Investing FAQs

  1. What is a triple tax-free municipal bond?

  2. How do you flip a home?

  3. What is the difference between positive and normative economics?

  4. Is it a good idea to buy mutual funds from banks?

  5. Why do some companies pay a dividend, while other companies do not?

  6. Is it possible to beat the market?

  7. What is a dividend?

  8. Besides a savings account, where is the safest place to keep my money?

  9. How does TARP affect the economy?

  10. How is Libor determined?

  11. How long can you short sell for?

  12. How can I invest in a foreign exchange market?

  13. What is the difference between investing and trading?

  14. What is the difference between weighted average shares outstanding and basic weighted average shares?

  15. What are austerity measures?

  16. Why do interest rates change?

  17. What is the difference between arbitrage and speculation?

  18. What is finance?

  19. How does a company switch from one stock exchange to another?

  20. What is a derivative?

  21. What is the difference between risk tolerance and risk capacity?

  22. What is the hard-to-borrow list?

  23. What is "whoops" and how did it come to refer to one of the biggest municipal bond defaults in history?

  24. Can a company be state-run and publicly traded at the same time?

  25. Where do most fund managers get their market information?

  26. What do the different types of mutual fund classes mean?

  27. What happens during the consolidation phase of an investor's life cycle?

  28. Is it possible to trade forex options?

  29. How can I use layaway plans for budgeting?

  30. What does deflation mean to investors?

  31. I want to start buying stocks. Where do I start?

  32. How do I use an arbitrage strategy in forex trading?

  33. How are international exchange rates set?

  34. Is it possible to invest in an index?

  35. Do ETFs have a board of directors?

  36. What is the double taxation of dividends?

  37. I don't understand how a stock has a trading price of 5.97, but when I buy it I have to pay the asking price of 6.04. How can I be paying more than what the stock is trading for?

  38. Why can't I enter two sell orders on the same stock?

  39. How does the money from the interest on my bond get to me?

  40. How do open market operations affect the U.S. money supply?

  41. What percentage of a company's float can be shorted?

  42. According to the CAPM, the expected return on a stock, that is part of a portfolio, will depend on all of the following except:

  43. What is a cross hedge?

  44. The security which offers the best protection against purchasing power risk or inflation is which of the following?

  45. A formula timing plan which consists of periodic purchases of a fixed dollar amount of an investment company regardless of price is known as:

  46. Which investment would be most suitable for a client investing for retirement and seeking protection from purchasing power risk in the future?

  47. Is there a buy-and-hold strategy in forex, or is the only way to make money by trading?

  48. If a client has a very low risk tolerance, all of the following might be suitable investments EXCEPT:

  49. What was Robert Citron's role in Orange County, California's bankruptcy?

  50. What protects an investor’s interest in the case of terrorist sabotage, or act of war that destroys the electronic record of stock ownership?

  51. How much money do I need to start trading?

  52. The reason why ERISA qualified plans should have an investment policy statement is to:

  53. When and why did brokerages switch from fixed commissions to negotiated ones?

  54. How are bonds rated?

  55. What advantages do exchange-traded funds have over mutual funds?

  56. The real rate of return is the amount of interest earned over and above the?

  57. The BEST definition of a benchmark portfolio is:

  58. Is short selling allowed in India?

  59. What is the difference between the bond market and the stock market?

  60. Why are most bonds traded on the secondary market "over the counter"?

  61. Why is debt issued in both temporary and permanent forms?

  62. Are U.S. banks authorized to issue bank guarantees or medium term notes (MTNs)?

  63. What are the advantages and disadvantages of mutual funds?

  64. Where do I look for fees that I am charged on investments? What are those fees called?

  65. When diversifying a bond portfolio, you should make sure to take into account all of the following EXCEPT:

  66. How quickly should my financial advisor sell a stock that I have asked him or her to sell for me?

  67. If I buy a stock at $45 and I put a stop limit in to sell at $40, will I be guaranteed a sell once the stock has reached this price?

  68. How do I know when to "rebalance" my investments?

  69. Why is Game Theory useful in business?

  70. What is the difference between LIBID and LIBOR?

  71. The risk an investor is most likely to face when investing in a discounted U.S. Treasury bond is

  72. What are G7 bonds?

  73. The primary reason for an IA to rebalance a client’s portfolio is to:

  74. In a corporate liquidation, why are unpaid taxes and wages paid before general creditors but after secured bondholders?

  75. The interest rate used to define the “risk-free” rate of return is the:

  76. The interest rate used to define the “risk-free” rate of return is the

  77. What certification series does one need to be a bond broker?

  78. What is the difference between nonconvertible debentures and fixed deposits?

  79. What's the difference between consumer confidence and consumer sentiment?

  80. The risk an investor is most likely to face when investing in a discounted U.S. Treasury bond is:

  81. My variable annuity account took a beating. Should I seek other alternatives?

  82. Do stocks that trade with a large daily volume generally have less volatility?

  83. What is a long-short mutual fund?

  84. What are Schedule K-1 documents used for?

  85. Why might a bond agreement limit the amount of assets that the firm can lease?

  86. Out of which international body did the World Trade Organization emerge?

  87. How much of a company's stock can a mutual fund own?

  88. When holding an option through expiration date, are you automatically paid any profits, or do you have to sell the option and pay commissions?

  89. What is "leverage" as it is used in closed-end funds?

  90. What is disability-income insurance?

  91. How do I find out how much money a mutual fund manager has in his or her fund?

  92. What does the "agency cost of debt" mean?

  93. How do I value the shares that I own in a private company?

  94. What was the first mutual fund?

  95. What is the difference between systemic risk and systematic risk?

  96. What is the Keynesian multiplier?

  97. Which is TRUE about Treasury bond futures?

  98. What are all of the securities markets in the U.S.A?

  99. How do I employ a cash-and-carry trade?

  100. What does "gather in the stops" mean?

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