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Bonds FAQs

  1.

    What is a triple tax-free municipal bond?

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

  3. How does TARP affect the economy?

  4. How is Libor determined?

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

  6. Why do interest rates change?

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

  8. Can a company be state-run and publicly traded at the same time?

  9. What happens during the consolidation phase of an investor's life cycle?

  10. What does deflation mean to investors?

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

  12. 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?

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

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

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

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

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

  18. What was Robert Citron's role in Orange County, California's bankruptcy?

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

  20. How are bonds rated?

  21. What is the difference between the bond market and the stock market?

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

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

  24. Are U.S. banks authorized to issue bank guarantees or medium term notes (MTNs)?

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

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

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

  28. What are G7 bonds?

  29. In a corporate liquidation, why are unpaid taxes and wages paid before general creditors but after secured bondholders?

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

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

  32. What certification series does one need to be a bond broker?

  33. What is the difference between nonconvertible debentures and fixed deposits?

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

  35. My variable annuity account took a beating. Should I seek other alternatives?

  36. Why might a bond agreement limit the amount of assets that the firm can lease?

  37. What is disability-income insurance?

  38. What does the "agency cost of debt" mean?

  39. What was the first mutual fund?

  40. What is the Keynesian multiplier?

  41. Which is TRUE about Treasury bond futures?

  42. What are the benefits of credit ratings?

  43. Do speculators have a destabilizing effect on the financial system?

  44. What is a permanent portfolio?

  45. Why aren't economists rich?

  46. When did mutual funds come to the U.S.A.?

  47. Which of the following BEST describes a wash sale?

  48. What is the difference between yields and interest rates?

  49. What is an absolute rate?

  50. What was the first company with a $1 billion market cap?

  51. Why should I invest in the market when I can buy and sell houses or cars?

  52. Can I still make money with a couch-potato portfolio?

  53. When did the U.S. start using paper money?

  54. All of the following statements about convertible bonds are FALSE EXCEPT:

  55. An investor is in the 36% tax bracket and holds municipal bonds with an 8% yield-to-maturity. What is the equivalent taxable yield?

  56. How do I know if I am buying unregistered securities or stocks?

  57. Why does the IRS withhold income taxes from employee paychecks?

  58. What are unregistered securities or stocks?

  59. When is it a good idea to take out a loan to invest?

  60. What is the difference between a gilt edged bond and a regular bond?

  61. What is the difference between return on equity and return on capital?

  62. Which of the following BEST describes the requirements for advertisements of new municipal securities issues?

  63. How do companies like Moody's rate bonds?

  64. What is a Chinese hedge?

  65. What is "hot money"?

  66. How did Joseph Jett cause Kidder, Peabody & Co. to lose over $350 million?

  67. How do I use a barbell strategy?

  68. How do I use a premium put convertible?

  69. What was the first company to issue stock?

  70. What is a wild-card play?

  71. What is the difference between term and universal life insurance?

  72. What does it mean when a bond is selling at a premium? Is it a good investment?

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

  74. What does investment grade mean?

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

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

  77. Where can I buy government bonds?

  78. What's the difference between publicly- and privately-held companies?

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

  80. Why should I invest?

  81. What is inflation and how should it affect my investing?

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

  83. What does a cut in interest rates mean for the stock market?

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

  85. Where did the bull and bear market get their names?

  86. What is a stripped bond?

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

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

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

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

  91. How rapidly can expanding sales reduce a firm's earnings?

  92. I'm about to retire. If I pay off my mortgage with after-tax money I have saved, I can save 6.5%. Should I do this?

  93. I have a short period of time (1 year or less) during which I will have money to invest. What are my investment options?

  94. I'm new to this. Can I sell or buy stock by myself?

  95. Why would a stock have no par value?

  96. What do T+1, T+2 and T+3 mean?

  97. Are certificates of deposit a kind of bond?

  98. How does an investor make money on bonds?

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

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

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Last Questions Asked:
  1.

    What is a triple tax-free municipal bond?

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

  3. How does TARP affect the economy?

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