I can provide you with a stock tip every day that is guaranteed to make you money. How much would you be willing to pay for such a service? I'm thinking of charging on a "per stock tip" basis. How much would you be willing to pay for such a service?
2007-05-01 07:21:43 · 6 answers · asked by kosmoistheman 4 in Business & Finance ➔ Investing
It would include a money back guarantee. If you didn't make money, you would get your fee returned.
2007-05-01 07:22:56 · update #1
Hurry up and post your spam answer so we can report you.
2007-05-01 07:29:50 · answer #1 · answered by polly_peptide 5 · 0⤊ 0⤋
The economic answer is quite simple and very likely to happen. The value is completely speculative so therefore unable to be effectively valued so I would pay nothing based on the inability to place value on your pick. Winning versus losing is a terrible proposition and even if you are right every single time it could still be a money losing venture.
The basic equation consists of multiple parts
First and foremost I need to determine my investment minus both comissions to give a flat dollar base.
Then I would need a percentage guarantee from you.
Next I minus the percentage guarantee from the risk free rate of return (I'd use Fed Bonds for this rate).
My required rate of return might be 8% which means you need to approximately guarantee 4% better than the risk free rate minus comissions on my arbitrary dollar value.
So it's impossible for you to actually set a dollar value and you might be able to set a percentage fee but that is fraught with complexities. For instance since you are not making the trades the person might tell you they are investing $1000 and you could charge a fee based on return. However they might invest $100,000 and you lose out on the real fee. What also could happen is they could work against you by shorting the stocks you predict as rising and then cashing in on your guarantee and the price falling at the same time.
My estimate is that no matter what you do this will be unsuccessful at best and bankruptcy or jail for fraud at the worst. Good luck with this model.
2007-05-01 08:42:10 · answer #2 · answered by Chris 5 · 0⤊ 0⤋
Only the stupidist of the stupid people would go to a random person they find on Yahoo Answers for stock advice.
The first indication that this is a scam is the phrase "winning stock tip." Stock trading is not like horse racing.
The next indication is that if this person could effectively produce stocks that will make money every day then why is he on here trying to sell those services rather than buying and selling stock and making money that way.
If these "tips" were real then they would probably be insider information and a person can get into trouble for that kind of trading. Look at Martha Stewart.
2007-05-01 07:28:15 · answer #3 · answered by A.Mercer 7 · 0⤊ 0⤋
LOL.
So you basically say I think XYZ is going to go up/down. I pay you $5-$500 bucks a tip and place a $10,000 investment based on your tip and if you are wrong and I lose $100-$5,000, you return the $5?
Start up an investopedia portfolio and track your trades. If you can generate consistent profits, I'd be willing to start out paying $50/tip. Repost in 2 months with the link to your game and we'll do business.
2007-05-01 07:26:56 · answer #4 · answered by Blicka 4 · 0⤊ 0⤋
I'd say thanks, your a kind human being looking out for the rest of us. No pay, because I don't think you would pay me back if I lost big on your pick.
2007-05-01 07:29:05 · answer #5 · answered by World Peace Now 3 · 0⤊ 0⤋
$0.02
2007-05-01 09:48:48 · answer #6 · answered by BosCFA 5 · 0⤊ 0⤋