Welcome to StkyTreat

[JohnHenry]

Stock Split

Does it have any benefit(s) for the share holders? Yeah ok I was thinking if a company for example has 100 outstanding shares. I have one share and now the stock splits, there are 200 outstanding shares; I have two shares.

But if you think about it, it’s still one percent either way you look at it. Also I have notice once a split occurs the stock generally tends to go south. So my question, is a stock split just psychologically? One percent is one percent, it doesn’t matter how many times you slice it up its still one percent. NO?

I was one in a former life (about 10 years ago I taught a few physics labs). But I haven't touched physics since getting a job in chemistry. I sorta miss it (but not really).

Hmmm… is that the song of a former slave, um…grad student?

Ok Ok I don’t understand or know anything about war but with what’s happening in Israel. The fear of oil production being disturbed has cause the price of oil to rocket to $78 a barrel. Isn’t this a little too extreme?

Well, the idea that the current affairs of Iran are the cause of higher oil prices might be a bit tricky to prove.
You might want to read the article below:

http://en.wikipedia.org/wiki/Correla...ogical_fallacy)

Also, have you thought about oil prices and futures?

As for the Japan not raising interest rate is the pass six years and now raising it 0.25% (this is the rate at where the banks borrow at?). So not raising interest rate for six years means that their economy is good and they want to slow it down with this 0.25 hike?

While I have not looked at the data, that would be a fair assumption.
However, Japan has been stagnating for some time now and thus this could me something different.
Yet, looking at last weeks Economist shows that core consumer prices have been raising, which tends to bump up inflation.

[JohnHenry]

Ibd

Ok yeah, I have a few billion questions on articles that were printed in IBD on Wednesday.

The article about Wal-Mart wanting to by a bank to reduce their credit card fees to pass on the saving to its customers. The article says there is a “loop hole that a truck can drive through it”. I have read it three times but I can’t seem to find where the loop hole is. Am I over looking something?

As for the Japan not raising interest rate is the pass six years and now raising it 0.25% (this is the rate at where the banks borrow at?). So not raising interest rate for six years means that their economy is good and they want to slow it down with this 0.25 hike?

How can we (me and you) borrow money from Japan at that rate and put it in a CD or saving in the US earning 5.25%? Are there restrictions?

Ok Ok I don’t understand or know anything about war but with what’s happening in Israel. The fear of oil production being disturbed has cause the price of oil to rocket to $78 a barrel. Isn’t this a little too extreme?

From my research the US get our oil from the following countries.

Middle East (7-8%)
Nigeria (7-8%)
Venezuela (7%)
Mexico (7.5)
Canada (47%)

These number could be a little off a bit.

I don’t understand why the price of oil is high due to the mess with Iran? Isn’t just a small percent reduction? Can’t we buy a little bit more else where to make up for the lost?

Does anyone have a clear mean of “Same store”?

I have to get going my mom is yelling at me to go to bed or she will take my computer away. bye

[jiesen]

Hi Jiesen

Sorry that your head hurts. You are doing a great job of explaining. I understand what you are saying. Thanks again and for the great links. Are you a phy. teacher? If not, have you thought about becoming one?

I was one in a former life (about 10 years ago I taught a few physics labs). But I haven't touched physics since getting a job in chemistry. I sorta miss it (but not really).

[JohnHenry]

http://www.glenbrook.k12.il.us/GBSSC...ics/u8l4c.html

oh, and here's a good one to read about what the electric field lines mean. the direction of going from one sign to another (positive to negative) is just a convention, so that's just the way it is. get used to it.

one more thing to hopefully clarify it a bit for you:

http://hyperphysics.phy-astr.gsu.edu/Hbase/electric/elesph.html#c1

since a positive charge has E pointing away from it, and the force is just E*q (where q is the second charge) you see that if the second charge is also positive the force direction is also away from the original positive charge, but if it's negative the force is towards it, and the charges are attracted. hopefully at least that part makes sense to you. trying to explain this in a post is making my head hurt... read those links a few times, they do a much better job of explaining it than I do!

Hi Jiesen

Sorry that your head hurts. You are doing a great job of explaining. I understand what you are saying. Thanks again and for the great links. Are you a phy. teacher? If not, have you thought about becoming one?

[jiesen]

http://www.glenbrook.k12.il.us/GBSSCI/PHYS/Class/estatics/u8l4c.html

oh, and here's a good one to read about what the electric field lines mean. the direction of going from one sign to another (positive to negative) is just a convention, so that's just the way it is. get used to it.

one more thing to hopefully clarify it a bit for you:

http://hyperphysics.phy-astr.gsu.edu/Hbase/electric/elesph.html#c1

since a positive charge has E pointing away from it, and the force is just E*q (where q is the second charge) you see that if the second charge is also positive the force direction is also away from the original positive charge, but if it's negative the force is towards it, and the charges are attracted. hopefully at least that part makes sense to you. trying to explain this in a post is making my head hurt... read those links a few times, they do a much better job of explaining it than I do!

[jiesen]

Hi

I don't understand this statement "The electric field due to a positive charge points away from the charge, whereas E due to a negative charge points toward that charge".

Are they trying to say the positive test charge repels from the E field and a negative test charge attracts?

I have a positive q, the Force and electric field points in the same direction. but if q is positive, the Force and elctric field points the opposite direction. Does this follows Coulomb's Law? Thanks

what they're saying in the statement is merely a description of the vector for the E field. of course you're going to have like charges repel and opposites attract, and the field equations reduce in a linear fashion to Coulomb's law, which is fairly intuitive.

but you need to know, for other calculations, which direction the E field points, so when the charge moves through it, for instance, you can put the B vector (magnetic field) in the right direction perpendicular to it. don't worry too much about it yet, just try to soak it in, and when you get the rest of the equations (look up Maxwell's equations)

http://hyperphysics.phy-astr.gsu.edu/Hbase/electric/maxeq.html

hopefully it will start making some sense. If not, that's ok, it didn't for me either at first.

[JohnHenry]

Electric Field question for jiesen or anyone?

Hi

I don't understand this statement "The electric field due to a positive charge points away from the charge, whereas E due to a negative charge points toward that charge".

Are they trying to say the positive test charge repels from the E field and a negative test charge attracts?

I have a positive q, the Force and electric field points in the same direction. but if q is positive, the Force and elctric field points the opposite direction. Does this follows Coulomb's Law? Thanks

[JohnHenry]

Well, a Roth IRA is an excellent way to avoid being taxed out of your investment gains, in the long run. I highly recommend opening one, as soon as you're able to. If that means waiting a year or two, so be it. It also means you'll need to get a job, if just part time. The great thing about the Roth is the government can't touch your investment gains, since the money you put in has already been taxed when you earned it. So if you are able to grow your $4000 to $400,000 over 40 years, it's all yours.

I did some more research on Roth IRAs and my thinking is that a mutual fund IRA would be best for me when I reach the legal working age to start contributing. Like you said time is on my side because even if the price of the fund increase or decrease during the time of purchase, it averages out linear over time.

I told my older sibling who has been contributing to there traditional IRA and Roth IRA about the mutual fund IRA accounts and they don’t listen.

For example, my sister put away $200 a month toward her Roth IRA at the credit union and it pays 0.85% in interest. Wow, that’s not even one percent. She said she has a saving Roth IRA. To me this is not good deal because the return is not very low. Any feedback?

[IIC]

Hi everyone. Yes Jiesen you and everyone did a great job explaining and Thanks for the great advices. Where did you all learn this, from each other?

I was able to find what the 5% was, I think it’s called the prime rate and the other percentage added to it is either index or marginal rate. Some of this I found on www.answers.com but I’m sure everyone here must know this site.

I will buy the book that Dsteckler recommended as soon as I’m done paying my brother back for the IBD he ordered for me on his credit card.

Hey I took Lye advice and read IBD from front to back but I don’t understand 80% of what I read. I love the “leaders and success” page.

The reason IBD as a business is a total failure is because nobody...Well...Mostly nobody...Has any idea what they are trying to present...They have a really bad business model ...I have publically offered my assistance...But the phone ain't ringin'...Too bad for them...IIC

[JohnHenry]

Thanks for the replies

Hi everyone. Yes Jiesen you and everyone did a great job explaining and Thanks for the great advices. Where did you all learn this, from each other?

I was able to find what the 5% was, I think it’s called the prime rate and the other percentage added to it is either index or marginal rate. Some of this I found on www.answers.com but I’m sure everyone here must know this site.

I will buy the book that Dsteckler recommended as soon as I’m done paying my brother back for the IBD he ordered for me on his credit card.

Hey I took Lye advice and read IBD from front to back but I don’t understand 80% of what I read. I love the “leaders and success” page.

Thanks again everyone.

[IIC]

Just to clarify a couple of things and I'm being real basic about this:

In the event of default on a mortgage or trust deed the holder of the first mortgage is paid off first...If there are any proceeds left over after the home is sold then the holder of the 2nd gets paid...If there is any left then the holder of the 3rd and in some cases the holder of the 4th. However, there is a possibility that there may be nothing left after the 1st is paid or not enough left...So there is more risk to each holder in descending order...hence the higher rates.

Fed Funds Rate...I believe that many think this is the rate that the Feds charge banks...But this is not true...The Feds charge banks the Discount Rate which currently sits at 6.25%. The Fed Funds rate is explained here:

http://en.wikipedia.org/wiki/Federal_Funds_Rate

If you read this you will notice that Banks are required to have a certain amount of cash on hand or deposited with the Feds. Remember when there were a lot of banks in trouble leading to many mergers?...One of the problems was that many of these banks could not sustain the amount of cash required...Doug(IIC)

Ok before the increased to day of a quarter point, the interest rate was 5%. I saw bank advisements of home loans at 6.29 to 7%. I called a few banks and no one wanted to explain to me because I sound young many service people told me.

Interesting story:

The Federal Reserve charges banks, say, 5% to borrow money from them to help them make loans.

Now, the bank could charge 5%, but would not get anything back to cover expenses, like the guy who calls people who do not pay back loans.

So, the bank needs a way to get money, which it does by charging more than what it pays to loan the money to other people.

Small link:

http://www.fool.com/foolu/askfoolu/2002/askfoolu020319.htm

First of all, yes the market is looking forward, as it always does. News tends to be priced in, and when a particular news item's been expected for awhile, there's about as good a chance that the price of the security/bond/commodity in question will move in the opposite direction you'd have thought it would in response to the news being announced as it would in the "correct" direction.

I would add that there are at least three ways of looking at how the news etc is priced into the market:

http://en.wikipedia.org/wiki/Efficient_market_hypothesis