stocks

stocks questions and answers

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Q: How do I track down stocks that I once bought through a now-defunct online brokerage site?
About 10-12 years ago I bought some stock in a few companies (AT&T and Sears being two of them) through an online site that no longer exists (Quick and Reilly). My email and snail-mail address has changed multiple times since then and I have no idea where these stocks have gone. Is there an easy way to track them down so I can sell them / assume control of them again? Thanks!

A: Your stocks should be with Bank of America Investment Services if B of A didn't turn the securities over to the state due to lack of activity. Quick and Reilly merged with Bank Of America several years ago. http://www.armencomp.com/tradelog/bank_of_america.shtml

Q: What time does the stocks and shares market close at every day?
Does the stock exchange have certain times that it is open at to buy and sell shares? For example between 9AM and 9PM every day. Or is it open 24 hours a day, 7 days a week? I am more interested in information about stocks and shares in the United Kingdom. Thanks for your time.

A: The US markets open from 09:30 - 16:00 (EST) For UK markets open from 07:00 - 15:30 (GMT) Markets are closed Sat, Sun, and most major holidays.

Q: Is it possible to buy and sell stocks without a stock broker?
I want to invest in stocks, but I want to do it myself and get into the action of the stock market. I don't want a stockbroker.

A: Im a trader that had similar questions to what your asking - the answer is YES - thats what ameritrade, etrade, scott trade etc do for you - allow you to directly control your action. Apparently you're just learning and thats actually what i do - i help teach people like yourself. Take a look at my group of 13,000 people that i started on myspace 2 years ago for this reason - just started a new one for stocks too. I will personally help you set up your trading account. groups.myspace.com/NYMA

Q: Which is the best stock to invest in? How can I learn about stocks and how to invest in them?
I am trying to invest money in stocks but I don't know anything about them and I don't want to lose my money. Please give me info and details.

A: It's not the stock that makes you money, it's what you do with it. You need a method. Consider the books listed on the front page: http://finance.groups.yahoo.com/group/TradingZoom/ if you are interested in trading small caps.

Q: How do stocks get published so quickly and how is it so incorruptible?
When I am reading my tv screen and I see that a particular company has "gone up" or "down", where did that tv station or newspaper get the information so quickly to publish? Actually more specifically, how does all this information about pricing of stocks in general get reviewed and published so instantly? How does this happen and what system enables it to happen? How is it so incorruptible?

A: The 'Consolidated Tape' is an electronic system that continually gathers price and other market data from different market centers. Some of these are electronic (such as ECN's and crossing networks) and some is put in by hand (specialist on the floor of the NYSE and AMEX and third market broker dealers). Obviously the data is not incorruptible as some of it is entered by humans, but generally speaking it is quite accurate. Regulations require a trade reported by a person to be submitted within 30 seconds of a consummated trade. Sometimes you may notice a .sld after one of the reports, this is a trade that was reported out of sequence (outside the 30 second rule) These are monitored closely by the NASD and SEC market regulation and surveillance divisions and fines for habitually reporting late are quite steep, this tends to keep things in line. You can subscribe to a feed that will allow you to see the real time tape, that is how TV stations and internet sites get the info so quickly. Many internet sites will have a subscription that is 15 to 20 minutes delayed - as the rates for these feeds and substantially cheaper than real time.

Q: How to use Standard Deviation and Beta to determine a stocks volatility?
I understand how to get the standard deviation for a stock by going through the variance. What I'm curious about is how to convert the stocks standard deviation into the stocks beta value. Also what is considered a low volatile stock as far as standard deviation goes? I know with the beta anything higher than 1.0 is considered highly volatile. Any information on this subject would be greatly appreciated.

A: This is an excellent tutorial that someone else posted on how to calculate beta using Excel. A beta higher than one doesnt necessarily mean a stock is highly volatile. It just means the returns are more volatile than the market. Beta is the risk that is added to a diversified portfolio.

Q: What stocks to buy for a stock game in school?
Hi, I'm doing a stock simulation game in my Economics class in high school. We have $100,000 to spend and we can have $20,000 to $70,000 of one stock. We can't go under or over. I think we need at least three stocks. The stock game will last about 6-8 weeks I think and I can only have Nasdaq, AMEX, and NYSE stocks. Right now I have LEAP Wireless International (LEAP), Sony (SNE), and LAM Research Corporation (LRCX). Can you tell me if these stocks will be good for a quick growth and recommend me ones that will grow quickly?

A: One that I think could go way up or way down is Atherogenics (AGIX). They will soon be announcing the results of a key clinical trial for a potential new heart disease drug. If the results are good, the drug could be a blockbuster and the stock will probably skyrocket. On the other hand, if the results are not good, the stock will probably drop like a rock. Highly risky if you're using real money, but for a game, it might be an interesting choice.

Q: Stocks - How can I find out if a company has stock to buy?
2 part ?...If you know a company and think it would be a good investment, how do you find out if they have stock to buy? If they don't have stock to buy, how do you find out if they ever will? Sorry, hope that's not too confusing. I tried to find a company in the stock market. I don't have a clue about stocks, but I tried searching for this company, and couldn't find it. They are a relative new company about 5 yrs old, and I think they are going places. I would love to be able to purchase stock from them, but they don't seem to be listed. Any help would be appreciated! Thanks!

A: If you have done a search of Yahoo finance and come up with nothing and you have done a search of pink sheets and come up with nothing, there is a pretty good chance they are not publicly traded. To find out for sure call the company and ask them.

Q: What is the time frame for buying back stocks after short selling?
In other words, how long can it be to buy back stocks after short selling a stock? Can you short sell any high stock and wait for the next presidential election to buy back?

A: You are subject to a timeframe on the short sale but it's a financial one not a regulatory one. When you short a stock you borrow it from the broker and you have to pay margin interest on that borrowed amount. Margin interest is not a good deal until you get into huge balances (but big balances are still a decent amount of money) for long term purchases. You could offset the short with long calls but that costs something also (commission+premium). Eventually if you are short long enough the potential gain will be offset by the actual loss on margin interest or option comissions and premium. Depending on the amounts and term you'll have to do the math. The most you can gain on a short is the sale price all the way to zero but the upside risks are virtually unlimited so be careful with speculative issues.

Q: What do you think about investing in stocks as a beginner?
I think the stock market can be a smart thing to experiment in even without much experience, in contrast to most advice given. My reasoning is that you can "practice" picking stocks for a very small amount of money- even under $100. You can buy just 1 stock option and though you won't make much, you won't lose much either and you'll have experience of watching the market. Sure you can argue that you can study the market without putting your money into it, but I think having something on the line- even if it is only a $20 stock option- keeps your attention and diligence. I am inexperienced with stock trading- it's been years since I've owned stock- but I'm smart, I have a financial mind, and I am a quick study. I think I want to take a few hundred dollars and spread it over a handful of well-picked stocks and watch it for a few months to see what happens. Maybe I'll make a profit, maybe I won't. But I'm not risking much. If you disagree, please explain your logic. Thank you! what do you think about zecco.com?

A: Oh! I agree... I found that it is an excellent, even fantastic< way to profitably spend your time. As you say, if you get in just a little...it's great experience ( and always something to " click over to" on the computer. If you're into the " practice" part of it , a guy ( who occasionally answers here) has a nice site at: http://www.top10traders.com/ Great place to see " how you can do" and look at the way about 1200 other traders play the game! Good luck. P.S. Correction: up to 1300 traders, now.

Q: What are some stocks that could benefit from the expected boom in reverse mortgages?
Reverse mortgages are expected to boom in coming years as baby boomers look to retire. Anyone know of good stocks to consider to profit from this trend?

A: Nothing that isn't REALLY risky right now with the subprime mess. You need to ask this question again in six months or a year after the whole thing has settled down! There isn't a safe harbor in mortgages until that blows over. A list of public mortgage companies -- http://www.mortgagedaily.com/companies.asp But I think you'd be smoking crack to touch them until subprime worries either blow up or blow over. Another, possibly safer option would be to invest in any of the big players in mortgage derivatives... Bear Stearns, Sachs, etc... But there again, you've got obvious exposure to the fallout from subprime mortgage debt. I think the subprime/foreclosure issue is going to keep reverse mortgage market in limbo for some time. What retiree wants to even consider the possibility of mortgage default and foreclosure which is talked about daily in the news?!? You know the financial-planners are having a field day telling their clients to keep their money safe and secure, preferably in one of our vanilla funds or better yet a annuity life insurance product!

Q: Why is it better to own lots of diversified stocks over a specific set of target stocks?
Alot of people say that you should have a diversified portfolio. Why can't I just choose the stocks which I feel have potential for growth? That might narrow my choices to a few sectors, though. If I buy too many stocks, my gains will be lost by too much other stuff going on.

A: It is not necessarily better. The idea behind owning a portfolio of diversified stocks is geared toward the long term investor who will be happy to sit on his positions for an extended interval. That does not necessarily mean lots, but it does mean at least 20 different stocks in varying sectors. A diversified holdings tends to mitigate the risk of a particular sector suddenly having a debilitating effect on your well being ie banks, home builders, mortgage lenders. Get the idea? You can certainly choose to avoid certain sectors and over weight other certain sectors. Don't you just love that term over weight? But if your over weighting is based on a false premise, you can wind up regretting the over weighting overly much. There is even a term for it--specific risk--as opposed to systemic risk, a fancy name for market risk, which is the risk equity investments are currently suffering--bear market.

Q: What are good stocks in alternative fuels sources?
I am looking for good stocks in alternative fuel. Can somebody give me a good suggestion on companies to research.

A: Nova Biofuels, (biodiesel) http://top10traders.com/ViewHolding.aspx?symbol=NBF Cosan (Ethanol), a Brazilian company http://top10traders.com/ViewHolding.aspx?symbol=CZZ Tower Tech (wind towers) http://top10traders.com/ViewHolding.aspx?symbol=TWRT.OB I added a wind energy stock, because I think that is the best alternative energy sector. Good luck.

Q: What are some good ideas for stocks to buy in a long term investment?
I'm planning on buying 3 different company's stocks, putting $200 into each company, and waiting around 30 years. Can you give me suggestions to what stocks I should buy? I was thinking Apple or Microsoft for one but I dunno about the rest.

A: 30 years! Wow! Okay then, for that time frame think of companies that are likely to be around for 30 years. Coca Cola's a safe bet. It's been around since 1886 and I'll still be drinking it with my bourbon in 30 years from now. It's always raising its dividends and has been taking over food companies as well as selling Coke. IBM's a good one. Like coke it pays and raises its dividends each year. There's a lot I could say about IBM. The tech giant is releasing the worlds fastest computer in 2011 and is currently working with Google to develop health care software so patient data can be stored on Googles server. I think Microsoft's okay but don't get me wrong, Apple is a cool company with i-phones and i-pods, but it doesn't pay dividends. If I was going to hold stock for 30 years, I would at least like a company that pays quarterly dividends and raises them yearly.

Q: What are the best stocks to invest in right now?
Looking for stocks that are not too expensive per share, low risk, that will increase not too far down the road. Stocks that are at a really good price now but will go really high when the economy gets better. Any suggestions?

A: Citi Group Bank of America Intel Pfizer