Investing FAQs

  1. Does a stock dividend dilute the price per share as would a forward stock split?

  2. What is the best time of the day to trade?

  3. Can a church issue a bond?

  4. Does a company's American depositary share equal one share of common stock?

  5. I sold my house. Can I exclude the gain from my income?

  6. What is fair capital?

  7. What is securitization?

  8. Is scalping a viable forex trading strategy?

  9. What is Black Monday?

  10. I have several CDs in my IRA with different maturities. Can I roll them over to another institution with a better rate as they mature?

  11. What is the "Nifty 50"?

  12. What does it mean when a bond is selling at a premium? Is it a good investment?

  13. What's the difference between shares and stocks?

  14. I have a short period of time (1 year or less) during which I will have money to invest. What are my investment options?

  15. What happens if I maintain a short position in a stock that is delisted and declares bankruptcy?

  16. If the price of the bond falls, does that mean the company won't pay me the par value?

  17. What are pro forma earnings?

  18. What's the difference between a straddle and a strangle?

  19. Are ETFs required to pay out a percentage of income as dividends?

  20. In the forex market, how is the closing price of a currency pair determined?

  21. What is a basis point (BPS)?

  22. What does 'froth' mean in terms of the real estate market?

  23. Is it true that you can sell your home and not pay capital gains tax?

  24. If I sell my shares before the ex-dividend date will I still get the dividend?

  25. How can I invest in gold?

  26. What is the difference between leverage and margin?

  27. How does a depository bank benefit from issuing an ADR for a foreign company for free?

  28. Who sets the price of commodities?

  29. How is the Parabolic SAR used in trading?

  30. Why do some preferred stocks have a higher yield than common stocks?

  31. Can an open-ended fund's price appreciate significantly?

  32. Are mortgage-backed securities backed by any guarantees?

  33. What are managed futures?

  34. How did George Soros "break the Bank of England"?

  35. Why should investors pick less risky investments as they approach retirement?

  36. What does "in street name" mean, and why are securities held this way?

  37. Why don't investors buy stock just before the dividend date and sell right afterwards?

  38. I'm new to this. Can I sell or buy stock by myself?

  39. If I have a number of stock shares and that company reports earnings of X amount per share, do I receive those earnings?

  40. Please explain what a short seller is on the hook for when he or she shorts a stock (i.e. dividends, rights offerings, etc.).

  41. Where does the money I have invested in a company go when the stock price decreases?

  42. I have discovered that a bond I am interested in has a sinking fund. What does this mean?

  43. What happens to the voting rights on shares when the shares are used in a short sale transaction?

  44. Why does my broker allow me to enter only day orders for short selling?

  45. My certificate of deposit (CD) has just matured and I plan to contribute $10,000 of it to my current Roth IRA account. The person doing my taxes can't tell me why I can't make such a large contribution except for my low income - I am a disabled veteran on

  46. What are the components of the risk premium for investments?

  47. I want to buy a stock at $30, sell when it reaches $35, don't want to hang on to it if it dips below $27, and I want to do all this in one trading order. What type of order should I use?

  48. Where does the stock come from when convertible bonds are converted to stock?

  49. Where do I place my target when the price of a stock breaks out of a technical chart pattern?

  50. I want to try short selling, but how can I sell something that I don't own?

  51. What do the numbers that follow the bid and ask numbers in stock quotes represent?

  52. What does "squeezing the shorts" mean?

  53. What happens to my call options if the underlying company is bought out?

  54. Why do longer term CDs pay a higher rate than the short-term CDs?

  55. Can I give stock as a gift?

  56. How do central banks inject money into the economy?

  57. Is there such a thing as a foolproof stock-picking strategy?

  58. Which of the following statements regarding the performance of a mutual fund would be permitted under current rules?

  59. What does investment grade mean?

  60. Why would a stock have no par value?

  61. How do you find out the price of a mutual fund?

  62. What are soft dollars?

  63. If I own stock that drops in price is this a sign that I should buy more?

  64. Do hedge funds and mutual funds invest in commodities in high inflation environments?

  65. Can a stop-loss order be used to protect a short sale transaction?

  66. What is the cheapest, fastest way to research, buy and trade stock?

  67. Do long-term bonds have a greater interest rate risk than short-term bonds?

  68. What is the difference between a simple moving average and an exponential moving average?

  69. What is the short/current long-term debt account on a company's balance sheet?

  70. How many types of markets can an investor choose from?

  71. How do investors lose money when the stock market crashes?

  72. What are 'death spiral' convertible bonds?

  73. Where do companies keep their cash?

  74. What is the difference between a zero-coupon bond and a regular bond?

  75. How does a stock split affect cash dividends?

  76. I would like to invest in a dividend-paying stock. How can I find out which stocks pay dividends?

  77. Can I donate stock to charity?

  78. How does a credit crunch occur?

  79. How can I find out if a company I like is included in an index?

  80. How does pyramiding work?

  81. Calculate the total return of the municipal bond described below.

  82. What is the difference between preferred stock and common stock?

  83. What is the incentive to buy a stock without dividends?

  84. What is a wrap account and what are the advantages of using one?

  85. What is mutual fund timing, and why is it so bad?

  86. What are unrealized gains and losses?

  87. Is a company allowed to reduce its dividends?

  88. Which option is better on a mutual fund: a growth option or a dividend reinvestment option?

  89. How do stock splits affect short sellers?

  90. If one of your stocks splits, doesn't that make it a better investment? If one of your stocks splits 2-1, wouldn't you then have twice as many shares? Wouldn't your share of the company's earnings then be twice as large?

  91. What is the difference between a company's book value per share and its intrinsic value per share?

  92. I want to invest in equities, but I don't have much money. Is there a minimum number of shares I must buy?

  93. Would a slow stochastic be effective in day trading?

  94. Is tracking error a significant measure for determining ex-post risk?

  95. Why would a stock that pays a large, consistent dividend have less price volatility in the market than a stock that doesn't pay dividends?

  96. What is property, plant and equipment, and what does it mean?

  97. Why do futures' prices converge upon spot prices during the delivery month?

  98. How does a person gain from an investment?

  99. How can I use market breadth to my advantage?

  100. Are mutual fund performance numbers reported net of fees (operating expenses and 12b-1)?

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