Explain the difference between how the stock dividend and how coupon payments is treated in binomial pricing.?
475684
As I understood your question you need a good book on pricing derivatives. \n\nTry this:\nHull , John - Options, Futures and Other Derivative Securities (5nd Ed.)\n\nSince direct links are not welcome here, you should open www.rapidshared.org -> choose e-books directory -> search for 'derivatives' -> get the direct link and spent couple of minutes reading the demanded chapters.
334871
You need to know 2 things:\n\n(1) the actual price paid per share \n(2) the offering price per share & the company discount\n\nAfter that,\n\n(1) You will report the minimal of (i) the sales price per share minus the actual price paid per share and (ii) the offering price per share times the company discount as the regular income. \n(2) You will report the rest of the sales price minus the the actual price paid per share as long-term capital gain.\n\nLook at the following website for detailed explanation:\nhttp://www.turbotax.com/articles/EmployeeStockPurchasePlans.html
428345
Do you mean preferred shares? The difference is the dividends on preferreds must be paid before any dividend on commons.
1047756
check out Y! finance for the answer to your q.\nhttp://finance.yahoo.com/q/hp?s=PFE&a=00&b=4&c=1982&d=05&e=18&f=2006&g=v\n\nPFE pays its dividend quarterly with the last four dates being\n10 aug 05\n8 nov 05\n8 feb 06\n10 may 06\n\nfor the next upcoming dividend you really have to watch out for\ncompany news. Although mostly they fall on above mentioned \ndates.\n\nor you can look at key stats page on y!\nhttp://finance.yahoo.com/q/ks?s=PFE\n\nlook for "Ex-Dividend date"\n\nnote that ex-date is the one when company pays dividend.\nBrokerages usually delay it and pay it to you on "Dividend Date".\n\n\n\nhttp://biz.yahoo.com/prnews/060622/nyth120.html
874928
It is a class of stock that has a "preference" of some kind when it comes to dividing profits.   There are many ways it can be expressed. \n\nIt generally means that they get their dividend FIRST, whether Common gets any or not.  If there's no money for dividends that year, the question is whether it is "cumulative", meaning that if they don't pay this year, they have to make it up next year before paying Common, or "non cumulative" meaning it starts at zero each year, and also whether it is "participating", which means that if there is a LOT of dividend money, is the preferred dividend an upper limit or do they get more in flush years.
565111
I think you are looking for the P/E.  Divide the price of the stock by earnings per share.  You'll get the same answer if you divide the market value of the company by the total earnings (rather than EPS).  \n\nMarket value / EPS doesn't make sense.
848112
I am not familiar with the article.\n\nHowever, this is surprising, at least to me.  Short selling a stock is the sale of a borrowed stock in anticipation of a price decline.  If the company becomes the lender of, say, 10 shares currently selling at $10 per share they have entered into a contract for future delivery.  The borrower is obligated to pay back the 10 shares (ignoring the interest factor) at some point in the future.  If the stock declines the borrower makes money because he only has to pay, say, $5 per share to purchase it.  The short seller received $100 by selling the stock but only has to pay $50 (10 shares at $5 per share) to cover the contract - a profit of $50.\n\nFirst of all, short selling is an indication that investors believe that the stock price of a particular company will decline - not exactly something that you want as a company.  The company is owed 10 shares of stock regardless of what happens to the price of the stock.  The short seller takes the risk (he might have to pay $15 per share to cover the contract).  \n\nThe company would get interest from the loan but at the price of encouraging short selling.\n\nIf someone out there knows of this article I would be grateful for the name of the article and the publication (including the publication date).\n\nI hope that this helps.
152072
The answer is by using simple mathematics.\n\nFirst you need to decide how much of each stock you are going to buy - since not all stocks are priced equally some would be $20, other $400 and some 0.05 cents.\n\n$100,000 over ten stocks... Decide what ratio you will hold of each stock. E.g. 6:3:4:1:9:4:3:7:9:2\n\nSo totalling the ratio is 48. Now you can use a combination of the ratios and fractions to find out how much stock you can hold with your $100,000.\n\nI may have left you out on a limb there - but this calculation is uneccessary. Why don't you just buy your stock one by one until you run out of money? :P\n\nOK Lets try the example with 2 stocks and $100K\nyou want the weighting to be 3:4\nso you want \n3/7ths of your money to go to 1 stock\n4/7ths of your money to go to 1 stock\n\n3/7*100K=$42857.14\n4/7*100K=$57142.85\n\nNow say stock ZXC was $5 each and stock ABC was $67\n\nNow you go:\n$57142.85/$67=852.88 Stocks\n$42857.14/$5=8571.43 Stocks\n\nThere you go. Now do the similar calculation with your ten stocks! Haha!\n\nGood Luck!
998852
They just break down the price of the stock or fund as a percentage. If you invested 25.00 and the price of the stock is 50.00 you would have you have a 50% or a half unit. This is a common practice for mutual funds and other investing vehicles. It allows you to decide how much money you want to contribute, and they can put your total allotment to work for you, instead of having to wait until you have enough money to buy a full share or unit.
725959
in very plain language, a regular split makes your stocks price go down but you get more stock.\n\nA reverse split makes the price go up but you have less stock now.\n\nI have made darn good money due to split of both kinds.  I do not worry, wring my hangs and then lose control and sell.  I sit on my stock for longer periods of time than others do AND when I find a company that just did a reg. split, I buy buy buy at that new low price.\n\nOf course if a company is doing crappy over all I would not buy into it but I do my homework.\n\nIf you take your money and run with it you might be sorry...  but then again you might not... that's the glorious thing about the market, YOU get to decide !!\n\nI wish you the best choice !!\n\n: )
188618
When a stock goes "ex Dividend" it means that it "excludes" the dividend entitlement.\n\nYou must have bought the stock on the trading day BEFORE the ex dividend date to receive the dividend.\n\nThere are other dividend dates (such as payable date - which is when you get paid the dividend) and also the record date (which is the date by which you need to be on the reigster of shareholders). \n\nIf you buy before the ex date, you'll be on the register by the time the record date comes around. The record date is more of a "back office" administrative date that shareholders need not worry about.
259869
Selling at a premium means that its market value is higher than par (or face) value.\nThat usually happens when the coupon rate is higher than the market yield to the same duration
124590
Well the PF that is deducted is paid in 2 tranches, check if you got both your tranches also.\n\nYou should ideally get your share + Company share + interest
837296
Typically companies distribute their dividends quarterly.  Their is a date of record when the board of directors announces that the will pay a divident.  Then there is a payment date of the dividend which is usually posted with the date of record in the Wall Street Journal.  That is when the company pays its dividend.  It could be 45 days or more from the date of record.  If you have any questions about the stocks that you own you could call the investor relations people and they should give you a better idea of when and how much you should be receiving.
876643
Dividends are payments made by a company to its shareholders. When a company earns a profit, some of it is reinvested in the business and called retained earnings, and some of it can be paid to its shareholders as a dividend. The frequency of these varies by country. In the United States dividends are usually declared quarterly by the board of directors. In some other countries dividends are paid biannually, as an interim dividend shortly after the company announces its interim results and a final dividend typically following its annual general meeting. In other countries, the board of directors will propose the payment of a dividend to shareholders at the annual meeting who will then vote on the proposal.\n\nIn the United States, decisions regarding the amount and frequency of dividends is solely at the discretion of the board of directors. Shareholders are explicitly forbidden from introducing shareholder resolutions involving specific amounts of dividends.\n\nWhere a company makes a loss during a year, it may opt to continue paying dividends from the retained earnings from previous years or to suspend the dividend. Where a company receives a one-off gain, e.g. from the sale of some assets, and has no plans to reinvest the proceeds, the money is often returned to shareholders in the form of a special dividend.
224296
"Sell short" means that you borrow some shares to sell. \n"Cover" means that you buy some shares so as to return them to where you borrow them from. \n\nWhen you sell short at 42 for 200 shares, you get $8400.\nBut, when you buy to cover at 45 for 200 shares, you pay $9000. \n\nTherefore, you have a net loss of $600 (ignoring trading cose, and the interest of borrowing shares).
290861
As far as I know, you buy the stock at a certain price. Example, you buy a share of yahoo stock for about $30. You watch as the price of the stock goes up and down. Let's say that the next day, yahoo's stock price goes up to $31. Then, if you only bought one stock, you would GAIN $1 (if you sold it then, but let's pretend u didnt). To get your total gain, you would multiply the change in the stock price and the number of shares you bought. So if you bought 10 shares of yahoo stock, and the price went up $1, you would have gained $10.\nNow, for the LOST. Let's say that the stock price for yahoo stock went down the next day to $29. That means you LOST $1, NOT $2, because you bought the stock for $30. So $29 - $ 30 is -$1. (The negative means you lost money) \n\nSO overall, to get your change in stock price, you subtract the stock price of that day to the stock price in which you bought it from. (E.g. $29 - $30 in my above example) And if you bought more than one share, which is what happens 99% of the time, then you multiply the change in stock price and the number of shares you have. Negative means you LOST money, and positive means you GAINED money.\n\nAm I helping? Sorry, if your still confused, contact me, and I will be happy to straighten out any confusion I may have caused.