade exploration voyages of the period–were judged too precarious for an individual or limited group of investors. The organization of such a venture, that of a voyage to trace a northern sea route to the Far East from London in 1553, introduced the world’s first shareholder-based company. Selling shares to a larger number of investors reduced the financial risk for each individual investor, while enabling the company itself to raise the capital needed to fund its operations.
This first joint-stock company failed to find a northern sea route to the Far East. However, a meeting with Russian tsar Ivan the Terrible brought the company the exclusive rights to trade between Russia and England. The Muscovy Company, as it came to be called, became a commercial success, rewarded its shareholders with large profits, and inspired the creation of new investment ventures. The Muscovy Company served as the model for future shareholder-based companies. Investors contributed capital funding, while direction of the company’s operations remained in the hands of its management. The investors, who were allowed to sell their holdings or buy more shares, were given dividends according to the company’s profits.
As more companies were set up following the Muscovy model, a new profession came into being, that of the broker, who acted as a middleman for trades of shares, helping to boost not only the number of joint-stock companies but also the number of investors. Adding impetus to this movement was the foundation of the Bank of England as a joint-stock company by King William III in order to provide funding for England’s military campaign against France at the end of the 17th century. The shareholder system was given further support by legislation to limit and punish brokers for malpractice.
By the 18th century, a flourishing "market" for shares was in place–so much so that the period marked the first stock market crash in 1720. While trading took place at the Royal Exchange through the middle of the century, the rowdy behavior–itself to become something of a tradition on the market floor–of certain brokers led to their exclusion. Instead of leaving the business, these brokers began meeting at Jonathan’s Coffee House and other coffee shops in the Threadneedle Street area of London. In 1760, some 150 brokers founded their own club to buy and sell stock at Jonathan’s. The following decade, in 1773, the members of the club changed its name to the Stock Exchange.
As the individual broker members of the Stock Exchange began to establish brokerage firms, and the number of markets expanded, the Stock Exchange saw a need for new quarters. In 1801, the Stock Exchange began construction on a new building at what was to become its permanent London location. The following year, the Stock Exchange published a Deed of Settlement, formally outlining the operating rules and procedures of the stock market.
If the original joint-stock companies were formed to provide funding for the many voyages of discovery, overseas trading, and foreign military campaigns, the shareholder-based company structure showed itself easily adaptable to the changing economic landscape of the 19th century. The Industrial Revolution, coupled with such major infrastructure undertakings as the building of a national railroad system, provided the basis for the modern period of shareholder-b
I would have to concur with Dr A. Von Lichtenstein.
This text contains 3 translation pages. You would have to pay at least 30-40 euros to a serious translator in Serbia to have the work done. I doubt anyone would do it here for free. It takes a lot of time too.
I want to trade in my car, but I dont know how this works. I live in CA?
2005 Toyota Corolla, 27,000 miles, good condition. I have made about $9,000 in payments, payoff amount: $13,000. Current Blue Book Value:11,500. 6.9 apr. When I bought it, I also purchased warranty and some plans so I wouldnt have to pay any money up front for oil change, and services needed in the future, therefore, the car is well taken care of, since I’ve always taken it on time for service, tune ups, oil change and all that stuff. The total amount of my loan was about 25,000 because of this. Would I have some positive equity on this car? Please advice.
usually, kellys blue book estimates a bit high compared to what dealers will actually give you. keep in mind that they need to sell it for more than what they give you, just to turn a profit.
if you owe 13000 on it, and blue book says 11500, i would guess a dealer would offer you 10000. you might be able to negotiate an extra 500, but you’re still looking at 2500 negative equity.
toyota has some new warranties that are out where if you dont use the warranty, they give you the cash back. make sure you ask about that this time around.
WHAT DO YOU THINK OF JAMES TRAFICANT’S U.S BANKRUPTCY SPEECH BELOW?
James Traficant’s U.S. Bankruptcy Speech
The Bankruptcy of The United States
United States Congressional Record, March 17, 1993 Vol. 33, page H-1303
Speaker-Rep. James Traficant, Jr. (Ohio) addressing the House:
"Mr. Speaker, we are here now in chapter 11. Members of Congress are official trustees presiding over the greatest reorganization of any Bankrupt entity in world history, the U.S. Government. We are setting forth hopefully, a blueprint for our future. There are some who say it is a coroner’s report that will lead to our demise.
It is an established fact that the United States Federal Government has been dissolved by the Emergency Banking Act, March 9, 1933, 48 Stat. 1, Public Law 89-719; declared by President Roosevelt, being bankrupt and insolvent. H.J.R. 192, 73rd Congress m session June 5, 1933 – Joint Resolution To Suspend The Gold Standard and Abrogate The Gold Clause dissolved the Sovereign Authority of the United States and the official capacities of all United States Governmental Offices, Officers, and Departments and is further evidence that the United States Federal Government exists today in name only.
The receivers of the United States Bankruptcy are the International Bankers, via the United Nations, the World Bank and the International Monetary Fund. All United States Offices, Officials, and Departments are now operating within a de facto status in name only under Emergency War Powers. With the Constitutional Republican form of Government now dissolved, the receivers of the Bankruptcy have adopted a new form of government for the United States. This new form of government is known as a Democracy, being an established Socialist/Communist order under a new governor for America. This act was instituted and established by transferring and/or placing the Office of the Secretary of Treasury to that of the Governor of the International Monetary Fund. Public Law 94-564, page 8, Section H.R. 13955 reads in part: "The U.S. Secretary of Treasury receives no compensation for representing the United States."
Gold and silver were such a powerful money during the founding of the united states of America, that the founding fathers declared that only gold or silver coins can be "money" in America. Since gold and silver coinage were heavy and inconvenient for a lot of transactions, they were stored in banks and a claim check was issued as a money substitute. People traded their coupons as money, or "currency." Currency is not money, but a money substitute. Redeemable currency must promise to pay a dollar equivalent in gold or silver money. Federal Reserve Notes (FRNs) make no such promises, and are not "money." A Federal Reserve Note is a debt obligation of the federal United States government, not "money." The federal United States government and the U.S. Congress were not and have never been authorized by the Constitution for the united states of America to issue currency of any kind, but only lawful money, gold and silver coin.
It is essential that we comprehend the distinction between real money and paper money substitute. One cannot get rich by accumulating money substitutes, one can only get deeper into debt. We the People no longer have any "money." Most Americans have not been paid any "money" for a very long time, perhaps not in their entire life. Now do you comprehend why you feel broke? Now, do you understand why you are "bankrupt," along with the rest of the country?
Federal Reserve Notes (FRNs) are unsigned checks written on a closed account. FRNs are an inflatable paper system designed to create debt through inflation (devaluation of currency). when ever there is an increase of the supply of a money substitute in the economy without a corresponding increase in the gold and silver backing, inflation occurs.
Inflation is an invisible form of taxation that irresponsible governments inflict on their citizens. The Federal Reserve Bank who controls the supply and movement of FRNs has everybody fooled. They have access to an unlimited supply of FRNs, paying only for the printing costs of what they need. FRNs are nothing more than promissory notes for U.S. Treasury securities (T-Bills) – a promise to pay the debt to the Federal Reserve Bank.
There is a fundamental difference between "paying" and "discharging" a debt. To pay a debt, you must pay with value or substance (i.e. gold, silver, barter or a commodity). With FRNs, you can only discharge a debt. You cannot pay a debt with a debt currency system. You cannot service a debt with a currency that has no backing in value or substance. No contract in Common law is valid unless it involves an exchange of "good & valuable consideration." Unpayable debt transfers power and control to the sovereign power structure that has no interest in money, law, equity or justice because they have so much wealth already.
Their lust is for power and control. Since the inception of central banking, they have controlled the fates o
Unwittingly, America has returned to its pre-American Revolution, feudal roots whereby all land is held by a sovereign and the common people had no rights to hold allodial title to property. Once again, We the People are the tenants and sharecroppers renting our own property from a Sovereign in the guise of the Federal Reserve Bank. We the people have exchanged one master for another.
This has been going on for over eighty years without the "informed knowledge" of the American people, without a voice protesting loud enough. Now it’s easy to grasp why America is fundamentally bankrupt.
Why don’t more people own their properties outright?
Why are 90% of Americans mortgaged to the hilt and have little or no assets after all debts and liabilities have been paid? Why does it feel like you are working harder and harder and getting less and less?
Their lust is for power and control. Since the inception of central banking, they have controlled the fates of nations.
The Federal Reserve System is based on the Canon law and the principles of sovereignty protected in the Constitution and the Bill of Rights. In fact, the international bankers used a "Canon Law Trust" as their model, adding stock and naming it a "Joint Stock Trust." The U.S. Congress had passed a law making it illegal for any legal "person" to duplicate a "Joint Stock Trust" in 1873. The Federal Reserve Act was legislated post-facto (to 1870), although post-facto laws are strictly forbidden by the Constitution. [1:9:3]
The Federal Reserve System is a sovereign power structure separate and distinct from the federal United States government. The Federal Reserve is a maritime lender, and/or maritime insurance underwriter to the federal United States operating exclusively under Admiralty/Maritime law. The lender or underwriter bears the risks, and the Maritime law compelling specific performance in paying the interest, or premiums are the same.
Assets of the debtor can also be hypothecated (to pledge something as a security without taking possession of it.) as security by the lender or underwriter. The Federal Reserve Act stipulated that the interest on the debt was to be paid in gold. There was no stipulation in the Federal Reserve Act for ever paying the principle.
Prior to 1913, most Americans owned clear, allodial title to property, free and clear of any liens or mortgages until the Federal Reserve Act (1913) "Hypothecated" all property within the federal United States to the Board of Governors of the Federal Reserve, -in which the Trustees (stockholders) held legal title. The U.S. citizen (tenant, franchisee) was registered as a "beneficiary" of the trust via his/her birth certificate. In 1933, the federal United States hypothecated all of the present and future properties, assets and labor of their "subjects," the 14th Amendment U.S. citizen, to the Federal Reserve System.
In return, the Federal Reserve System agreed to extend the federal United States corporation all the credit "money substitute" it needed. Like any other debtor, the federal United States government had to assign collateral and security to their creditors as a condition of the loan. Since the federal United States didn’t have any assets, they assigned the private property of their "economic slaves", the U.S. citizens as collateral against the unpayable federal debt. They also pledged the unincorporated federal territories, national parks forests, birth certificates, and nonprofit organizations, as collateral against the federal debt. All has already been transferred as payment to the international bankers.
We are reaping what has been sown, and the results of our harvest is a painful bankruptcy, and a foreclosure on American property, precious liberties, and a way of life. Few of our elected representatives in Washington, D.C. have dared to tell the truth. The federal United States is bankrupt. Our children will inherit this unpayable debt, and the tyranny to enforce paying it.
America has become completely bankrupt in world leadership, financial credit and its reputation for courage, vision and human rights. This is an undeclared economic war, bankruptcy, and economic slavery of the most corrupt order! Wake up America! Take back your Country."
ON INFORMATION AND BELIEF A GOVERNMENT LOOSES ITS SOVEREIGNTY WHEN I GOES BANKRUPT TO ITS CREDITOR. PERHAPS ITS CREDITOR THE FEDERAL RESERVE AND INTERNATIONAL MONETARY FUND ARE RUNNING THE SHOW FROM BEHIND THE SCENES OVER ALL THESE ACTORS IN WASHINGTON.
YOU gave me a head ache.
Im seperating from my husband but he’s still trying to rule me.. Advice Please..?
My issue is that my husband of 6 years and I are seperating. We’ve been rocky for 3 years now but keep trying. He finally got his dream job and is moving over 2000 miles away in august. we have decided i will not go with him but we will stay together in our house until he leaves.
my issue right now is my car. When I was 22 he insisted I need a car far beyond my means ($36,000 car). I tried to get rid of it in 2007 but no one wanted to trade cus it was a lease. i bought out the lease. now that I will be on my own I need to downsize my bills and the car is #1 to go (so sad, i adore my car).. but the dealers i see want me to take like a 6000$ hit on it, which i simply cant do. Today I went to a Ford dealer and tested a 2006 Mustang. My car is 2005 so this isnt super but this car has 50,000 miles less than mine, warranty for another 3 years.. one owner.. and i’ll only have to roll abour $1000 into the new loan. I have a past history of loving Mustangs but now my husband is insisting i am being childish, immature, irresponsible and will now put up a fight for me to not get to stay at our house when he leaves.. Yes, it is a car I’ve fancied in the past.. and I know its not ideal in the snow (I live in NY) but no one wants to give me what I owe and this really seems like a win-win situation. he insists if I go thru with it tomorrow that he will fight me on the house and I throw any chance to get back together in the future out of the window..
I’m stuck.
ADDITIONAL INFO BUT NOT REQUIRED>>The house is in his name and I know its "half mine" since we are married but it has no equity and I cant afford it alone.. It has 3 units and we rent two and essentially live for free in the 3rd which would help me greatly for like a year while I consolidate bills etc.. I’ve been with him since i was 20 years and 1 month old so being alone is kinda scary and I dont wanna rush into anything big.. And I sure cant afford a lawyer to fight it out..
The house has no equity since values dropped so if we sell there is no profit. my Acura also has 3 codes on the engine and needs new tires so im almost scared to drive it.. up until now we are pating amically and everythings uncontested but he’s being nasty now. ive tried other dealers but i cant take the hit they want me to.
This would be great if you had a child but Im taking this as no children.You stii have an ace up your sleeve as only being seperated he can be forced to let you stay in the house til a divorce happens and pay for it or sue him for spousal support. Theres always a way. In seperations, he cannot do much about the house like he can in a divorce proceeding so dont worry so much here. You have got to do what you have to with the car unless hes again willing to pay for everything. He doesnt own you nor can he control you even in a seperation so do what you must. I just dont quite understand his reasoning here about the house and getting back together as if he was so concerned about what you do and how, then why is he going to leave you? Something here doesnt quite match up but either way do what you must now to survive. Good luck