Investing FAQs

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

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

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

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

  5. How are bonds rated?

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

  7. What are some of the key differences between IFRS and U.S. GAAP?

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

  9. The BEST definition of a benchmark portfolio is:

  10. Is short selling allowed in India?

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

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

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

  14. What is the difference between an options contract and a futures contract?

  15. What is the difference between a Ponzi and a pyramid scheme?

  16. What is a "wash sale"?

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

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

  19. 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?

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

  21. Why are traders on the floor of the exchange?

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

  23. Why is Game Theory useful in business?

  24. What is the difference between LIBID and LIBOR?

  25. How are oil reserves accounted for on an oil company's balance sheet?

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

  27. What are G7 bonds?

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

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

  30. What is the McGinley Dynamic?

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

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

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

  34. What is a long-short mutual fund?

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

  36. Which two companies underwent the biggest corporate merger of the 1990s?

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

  38. What was the South Seas bubble?

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

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

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

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

  43. How do I use the Nova/Ursa ratio?

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

  45. Where did the term "tenbagger" originate?

  46. What was the first mutual fund?

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

  48. Which is TRUE about Treasury bond futures?

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

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

  51. What is a V-shaped recovery and how is it different from other recoveries?

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

  53. All of the following are regulated by the Investment Companies Act of 1940 EXCEPT

  54. What does it mean when futures prices are in contango?

  55. What happens to a stop order after a stock splits?

  56. Do speculators have a destabilizing effect on the financial system?

  57. What is an unregistered mutual fund?

  58. What is a permanent portfolio?

  59. What is a growth recession?

  60. What is high-frequency trading?

  61. What was the most miserable day for financial markets according to the Misery Index?

  62. Is it possible to short sell real estate?

  63. Does the balance sheet always balance?

  64. When did mutual funds come to the U.S.A.?

  65. The conduit theory...

  66. What is moral hazard?

  67. What is the difference between investing and speculating?

  68. Under the Investment Company Act of 1940, an investment company, or mutual fund company, must have minimum net assets of how much before it can issue shares to the public?

  69. Which statement(s) is/are FALSE about market risk?

  70. Under the Investment Company Act of 1940, an investment company must have minimum net assets of how much before it can issue shares to the public?

  71. What does churning mean?

  72. What is the difference between yields and interest rates?

  73. What is an absolute rate?

  74. What burst the Mississippi bubble?

  75. Can I still make money with a couch-potato portfolio?

  76. Is there short selling in China?

  77. Which statement is FALSE about a prospectus issued under the Securities Act of 1933?

  78. When and why did the euro make its debut as a currency?

  79. What is the performance cult?

  80. What's the difference between EBITDA, EBITDAR and EBITDARM?

  81. All of the following statements about convertible bonds are FALSE EXCEPT:

  82. What is the Coppock curve?

  83. An investor is in the 36% tax bracket and holds municipal bonds with an 8% yield-to-maturity. What is the equivalent taxable yield?

  84. Why did the Department of Justice launch an inquiry into the sale of ImClone shares in 2001?

  85. Which day is known as China's "Black Tuesday" and why?

  86. Compute the offering price for a mutual fund with NAV of $1,200,000,000, an 8% front-end load, and 1,000,000 shares outstanding.

  87. What is the difference between a gilt edged bond and a regular bond?

  88. What is financial double-dipping?

  89. Why is Frank Quattrone credited with contributing to the growth of the dotcom bubble?

  90. Where can I find all of the stocks in the Dow Jones Industrial Average?

  91. What is the difference between exchange-traded funds and mutual funds?

  92. What currency is affected by the interest rate decisions of the Bank of England (BoE)?

  93. Which of the following BEST describes the requirements for advertisements of new municipal securities issues?

  94. How did Peter Young gain infamy as a "rogue trader"?

  95. How do companies like Moody's rate bonds?

  96. What is the salad oil scandal?

  97. What is a Chinese hedge?

  98. What is "hot money"?

  99. How do I use a barbell strategy?

  100. How do I use a premium put convertible?

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