Investing

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Initially, stock prices are set by the company with the help of an investment bank and approval of the exchange, according to Jean Folger for Investopedia. After the initial public offering, the market determines the price of the stock.

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  • How are stock prices determined?

    Q: How are stock prices determined?

    A: Initially, stock prices are set by the company with the help of an investment bank and approval of the exchange, according to Jean Folger for Investopedia. After the initial public offering, the market determines the price of the stock.
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  • What is "speculation" in the stock market?

    Q: What is "speculation" in the stock market?

    A: According to the CFA Institute, speculation in the stock market is the practice of engaging in high-risk trading in order to make a significant profit quickly. Speculative trading is not based on traditional analysis of a stock's long-term value and stability. However, it is not conducted haphazardly and involves analysis of short-term variables, such as price fluctuations and market volatility.
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  • What was the highest NASDAQ close ever?

    Q: What was the highest NASDAQ close ever?

    A: According to NASDAQ, as of May 2014, the highest NASDAQ closing ever was achieved on March 9, 2000, when the market closed at a record 5046.86. USA Today reports that the highest closing achieved by NASDAQ since was a 4007.09 closing on Nov. 26, 2013.
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  • When was the stock market invented?

    Q: When was the stock market invented?

    A: The first stock market was invented in the 1300s when merchants of Venice began to trade securities received from other governments, according to Investopedia. This was done via slates with information on things for sale, which were carried to meetings with the merchant's clients.
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  • What is a good ROI percentage?

    Q: What is a good ROI percentage?

    A: A return of 7 percent is considered a good ROI for someone who invests in the stock or real estate markets, notes Joshua Kennon for About.com. A positive ROI range for bonds is anywhere from 2 to 4 percent.
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  • How do you get started investing in foreign currency?

    Q: How do you get started investing in foreign currency?

    A: Investors can start foreign currency trading by opening a Forex trading account, buying foreign currency CDs, or investing in mutual funds, exchange traded funds or exchange traded notes. Each of these methods comes with different initial investment requirements and unique risks. To be successful in foreign currency investing, it is critical that an investor understand the basic tenets of currency trading and choose the most suitable method of investment.
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  • What does a shareholder do in a company?

    Q: What does a shareholder do in a company?

    A: According to Investopedia, a shareholder is any person owning at least one share in a corporation. A shareholder has rights outlined in the corporate bylaws. The shareholder can review the company's financial books and sue for actions that negatively impact the corporation.
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  • How can I increase my capital gains?

    Q: How can I increase my capital gains?

    A: A person can increase capital gains by selling particular assets at an amount greater than the purchase price, notes the Internal Revenue Service. These assets must be held for at least one year prior to being sold on the open market.
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  • How do companies maximize shareholder wealth?

    Q: How do companies maximize shareholder wealth?

    A: According to the Harvard Business Review, companies maximize shareholder value by managing their relationships with all of their stakeholders. Companies use a variety of strategies and investment options to maximize the wealth of their shareholders and create value for customers.
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  • What is the difference between assets and liabilities?

    Q: What is the difference between assets and liabilities?

    A: An asset is something a business owns that helps produce economic value going forward, according to Chron Small Business, and a liability is an obligation to pay money to a business or entity going forward. Companies sometimes opt to sell assets to pay off liabilities.
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  • What is capital rationing?

    Q: What is capital rationing?

    A: Investopedia defines capital rationing as the act of limiting the number of new projects or investments undertaken by a company. This is done to slow down the spending of capital so that older projects can be completed or to insure that new projects or investments offer higher rates of return.
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  • What is the Wall Street bull statue?

    Q: What is the Wall Street bull statue?

    A: The Wall Street bull statue, officially titled Charging Bull, is a sculpture by Arturo Di Modica that is located in Bowling Green, New York City, at the intersections of Broadway and Morris streets, just a block north of the South Ferry building at the southern tip of Manhattan. The bronze sculpture weighs more than 3.5 tons and measures 18 feet long. Di Modica and friends left the sculpture in front of the New York Stock Exchange, beneath a Christmas Tree as a gift to the world, in December 1989.
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  • What time does the NASDAQ open?

    Q: What time does the NASDAQ open?

    A: NASDAQ Trader reports that the NASDAQ officially opens for trading at 9:30 a.m. Eastern Standard Time. NASDAQ begins preparing to open at 4 a.m. when a computer starts entering the trades and orders that were received after market close the day before, according to HowStuffWorks.
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  • What is the formula for interest compounded annually?

    Q: What is the formula for interest compounded annually?

    A: The formula for interest compounded annually is FV = P(1+r)n, where P is the principal, or the amount deposited, r is the annual interest rate, and n is the number of years the money is in the bank. FV is the amount of money the depositor would have after n years, or the future value of that investment.
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  • How much does the government fund NASA?

    Q: How much does the government fund NASA?

    A: For fiscal year 2014, which covers Oct. 1, 2013 to Sept. 30, 2014, Congress approved $17.6 billion in federal funding for NASA. The agency expects to receive slightly less — $17.5 billion — for fiscal year 2015.
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  • What is a revenue model?

    Q: What is a revenue model?

    A: A revenue model is a system through which a business generates income from its products and services. The revenue model is a key component of any business model. It is a business plan that guides a company in generating income by creating value for its customers.
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  • What is a bull market?

    Q: What is a bull market?

    A: A bull market most commonly refers to increasing stock prices on exchanges such as the NYSE and Nasdaq. It is also used to describe bond and commodity price increases. A bull market is an indication of overall economic health.
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  • What are some good techniques for investing in gold?

    Q: What are some good techniques for investing in gold?

    A: Investment experts recommend investing in gold through a variety of avenues, including exchange traded funds, shares of mining companies, futures contracts and derivatives contracts. Some simply purchase and store gold itself. Each of these strategies comes with unique benefits and risks that are not suitable for all investors. Public interest in gold investment has spiked in recent years, creating both opportunity and risk.
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  • Why is investing important?

    Q: Why is investing important?

    A: One of the main reasons investing money is important is that it helps to create more money. As opposed to just saving money in a bank account, investing money involves choosing to use that money to buy interest or stock in order to earn a return on the money.
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  • How does inflation affect interest rates?

    Q: How does inflation affect interest rates?

    A: As inflation occurs, the central bank is able to adjust interest rates, thus encouraging economic growth. Without adjusted interest rates, there would be little growth during times of inflation as people's purchasing power becomes less. When interest rates are lowered, people are able to continue to purchase regardless of the fact that the purchasing power has lessened.
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  • What is the difference between direct and indirect investments?

    Q: What is the difference between direct and indirect investments?

    A: Direct investments are those in which the investor owns the particular assets himself, while indirect investments are investments made in vehicles that pool investor money to buy or sell assets, according to Red Mountain Asset Research. A direct investor invests in the asset itself, whereas an indirect investor invests in the expertise of the people using his investment money, notes the National Association of Real Estate Investment Trusts.
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