Stock market of the world
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The topic of paying taxes on the stock market looks confusing and even frightening to the novice investor. In fact, there is nothing complicated or supernatural about taxes on the securities market: every investor is obliged to pay personal income tax on profits from 13% transactions. But there are some peculiarities you need to be aware of. How the tax on the sale of shares works There is one important nuance in the income from the shares: it is paid only on the income that is actually received. For example, if you own Rosneft shares and their exchange rate went up, you only have to pay tax when you sell them. If the shares remain in your possession, no tax is due...
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In itself, investing in any asset - be it securities, currency, gold, bitcoins, all kinds of startups - is a very interesting and, most importantly, profitable business. Investing in stocks brings good money to competent investors, but, as in other financial markets, it has its advantages and disadvantages. Advantages of investing into the share market There are many advantages of investing into shares. It is not for nothing that the number of clients of Mosbirch is growing rapidly, and profits from the transactions have been increasing every month for quite a long time. But let us have a closer look at these advantages: Investing in shares is one of the most popular ways to steadily increase capital. Unlike many other tools...
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The price of stocks on the stock exchange is constantly changing - some securities go up in price, the rate of others go down. At the same time, the stock price can rise during a crisis and fall during a calm and quiet period. Why does it happen? Factors Affecting the Stock Price The stock price is influenced by long-term and short-term factors. Understanding them is easy enough if you use an analogy. Let's compare a stock to an airplane, for example. The rate of an airplane is determined by the power of its engine, the capacity of its fuel tanks, and the actions of the pilot. These are long-term factors that will tell us about the aircraft's capabilities. As an airplane flies, its course is affected by air temperature, wind speed and direction, cloud cover, and precipitation -...
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Amidst the global fall of quotations on stock exchanges and commodity prices, investors' attention is increasingly attracted to the debt market, the dynamics of which has a direct impact on changes in exchange rates on the international foreign exchange market. To understand the mechanism of how government bond yields influence currency quotations, it is necessary to refer to the basics of fundamental analysis. State credit and bond yields The activity of any state in the financial sphere is characterized by budget deficit or surplus. In the first case, the country's expenditures for various purposes exceed its income in the form of taxes or non-tax payments, which forces the use of public credit in order to cover the difference between them. The main form of public credit in...
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Futures (futures contracts) is a derivative security (derivative) which is an agreement to set conditions for the purchase or sale of a standard quantity of a certain asset at a certain time in the future, at a price set at the time of the transaction. There is a rule that there should be at least two working days between setting the terms of the transaction and its execution, otherwise the transaction is considered to be immediate. Why are futures contracts needed? Futures have three general purposes: the most important purpose of futures in general is to determine the price of an instrument. The applied meaning for market players can be one of two (or a combination): insurance against financial risks, i.e. hedging (engaged mainly in...
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A bond (Latin obligato - obligation) is a type of bearer security. It is an obligation of the borrower to return the borrowed funds within a certain period of time and with certain interest. In fact, by selling a bond, the state or organization, takes a loan from the buyer, so the holder of this security is entitled to receive annual income in the form of a specified interest. The peculiarity of the bond is that it must be redeemed during the term defined at the time of its issuance. In the financial market system, bonds are also called bonds. McDonalds bond What is the essence of a bond? The essence of bonds is similar to a loan - a certain amount of money is lent with a planned return. The difference is.
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How to Understand and Properly Interpret the P/E Ratio for Stock Valuation When it comes to stock valuation, the price-to-earnings ratio (P/E) is the number one indicator for investors who want to know instantly what the market thinks about a company. Everyone's favorite P/E ratio can tell you a lot about a stock's price, while at the same time there are caveats to watch out for if you don't want to be fooled by its limitations. What is the price/earnings ratio? The price/earnings ratio, P/E or multiplier as it is sometimes called, compares a company's stock price to its historical EPS - earnings per share (a figure you'll find on many...
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What is a security? A security is a document indicating certain property rights of its owner when presented. A security must be designed according to its type and the general criteria for such documents. There are three most common definitions of securities: A security is a document the presentation of which is necessary to exercise the right expressed in it. A security is a business document of established form, monetary or property content, which has legal force. A security is a special form of existence of capital, which can be transferred instead of the capital itself, circulate on the market as a commodity and bring profit. Their essence is that there is no capital itself, but there are all the rights to...
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Keeping financial statements is mandatory for all companies engaged in business activities. It is the study of financial reporting documents that is the very tool on the basis of which a decision is made on the prospects and forms of cooperation between companies. That is why the IFRS was created - a universal financial "language" for companies to communicate internationally. What are financial reports The age of globalization dictates its own conditions for successful business. The activity of many companies implies cooperation with foreign partners, which is only increasing year by year. However, financial systems differ from country to country, which complicates cooperation. In order for business partners from different countries to "understand each other" without problems, the...
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It is not uncommon for a trader encountering futures trading on the Moscow Exchange (MICEX-RTS) for the first time to get lost in the contract specifications. The specific alphanumeric designations of the codes are quite simple and it is not difficult to remember them, but it is necessary to understand them. Futures codes appearance The futures code consists of three main elements: Futures code C - code of the underlying asset, consisting of 2 characters M - month of futures execution, consisting of 1 character Y - year of futures execution, consisting of 1 character We will talk about the underlying asset code for futures later, but let's deal with the dates at once. Field M (month of execution) of the futures code So, field M is the month of futures execution,...
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Very often in the publications of companies' operating results one encounters such indicator of financial activity as EBITDA. What is EBITDA and how is it calculated? The meaning of EBITDA in simple words EBITDA is an English abbreviation derived from Earnings Before Interest, Taxes, Depreciation and Amortization. EBITDA is an operating indicator, which shows a company's profit before taxes, credits, etc. are paid. In simple words, it is all the money a company earns before all the "bills" are paid. For example, a company produces some kind of product, sells it to a consumer and gets money for it. The amount of revenue depends on the price of the product and the volume sold. However, in order to sell its products, the company has to
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Dividends (Latin dividendum - to be divided) - profit of a joint stock company or economic entity, which is distributed among shareholders or security holders in accordance with the share of shares belonging to them. The distributed amount is calculated after payment of taxes, replenishment of insurance and other reserves, deductions to funds, etc. In other words, a dividend is a sum of money received for the contribution to the development of the company, expressed in the received shares of the company (monetary dividend). Less frequently, dividends are paid in company property or shares. Dividends can be received on both common and preferred shares. How are dividends paid? A joint-stock company (company) makes a profit from its activities throughout the year. Then, the shareholders' meeting decides which...
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Surely each of you has heard about Eurobonds from stock market analysis or just news releases. What are Eurobonds, where to find them and how to make money on them? Today Fortrader experts will tell you about Eurobonds in simple words. What are Eurobonds? Eurobonds are a type of European bond. In very simple terms, they are debt securities that are denominated in a currency that is foreign to the state or company that issues them. For example, the debt obligations of Rosneft issued in dollars will be Eurobonds, but for Apple Eurobonds will be bonds denominated in Chinese yuan, for example. Where does the prefix "euro" come from in the name of the bonds? They owe it to Italy,...
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Type B IIAs and personal income tax An IIA or individual investment account is a brokerage account with some nice tax benefits, which are now rarer and rarer. An IIM allows you to refund previously paid personal income tax (PIT). You pay personal income tax in the amount of 13% at work: when you receive your wages, the card receives not the full amount, but minus this tax. We also pay personal income tax in many other cases, for example from the sale of property, and starting next year we will pay it also from the profit on bank deposits. Therefore it is a good opportunity to return part of what we have paid to the treasury. This is a privilege of EII of type A....
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Income tax on the sale of stock is currently taxed at 13%. This is the main thing to know. But there are nuances that can significantly affect the profit. Calculation Formula Let's start by saying that the gain on the sale of stock is calculated using the following formula: PROFIT = cost of shares at sale - cost of shares at purchase - commissions for purchase, sale, storage The profit tax is calculated as the financial result on all transactions for the calendar year (tax period) or on the fact of closing the account with the broker. It is important that all calculations are based on the FIFO method, i.e. previously purchased shares are taken into account first. Here is a simple example. Example You bought...
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A competent investor, when choosing a company whose shares he wants to buy, will definitely analyze the company's performance indicators. One of these key indicators is profitability. What is profitability, what kinds of profitability exist and how is it calculated? What is the profitability of a company? Profitability is an economic indicator, which reflects the efficiency of using the resources of the company. By resources we mean not only raw materials, but also money, staff and other assets. Profitability can be calculated for a company as a whole, or for any single asset. Profitability is a relative indicator and shows the change, as a rule, in percentages. If the profitability value is positive, then the company is making a profit, if it is negative or equal to zero, then the company is suffering...
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Federal Loan Bonds (OFZ) are a type of securities in Russia issued by the Ministry of Finance. In fact, bonds have a standard format, their only peculiarity is that the reliability of securities is ensured by the state itself. In fact, when you buy OFZ, you lend money to the state for a certain period of time. On OFZ you will receive a coupon income (usually once every six months) for the entire term of the bond. At the end of the term, you'll receive a refund of the original cost of the bond itself. Types of Federal Loan Bonds Federal Loan Bonds are divided into several types based on the type of coupon payment and face value. By type of coupon payment, government bonds are divided into: OFZ-PD - with a constant coupon yield The amount of...
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A derivative financial instrument (derivative) is a financial instrument, the value, pricing and terms of which are based on another financial instrument that is the underlying for it. In fact, a derivative is an agreement between two persons on an obligation or the right to transfer a specified asset at a specified time and price. Most derivative financial instruments are not securities according to the Federal Law "About Securities Market", the exception being an issuer's option. However, so-called derivative securities, such as options, forwards, futures, swaps, etc., are common. Why are derivatives needed? The main purpose of using derivatives is to make speculative profits and hedge risks, both temporal and material....
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As a rule, most beginning investors, one way or another, begin their activity on the stock market with shares, which are usually called blue chips. What are blue chips? What shares are blue chips, and what advantages and disadvantages do they have? Blue chips on the stock market The blue chips on the stock market are shares of large companies, which have the largest capitalization in the market and high reliability. Such companies are also called first-tier companies. The term "blue chips" was borrowed by the stock market from the gambling industry - the casinos are the most expensive blue chips. Investing in blue chips has a low risk and brings...
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There are many stocks traded on the stock market, and at the first glance at the quotation list a novice investor's eyes, as they say, are confused. Many people make the mistake of choosing securities by name or on the advice of someone else. Meanwhile, in order to make a right choice of shares for investment it is necessary to understand the processes on the stock market and also study not only a company's shares but also the company which issues such shares. So how to choose the right shares for investing? Where to start when choosing stocks The choice of stocks should be approached with a working investment strategy in place, which will make it possible to screen out companies whose securities are unsuitable at the initial stage. After that, it is necessary to carefully analyze the activities...
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