Investing FAQs

  1. 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?

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

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

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

  5. Why is Game Theory useful in business?

  6. What is the difference between LIBID and LIBOR?

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

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

  9. What are G7 bonds?

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

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

  12. What is the McGinley Dynamic?

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

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

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

  16. What is a long-short mutual fund?

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

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

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

  20. What was the South Seas bubble?

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

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

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

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

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

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

  27. Where did the term "tenbagger" originate?

  28. What was the first mutual fund?

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

  30. Which is TRUE about Treasury bond futures?

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

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

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

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

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

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

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

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

  39. What is an unregistered mutual fund?

  40. What is a permanent portfolio?

  41. What is a growth recession?

  42. What is high-frequency trading?

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

  44. Is it possible to short sell real estate?

  45. Does the balance sheet always balance?

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

  47. The conduit theory...

  48. What is moral hazard?

  49. What is the difference between investing and speculating?

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

  51. 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?

  52. 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?

  53. What does churning mean?

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

  55. What is an absolute rate?

  56. What burst the Mississippi bubble?

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

  58. Is there short selling in China?

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

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

  61. What is the performance cult?

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

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

  64. What is the Coppock curve?

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

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

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

  68. 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.

  69. What is financial double-dipping?

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

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

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

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

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

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

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

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

  78. What is the salad oil scandal?

  79. What is a Chinese hedge?

  80. What is "hot money"?

  81. How do I use a barbell strategy?

  82. How do I use a premium put convertible?

  83. How did derivatives trader Nick Leeson contribute to the fall of Barings Bank?

  84. What is a wild-card play?

  85. How did currency trader John Rusnak hide $691 million in losses before being caught for bank fraud?

  86. Your client has a net short-term gain of $3,000 and a net long-term loss of $8,000. Which of the following statements are true?

  87. What is market capitulation?

  88. What's the smallest number of shares I can buy?

  89. What is a stock split? Why do stocks split?

  90. What's the smallest number of shares of stock that I can buy?

  91. Why do option volume quotes differ on different websites?

  92. What is a pure play?

  93. A corporate bond I own has just been called by the issuer. How can a company legally take away my bond? How do these call provisions work?

  94. Can a stock have a negative price-to-earnings (P/E) ratio?

  95. When short selling a stock, how long does a short seller have before covering?

  96. Short selling vs. purchasing a put option: how do the payoffs differ?

  97. Do convertible bonds have voting rights?

  98. Why do commercial bills have higher yields than T-bills?

  99. How are foreign exchange rates affected by commodity price fluctuations?

  100. Is there a difference between ADR and ADS?

Trading Center