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ruby acb.rb <questrade csv file path> <stock symbol>
)Excel XIRR function (Calculate internal rate of return for irregular cash flows)
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Portfolio
Question
What is Co. Ltd and Inc?
首先 company 是公司,但是一般有不同类型,像公司法所称公司是指在中国境内设立的有限责任公司和股份有限公司。作为对比,firm 一般指小公司,corporation 一般指大企业。
Co. Ltd, means “Company Limited”, 有限责任公司
Inc means, “Incorporated Corporation”, 股份有限公司
那么“有限”责任和“股份有限”责任分别是哪些责任呢?
A B C三个股东成立一个公司,各自出资500万,300万,200万。如果将来公司倒闭破产了,他们三位只需亏掉投入的这些钱即可,即有限责任公司。此时代表三位股东权益的叫做“出资证明”。
公司经营不错,下一步想要上市,就必须将公司进行股份制改造,由“有限责任公司”改造为“股份制有限公司”,上市的目的是发行股票,股改了公司才有股票,但股东的有限责任不变(照样是公司,照样是有限责任)。公司股改后,三位股东按照出资比例占有相应股份,A50%(大股东) B30% C20%。此时代表股东权益的就是他们手中拥有的股票了!
公司经营不错,下一步想要上市,就必须将公司进行股份制改造,由“有限责任公司”改造为“股份制有限公司”,上市的目的是发行股票,股改了公司才有股票,但股东的有限责任不变(照样是公司,照样是有限责任)。公司股改后,三位股东按照出资比例占有相应股份,A50%(大股东) B30% C20%。此时代表股东权益的就是他们手中拥有的股票了!
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Takeaways:
- US constitutes almost a quarter the world economy
- The gap between China and US is supposed to be shrunk to $2.96 trillion
- 11th is South Korea and 12th is Russia
- There two major metrics to evaluate the economics
- Nominal GDP = gross domestic product, compared to Real GDP which is after inflation
- GDP based on PPP = gross domestic product based on purchasing-power-parity (PPP) valuation of country GDP, current international dollar)
Model Portfolios
Terms
Mutual fund
A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. These investors may be retail or institutional in nature.
Categorized by structures
There are three primary structures of mutual funds: open-end funds, unit investment trusts, and closed-end funds.
- Open-end mutual funds must be willing to buy back ("redeem") their shares from their investors at the net asset value (NAV) computed that day based upon the prices of the securities owned by the fund. It's accounting for 86% of the U.S. industry, $16.3 trillion.
- Closed-end funds generally issue shares to the public only once, when they are created through an initial public offering. Investors who want to sell their shares must sell their shares to another investor in the market; they cannot sell their shares back to the fund. It's accounting for 1% of the U.S. industry.
- Unit investment trusts (UITs) are issued to the public only once when they are created. UITs generally have a limited life span, established at creation. Investors can redeem shares directly with the fund at any time (similar to an open-end fund) or wait to redeem them upon the trust's termination. Less commonly, they can sell their shares in the open market. Unit investment trusts do not have a professional investment manager. Their portfolio of securities is established at the creation of the UIT. It's account for 0.3% for the U.S. industry.
- Exchange-traded funds (ETFs) are structured as open-end investment companies or UITs. ETFs combine characteristics of both closed-end funds and open-end funds. ETFs are traded throughout the day on a stock exchange. It's accounting for 13% of the U.S. industry.
表单1
Categorized by underlying investment
- Money market funds invest in money market instruments, which are fixed income securities with a very short time to maturity and high credit quality. Investors often use money market funds as a substitute for bank savings accounts. Assets in money market funds were $2.7 trillion, representing 14% of the industry.
- Bond funds invest in fixed income or debt securities. Assets in bond funds were $4.1 trillion, representing 22% of the industry.
- Stock, or equity, funds invest in common stocks. Assets in Stock funds were $10.6 trillion, representing 56% of the industry.
- Hybrid funds invest in both bonds and stocks or in convertible securities. Balanced funds, asset allocation funds, target date or target risk funds, and lifecycle or lifestyle funds are all types of hybrid funds. Assets in hybrid funds were $1.4 trillion, representing 7% of the industry.
表单2
An index fund (also index tracker) is a mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that the fund can track a specified basket of underlying investments. Those rules may include tracking prominent indexes like the S&P 500 or the Dow Jones Industrial Average or implementation rules.
An index mutual fund holds all (or almost all) of the stocks or bonds in a particular index. The idea is to produce a return extremely close to that of the overall market. That’s different from the goal of “actively managed” mutual funds, which try (usually unsuccessfully) to choose individual securities that will outperform the market.
Exchange-traded funds, or ETFs, are similar to index mutual funds in that they hold a portfolio of stocks or bonds and track a specific index. However, unlike mutual funds, ETFs are bought and sold on an exchange, like stocks. ETFs may be attractive as investments because of their low costs, tax efficiency, and stock-like features.
While investors usually pay a commission to buy and sell them (just as they would when trading stocks), ETFs typically have lower annual fees than index mutual funds. There is also a much wider selection, offering investors access to almost every kind of asset: stocks, bonds, real estate, commodities, precious metals, currencies and more.
Tracking error
The difference between the index performance and the fund performance is called the "tracking error", or, colloquially, "jitter."
Active management Vs. Passive management
- Active management (also called active investing) refers to a portfolio management strategy where the manager makes specific investments with the goal of outperforming an investment benchmark index or target return.
- In passive management, investors expect a return that closely replicates the investment weighting and returns of a benchmark index and will often invest in an index fund. Passive management is most common on the equity market, where index funds track a stock market index. One of the largest equity mutual funds, the Vanguard 500, is passively managed.
In 2018, Canadian passive funds increased their market share from 10.8% to 11.5% on the back of a positive flow of $10 billion. Meanwhile, Canadian active funds attracted $5 billion. We estimate that Canadian passive funds post a weighted average Management Expense Ratio of 0.31%, compared to a substantial 1.67% for active funds. In the U.S., passive funds increased their market share from 35% to 37%. U.S. passive funds attracted $453 billion. Meanwhile, active funds experienced an outflow of $304 billion.
Where does the name Coach Potato comes from?
In a 1991 article, Scott Burns, then a financial writer for the Dallas Morning News, suggested investors simply put half their money in an index fund that tracked the S&P 500, and the other half in a fund that tracked the US bond market. Every year, he said, you should rebalance the portfolio so it’s once again 50% stocks and 50% bonds. “You need to pay attention to your investments only once a year,” he wrote. “Any time it’s convenient. Any time you can muster the capacity to divide by the number 2.” He called his ultra-simple investment idea the “Couch Potato portfolio.”
Standard & Poor’s reports that over the five years ending in 2013, about 22% of actively managed Canadian equity mutual funds delivered higher returns than their benchmark index, while the figure for US equity funds was about 12% and for international equities was just under 14%.
A Board lot and odd lots
On the stock market shares can be traded individually, but are typically grouped together into packages of 100, known as a “board lot.” For very popular securities (the technical term is liquid ) there will be enough people selling “odd lots” (amounts other than 100-unit board lots) that you don't have to try to round your order off to 100-share increments.
Margin account
A margin account is like a cash account combined with a line of credit:
Mortgage
According to Wealthing like Rabbits, there are a few points to discuss when you get or renew a mortgage:
- open/close. An open mortgage is one that can be paid off or renegotiated at any time during the mortgage term. A closed one is cannot be paid off or renegotiated until renewal time without paying a penalty. All mortgages become open at the end of their term and can be paid down or renegotiated at that time.
- Most closed mortgages include some sort of pre-payment option. These options allow you to pay down a set percentage (10% is typical) of your mortgage's principal at specific times, usually once a year.
- fixed/variable rate. With a fixed rate mortgage the interest rate remains the same for the duration of the term. A variable rate (or floating) mortgage allows the interest rate to vary based on the prime interest rate set by the Bank of Canada. Your payments always remain the same but the amounts of principal and interest rate changes.
- frequency. Monthly, weekly, bi-weekly.
Rebalance
LONG TERM BULL AND BEAR MARKET
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