Investing FAQs

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

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

  3. Can I sell mutual fund shares below their minimum intial purchase amount without being penalized?

  4. Who bears the risk of bad debts in securitization?

  5. Is there a difference between socially responsible investing (SRI) and green investing?

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

  7. What is the difference between fundamental and technical analysis?

  8. How does somebody make money short selling?

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

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

  11. How can I buy an S&P 500 fund?

  12. What is the difference between options and futures?

  13. Why do you need a margin account to short sell stocks?

  14. I have only $500 to invest, am I limited to buying only penny stocks?

  15. How can I hedge against rising diesel prices?

  16. Which is a better measure for capital budgeting, IRR or NPV?

  17. What is the difference between iShares, VIPERs and Spiders?

  18. 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?

  19. Are high-yield bonds better investments than low-yield bonds?

  20. What risks do organizations face when engaging in international finance activities?

  21. Do noise traders have any long-term effect on stock prices?

  22. What does CHIPS UID mean?

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

  24. What careers are popular among CFA charterholders?

  25. What constitutes an "intention to call a debt instrument before maturity" for tax purposes?

  26. What is socially responsible investing?

  27. What is a stripped bond?

  28. Are certificates of deposit a kind of bond?

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

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

  31. If I buy a $1,000 bond with a coupon of 10% and a maturity in 10 years, will I receive $100 each year regardless of what the yield is?

  32. What's the difference between old- and new-economy stocks?

  33. What is the ideal number of stocks to have in a portfolio?

  34. Can technical analysis be called a self-fulfilling prophecy?

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

  36. Is finance an art or a science?

  37. What's the difference between short-term investments in marketable securities and equity?

  38. I keep hearing about the 50-day, 100-day and 200-day moving averages. What do they mean, how do they differ from each other, and what causes them to act as support or resistance?

  39. Can a bond be traded over-the-counter?

  40. What is political risk and what can a multinational company do to minimize exposure?

  41. How do you calculate the cost basis for a mutual fund over an extended time period?

  42. Why would a multinational corporation conduct a vertical foreign direct investment?

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

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

  45. Is there a limit to how many stocks and/or bonds an interested investor can buy?

  46. How should I estimate my income from fixed sources like bonds, CDs and stocks?

  47. How do I open a Swiss bank account, and what makes them so special?

  48. Who is Mr. Copper?

  49. How can I buy oil as an investment?

  50. Are long-term U.S. government bonds risk-free?

  51. How are the interest charges calculated on my margin account?

  52. How does an investor make money on bonds?

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

  54. What do the phrases "sell to open", "buy to close", "buy to open", and "sell to close" mean?

  55. Is it possible to short sell a bond?

  56. Is technical analysis used only to analyze stocks?

  57. Does the party loaning shares in a short sale transaction benefit in any way other than from the interest earned on the loan?

  58. Which is better a cash dividend or a stock dividend?

  59. What are the risks of investing in a bond?

  60. How do I measure option liquidity?

  61. Who are the key players in the bond market?

  62. Where can I get bond market quotes?

  63. Can a bond have a negative yield?

  64. Why is it that when investors realize returns on a mutual fund, its price tends to fall?

  65. How do businesses decide whether to do FDI via green field investments or acquisitions?

  66. What do the bracketed numbers following a technical indicator mean?

  67. How can a futures trader exit a position prior to expiration?

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

  69. How do I calculate my gains and/or losses when I sell a stock?

  70. How can I budget for both short-term expenses and long-term goals?

  71. What is the "random walk theory" and what does it mean for investors?

  72. When you buy a stock in a company, does it necessarily mean that one of the shareholders is selling it to you?

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

  74. If I own a stock in a company, do I get a say in the company's operations?

  75. What does it mean when people say they "beat the market"? How do they know they have done so?

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

  77. What is a tranche?

  78. What are "I Bonds" and how can I buy them?

  79. If I short sell $5,000 worth of stock and the stock becomes worthless, I have made $5,000 with a very small investment. Isn't the return here much greater than 100%?

  80. What do people mean when they say debt is a relatively cheaper form of finance than equity?

  81. I placed a limit order to buy a stock after the market closed, but the stock's price gapped above the entry price and my order never got filled. How can I prevent this from happening?

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

  83. What is the haircut rate imposed by clearing corporations?

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

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

  86. Why do some stock quotes appear in bold print in the newspaper?

  87. How do segregated funds differ from mutual funds?

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

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

  90. 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?

  91. How much will it cost me to become a casual investor on my own?

  92. What is an echo bubble?

  93. Where can I buy government bonds?

  94. What are the advantages and disadvantages of buying stocks instead of bonds?

  95. If the stock market is so volatile, why would I want to put my money into it?

  96. How does the government influence the securities market?

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

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

  99. What is the difference between fast and slow stochastics in technical analysis?

  100. What is Fibonacci retracement, and where do the ratios that are used come from?

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