Can you buy oil on the stock market and if you can, how much do you have to have to do so? |
Additional Details Can you buy oil on the stock market and if you can, how much money do you have to have to do ... |
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How much investment is must to get RS/- 15,000 INR per month? |
Friends! Please Guide me!
i want income min Rs/-15000 INR per month from the investment in Stock Market ( i.e. BSE ,NSE).
I've invested in many muchual funds BUT i want income per ... |
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Am I diversified? |
| I am 32 and my wife is 33 so we have a long investment horizon. Here is how we are set up. Our holdings are divided into 6.13% cash, 70.13% US stocks, 17.09% Foreign stocks, 6.23% Bonds, .42% ... |
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Would it be smart to put $20 to $50 a week into saving bonds.? |
if so how fast will they grow. I'm thinking of around 6 to 10 years. will they double or will I have to invest into one every few weeks to make it grow at any rate.
will it just be ... |
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What business would you start if you had $250,000 in order to make millions?? |
I have been wonderfully blessed in a mysterious way. I was granted a half a million dollars but half must go toward school (plus grad.) I'm graduating this May.
I would love not to invest ... |
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How do companies benefit from their stock price? |
| I realize that once they sell the stock they get the money from that transaction, but why would they care after they sold it whether or not the stock goes up? Like if they sell it for $30 then the ... |
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Short selling?? |
Hi guys,
If we short sell some shares, when is the deadline to buy back?? Also, when we short sell, whose shares are we borrowing from?
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Does anyone know how slowing down the housing market affects an apartment's value? |
| As more people lose their houses, due to the current credit crunch and move into apartments, how does that affect an apartments value. Basically, does that mean an apartment buildings value will go ... |
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Traders: Which of these is a better market to play & trade -- Currencies, Options on Equities, or Commodities |
| As a personal investor, I've dealt more with options and commodities but have recently been looking at currencies & foreign exchange. What I don't like about options is that they are a ... |
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If I have to invest some money to make a side business, what the idea suggested? |
| I'm an employee. But would like to set up a business quite a small earnings....... |
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Is this a good time just to stay out of the stock markets and ? |
| just buy silver and gold.I really don't have the money to lose in the market right now.I am trying to get 3 kids throw college.Any Advice would be ... |
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What should I do with $12,000? |
| I have about 12,000 in a regular checking account and would like to know how I should best invest it. I already have about 10,000 in a roth IRA... |
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Been workin in the gobi desert for 9 months, on return to UK my mate sold me his bradford & bingley ,,,,,, ? |
| ,,,,,, shares for £1.50 each.. Bugga me bargin like that dont come every day do they???... |
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What would be something good to invest in if you only have 1k? |
| So I have recently read "rich dad, poor dad" and I have decided to be unlike all of my other 18 year old counterparts and try my hand at investing. I would like to try to get some residual ... |
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Confusedgirl88 | Why do some companies issue new stock to expand, while others borrow money? |
Does anyone know the reasons why a company would choose one or the other? |
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Griffin
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New companies are like young people with no credit rating. It may hard or impossible to obtain money through issuing debt. If they can issue debt, they very likely will have to pay high percentage rates of interest. For this reason, they may want to issue stock to raise money.
For mature companies, it is a question about what is the appropriate leverage for a company. For instance, debt financing is very appropriate for utilities companies, because they require huge capital to build new facilities, but they have a rather stable income revenue base; therefore, the ability of those companies to repay the debt is very high (and interest rates are generally lower). |
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rockdakiss
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Depends on financing. Some companies credit rating isn't that good so the cost of borrowing may be expensive with a higher than market interest rate. By issuing new stock they can raise capital and the underwriter can take a spread from the sale of the shares for their fees or receive shares for payment. |
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Adam J
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Depends on a number of factors-- interest rates, the quality of a company's debt, wether or not the company's stock is over or undervalued in the estimation of the company, etc. |
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jeff410
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It depends on the desired capital structure of the company, the cost of equity and the cost of debt. The ideal capital structure is the level of debt and equity that minimizes the cost of capital. The lower the cost of capital the lower the hurdle rate, or the rate the company has to make on its investments to maintain or increase the value of the company. |
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Franco
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Issuing more shares costs the co very little, but depresses their value which, unless corrected soon, will reflect badly on the directors.
Borrowing from the bank will affect the profit attributable to the shareholders, unless the co. makes good use of the loan, to compensate. The directors will have to decide what is best under the circumstances. |
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Jax
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Issuing equity is simply a way to raise money. Some companies raise this money in order to invest in new projects that help them expand.
Issuing equity is not really about borrowing money. Issuing debt, such as bonds, is more of a borrowing technique. Debt is borrowing because the company has to pay it back through coupons. Equity is not borrowing because the company has no obligation to pay anything back to its equity shareholders. Your stock could be worth less than you bought it for and the company has no reason to pay you back. |
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redwine
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there are actually ways to analysze the effective corporate structure. Its the whole study of corporate finance, determining the optimal capital structure. Many companies don't follow this strategy and are often more comfortable with one form of capital over another. Sometimes the project has a lot to do with it. Loans have to be paid interest, and if the project is longer term, you may not get cashflow from it for a while. In those instances, equity may be the better financing vehicle, although it is a more expensive form of capital. |
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