So you haven’t even filed your taxes yet and you got a refund from the IRS. Free money, right? Not to mention the time you just saved gathering all the paperwork, going to your financial advisor or accountant, and filing your 1040.
Unfortunately, nothing with the IRS is ever that easy. It may be an actual government error (in which case you are liable for the money if and when the correction shows up), or you may have just become an unwitting participant in the latest tax scam.
In this particular fraud, all the scammer needs is your name, address, and optionally social security number, to file a federal tax return on your behalf, with a hefty refund. Of course, the deception doesn’t end there. All the fraudster will have done so far is get a check sent to you.
This is where things get interesting. The scammer needs to find a way to get your money — and it is your money, the IRS won’t take the hit — once you have the check. They will often do this with increasingly threatening letters and phone calls, sometimes acting as (fake) representatives of the IRS, and sometimes posing as lawyers or law enforcement, to get you to surrender some or all of your “refund” to the scammer.
In one case, the perpetrators even acted as pretend financial advisors, “helping” people through the situation and “filing” honest returns for a percentage of the extra refund. In this particular case, the new returns created more havoc, causing the IRS to collect back the false refunds, and leaving the victims owing more than ever.
So what should you do if this happens to you? First and foremost, DO NOT CASH THE CHECK! Instead, void the check and send it back to the IRS. If it shows up in your bank account by direct deposit, tell your bank it is an error. Then, consult with a trusted financial adviser to maximize your real tax refund. It might take a bit longer, and the check might not be quite as spectacular, but this way you can rest assured your refund money is actually yours to spend!
At a time when the emergence of new and innovative companies is back on the rise after the recent financial crisis, these young businesses must compete in a flooded marketplace. Besides creating interesting and original products and services, having the ability to grow is one of the most effective methods for gaining an advantage over competition.
In order to thrive, one of the most effective methods is to use an initial public offering (IPO). The term initial public offering began to slip into everyday speech as of the booming stock market of the late 1990s, when the sale of stocks and shares were flowing like water. In an IPO filing, a company will sell off a small portion of their company at a lower than average price in order for buyers to invest in their business.
The majority of people who take advantage of these early sales of stock are involved in a hedge fund or investment bank. By using hedge fund prime brokers to coordinate the transaction, the buyers will accumulate as much stock as they believe will be the most profitable without putting too much stake in the IPO company.
These institutional investors benefit from buying large quantities of stock from these IPOs by gaining more value on their shares as the IPO company generates more revenue and increases its net worth. The companies executing the IPO benefit from these investment banks by receiving up to triple-digit gains just on the first day of trading. All of these funds can then be used to expand the company to a point that will substantially improve productivity and reach.
One of the major tricks involved in an IPO, is knowing when you are more likely to receive the most interest from investors. As a general rule, when a market is doing well, companies with products or services pertaining to the market will have a successful IPO as well. For example, if SandP 500 is projected to go up double digits in the next year, any corresponding IPOs will likely be up and may even out perform that benchmark.
To find success in an exceedingly competitive marketplace, an IPO company can generate a lot of capital from investors. The trick will be knowing when to do so.
Prime brokers are the primary individuals utilized by prime brokerage firms to coordinate and make sales and trades with hedge funds. The everyday person can use prime brokers as a way to invest money in the dynamic and exciting world of stocks, bonds, and other securities. According to a Bankrate.com survey, over half (52%) of Americans do not have any money invested in the stock market. That’s not just the purchase of regular stocks, but includes mutual funds, 401k accounts, and IRAs. Lack of investing knowledge was cited by 21% of people as the reason they don’t own stocks. Here are three of the ways prime brokerage services function to help you understand and potentially use their services in the future.
Bonds are probably the most prevalent things brokers buy by volume. In fact, the U.S. bond market alone is worth in excess of $34 trillion! They don’t always buy them, though. Sometimes brokers will borrow bonds, known as “securities lending.” Overall, it is a large, liquid, and at times volatile market in the United States. The corporate bond market alone is estimated to trade about $16 billion worth daily.
Short selling is essentially the opposite of buying a stock. When you buy a stock you’re buying a piece of the company, thus making a bet that they will succeed and continue to grow. When you decide to sell a stock short you’re making a bet that the price of the stock will fall. Short selling is seen by many as a way to combat market bubbles before they “pop.”
The prime broker is the middleman between hedge funds and institutional investors, or commercial banks. The investors/banks provide the capitol or assets and the hedge funds participate in security lending and margin financing. Obviously this is a drastic oversimplification, so if you’re interested in more specific details talk to your financial adviser or find some classes in securities finances!
Though you have probably been told this for most of your life, it is important to remember to put money aside when you can. Not only can it be useful in the case of an unexpected emergency, but saving early can be a huge help to you when you retire. Whether you have seen personal finance videos recently that have spoken about how to invest in the stock market online or you have read articles on saving money, you might find that the best corse of action is to hire a financial planner to help you. Here are a few important facts that you need to know about the importance of financial planning before you spend more time watching personal finance videos.
Did you know that according to StatisticBrain, an estimated 40 percent of adults living and working in the United States are not saving for retir
Financing your personal money can be a hard task to do. Need ideas for saving money? Try financing, or learn how to invest in stock, or open a savings account for every day savings. Not sure where to begin? Personal finance videos are out there to help!
There are articles on saving money online, but articles are not always enough. Reading the words can be confusing, and readers can get easily impatient with what they are trying to learn. Even those with a masters in banking would not want to read articles on such topics. For those who are not a fan of reading those articles, and looking for something more interesting and captivating, these videos are the best course of action.
Thankfully for the internet and all of our media options, there are personal finance videos out there that will how to help w