Investing FAQs

  1. Can a church issue a bond?

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

  3. Can you place a stop-loss order on a mutual fund?

  4. When my mutual fund declares an income distribution, the fund price falls by a similar amount. How does this distribution benefit me?

  5. 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?

  6. What causes a recession?

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

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

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

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

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

  12. Why can you short sell an ETF but not an index fund?

  13. Is it possible to short sell a bond?

  14. What is an efficient market and how does it affect individual investors?

  15. What are the minimum margin requirements for a short sale account?

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

  17. Is finance an art or a science?

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

  19. Why are big foreign companies considering delisting their American depositary receipts?

  20. What does it mean when a bond has a put option?

  21. Who sets the price of commodities?

  22. Where do investors tend to put their money in a bear market?

  23. How do I find mutual funds that track indexes?

  24. At what point in the ordering process does a broker charge commission?

  25. What are the oldest mutual funds, by date of inception?

  26. Are all bank accounts insured by the FDIC?

  27. Why did dotcom companies crash so drastically?

  28. What does investment grade mean?

  29. Are my investments insured?

  30. Why are the bid prices of T-bills higher than the ask prices? Aren't bids supposed to be lower than ask prices?

  31. Where can I get a company's prospectus and/or financial statements?

  32. What is a tranche?

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

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

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

  36. How do I figure out my cost basis on a stock investment?

  37. If different bond markets use different day-count conventions, how do I know which one is used in any particular market?

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

  39. What does "squeezing the shorts" mean?

  40. How can unethical executives use options backdating to evade taxes?

  41. How is margin interest calculated?

  42. What is the "Nifty 50"?

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

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

  45. How does somebody make money short selling?

  46. What is late-day trading? Why is it any different from buying and selling stocks in the after-hours market?

  47. What's the difference between a stop and a limit order?

  48. What are the "Dogs of the Dow"?

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

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

  51. Can investment real estate be purchased within an IRA and, if so, are there any pitfalls?

  52. What is an economic moat?

  53. 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?

  54. What is the difference between municipal bonds and standard money market funds?

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

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

  57. Why would a company make drastic cuts to its dividend payments?

  58. I lost my share certificate. Do I still own the stock?

  59. What is a trailing commission?

  60. What is hedging as it relates to forex trading?

  61. Can I match a fund to my religion?

  62. 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?

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

  64. What is accrued interest, and why do I have to pay it when I buy a bond?

  65. Are certificates of deposit a kind of bond?

  66. If I am American, can I buy a foreign mutual fund?

  67. I've heard some "market gurus" claim returns of up to 400% annually. Is this possible?

  68. What is a "socially responsible" mutual fund?

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

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

  71. How can I hedge against rising diesel prices?

  72. What will happen to my U.S.-based stock portfolio if the U.S. dollar substantially decreases in value?

  73. Where can I get bond market quotes?

  74. How does the required rate of return affect the price of a stock, in terms of the Gordon growth model?

  75. Where do companies keep their cash?

  76. How does a person gain from an investment?

  77. Why do all mutual fund tickers have an X at the end?

  78. Why do share prices fall after a company has a secondary offering?

  79. What is a liquidity squeeze?

  80. What is Black Monday?

  81. What's the difference between a mutual fund and a hedge fund?

  82. What is a stripped bond?

  83. How does an investor make money on bonds?

  84. How do you calculate the percentage gain or loss on an investment?

  85. Can a stock lose all its value? How would this affect a long or short position?

  86. What is the difference between yield and return?

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

  88. 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?

  89. Why do companies issue debt and bonds? Can't they just borrow from the bank?

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

  91. What parties are involved in the creation of an American depositary receipt?

  92. Why are options very active when they are at the money?

  93. Are ETFs subject to the short sale uptick rule?

  94. Are eurodollars related to the currency called the euro?

  95. What happens when a circuit breaker is put into effect?

  96. What is an Islamic investment policy?

  97. What is the difference between a collateralized mortgage obligation (CMO) and a collateralized bond obligation (CBO)?

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

  99. How does pyramiding work?

  100. What's the difference between a load and no-load mutual fund?

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