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We encourage all our visitors to ask those investing related questions they were always too afraid to ask.

The members of /r/investing are here to answer and educate!

NOTE If your question is "I have $10,000, what do I do?" or anything similar. There is no single answer to this question, but we will also need A LOT MORE information if we are to give some sort of answer

  • How old are you?
  • Are you employed/making income? How much?
  • What are your objectives with this money? (buy a house? Retirement savings?)
  • What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know its 100% safe?)
  • What are you current holdings? (Do you already have exposure to specific funds and sectors?)
  • Any other assets? House paid off? Cars? Expensive girlfriend? (not really an asset)
  • What is your time horizon? Do you need this money next month? Next 20yrs?
  • Any big debts?
  • Any other relevant financial information will be useful to give you a proper answer.

Be aware that these answers are just opinions of Redditors and should be used as a starting point for your research. You should strongly consider seeing a registered financial rep before making any financial decisions!

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https://www.cnbc.com/2018/09/21/on-monday-google-facebook-and-netflix-will-make-a-big-market-move.html

Market-leading companies including Alphabet, Facebook and Netflix are changing S&P 500 sectors on Monday. The New S&P Communications sector that replaces the telecom index will include these big technology stocks, changing the nature of what has been one of the market's best defensive and highest-dividend yield stock strategies.

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Again and again, questions like the following are asked here: "if you could only keep 5 stocks forever, which would it be?". Most of the time I agree with the then mentioned usual candidates (MSF, AAPL, NESN, ...). Almost all the time also VISA is mentioned, and that's what I fail to see.

Why VISA? I see, of course, that fewer and fewer people are paying in cash worldwide and using their credit cards or services like Apple Pay and Google Pay, which is actually just the credit card with extra steps.

I regularly spent time in London, and here you pay almost anything with a contactless credit card, so I can imagine what you envision every metropole in the world to look like payment-wise in the next decade. BUT don't you believe that old technology like credit cards are not being slowly replaced by new technologies? By that, I mean mainly peer-to-peer payment methods that work via messenger, SMS or simply other decentralized apps. The best example is China where almost the whole country uses WeChat or Alipay for payments(I know these services are only fake peer to peer, but it doesn't matter for the point I want to make).

In the long term, I see these services dominating and not the credit card? Is VISA simply also heavily involved in these new payment methods? Otherwise, I cannot see why VISA as a stock should be such a safe and long-term investment?

Thanks for reading. Looking forward to your answers.

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I am a 19 year old female with some extra cash, I have absolutely no idea where to even begin with investing in the stock market.

I have watched videos on how to invest (like what types of stocks and things to avoid). My main concern is how do I go about beginning this process? I have seen iphone applications, NASDAQ, etc, and am not sure what platform to use (that is safe). Also, would going to my bank and asking for advice be wise? And is there any place I can invest besides a stock market?

I have seen youtube videos, but another explanation and perspective would be awesome on this topic. It would not only help me, but many people feeling exactly the same for years to come.

I know I sound probably extremely dumb, and that is because I am. However, I really don't want to be. I also hear starting young is the best thing I can do.

Anything would help. I don't have a business degree, but math is something I am good at, and I would never invest more than I am willing to lose entirely.

Thank you for reading and I look forward to learning a thing or two from my reddit fam! :)

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Hey I'm new here. Does anyone have any ideas on investing in the 5G technology? I'm asking because a U-verse tech guy was out yesterday fixing my internet connection, it's like the 4th time this year, and he told me that AT&T knows about the problems with there internet service in my area but they're not going to put $ in fixing it because they're concentrating on the new technology, 5G rollout. AT&T wants to start getting customers on the new network. I guess one of the problems with 5G is that there isn't a universal standard for the technology, I guess there's basically two. Anyway, does anyone have a homerun stock(s), say like an Amazon, Facebook, Apple, you know what I mean?

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I'm starting my investment education and read the little book of common sense investing. The book was very biased toward index funds. I would like to hear arguments for mutual funds over index also are most 401ks managed mutual funds? Do you really get a better return on your investment with index funds?

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i have done research on options but I am struggling a little bit with it. At this point, all I need is a good case example of performing a put option. Once I see that, it'll click. I am saying that because I have a good idea of how to call option based on an example I saw online. Thanks.

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I was looking through the holdings in VITAX and realized Amazon wasn't on there. Is this because the fund manager doesn't consider Amazon a tech company, or because of other various reasons? Also who determines what sector a company belongs to.

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I just noticed at treasury direct that my pending automatic reinvestment of a 5 year bond at the end of this month was set to become 7 year.

I wanted 5 year again, so I cancelled the automatic reinvestment and switched it to purchase of a new 5 year bond.

This post is partially a warning for others. I caught this mostly by accident. Is this kind of thing common knowledge (among those with TD accounts) that I just missed? Or is it a stupid booby trap for investors?

It results from the combination of two somewhat sensible rules with a third very stupid design:

1) If a 5y bond auction results in the same interest rate as the 7y that had been issued 2 years earlier, they cancel the cusip of the 5y and issue those under the same cusip as the older 7y (because they have the same remaining payments and maturity).

2) An automatic reinvestment gets the same term as the original issue of its cusip, not the term of the reissue of that cusip that you actually bought. You are treated as if you had bought an existing bond in the third party market, rather than a new bond.

3) The whole time you hold that 5y bond that shares its cusip with a 7y bond, it is listed in your inventory as a 5y bond with that issue date, even though it is really a 7y bond with an issue date 2 years before you bought it. So when you enable the automatic reinvestment, it tells you that you are reinvesting a 5y bond and gives you no hint that doing so converts it to 7y.

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  1. If underwriter buy the stock from issuer (firm commitment process) I feel like the issuers don't have to concern about price drop at all.
  2. So price stabilization from underwriter will just try to help themself to not lose money from market, is price stabilization have any affect on issuer? Is my understanding correct? Thanks for answering
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Hello, the title says it all I am looking to either create or join a small group of people that will be honest and sincere about trading.

I spend a lot of time doing research and trading during the day. If you do as well and would like a trading friend, let me know!

Serious inquiries only please!

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Hello, I'm 20 years old and started investing into stocks earlier this week. I invested $135 with the intent to keep investing every few weeks as my paychecks come in. I am in college right now on a full ride, so I have practically no living expenses. I invested $118 of my dollars into the ProShares Ultra Technology because I wanted a long term investment with strong diversity. Although, I recently got a Prosepectus email from them saying that the intent of the stock is for one day trading. They say that they seek daily investments that correspond to 2x the daily index but before fees. After fees, they receive .95% for annual fund operating expenses. Because this is a stock intended for one day trading is it bad to invest my money long term? How high would the risk be? If I should switch to something safer, should I sell the stock right away or wait to see if the price rises again?

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I was offered an opportunity to invest 12,500 into a company as a subordinated debt loan. It has an interest rate of 5% and will be paid out in 3 years for a total of $16,784. I have a couple questions...

1) How is the total payout calculated here?

There was no mention of amortized payment amounts or anything... just a lump payment of $16,784 at the end of the loan maturity period (3 years). I'm calculating something much less... if the 5% just compounds annually, I calculate 12,500*(1.05)^3 = $14,470.31

Is there something I am not calculating correctly?

2) Is 5% a good interest rate for a subordinated debt?

My understanding is that a subordinated debt should have a high yield but not sure what high is.

3) Is there such a thing as "preferred" subordinated debt?

I saw in one form the debt investment was described as "preferred" but in most other mentions its referred to as "subordinated" debt.

4) Are there any red-flags to watch out for when investing "subordinated" debt?

Appreciate the help people!

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Your investments are up and you want to sell for profit. Is it possible to move the proceeds around in some way so that you don’t have to pay taxes in (at least) the near future?

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How do you guys feel about CAN SLIM? What about cutting your losses at 7-8% and trying to time the market?

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Lets say you have a position (either stock or options) that has moved against you. You want to lock in the capital loss for tax reasons but also want to maintain exposure to the stock. Normally you couldn't do this without triggering a wash sale. However, you can get around this:

  • Sell stock you want to tax loss harvest
  • For every call option or 100 stocks you sold, buy a way-out-of-the-money call option that expires in just over one month. (You should be able to get it for $5 per contract). This triggers a wash sale -- for tax purposes this option's cost basis is adjusted by the wash sale loss amount.
  • As soon as that goes through, re-buy the stock you want to maintain exposure to.
  • After 32 days are over, you can sell those $5 OTM call contracts (if they're worth anything) or let them expire. At that point, the original tax loss will finally be realized.

Anybody see any flaws in this scheme?

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Quick question about an idea I had to bypass taxes when buying a house from parents with a zero-interest mortgage.

Say my wife and I want to buy a $400,000 place from her parents. We can do this by putting down $50,000 and take out a $350,000 zero-interest mortgage from her parents.

My wife’s parents would be gifting us $350,000 x IRS minimum interest rate (AFR) of ~2.5%, or $8,750 a year, which is well below the $60,000 a year they can gift to the both of us tax-free ($15,000 from her dad and her mom each to me and to her each). We then gift back an amount equal to a 3% interest rate, or $10,500 a year, which is again well below the tax-free gift limit we can give to them. This way her parents get tax-free returns, and we can still claim standard deduction of $24,000.

Will this work / what are the risks?

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Can anyone tell me what the difference is in the capitalization of these two indexes?

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source: https://qz.com/1397951/teslas-supply-management-head-leaves-amid-executive-exodus/

Tesla is losing Liam O’Connor, its vice president of global supply management, at a time when senior executives continue to leave the electric carmaker at a critical time. Bloomberg cited anonymous sources reporting O’Connor’s resignation, although the information was not public.

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Theres so many different tickers out there compiled into MJ, but a lot of them seem like shit companies. Won’t the losers heavily outweigh the few winners?

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I've been looking at Tilray ($TLRY), as most of us have, and I have some questions.

Insiders are required by law, in all publicly-traded companies, to disclose their trades through SEC Forms 3 and 4. I decided to look into TLRY's insider information, and was surprised to see that the only trades were from buy orders at IPO.

Image of $TLRY insider trades

I knew that most of the company was owned by PE firm Privateer Holdings, and was surprised to find that Brendan Kennedy (CEO of Tilray) is also the CEO of Privateer Holdings.

While Privateer Holdings is listed as a Tilray insider, and is required to disclose their trades, isn't there a conflict of interest for a company's CEO to also serve as the CEO of a PE firm that has major holdings in competitors within the same industry?

Also, as I couldn't find any insider trades from the rally, I'm assuming nobody has sold a share since IPO. Why wouldn't the PE firm execute any sell orders during the rally? Why not cash in on such wild growth and (at least) reinvest?

Privateer Holdings has declined to comment on both the company's and its owners' finances.

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I'm very unfamiliar with the industry and want to understand macro themes, dominant players, political drivers, sub/comp elasticity, etc. I'm hoping one of you has access to those 100+ page ibank primers and feeling generous today =).

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