 I want to start trading on line. I know what shares I want, but how to start . Best web site for Info etc...? |
I have always looked at the share prices and history behind the companies on the TV, newspaper and internet. Now I want to invest and trade In those shares.
What I require I believe is:
1. T... |
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 I currently have stocks and other investments with a brokerage firm. My financial advisor has apparantly left |
the firm. I would like to switch to another firm. What type of fees/charges should I expect to incur while making this change?
thank ... |
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 I need advice on how to invest? |
I have recived £27,000 and i am looking on a way to invest this money, giving me a monthly income from it. not so much as a wage but enough to pay the phone bill a dinner out etc...
any advice ... |
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 Who is the Best Online Trading Service Provider in india except ICIICDirect, sharekhan? |
| who is providing low brokerage for delivery, Immediate credit of online fund transfer..... |
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 What will happen if I buy Lehman Brothers stock today? |
| I saw Lehman Brothers stock is down to 20 cents. What happens if I were to buy the stock? Does my stock suddenly become worth whatever the stock of the company who takes them over is or will I lose ... |
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 Would you buy Ford stock shares? |
| First of all:I don't know much about trading. I have seen Ford stock going from $3.85 to $5.9 then down to $4.3, and then going back to $5.4 in a matter of days. Let's say I bought 1000 ... |
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 Inheriting $250K and looking for some financial advice? |
| I am a 21 year old male college student currently living in North Orange County. I am preparing to inherit about $250,000.00 from a family member's estate, and I am somewhat unsure of what to do ... |
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 How much are the investment fees for a 401k?? |
| I just got the paperwork to enroll in the company's 401k plan. They provide two options: self-investing or via their investment firm in Philadelphia (for a fee). This is all new to me, so which ... |
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 Best investments? |
| im am 16 years old and just starting off in the stock market. I have $7000 to put in, i know how the market works but what is the best business to invest in? i am on a 10 year plan until i can take ... |
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 I will be leaving my curent job and have $100K in my 401K to rollover to an IRA. What should I invest in? |
| I am in my mid-30's and won't need the money for a while. I already have 85K in an IRA. I was thinking ETFs like SPY or QQQQ, but didn't know if other alternatives would be better. I... |
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 I am looking into investing $100,000. I will potentially be charged 1.25% quarterly on the portfolio so what i |
is the actual quarterly rate?
Thanks for your help.
Additional Details
Oh I am going to make sure on that before I give any money of course. The thing is that if it is 1.25/4 ... |
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 What stocks do you like? |
Give examples of all-
-Short-Term
-Mid-Term
-Long-Term
Also, Growth and Value Stocks.
No pennies either.
Additional Details
I meant give ... |
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| Does anyon ehave any get rich quick ideas? I have a couple of thousand to invest in? |
located in georgia
I dont mind internet buisness
i just want something that realy ... |
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Me | Stock price is the present value of future cash flows (dividends...)? |
So then how do the prices fluctuate so much? Demand and supply are a reason for the fluctuations and bad news reduces demand while good news increases it and the prices move accordingly. This is all good but then what happens to the future cashflows and the present value of those? Do those also change with good/bad news? |
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what?
 |
As investors learn more and more information about the company, the estimates that they used to value the stock initially are adjusted, which gives them new targets. Good news may mean that the analysts will now predict a slightly higher growth rate of future earnings, which would alter the PV calculations.
It's just a symptom of having efficient markets. |
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pgreen
 |
(Estimated) future cash earnings, or future free cash flows,
or future earnings, or future dividends, depending on the
valuation theory adopted, and their present value
(discounted at a rate that includes a premium related
to risk or uncertainty aversion) are just elements of
stock prices.
Prices are also influenced, we could say distorted, by
* errors of judgment or of knowledge (cognitive biases)
* even more by emotions, such as hope and fear, mimicry...
Those factors, and among them under-reactions and
overreactions to information, have been studied by
Behavioral finance researchers.
. |
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jeff410
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Like another poster said, cash flows are discounted at a certain interest rate. That interest rate reflects the risk of those cash flows or the uncertainty of them. And that risk or uncertainty changes as the markets and information change. The discount rate determines the value of those cash flows. It is composed of the risk free rate plus an equity risk premium. Changes in interest rates change the risk free rate. And changes in information and the markets changes the equity risk premium. |
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MM
 |
Furture earnings on a stock are already priced into them. For ex when a drug company has a drug set for approval at the FDA, the price is already higher than it's actual worth becasue if the drug is approved and that company has the sole rights to it, the investors will make there money back. Also the volume (daily trades of that stock) is low, the price will fluctuate more becasue there is less people willing to buy or trade that particular stock. |
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Mark L
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the future cashflows are estimated out into the future several years, based on current informtion. if that information changes, even slightly by a few percent, those estimates can change dramatically. Also, the cashflows are discounted using an appropriate interest rate, so when rates change, so do the cashflow estimates. |
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Strategist
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There are several components to calculating the present value of future cash flows. And they are
1) the interest rate
2) interest rate growth pattern
3) growth of cashflow over time
For each and every investor out there, they have different opinions on these three factors, and these opinions are influence by how investors see the current investment environment, like falling interest rates, dropping GDP growth and so on.
This explains why different investors have different acceptable price level that they want to buy or sell at. This different opinion about price comes together in the market place and set the price of the stock.
So you can see why it fluctuates so much.
But most investors do not calculate the present value of cash flows, there are investors out there with different investment strategies, setting different price points in the market.
For more information on other strategies, you can refer to the website below. |
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UncommonSense
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investors disagree on the future cash flow a company will generate and on the most appropriate interest rate used to discount the cash flow, so they get different valuations for the same company. Ongoing news also constantly changes those variables. Accordingly, people buy and sell at the price that they think is the most profitable one. Since their valuations are different, therefore they enter and exit at different price levels, which creates swings in prices.
technical traders don;t care about valuation as the future is just too unpredictable. |
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Serial Shopper :)
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APPLESAUCE IS GOD |
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