Investing FAQs
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What is the difference between investing and speculating?
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What is moral hazard?
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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?
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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?
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Which statement(s) is/are FALSE about market risk?
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What is the difference between yields and interest rates?
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What does churning mean?
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What is an absolute rate?
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What burst the Mississippi bubble?
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Can I still make money with a couch-potato portfolio?
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Is there short selling in China?
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Which statement is FALSE about a prospectus issued under the Securities Act of 1933?
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When and why did the euro make its debut as a currency?
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What is the performance cult?
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What's the difference between EBITDA, EBITDAR and EBITDARM?
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All of the following statements about convertible bonds are FALSE EXCEPT:
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An investor is in the 36% tax bracket and holds municipal bonds with an 8% yield-to-maturity. What is the equivalent taxable yield?
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Which day is known as China's "Black Tuesday" and why?
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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.
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Why is Frank Quattrone credited with contributing to the growth of the dotcom bubble?
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What is financial double-dipping?
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What is the difference between a gilt edged bond and a regular bond?
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What is the difference between exchange-traded funds and mutual funds?
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What currency is affected by the interest rate decisions of the Bank of England (BoE)?
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Which of the following BEST describes the requirements for advertisements of new municipal securities issues?
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How did Peter Young gain infamy as a "rogue trader"?
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How do companies like Moody's rate bonds?
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What is a Chinese hedge?
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What is "hot money"?
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How do I use a barbell strategy?
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How do I use a premium put convertible?
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How did derivatives trader Nick Leeson contribute to the fall of Barings Bank?
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What is a wild-card play?
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How did currency trader John Rusnak hide $691 million in losses before being caught for bank fraud?
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What does "in street name" mean, and why are securities held this way?
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What is the incentive to buy a stock without dividends?
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What is the difference between a global fund and an international fund?
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What are soft dollars?
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What is the difference between yield and return?
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Can a stop-loss order be used to protect a short sale transaction?
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What does the law say about non-U.S. citizens buying stocks of U.S. companies? Are there any restrictions?
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How is the value of the S&P 500 calculated?
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Where does the stock come from when convertible bonds are converted to stock?
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Why are big foreign companies considering delisting their American depositary receipts?
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Are ETFs subject to the short sale uptick rule?
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What does CHIPS UID mean?
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I would like to invest in a dividend-paying stock. How can I find out which stocks pay dividends?
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When my mutual fund declares an income distribution, the fund price falls by a similar amount. How does this distribution benefit me?
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I have a KSOP through my employer that I've invested 100% in company stock. I am now concerned that I'm not diversified and would like to move out of company stock and into mutual funds. Is this allowed with the funds I've contributed to the account?
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How does pyramiding work?
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What does investment grade mean?
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What is accrued interest, and why do I have to pay it when I buy a bond?
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What is the difference between a blend fund and a balanced fund?
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What is a DRIP?
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How do stock splits affect short sellers?
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Stocks with high P/E ratios can be overpriced. Is a stock with a lower P/E always a better investment than a stock with a higher one?
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Do convertible bonds have voting rights?
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How many types of markets can an investor choose from?
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Do noise traders have any long-term effect on stock prices?
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Why would a multinational corporation conduct a vertical foreign direct investment?
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Are mutual fund performance numbers reported net of fees (operating expenses and 12b-1)?
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At what point in the ordering process does a broker charge commission?
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What are the oldest mutual funds, by date of inception?
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Can I match a fund to my religion?
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How can I buy oil as an investment?
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What is the difference between preferred stock and common stock?
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What is a stripped bond?
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What does "buy and hold" mean?
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Why can you short sell an ETF but not an index fund?
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What's the difference between absolute P/E ratio and relative P/E ratio?
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How can you lose more money than you invest shorting a stock? If you have no money left in your account, how do you pay it back?
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What is the difference between convertible and reverse convertible bonds?
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What does 'froth' mean in terms of the real estate market?
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If different bond markets use different day-count conventions, how do I know which one is used in any particular market?
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What is the difference between municipal bonds and standard money market funds?
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How do you calculate the cost basis for a mutual fund over an extended time period?
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Can I sell mutual fund shares below their minimum intial purchase amount without being penalized?
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How is margin interest calculated?
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What is Black Monday?
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What is an echo bubble?
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What's the difference between a load and no-load mutual fund?
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What happens if I maintain a short position in a stock that is delisted and declares bankruptcy?
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What's the difference between a stop and a limit order?
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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?
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Why do you need a margin account to short sell stocks?
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Short selling vs. purchasing a put option: how do the payoffs differ?
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What are the components of the risk premium for investments?
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I am a non-U.S. citizen living outside the U.S. and trading stocks through a U.S. internet broker. Do I have to pay taxes on the money I earn?
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How does the required rate of return affect the price of a stock, in terms of the Gordon growth model?
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How do businesses decide whether to do FDI via green field investments or acquisitions?
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Where can I find the number of shares shorted on a specific stock?
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What careers are popular among CFA charterholders?
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What is a trailing commission?
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What is hedging as it relates to forex trading?
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Can private corporations issue convertible bonds?
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What's the difference between a mutual fund and a hedge fund?
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What are the advantages and disadvantages of buying stocks instead of bonds?
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How do you find out the price of a mutual fund?
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Can a stock lose all its value? How would this affect a long or short position?
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I have discovered that a bond I am interested in has a sinking fund. What does this mean?
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