The Mysterious Stock Market

[ZeBorgCollective]

I just opened a custodian account with Datek and have a few questions.

Who files the 1099, me or my custodian?
Also, why is that Datek tells me to buy Ford stock will cost $11.70, but turning around right after that and selling will get me only $11.64?
Finally, why doesn't Datek recognize Enron or Worldcom's ticker?

 

[PsychoAndy]

Originally posted by: ZeBorgCollective
I just opened a custodian account with Datek and have a few questions.

Who files the 1099, me or my custodian?
Also, why is that Datek tells me to buy Ford stock will cost $11.70, but turning around right after that and selling will get me only $11.64?
Finally, why doesn't Datek recognize Enron or Worldcom's ticker?

Dont know about the 1099. Consult a CPA. Or CPA for that matter.

Its called the spread. Get to know it. Its also known as capitalism.

Enron and Worldcom are suppimented by .e because of delisting or something to that effect.

Can anyone see a pattern here? Custodian account, q's about the bid and ask, and worldcom and enron?

-PAB

 

[Mill]

Like PsychoAndy said Worlcom and Enron were delisted from the Nasdaq. You now have to trade them on brokerage sheets.

 

[ZeBorgCollective]

Originally posted by: PsychoAndy

Originally posted by: ZeBorgCollective
I just opened a custodian account with Datek and have a few questions.

Who files the 1099, me or my custodian?
Also, why is that Datek tells me to buy Ford stock will cost $11.70, but turning around right after that and selling will get me only $11.64?
Finally, why doesn't Datek recognize Enron or Worldcom's ticker?

Dont know about the 1099. Consult a CPA. Or CPA for that matter.

Its called the spread. Get to know it. Its also known as capitalism.

Enron and Worldcom are suppimented by .e because of delisting or something to that effect.

Can anyone see a pattern here? Custodian account, q's about the bid and ask, and worldcom and enron?

-PAB

I don't see a pattern.

I'm just a teenager who wants to throw a few hundred dollars into stock.

Reason I asked about Worldcom and Enron is just curiosity and besides, Worldcom stock can't really lose anymore value, so what's the risk in throwing $100 into it?

If Worldcom ever came back, I'd stand to gain quite a bit, wouldn't I?

Look at the bright side, I'm a teenager who'd rather spend a few hundred dollars on stock than a bag of marijuana.

 

[ZeBorgCollective]

*bump*

 

[Frosty3799]

Originally posted by: ZeBorgCollective

Look at the bright side, I'm a teenager who'd rather spend a few hundred dollars on stock than a bag of marijuana.

hes got a solid point here

 

[VTBigBear]

very good point..

 

[datalink7]

Reason I asked about Worldcom and Enron is just curiosity and besides, Worldcom stock can't really lose anymore value, so what's the risk in throwing $100 into it?

They go out of buisness = you lose all your money.

There is a risk.

 

[ZeBorgCollective]

Originally posted by: datalink7

Reason I asked about Worldcom and Enron is just curiosity and besides, Worldcom stock can't really lose anymore value, so what's the risk in throwing $100 into it?

They go out of buisness = you lose all your money.

There is a risk.

Worldcom go out of business?

Isn't it more likely for them to merge with someone or something?

I can't see Worldcom just going out of business, but if they did, I'd only lose $100.

 

[compuwiz1]

Enron and Worldcom would be stocks that I would not touch with a 100 ft pole. I guess stock buying is always a gamble, but I don't understand why anyone would jump back into either of them. Is it because they can't go bankrupt again for 10 more years, so maybe they might be ripe for investing in, or is a hostile takeover in order, now that the stocks are low?

 

[Shockwave]

Originally posted by: datalink7

Reason I asked about Worldcom and Enron is just curiosity and besides, Worldcom stock can't really lose anymore value, so what's the risk in throwing $100 into it?

They go out of buisness = you lose all your money.

There is a risk.

Thats the beauty of bein young. Its called risk vs reward. Whens he's young, its the best time to invest aggresively, because he can afford to lose money, he has time to make up the loss.
IMO, we are sitting at one of only 2 times ever to stand to make ALOT of money. the other was the stock market crash in 28 (or 29?) Both times the stock market was immensely inflated, and both times, they fell drastically. Now, like I said, this is my OPINION. Right now, invest for the long term, and you'll make a freakin bundle. The problem is, invest in WHAT? Its also my opnion that all stock tracking has become near worthless as far as charts go. Past performance should NOT be used to predict future gains. Why? The last two years the stock market was grossly inflated, thus we have skewed results, as this is a cooling down period, with the natural dip below what market value would dicate. Thus, if you crunch numbers, invest the old fashioned way in stable stocks, and hold for a minimum of 2 years, I believe one would stand to do VERY well. The stock market WILL rebound, the question is when? Thats why this is the perfect time for long term investments.
Note: I'm not a broker, nor in any way informed enough to help anyone but myself with their investments, the above is just MY OPINION.

 

[ZeBorgCollective]

Maybe Sprint and Worldcom could try to merge again?

Maybe the fed would approve it this time since it would save jobs?

 

[PsychoAndy]

Originally posted by: ZeBorgCollective


Look at the bright side, I'm a teenager who'd rather spend a few hundred dollars on stock than a bag of marijuana.

Thats equally dangerous. That was ME 2 years ago. $5000 in a 150 year old company. I just recieved my statement today. $450. Its a lesson.

-PAB

 

[JoeKing]

bio tech is my prediction on whats good to invest in. Research companies that are working on AIDS and Cancer research. That or companies dabbiling with cloning or DNA manipulation.

 

[IGBT]

So what do yA THINK..friggin caps lock...is SUNW a good buy at 4.17 a share?? How bout INTEL at 17.00something a share??

 

[compuwiz1]

Cancer and AIDS cures are a bad investment. As long as people practice unsafe lifestyles, there will be a price to pay.

 

[JoeKing]

exactly why there will always be a market for drugs to combat the two....and unfortunatly a growing market. But hey were talking money here, find the demand who will supply it and get on board.

 

[Whitecloak]

Originally posted by: Shockwave

Originally posted by: datalink7

Reason I asked about Worldcom and Enron is just curiosity and besides, Worldcom stock can't really lose anymore value, so what's the risk in throwing $100 into it?

They go out of buisness = you lose all your money.

There is a risk.

Thats the beauty of bein young. Its called risk vs reward. Whens he's young, its the best time to invest aggresively, because he can afford to lose money, he has time to make up the loss.
IMO, we are sitting at one of only 2 times ever to stand to make ALOT of money. the other was the stock market crash in 28 (or 29?) Both times the stock market was immensely inflated, and both times, they fell drastically. Now, like I said, this is my OPINION. Right now, invest for the long term, and you'll make a freakin bundle. The problem is, invest in WHAT? Its also my opnion that all stock tracking has become near worthless as far as charts go. Past performance should NOT be used to predict future gains. Why? The last two years the stock market was grossly inflated, thus we have skewed results, as this is a cooling down period, with the natural dip below what market value would dicate. Thus, if you crunch numbers, invest the old fashioned way in stable stocks, and hold for a minimum of 2 years, I believe one would stand to do VERY well. The stock market WILL rebound, the question is when? Thats why this is the perfect time for long term investments.
Note: I'm not a broker, nor in any way informed enough to help anyone but myself with their investments, the above is just MY OPINION.

so what you are saying is now is the time to use fundamental analysis rather than technical analysis.

 

[ZeBorgCollective]

I still need to know who files the 1099 please.................

 

[FeathersMcGraw]

Originally posted by: Shockwave
Thats the beauty of bein young. Its called risk vs reward. Whens he's young, its the best time to invest aggresively, because he can afford to lose money, he has time to make up the loss.

Yes, but putting money into Worldcom saying "oh, it's just a hundred dollars if I lose it" isn't investing, it's gambling. Pursuing aggressive returns and shouldering additional risk due to youth does not mean throwing money at something without an evaluation of the fundamentals of the company and hoping that it will pay off down the road. Without diversification, a long investment timeframe is useless, since the notion of long-term investing depends on counter-movements in different sectors of stocks or investments in different forms (stocks, bonds, gold, etc.) to provide growth in value for the whole portfolio.

At the very least, anyone who's interested in playing the stock market should have a fundamental understanding of how markets work, how investments work, and how to allocate their assets to mitigate risk. The Motley Fool is a great resource for beginners.

 

[compuwiz1]

I still need to know who files the 1099 please.................

Why are u not asking a professional these questions?
Most people on these forums exagerrate their status. Are you?

 

[ScottMac]

I believe you'd get a 1099 from Datek if you sold the stock (at a profit).

Remember that they'll get a commission when you buy/sell in addition to the spread ($8.00 per trade?).

Good Luck

Scott

 

[Shockwave]

Originally posted by: whitecloak

Originally posted by: Shockwave

Originally posted by: datalink7

Reason I asked about Worldcom and Enron is just curiosity and besides, Worldcom stock can't really lose anymore value, so what's the risk in throwing $100 into it?

They go out of buisness = you lose all your money.

There is a risk.

Thats the beauty of bein young. Its called risk vs reward. Whens he's young, its the best time to invest aggresively, because he can afford to lose money, he has time to make up the loss.
IMO, we are sitting at one of only 2 times ever to stand to make ALOT of money. the other was the stock market crash in 28 (or 29?) Both times the stock market was immensely inflated, and both times, they fell drastically. Now, like I said, this is my OPINION. Right now, invest for the long term, and you'll make a freakin bundle. The problem is, invest in WHAT? Its also my opnion that all stock tracking has become near worthless as far as charts go. Past performance should NOT be used to predict future gains. Why? The last two years the stock market was grossly inflated, thus we have skewed results, as this is a cooling down period, with the natural dip below what market value would dicate. Thus, if you crunch numbers, invest the old fashioned way in stable stocks, and hold for a minimum of 2 years, I believe one would stand to do VERY well. The stock market WILL rebound, the question is when? Thats why this is the perfect time for long term investments.
Note: I'm not a broker, nor in any way informed enough to help anyone but myself with their investments, the above is just MY OPINION.

so what you are saying is now is the time to use fundamental analysis rather than technical analysis.

Absolutely, thats what I would do! Technical still has its merits, but one must keep in mind that the past two years will probably not be an accurate reflection of a companies true worth. Thus, going with fundamental gives you a better picture as to what the company is doing, and where it looks to be going. If you do go with technical, like I said, keep in mind the past year or two will make it skewed, more then likely. Ideally, I would take a portion of my decision from one method, and a portion from the other, using fundamental as the heavier weight.

As for aggresive, that doesnt mean invest in Worldcom or not to. Remember, the most important part of investing. Diversify Diversify Diversify! And that is the one peice of advice I can give that is NOT my opinion, EVERY good investment firm out there will tell you to diversify!