Investing FAQs

  1. What is a BRIC nation?

  2. What is the Dodd-Frank Act? How does it affect me?

  3. I want to invest my emergency fund to earn interest. What is a relatively safe and liquid investment I can easily withdraw from if disaster struck?

  4. What is a triple tax-free municipal bond?

  5. How are capital gains and dividends taxed differently?

  6. How do you flip a home?

  7. What is the difference between positive and normative economics?

  8. Is it a good idea to buy mutual funds from banks?

  9. Why do some companies pay a dividend, while other companies do not?

  10. Is it possible to beat the market?

  11. What is a dividend?

  12. Besides a savings account, where is the safest place to keep my money?

  13. How does TARP affect the economy?

  14. How long can you short sell for?

  15. I recently got married and now we (together) have two houses (hers and mine). I have only lived in mine for 13 months and was wondering if there was an exemption to capital gains tax if we could not reasonably afford the two properties?

  16. How can I invest in a foreign exchange market?

  17. What is the difference between investing and trading?

  18. What is the difference between weighted average shares outstanding and basic weighted average shares?

  19. What are austerity measures?

  20. What is the difference between arbitrage and speculation?

  21. What is finance?

  22. How does a company switch from one stock exchange to another?

  23. What is a derivative?

  24. If you have a house that is under your company name and you want to sell it back to yourself, do you have to pay capital gains taxes?

  25. What is the hard-to-borrow list?

  26. What is "whoops" and how did it come to refer to one of the biggest municipal bond defaults in history?

  27. What is the difference between risk tolerance and risk capacity?

  28. Where do most fund managers get their market information?

  29. What do the different types of mutual fund classes mean?

  30. If my mortgage lender goes bankrupt, do I still have to pay my mortgage?

  31. Is it possible to trade forex options?

  32. How can I use layaway plans for budgeting?

  33. What happens during the spending/gifting phase of an investor's life cycle?

  34. I want to start buying stocks. Where do I start?

  35. How do I use an arbitrage strategy in forex trading?

  36. How are international exchange rates set?

  37. Is it possible to invest in an index?

  38. Do ETFs have a board of directors?

  39. What is the double taxation of dividends?

  40. I don't understand how a stock has a trading price of 5.97, but when I buy it I have to pay the asking price of 6.04. How can I be paying more than what the stock is trading for?

  41. Why can't I enter two sell orders on the same stock?

  42. How does the money from the interest on my bond get to me?

  43. How do open market operations affect the U.S. money supply?

  44. What percentage of a company's float can be shorted?

  45. According to the CAPM, the expected return on a stock, that is part of a portfolio, will depend on all of the following except:

  46. What is a cross hedge?

  47. The security which offers the best protection against purchasing power risk or inflation is which of the following?

  48. A formula timing plan which consists of periodic purchases of a fixed dollar amount of an investment company regardless of price is known as:

  49. Which investment would be most suitable for a client investing for retirement and seeking protection from purchasing power risk in the future?

  50. Is there a buy-and-hold strategy in forex, or is the only way to make money by trading?

  51. If a client has a very low risk tolerance, all of the following might be suitable investments EXCEPT:

  52. What protects an investor’s interest in the case of terrorist sabotage, or act of war that destroys the electronic record of stock ownership?

  53. How much money do I need to start trading?

  54. The reason why ERISA qualified plans should have an investment policy statement is to:

  55. When and why did brokerages switch from fixed commissions to negotiated ones?

  56. How are bonds rated?

  57. What advantages do exchange-traded funds have over mutual funds?

  58. The real rate of return is the amount of interest earned over and above the?

  59. The BEST definition of a benchmark portfolio is:

  60. Is short selling allowed in India?

  61. Why are most bonds traded on the secondary market "over the counter"?

  62. Why is debt issued in both temporary and permanent forms?

  63. What are the advantages and disadvantages of mutual funds?

  64. What is the difference between a Ponzi and a pyramid scheme?

  65. What is a "wash sale"?

  66. Where do I look for fees that I am charged on investments? What are those fees called?

  67. When diversifying a bond portfolio, you should make sure to take into account all of the following EXCEPT:

  68. If I buy a stock at $45 and I put a stop limit in to sell at $40, will I be guaranteed a sell once the stock has reached this price?

  69. How quickly should my financial advisor sell a stock that I have asked him or her to sell for me?

  70. Why are traders on the floor of the exchange?

  71. How do I know when to "rebalance" my investments?

  72. Why is Game Theory useful in business?

  73. What is the difference between LIBID and LIBOR?

  74. The risk an investor is most likely to face when investing in a discounted U.S. Treasury bond is

  75. What are G7 bonds?

  76. The primary reason for an IA to rebalance a client’s portfolio is to:

  77. The interest rate used to define the “risk-free” rate of return is the

  78. What's the difference between consumer confidence and consumer sentiment?

  79. The risk an investor is most likely to face when investing in a discounted U.S. Treasury bond is:

  80. Do stocks that trade with a large daily volume generally have less volatility?

  81. What is a long-short mutual fund?

  82. What are Schedule K-1 documents used for?

  83. Which two companies underwent the biggest corporate merger of the 1990s?

  84. Out of which international body did the World Trade Organization emerge?

  85. What was the South Seas bubble?

  86. How much of a company's stock can a mutual fund own?

  87. When holding an option through expiration date, are you automatically paid any profits, or do you have to sell the option and pay commissions?

  88. What is "leverage" as it is used in closed-end funds?

  89. How do I find out how much money a mutual fund manager has in his or her fund?

  90. How do I value the shares that I own in a private company?

  91. Where did the term "tenbagger" originate?

  92. What was the first mutual fund?

  93. What is the difference between systemic risk and systematic risk?

  94. Which is TRUE about Treasury bond futures?

  95. How do I employ a cash-and-carry trade?

  96. What are all of the securities markets in the U.S.A?

  97. What is a V-shaped recovery and how is it different from other recoveries?

  98. What does "gather in the stops" mean?

  99. All of the following are regulated by the Investment Companies Act of 1940 EXCEPT

  100. What does it mean when futures prices are in contango?

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