Q&A on Investing

Analysts provide target prices based on where they estimate the company’s stock price will be in a 12-month timeframe. The recommendation is given according to how much the target price differs from the stock price at the time the target price is given. These target prices should not be taken too seriously; they follow the development of the stock price retrospectively. In investing, it is advisable to think independently, even if analysis can offer new perspectives.

Sales prices must be under 1000 euros. This means that if you buy once for 500 euros and sell for 550 euros, the tax authority will not collect 15 euros in tax from that 50 euro profit. This tax benefit applies to situations where investment activities are very small-scale. The tax authority, by the way, has clear pages with examples that explain these tax questions.

Taxes on capital gains are not automatically deducted, but your Finnish broker sends information about your trades to the tax authority. In taxation, losses and expenses for acquiring income, such as trading fees, are deducted from profits. If there are more profits, additional taxes will be incurred. These should be carefully considered in your own accounting.

Capital gains taxes on dividends paid by Finnish companies are collected as withholding tax. Finland has a tax treaty with some countries, such as Sweden and the United States, where a 15% withholding tax is made on dividends paid by foreign companies. The remainder is payable to the Finnish tax authority. Then some countries, such as Denmark, Germany, and Norway, withhold too much tax contrary to the tax treaty, and these can be laborious to get rectified.

It might be an inexperienced investor, algorithmic trading, or some attempt to manipulate the markets. I watched one seminar on this, I think it was organized by the Financial Supervisory Authority (Finanssivalvonta).

Saving for a child is also possible. An account must be opened for them. It is advisable to contact the bank for this. By the way, there is a thread on the forum about this topic.

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