Bonds FAQs

  1. What is the double taxation of dividends?

  2. 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?

  3. What impact does a higher non-farm payroll have on the forex market?

  4. Is there any way to check the historical rates of different currencies?

  5. How are life insurance proceeds taxed?

  6. How can I start an IRA for my child?

  7. Am I responsible for fraudulent charges on my credit card?

  8. What changes might I need to make to my insurance policy?

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

  10. What is an overnight position in the forex market?

  11. What should I look for when choosing a forex trading platform?

  12. What is a pip and what does it represent?

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

  14. What is an antitrust law?

  15. What is the difference between qualified and non-qualified plans?

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

  17. What does "outrights" mean in the context of the FX market?

  18. What is evergreen funding?

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

  20. Does a company have to notify its investors when it faces legal proceedings?

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

  22. What is a cross hedge?

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

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

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

  26. How do you lose money in the Forex market?

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

  28. What's the difference between weighted average accounting and FIFO/LILO accounting methods?

  29. Under what circumstances can an IA choose to sell a security for a client without first receiving written discretionary authority?

  30. Excessive trading is:

  31. Under the USA, registration as an IAR includes all of the following EXCEPT:

  32. Which of these is not one of Porter's 5 competitive forces?

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

  34. Type Of Return

  35. What effect did the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 have on debtors?

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

  37. What is the difference between LIBOR, LIBID and LIMEAN?

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

  39. Under the “Brochure” rule of the Investment Advisers Act of 1940, which of these statements is true?

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

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

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

  43. A sales representative is permitted to take all of the following actions EXCEPT:

  44. How did dotcom companies become so overvalued in the late 1990s?

  45. When was the Dow Jones Industrial Average first calculated?

  46. A parent would choose to set up a Coverdell Education Savings Account for a child in order to save for college expenses AND:

  47. The maximum fine that can be assessed for a violation of the USA is what amount?

  48. How are bonds rated?

  49. Transactions are exempt from registration where …

  50. How do 401(k) loans work?

  51. What happens if I own a stock that is purchased by another company after filing for bankruptcy?

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

  53. What are the exceptions to the premature withdrawal penalty rules for IRA accounts?

  54. What are some of the key differences between IFRS and U.S. GAAP?

  55. Can I refuse a gift by providing a "Qualified Disclaimer," and what does this entail?

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

  57. The BEST definition of a benchmark portfolio is:

  58. Why do companies use reverse/forward stock splits?

  59. Is short selling allowed in India?

  60. What is a tax-free 1035 Exchange?

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

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

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

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

  65. Does a shareholder lose all of their equity once a Chapter 11 bankruptcy is filed by the company?

  66. When is it a good idea to use an irrevocable life insurance trust?

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

  68. I have a profit-sharing plan with my former employer. I am now trying to buy a home. Can I use my profit-sharing money to put a down payment on a house?

  69. What is the difference between an options contract and a futures contract?

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

  71. Why do you need an emergency fund?

  72. After exercising a put option, can I still hold my option contract in order to sell it at a lower price?

  73. Under the USA, there are antifraud provisions that apply to securities. Which of the following statements is true?

  74. According to the USA, it is unlawful for a person to offer to sell a security in a state unless:

  75. An IA’s client has a primary goal of tax reduction and a secondary goal of current income. Which investment would be most appropriate?

  76. How does an employer benefit from a 401(k) matching plan?

  77. What is a "wash sale"?

  78. What are the requirements to be able to contribute to an HSA?

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

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

  81. Which transactions affect the retained earnings statement?

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

  83. What are some common hand signals on the trading floor?

  84. Because I missed a few credit card payments, the issuer raised my interest rate from 9.9% to 19.9%. What should I do?

  85. 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?

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

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

  88. How do I know if I qualify to open a HSA (Health Savings Account)?

  89. Why is accidental life insurance so inexpensive?

  90. Is life insurance good for mortgage protection?

  91. What is the "stretch IRA" concept?

  92. Who was the first person charged by the SEC?

  93. My mortgage payments are no longer affordable; is there anything that I can do to prevent foreclosure?

  94. How much life insurance should I have?

  95. Why is Game Theory useful in business?

  96. What was the Marshall Plan?

  97. What is the difference between LIBID and LIBOR?

  98. How are oil reserves accounted for on an oil company's balance sheet?

  99. The real rate of return is the amount of interest earned over and above the:

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

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