don't forget about taxes. you have to pay taxes on what you have capital gains on, but i think you can only apply $3000 in losses in one tax year. meaning if you hypothetically had $10,000 in capital gains, but also had $10,000 in losses for a net gain of $0 you would actually owe capital taxes on $7,000. you would have to carry forward those other losses and apply them to future years. you don't have to worry about this if you have trader classification from the IRS.
This isn't right at all. You pay taxes on your net gain or loss. If your net loss is more than $3k, you can only show a -$3k in capital gains income, and the rest would be carried over against future years. But if you gain $10k and lose $10k, you simply pay taxes on $0. If you lose $10k this year, and then make $10k next year, you'd show -$3k this year and +$3k next year ($10k profit minus your $7k carryover loss).
I'm not sure how professional traders handle taxes, but what I posted is what your average Joe would do. I believe traders can do some funky stuff with Mark to Market, and of course expensive various investing activities. But the regular person just pays taxes on their net gains or losses.
Yep. You can use losses to offset gains up to -$3000 as you said. Losses over $3000 can carried forward (5 years I think).
Just wait 90 days for the restricted employee shares to hit the market, wouldn't be surprised to see it hit low 20's
This price is still supported by the IPO bank, they had agreement to support it at 38 the first day and I think above 30 for the next few days.
Sweet I might get some compensation for being one of the traders who lost money cause of nasdaq screwing up orders. Never fun when you are given shares a couple dollars out of the money.
Holy smokes what a rebound. If it continues in the over night and into tomorrow we may be seeing new support at today's low for the next leg up. Tomorrow is key.
can someone explain to me how dividends work? how much of a return would I get investing 10k on a stock that has a good return? an example? Thanks!
Random Question but does anyone do any investing in renewable energy. Specifically solar since that seems to be the only type with independent companies but its always been a curiosity. I know a few years back the market was volatile because of tech advances (and also why solyndra collapsed since it bet on silicon prices staying high).
If you bought a company like AT&T you would earn about $500 on that $10,000 investment before taxes. http://www.investopedia.com/terms/d/dividend.asp#axzz1vkgS3uYE
Solar companies have been hit with a nuclear bomb and I would still avoid them even after their huge price drops.
Almost all new renewable energy sources require huge subsidies to be solvent. The only companies that seem to be able to make large investments into renewables are the current super major oil companies because they can afford to take baths on the projects in the short term for potential long term profits. As for specific renewables: solar has been commoditized by China. They can make panels so inexpensively, most US companies got out of the business long ago. Wind seems to be a game for the large energy companies due to the large subsidies and political capital from investing. Biofuels seem like they have potential, but again, takes large investment and it seems the best games in town tend to be the big energy companies.
