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Investing FAQs

  1.

    I have several jobs. Can I contribute the maximum to multiple employer retirement plans?

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

  3. Do I own a stock as of the trade date or the settlement date?

  4. Is a Canadian resident allowed to participate in a direct stock purchase plan from a U.S. company such as Pfizer?

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

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

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

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

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

  10. Why do low interest rates cause investors to shy away from the bond market?

  11. How are foreign exchange rates affected by commodity price fluctuations?

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

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

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

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

  16. 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?

  17. Where can I get bond market quotes?

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

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

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

  21. Is there a difference between ADR and ADS?

  22. How can I invest in gold?

  23. 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?

  24. What is the difference between hedging and speculation?

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

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

  27. Can a bond have a negative yield?

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

  29. What happens to a company's stocks and bonds when it declares chapter 11 bankruptcy protection?

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

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

  32. What does the diluted share price reveal about a company's financial strength?

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

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

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

  36. What are 'death spiral' convertible bonds?

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

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

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

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

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

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

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

  44. Where do companies keep their cash?

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

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

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

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

  49. How do segregated funds differ from mutual funds?

  50. How are futures used to hedge a position?

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

  52. What is a debt/equity swap?

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

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

  55. Do all international markets trade between 9:30am and 4pm local time?

  56. Can a church issue a bond?

  57. Who sets the price of commodities?

  58. What does "squeezing the shorts" mean?

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

  60. How does a person gain from an investment?

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

  62. What does CHIPS UID mean?

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

  64. How does the ISIN numbering system work?

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

  66. Why do companies issue 100-year bonds?

  67. What is a GTEM order?

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

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

  70. Is preferred stock an equity or a fixed-income security?

  71. How does a stock split affect cash dividends?

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

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

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

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

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

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

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

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

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

  81. What careers are popular among CFA charterholders?

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

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

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

  85. My family owns an old railroad bond from 1938. Is there any way to find out whether this still has any value?

  86. What is an Islamic investment policy?

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

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

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

  90. Can I give stock as a gift?

  91. How do I calculate the percentage gain or loss for my portfolio when all of the stocks have different prices?

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

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

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

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

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

  97. How is margin interest calculated?

  98. What is a trailing commission?

  99. When would a corporation want to refinance its debt?

  100. What is a liquidity squeeze?

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