Archive for the 'Investing' Category

When will Delta and Northwest start selling stock as 1 company?

Posted November 28, 2008 * Comments(0)

Darko asked:

Now that the mergers approved when will they start selling stock as 1 individual company? Also, how is the new stock price set? Is there an estimate on how much it might start being traded at?
So then if I understand you right… The stock price is going to remain the same… Instead people will get 1/4 of a share for every 1 share they own now?

What about Northwest stock? Does it just disappear?

Is selling to close a call option the same as exercising the option at the strike price then selling it?

Posted November 9, 2008 * Comments(0)

Just Some Guy asked:

This has been confusing me for some time, any help would be appreciated. I can’t seem to tell if it’s the same as exercising the option then selling it, or if it’s just selling the option at the bid price. Which one is it? Thanks in advance.

What does short selling or covering a stock mean?

Posted November 4, 2008 * Comments(0)
selling
I heard from my professor that stocks can be bought, sold, sold short and covered. But what exactly does selling short and covering mean. How would I apply selling short and covering when it comes to buying stocks?
Why does the seller need to borrow the stock from someone else’s account? If he’s the seller it’s his stock right? I get the buying it back at a lower price part, but why does the seller have to buy the stock back if it goes to a higher price and make a loss?

By: nashjohn30

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