What is the x 100 in the bid and ask price for Yahoo Finance?
It means per 100 shares. My source? I know how to read. >
Help with finance questions for homework?
1) D. asked; bid Source: A dealer sells at the price they are asking for and buys at the price they are bidding for. 2) D. Debenture. Source: http://www.investopedia.com/terms/d/debenture.asp#axzz1cIwEk2F3 3) C. Fallen Angel Source: http://www.investopedia.com/terms/f/fallenangel.asp#axzz1cIwEk2F3 4) E. Option of repurchasing the bonds prior to maturity at a pre-specified price. Source: http://www.investopedia.com/terms/c/callprovision.asp#axzz1cIwEk2F3 5) Either D or E. Sorry I can’t be more specific. I was hoping someone else would be able to answer the questions before I took a shot at this one. I think D is the stronger answer, however. Here’s why: when interest rates decrease, bond prices increase and yields decline. Oppositely: when interest rates increase, bond prices decrease and yields increase. Additionally: Bond investors, like all investors, typically try to get the best return possible. If current interest rates were to rise, giving newly issued bonds a yield of 10%, then the zero-coupon bond yielding 5.26% would not only be less attractive, it wouldn't be in demand at all. Who wants a 5.26% yield when they can get 10%? To attract demand, the price of the preexisting zero-coupon bond would have to decrease enough to match the same return yielded by prevailing interest rates. In this instance, the bond's price would drop from $950 (which gives a 5.26% yield) to $909 (which gives a 10% yield). Source: http://www.investopedia.com/ask/answers/04/031904.asp#axzz1cIwEk2F3 Here is why I don’t think E is not as strong of an answer: YTM as the yield a bondholder receives if he or she reinvested all coupons received at a constant interest rate, which is the interest rate that we are solving for. If we were to add the present values of all future cash flows, we would end up with the market value or purchase price of the bond. Source: http://www.investopedia.com/university/advancedbond/advancedbond3.asp#axzz1cIwEk2F3 Anyway, I hope this helps. I vaguely remember taking a similar exam when I was in college. Best of luck.
Help with Finance Questions?
1. C 2. A the dirty price includes any interest that has accrued to the seller between coupon payment dates. Prices are quoted clean(no accrued interest) and settled dirty. 3. False...(with caveats). It's feasible that an investor could have a different required rate of return than the market rate, due to differences in the perceived "riskiness" of the bond (different risk premiums). Additionally, a bond currently held by an investor may, or may not, have a YTM equal to that of the current market rate. (Also consider tax-free bonds, their after tax YTMs will differ depending upon the holders' income tax brackets.) Caveat: from the perspective of considering the purchase of a risk-free bond, req'd return = YTM = market rate when not accounting for transaction costs.
Can some one please Help me with these finance questions? I have to finish by tonight these are just some.?
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Ask/Bid prices?? Help me out?
Bid $5.56x300 means that somebody wants to buy 300 shares at $5.56. And this is the highest price that anyone is willing to offer for the stock at the moment. Somebody else may want to buy a million shares at 4.39 for example, but this 5.56x300 only tells you what the highest bidder wants to do. So, it doesn't give you the whole picture. You won't know about the million-share offer. If you send a limit order to buy 500 shares at 5.56, then a few seconds later you'll see that the number changes to Bid $5.56x800. Ask $5.59x700 means somebody wants to sell 700 shares at 5.59. This is the lowest the are willing to sell it for. The ASK is always higher than the BID. The ASK and the BID cannot be the same. If someone is willing to buy 300 shares at 1.25 and at the same time someone else is willing to sell 400 shares at 1.25, then a transaction takes place: 300 shares change hands. The LAST PRICE changes to 1.25. The volume increases by 300. The BID goes down to the next level. And the Ask remains 1.25x100. The difference between the ASK and the BID is called the SPREAD. If the ask is $1.50 and bid is $1.20, then the spread is 30 cents or 25%. That's quite a big gap. Usually the spread is smaller. If the spread is very high, it's risky to buy. Let's say the bid is 2.50 and the ask is 3.00. This is a thinly traded stock. Only 5000 shares changed hands yesterday. If you buy at 3.00, and you change your mind, then you cannot sell at the same price where you bought. You can only sell at 2.50. So, if you just buy and sell a moment later, you lose some money.
What are the ask and bid prices of a stock?
For every seller there is a buyer. The Ask price is the price someone wants to get for their shares and the Bid price is what someone wants to pay for the shares. The price varies continually up and down depending on how many people are trading that stock Generally you would try to by a stock at the lowest price you can get it at. You would place what is called a limit order and it would only be executed at a price at or less than your Bid price. The same applies to selling stock you would Ask at a price that you would not want to sell lower than. It is usually a good practice to use limit orders as it protects you from the chance that you might lose. It can drive you crazy to try what you have suggested as the pace of the market at times can find you chasing a stock to catch a good price and you can easily lose in that situation.
Accounting Question Lowest Price Bid for Firm?
I'm a retired stock broker so I can help answer this. Brokerage firms make their money mainly through commissions. For example, when a stock is bought or sold, the brokerage firm earns a commission... usually a minimum of $50 for a full-service firm. Some online brokerages might charge a commission of $7 for the very same trade... but they offer no advice or guidance. For mutual funds, brokerages will sell what is called a load fund... an upfront sale charge for buying the shares; also, as long as the client holds the fund, the broker will earn what is called a trail (a small percentage each month based on the number of shares or the value of the fund). Brokers also earn commissions on bonds called points... if a bond sells for two points, the broker has earned $20. Doesn't sound like much for the bonds, but if the broker sells 100 of them he has earned himself $2,000 in commissions. Brokers offer guidance to clients and share researched stocks and other investments with them; that's what you're paying commissions for: advice from the experts. Unfortunately, the experts aren't always right... but they certainly outperform the novices... and that's why despite all the cheaper online services, brokers at full-service firms continue to thrive.
Stocks bid and ask prices?
It is the amount of shares available at that price. Of course it may be an iceberg order, that is it will re-load up to a higher amount when traded. For example it may be 1000 shares in 100 lots.