Is this possible to make money in the stock market
Is this possible to make money in the stock market while the quotations are going down? And what is credit sale?
Expert
Three easy moves are here to make money while prices are going down: futures sale, purchase of put options and credit sale. Credit sale of a share means borrowing this and sell this afterwards. For case in point, we sell the share today at a specific price as €10 but we owe a share to the institution that lent this to us. If the quotation of the share goes down to 8 Euros the following week, we buy the share and provide it back to the institution which borrowed it to us and cancel out our position. In such case, we will have earned 2 Euros (the 10 Euros we earned by the sale of the share minus the 8 Euros we paid to buy this).
Meanwhile, obviously, we will owe a share to the institution that lent this to us and they will ask for several guarantees to cover the debt. Futures sale is very the same to credit sale but with the advantage which, normally, the guarantees demanded are lower. For illustration, an investor who sold a futures contract on the IBEX 35 at Friday 18th of January, while this was at 13,900 points, and closed his position with buying a futures contract the same to the one he sold on Monday 21st, when this was at 12,700, would have earned 12,000 Euros. The computation is a lot easier: 10 Euros for a point. The price fell through 1,200 points and, thus, the investor gained 12,000. But when the IBEX 36 had gone up, the investor would have lost 10 Euros for all points.
How can any industrial company inflate the value of its inventory so as to decrease net income and the taxes is has to pay in a year?
Do expected equity flows coincide along with expected dividends?
Regarding the WACC which has to be applied to a project, must it be an expected return, the average historical return or an opportunity cost on similar projects?
What is the importance and the utility of the given formula: Ke = DIV(1+g)/P + g?
Which method must we use to valuate young companies along with high growth but uncertain futures? Two illustrations were Boston Chicken and Telepizza while they began.
Does it make any sense to compute betas against local indexes while a company has a great part of its operations outside such local market? I have two illustrations: BBVA and Santander.
We were assigned a valuation of a pharmaceutical laboratory’ shares. Which valuation method is further convenient?
Explain lognormal random walk based on Brownian motion.
Marketing Decisions Assignment: Email the answers to the following questions in an attached word document using the proper file name format as follows: 1
Credit & Collections: Usually, credit is stated as the procedure of providing a loan, in which one party transfers wealth to the other with the expectation that it will be re-paid in full plus interest. The definition of collections is connected t
18,76,764
1953043 Asked
3,689
Active Tutors
1432341
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!