For you people with stock options...
Thread Starter
Pull my finger
Joined: Apr 2004
Posts: 41,423
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From: Arizona
Originally Posted by e3NiNe
You gotta go though a broker.
If the company is brand new to the market, there's a few ways the stock is issued.
- bid
- IPO (inital public offering price)
A company like Google was not only a "bid" but "limited". Google never set a starting price and made people make blind offers. If your offer (made though a broker) met their expectations, or exceeded, you'd get placed into raffle.
ex. Google wanted $80 per share (you don't know this) ... you offer $60, you lose.
ex. Google wanted $80 per share (you don't know this) ... you offer $150 because you think that's what it's worth ... you win, but overpay.
If the company you're looking to invest into is small, you might be able to secure the stock though an online eTrading account. These do take quite a bit of time to setup though. If the company goes live this week, forget about it.
If the company is brand new to the market, there's a few ways the stock is issued.
- bid
- IPO (inital public offering price)
A company like Google was not only a "bid" but "limited". Google never set a starting price and made people make blind offers. If your offer (made though a broker) met their expectations, or exceeded, you'd get placed into raffle.
ex. Google wanted $80 per share (you don't know this) ... you offer $60, you lose.
ex. Google wanted $80 per share (you don't know this) ... you offer $150 because you think that's what it's worth ... you win, but overpay.
If the company you're looking to invest into is small, you might be able to secure the stock though an online eTrading account. These do take quite a bit of time to setup though. If the company goes live this week, forget about it.
The company I'm looking at is decent in size...
I recently just talked to some of the people that worked there and they told me about how the company was going to go public soon enough
I know the company's history and they have been doing great ever since they started so...I'm hoping I can get my asian hands into this as soon as they do go public.... Thank you
Senior Member
Joined: Jun 2004
Posts: 30,331
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From: Montréal, Canada
Originally Posted by RicoD
Ok I got that part...
but how does one go about buying stock off of another company? Hopefully you understand what I'm saying
yes
but how does one go about buying stock off of another company? Hopefully you understand what I'm saying
yes
Things to look at before choosing your online trading service:
-trading fees (how much does each transaction cost)
-minimum monthly trades, carefull with that one cause if you have 2K to invest there is not way you'll be able to make 20 per month
-fees to pullout your money
-fees to deposit money
-wire tranfer minimums
-easyness of transfering fund from you bank account to the trading account.
Thread Starter
Pull my finger
Joined: Apr 2004
Posts: 41,423
Likes: 0
From: Arizona
Originally Posted by Brar
so you just want to get into the stock market?
h:
Originally Posted by e3NiNe
RJ is up to something. :squint:
I bet it's a fireworks company. Their earnings were off the charts in July and it's bound to stay like that for the rest of 2006
I bet it's a fireworks company. Their earnings were off the charts in July and it's bound to stay like that for the rest of 2006
I have to get in the market ASAP :run: *For those people that think im racist im part chinese and i really do have a cousin name ling ling *
Originally Posted by Tark
yup... then it's not called stock options (just giving you the lingo) you need to open a trading account. your financial instituion can have online trading services or deal with Etrade and those other one(not familiar with american online traders sorry). then it's fairly simple...
Things to look at before choosing your online trading service:
-trading fees (how much does each transaction cost)
-minimum monthly trades, carefull with that one cause if you have 2K to invest there is not way you'll be able to make 20 per month
-fees to pullout your money
-fees to deposit money
-wire tranfer minimums
-easyness of transfering fund from you bank account to the trading account.
Things to look at before choosing your online trading service:
-trading fees (how much does each transaction cost)
-minimum monthly trades, carefull with that one cause if you have 2K to invest there is not way you'll be able to make 20 per month
-fees to pullout your money
-fees to deposit money
-wire tranfer minimums
-easyness of transfering fund from you bank account to the trading account.
I'm slowly learning this
Junior Member
Joined: Jun 2002
Posts: 14
Likes: 0
Sounds like you want to invest in a company that's about to go public.. you are probably thinking about IPO (Initial Public Offer).
As some one has stated, IPO shares are pretty hard to get for the general public. The company usually reserve a fair amount of IPOs to its i-bankers and underwriters (ML, Goldman, Lehman...etc)...
re: Stock Options are publicly traded too. Of course, Companies do offer stock options to its employees, usually mgmt, but there are some that offer to its rank-and-file folks. (and of course, its free).
As some one has stated, IPO shares are pretty hard to get for the general public. The company usually reserve a fair amount of IPOs to its i-bankers and underwriters (ML, Goldman, Lehman...etc)...
re: Stock Options are publicly traded too. Of course, Companies do offer stock options to its employees, usually mgmt, but there are some that offer to its rank-and-file folks. (and of course, its free).
Joined: Oct 2000
Posts: 44,908
Likes: 0
From: Location Location
Originally Posted by Wing819
Sounds like you want to invest in a company that's about to go public.. you are probably thinking about IPO (Initial Public Offer).
As some one has stated, IPO shares are pretty hard to get for the general public. The company usually reserve a fair amount of IPOs to its i-bankers and underwriters (ML, Goldman, Lehman...etc)...
re: Stock Options are publicly traded too. Of course, Companies do offer stock options to its employees, usually mgmt, but there are some that offer to its rank-and-file folks. (and of course, its free).
As some one has stated, IPO shares are pretty hard to get for the general public. The company usually reserve a fair amount of IPOs to its i-bankers and underwriters (ML, Goldman, Lehman...etc)...
re: Stock Options are publicly traded too. Of course, Companies do offer stock options to its employees, usually mgmt, but there are some that offer to its rank-and-file folks. (and of course, its free).
stock options are not publically traded. Options are publically traded.
stock optoin = the company you are working for is giving you the option to buy the company stocks of XXXX share at y dollars
Options trading is you own XXX shares of stock at Z comnpany and you sell the option to buy your shares at Y dollars.
__________________
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Originally Posted by WiLL
...I really wanna get out and shoot people.
Senior Member
Joined: Jun 2004
Posts: 30,331
Likes: 0
From: Montréal, Canada
rico if i was you i would stick with stocks and stock options if the company you work for has them. I would suggest that a trading newb stays away from options. Basicly Option are contracts that you buy... they are called PUT or CALL.
a put is Basicly a contract allowing you to buy a certain amount of shares at a predetermined price before the expiry date. that means if you think Microsoft will go up in value next month you buy a contract/put(let say you buy the contract at 1$/share) saying that you can buy say 100 share at $50...say next months comes and MS is at 75$ you EXERCISE your option so you buy your 100 shares at $50 (as stated by the contract/option) then you resale them immidiatly so your gain is actually $75-$50-$1=$24 per contrract. which seams like a easy way of making money right? however say Next month MS is at $45 instead of $75, then you dont EXERCISE it and you lose your contract so you lose all of your $100 investment.
you dig?
calls are the contrary, instead of buy contract that will alow you to buy them at a set price you have a contract saying you sell your stock at a set price. this kind of investing is usually used as leverage when you buy big amount of shares in a company.
So to recap, i would suggest you stay away from options at the bigining, you'll be able to go into that kind of trading in the future once you are comfortable with the markets.
a put is Basicly a contract allowing you to buy a certain amount of shares at a predetermined price before the expiry date. that means if you think Microsoft will go up in value next month you buy a contract/put(let say you buy the contract at 1$/share) saying that you can buy say 100 share at $50...say next months comes and MS is at 75$ you EXERCISE your option so you buy your 100 shares at $50 (as stated by the contract/option) then you resale them immidiatly so your gain is actually $75-$50-$1=$24 per contrract. which seams like a easy way of making money right? however say Next month MS is at $45 instead of $75, then you dont EXERCISE it and you lose your contract so you lose all of your $100 investment.
you dig?
calls are the contrary, instead of buy contract that will alow you to buy them at a set price you have a contract saying you sell your stock at a set price. this kind of investing is usually used as leverage when you buy big amount of shares in a company.
So to recap, i would suggest you stay away from options at the bigining, you'll be able to go into that kind of trading in the future once you are comfortable with the markets.
Thread Starter
Pull my finger
Joined: Apr 2004
Posts: 41,423
Likes: 0
From: Arizona
Originally Posted by Tark
rico if i was you i would stick with stocks and stock options if the company you work for has them. I would suggest that a trading newb stays away from options. Basicly Option are contracts that you buy... they are called PUT or CALL.
a put is Basicly a contract allowing you to buy a certain amount of shares at a predetermined price before the expiry date. that means if you think Microsoft will go up in value next month you buy a contract/put(let say you buy the contract at 1$/share) saying that you can buy say 100 share at $50...say next months comes and MS is at 75$ you EXERCISE your option so you buy your 100 shares at $50 (as stated by the contract/option) then you resale them immidiatly so your gain is actually $75-$50-$1=$24 per contrract. which seams like a easy way of making money right? however say Next month MS is at $45 instead of $75, then you dont EXERCISE it and you lose your contract so you lose all of your $100 investment.
you dig?
calls are the contrary, instead of buy contract that will alow you to buy them at a set price you have a contract saying you sell your stock at a set price. this kind of investing is usually used as leverage when you buy big amount of shares in a company.
So to recap, i would suggest you stay away from options at the bigining, you'll be able to go into that kind of trading in the future once you are comfortable with the markets.
a put is Basicly a contract allowing you to buy a certain amount of shares at a predetermined price before the expiry date. that means if you think Microsoft will go up in value next month you buy a contract/put(let say you buy the contract at 1$/share) saying that you can buy say 100 share at $50...say next months comes and MS is at 75$ you EXERCISE your option so you buy your 100 shares at $50 (as stated by the contract/option) then you resale them immidiatly so your gain is actually $75-$50-$1=$24 per contrract. which seams like a easy way of making money right? however say Next month MS is at $45 instead of $75, then you dont EXERCISE it and you lose your contract so you lose all of your $100 investment.
you dig?
calls are the contrary, instead of buy contract that will alow you to buy them at a set price you have a contract saying you sell your stock at a set price. this kind of investing is usually used as leverage when you buy big amount of shares in a company.
So to recap, i would suggest you stay away from options at the bigining, you'll be able to go into that kind of trading in the future once you are comfortable with the markets.
I've learn more reading your post than my own personal research
h: I really need to take a class so I can understand this subject better... But I got what you're trying to say Thanks Tark
Senior Member
Joined: Jun 2004
Posts: 30,331
Likes: 0
From: Montréal, Canada
Originally Posted by RicoD
Gotcha...
I've learn more reading your post than my own personal researchh: I really need to take a class so I can understand this subject better... But I got what you're trying to say
Thanks Tark
I've learn more reading your post than my own personal research
h: I really need to take a class so I can understand this subject better... But I got what you're trying to say Thanks Tark
Obviously you understand that my example above is really really simplified, but that the main idea will options, BIG risk BIG pay out or BIG LOSS.
here is 1 more thing you should look at, depending on you income taxes, and the risk level you are wiling to take there are 2 way of making money with stocks.
1-Capital gain, where you buy shares for cheap and sell them for a profit.
2-Dividends, where you buy shares from company that traditionnaly are doing well and redistribute some of the quaterly profits to the investors.
you need to check with income taxes rules and regulation to know how to invest with those 2 strategy. For example IN CANADA capital gain is taxed way less then dividents. So if i were to invest in a retirement found(401K from what i understood where you can save money and get taxe credits back right?) i would not go with the capital gain cause when i withdraw(at 65 YO) i would pay taxes on 100% of the capital gains instead of the 33% i would've if it wasnt in a retirement fund.