401K Financial Planning

Ali K asked:

Hi I’m and interested in investing . I’ve been reading about the “Certificated service” on the Lloyds TSB website, and have a few questions since I’m quite new to it all:

>What are costs (apart from buying shares)- it says on the site “Buy or sell online using share certificates for just £27.50″. It also says “No account fee and no fuss”. What does this mean? Is the £27.50 the cost for starting investing or a regular payment?

>What’s the biggest loss that I can make? I mean is there any way I can lose the money in my normal bank account (that I haven’t invested) or is it that I’ll only lose some/all of the money that I had invested?

>Is my basic understanding correct, that I purchase shares in a company that I think will do well, and when the price per share has risen, I sell them on for more?

Sorry if these questions are a little stupid. I’m only 16 and I want to do something useful with my EMA grant. Thanks! ^_^


Question posted courtesy of: Anita

LAOSVUCSIWAT asked:

Say I buy 200 shares of stock for 15 dollars. And lets say it went up 3 dollars the next day. Then the next day it opens with 17 dollars but drops 3 dollars. How would you make a profit out of the stock? Would a stock ever open at a price of say 75 dollars? To make it easier say its the Apple inc stock. I know the stocks don’t cost 15 dollars but its just to help me understand.

If I bought a stock at the beginning of April for $15, can you explain how you would profit at the end of the month? (Assume the stocks don’t drop at all and use your imagination as to how much it raises but be realistic about it).


Question posted courtesy of: Jack

Kay Money asked:

The stockholder’s equity of a corporation is composed of preferred $3 stock, $50 par, $700,000; paid-in capital in excess of par—preferred stock, $25,000; common stock, $10 par, $1,000,000; paid-in capital in excess of par—common stock, $75,000; and retained earnings, $70,000. The net income is $45,000.

1) The paid-in capital attributable to preferred stock is….

2) The paid-in capital attributable to common stock is…

3) Earnings per share of common stock is……

4) The total stockholder’s equity is……


Question posted courtesy of: Marlene