AAMRQ-AAL final conversion formula and equity distribution plan explained

As you know, this summer I wrote two blog posts on the AMR Corporation and US Airways Group merger to explain how it affects AAMRQ stock price. Using the information available at that time I derived a formula to estimate AAMRQ stock price based on LCC stock price:

https://hiepsfinance.com/2013/05/14/the-impact-of-the-american-airlines-us-airways-merger-on-american-airlines-stock-a-curious-case-of-stock-piggy-backing/

https://hiepsfinance.com/2013/07/20/follow-up-on-aamrq-stock-price-analysis/

I know I mentioned that I would write more about the AAMRQ stock case if there was a huge surprise. And there was a huge surprise when the Department of Justice filed an antitrust lawsuit against AMR Corporation and US Airways Group, but this happened when I was entangled with a few life issues, so I had to skip.

Not to say that I am much less busy now, but I thought this case deserves another mention. Caution: math abound 😉

Continue reading AAMRQ-AAL final conversion formula and equity distribution plan explained

Investment basics: what is a stock?

I thought it was funny how you can partially own a company without possessing any material part. Like, I own Apple stock, but I don’t even own the company’s stapler or toilet paper, much less one of their popular iPads or Macbooks. Holding a stock doesn’t mean I’m entitled to anything valuable necessarily. It’s an interesting concept. Continue reading Investment basics: what is a stock?

Career is the most critical aspect of personal finance

10-Key-Steps-to-a-Successful-Job-Search1

Recently, I’ve revisited my financial decisions since I graduated from college in the fall of 2011. You know what I found? Having a permanent, decent-paying job actually contributes the most to my assets and financial future. With money in my bank accounts and a stable income stream, I have been approved for good credit cards to build my credit history. The money I’ve saved has been put into my brokerage account so that I can learn how to invest. I’m 24, and I know there are a lot of things to be learned and a lot of money to be earned in the future, but I think I have a decent start, to which my income contributed significantly.

Continue reading Career is the most critical aspect of personal finance