Investing FAQs

  1. Where can I find the number of shares shorted on a specific stock?

  2. What do you call a candlestick with no shadows, and what does it mean?

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

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

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

  6. Does investing in sustainable or "green" companies provide lower returns?

  7. Can private corporations issue convertible bonds?

  8. Where can I buy government bonds?

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

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

  11. How does the government influence the securities market?

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

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

  14. Why would a person choose a mutual fund over an individual stock?

  15. What happens when the lender of the borrowed shares in a short sale transaction wants to sell his/her shares?

  16. What is the pitchfork indicator that I keep hearing about, and how do I use it?

  17. What's the difference between net present value and internal rate of return? How are they used?

  18. What is an economic moat?

  19. What's the difference between institutional and non-institutional investors?

  20. What is the difference between amortization and depreciation?

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

  22. Can a corporation deduct dividend payments to shareholders before taxes are calculated?

  23. How are futures used to hedge a position?

  24. Why do companies issue 100-year bonds?

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

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

  27. How is margin interest calculated?

  28. How can I prevent commissions and fees from eating up my trading profits?

  29. What is foreclosure investing?

  30. When is a dividend payment recognized in the shareholders equity portion of the balance sheet?

  31. Can you short sell ETFs?

  32. Why are P/E ratios generally higher during times of low inflation?

  33. What exactly is a portfolio? Is it something I can carry around?

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

  35. What is the difference between yield and return?

  36. Are IPOs available to short sell immediately upon trading, or is there a time limit that must pass before short sales are accepted?

  37. Can stocks be traded on more than one exchange, such as, for example, on both the Nasdaq and the NYSE?

  38. What does the law say about non-U.S. citizens buying stocks of U.S. companies? Are there any restrictions?

  39. What is a spider and why should I buy one?

  40. My brokerage firm won't allow naked option positions. What does this mean?

  41. Does issuing preferred shares offer a tax advantage for corporations?

  42. What are the disadvantages of using net present value as an investment criterion?

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

  44. How can I determine a stock's next resistance level or target price?

  45. What effect does a company's dividend reinvestment plan have on its stock price?

  46. What is a GTEM order?

  47. Who or what are the turtles?

  48. What is an Islamic investment policy?

  49. What is a trailing commission?

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

  51. What causes a recession?

  52. Can a company declare a dividend that exceeds its earnings per share?

  53. Do I receive the posted dividend yield every quarter?

  54. Why do stock prices change following news reports?

  55. Where can I find the P/E ratios for the Dow and S&P 500?

  56. What is the difference between a global fund and an international fund?

  57. Why do interest rates tend to have an inverse relationship with bond prices?

  58. What's the difference between a regular option and an exotic option?

  59. I hold stock certificates in a company that just had a stock split. What happens now?

  60. How do I calculate how much I've gained or lost on a stock holding?

  61. What is a convertible bond?

  62. What do the "BxA" numbers on my brokerage's trading screen mean?

  63. How is spread calculated when trading in the forex market?

  64. How does a stop-loss order work, and what price is used to trigger the order?

  65. Why would my stock's value decline despite good news being released?

  66. Can someone who is not yet of legal age open a brokerage account?

  67. Can investors short sell pink sheet or over-the-counter stocks?

  68. What is a virtual trailing stop order (VTSO)?

  69. Why does a crisis in emerging markets cause U.S. Treasury yields to decrease?

  70. Is it possible to buy mutual funds using a margin account?

  71. What is a liquidity squeeze?

  72. Are all bank accounts insured by the FDIC?

  73. What does negative shareholder equity on a balance sheet mean?

  74. What happens to the stock prices of two companies involved in an acquisition?

  75. What's the difference between bills, notes and bonds?

  76. Where can I find a company's annual report and its SEC filings?

  77. What is the difference between a blend fund and a balanced fund?

  78. How do I find historical prices for stocks?

  79. What is a mutual fund's NAV?

  80. What's the difference between absolute P/E ratio and relative P/E ratio?

  81. What are the generally accepted accounting principles for inventory reserves?

  82. How does a point change in a major index effect its equivalent exchange-traded fund?

  83. 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?

  84. How is the value of the S&P 500 calculated?

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

  86. Do stop or limit orders protect you against gaps in a stock's price?

  87. How are realized profits different from unrealized or so-called "paper" profits?

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

  89. Is it possible to lose all of your investment in an index fund?

  90. If a company moves its dividend record date forward, does the ex-dividend date change too?

  91. Does a strong trend (ADX > = 40) cause an increase in volatility?

  92. What do the different colored candlesticks mean?

  93. Why doesn't the price of a callable bond exceed its call price when interest rates are falling?

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

  95. Why did dotcom companies crash so drastically?

  96. What's the difference between "top-down" and "bottom-up" investing?

  97. Who's in charge of managing exchange-traded funds?

  98. What's the difference between absolute and relative return?

  99. What does "buy and hold" mean?

  100. Can you short sell stocks that are trading below $5? My broker says that I can't.

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