Q&A on Investing

If this was from the tax authority’s website:
The loss (100 euros) arising from Antti’s disposal of investment fund C fund units is not deductible because the combined disposal prices (900 euros) for 2016 do not exceed 1,000 euros, and because the combined acquisition costs of the assets disposed of in 2016 do not exceed 1,000 euros.

Doesn’t that imply that your proposed one-million-euro loss is not deductible because the disposals for the year are under 1000€?

Hey, because the acquisition costs for cod exceed €1000.

It says right there in your tax authority’s example that the acquisition costs were under a grand.

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Well, it certainly does say that. :handshake:t3:

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Does anyone here have experience with active trading through their own limited company (Oy)? Is there a particularly good bank/broker for this, and what about accounting? The taxation part is clear to me, but these things are bothering me :blush:

And if there’s a better title for this, feel free to move it :+1:

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This thread has good information on the topic.

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Could someone explain why Boreo’s hybrid bond interest and other expenses in the cash flow statement for 1-9/22 were only EUR 0.4 million, but the impact on equity has already been EUR 1.4 million? Is that EUR 0.4 million, for example, arrangement fees for the hybrid, which have already been paid, and then the remaining EUR 1 million is the actual interest expense of the hybrid, which has not yet been paid but has already been deducted from equity?

In that case, the hybrid’s interest rate would also be around 8-10%?

@Petri_Gostowski

Q3 numbers (although the date 30.6 remained for changes in equity, by Q2 the expenses had been EUR 1 million):

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I’m in a situation for the first time in my short investing career where a company I own (Caverion) is being acquired. I don’t think the offer is very good, but if I don’t accept and the offer goes through, will I be stuck with these shares for a year waiting for forced redemption, or can I still get rid of them immediately?

“Usually, if it looks clear that it’s going through, the fastest way is to sell on the market a day before it’s delisted from trading. That small price difference between that trade and the final price is easily worth not having to wait for the money forever. And some larger player will happily take that small premium for the delay and buy these…”

In your opinion, is it meaningful to compare your portfolio’s return to an index?

When you beat the index’s daily return, you feel good. If you lose, you feel bad. If you lose in 1-year returns but win in 3-year returns, you feel like a winner again.

If you win over a 3-year period but lose over a 2.5-year period, which period should you compare it to?

And to which index should you compare it? If you have invested 50/50 Finland/USA, should you compare it to OMX 25, the Helsinki stock exchange index, or S&P 500? What if you have invested in S&P 500, which loses to Helsinki’s return, have you then won or lost to the index?

:face_with_spiral_eyes::face_with_spiral_eyes::face_with_spiral_eyes:

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Does it make sense?
-Absolutely, maybe.

The flawed advice of the head of instruction applies to the choice of benchmark index:

“The index is chosen according to what one can comfortably beat with one’s own portfolio’s return. Let it be ‘Jamaica’s top 2 growth companies’, for example. Of course, the benchmark index must be relevant: if one owns Korhonen’s kick sled company, then there is a clear connection to the Jamaican sled team, and thus the Jtop2 index is a perfectly valid choice.”

  • Fl(a)wed Head of Instruction
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If a company pays 0.5 cents dividend/share, what happens to the half cent if there is an odd number of shares?

Does the shareholder incur a loss? Or is it rounded up and the dividends increase?

Can someone explain this to me like I’m 12? A large amount of hidden debt, but what does it mean?
https://twitter.com/financialjuice/status/1599735857816240129

Hesari has tried to report on the same thing, I don’t know if this is close enough to that “as if for a 12-year-old” style.

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Here is the link to (as I understand it) the original Reuters article that HS referenced.
https://www.reuters.com/markets/currencies/global-markets-bis-urgent-2022-12-05/

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The original BIS report is also available. The matter is discussed on PDF pages 76-81.

The topic has also been discussed in the Financial sector thread. That discussion might be a bit too technical for a 12-year-old level, but it could still be interesting.

In short: it is mainly about an issue that complicates central bank operations and increases the risk of a Fed mistake in an acute crisis situation. It doesn’t really affect the position of individual companies.

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What are the views on the Indian stock market as an investment destination?

The demographics are certainly in good shape, but on the other hand, valuation levels still seem quite expensive at the index level even though they have come down significantly (36 → 24) and the P/B is now 3.3.

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When you set up an investment company, can the company’s funds be invested on practically any exchange? Since it seems you can’t open an account in a company name on some of them, can you just open an account in your own name as long as you transfer the funds from the investment company’s bank account to the exchange and vice versa, or is it then considered personal investing?

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Hi @kapteeni_indeksi, I’d be interested to know how you bought them—through a fund or an ETF? I’ve also been thinking about investing in US bonds, but I haven’t come across any particularly clear investment options.

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Hi! It’s nice (and hopefully not particularly disastrous for you) that you’re interested in my investments!
I have bought the following ETFs through Nordnet:
-US Treasury 20+ yr bonds: iShares $ Treasury Bond 20+yr UCITS ETF
-Eurozone 25+ yr bonds: Xtrackers II Eurozone Government Bond 25+ UCITS ETF 1C

The problem with that US Treasury bond ETF is that it is a distributing one and therefore tax-inefficient. My own investment case here, however, relies on potential capital appreciation as inflation falls and, on the other hand, acting as a recession hedge (potentially preserving value better than the general stock market if a severe recession occurs). I wouldn’t buy this for long-term monthly saving.

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Are trading costs included in the €1,000 tax-exempt sale limit? If I were to sell with the specs below and had no other sales for the whole year. Maybe a stupid question, but from the tax authority’s perspective, is the total amount in this case 999.07 + 15 = 1014.07 €?

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