Your Questions About How To Pick Stocks To Buy

Paul asks…

How much would you pay for a left handed Epiphone Les Paul Guitar?

I have a black 2009 lefty Epiphone Les Paul Guitar with pick guard and all stock parts. Nothing is wrong with it but maybe a few scratches from storage. It was rarely played. Works perfectly, if you were to buy this guitar on ebay(example) how much would you pay?

John answers:

Epi Les Pauls vary a lot in price
where was it made?
The best ones are Japanese
then Korean,
The Chinese ones are the cheapies, I don’t like them

George asks…

how does leverage ETF use index future to achieve exposure?

Can I put 25% in index future and the 75% in stock picks that represent the index? How does the exposure actually work? They use money enough to buy 100 contracts to buy 200?

John answers:

Suppose that you have a 2x S&P 500 ETF that has $100M of assets. You need to go long $200M notional of S&P futures contracts. The margin required on an S&P futures contract is nothing like 50% (in fact, it may be as low as 5%) and you can meet margin with T-Bills or get interest on your margin account. Thus, you invest all $100M in T-Bills and hand-off enough of them to your futures broker to meet margin requirements on $200M worth of S&P futures contracts. Voila – instant 2x S&P fund and you did 1 cup of coffee’s worth of work. Go play golf the rest of the day.

Donald asks…

How much torque and hp does a stock 97 v6 Camaro have?

In other words, does it have good pick up, compared to a 2.0L Eclipse/Lancer?

I may buy one soon, so I want to know if its something I am interested in.

John answers:

Standard Engine

3.8L 200 hp V6

200 @ 5200 RPM

Torque (lb-ft)

225 @ 4000 RPM

depends on which model/year Eclipse/Lancer youre comparing it to. The 2.0L is rated from 140-210 depending on if its turboed or not.

Carol asks…

How can I find out if ASDA Entertainment have the product I want at my local store?

I want to buy Spore from ASDA but I would rather pick it up myself than have to wait for it to be delivered so how can I find out if they have the it game in stock at my local ASDA?

John answers:

Call them and ask them if they have it in stock.

Joseph asks…

How can I determine what I will pay for a stock?

Example: If, I want to buy 50 shares of a particular stock, lets say for example, citigroup, or, pick one of your choice to explain. I know from reading past answers, that, if I use Scott Trade, I pay $7 per transaction. I’m just trying to figure out what I will pay for it all, total. What do I look at to see what I can buy that stock for? I always check stocks on Yahoo finance. In advance, thank you!

John answers:

OK…I think you understand that you pay for each transaction be it buying or selling. So at $7 per trade if that is what it is….the act of Buying + Selling will cost you $7 + $7 = $14 in total commissions…the only wrinkle is that each complete trade happen during one day….that should not be a problem with 50 shares but if you were selling 50,000 shares it might not be possible to complete a buy trade in one day….it might take 2 days in which case you would pay $7 + $7 for that trade.

As far as what you will pay for each share….when you go to enter an order you will see (or ask for) a quotation on the share…

This is not Scottrade but here is a quote on Citigroup from Bloomberg

On the right side above the NEWS you will see the last Bid ($34.20) and Ask ($34.21)

So the highest buyer is willing to pay $34.20/share and the lowest seller will not accept less than $34.21/share.

You can choose to place your order (a limit order is recommended…this states the exact price you will pay) anywhere you want near that range…of course no higher than $34.21 since you already have a seller willing to sell at that price. An order at $34.21 would probably be filled immediately during the trading day…the other prices may be filled at some time…it depends on the share price movement.

So if you ordered 50 shares @ $34.20….you would pay eventually $1710 + $7.00 when the trade is completed

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