Bonds FAQs

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

  2. Why are credit cards able to charge such high interest rates compared to other lenders?

  3. I overcontributed to my Roth, then lost half of this money to the market. Does the 6% penalty apply to my original contribution, or only what's left of it?

  4. What is financial double-dipping?

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

  6. Why is Frank Quattrone credited with contributing to the growth of the dotcom bubble?

  7. The "effective date" is defined as:

  8. What is cliff vesting?

  9. Where can I find all of the stocks in the Dow Jones Industrial Average?

  10. Which credit card company holds the honor of most profitable IPO?

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

  12. What is the difference between exchange-traded funds and mutual funds?

  13. What is a "force majeure"?

  14. According to the U.S., prohibited conduct of an investment advisor is defined as:

  15. What do people mean when they mention real estate gazunders or gazumps?

  16. Why is a "hockey stick bid" considered fraudulent?

  17. What currency is affected by the interest rate decisions of the Bank of England (BoE)?

  18. How do I use a conduit IRA?

  19. What is an unregistered security scam?

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

  21. What is foreign exchange?

  22. How often do exchange rates fluctuate?

  23. What does it mean when advertisers say that "financing is available"? Should I trust them to give me a good deal?

  24. Do I still have to pay penalties and taxes on money that I don't roll over from a DROP fund?

  25. How did Peter Young gain infamy as a "rogue trader"?

  26. We are in a 401(k) at work. Can we also do a Roth each year? If we can, can it also be deducted from our taxes?

  27. How much more will it cost me to buy an odd lot of shares?

  28. A customer has the following in his long margin account. Market value: $18,000, debit balance: $10,000 and SMA: $2,000. How much of the SMA may be used to purchase additional securities?

  29. What is leakage?

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

  31. Is a person an active participant in an employer-sponsored retirement plan if he or she was only active for a short time?

  32. What is the difference between inflation and stagflation?

  33. What is the history behind today's bankruptcy laws?

  34. Investment advisors must register with the SEC when their assets under management total what amount?

  35. How do sunshine laws help investors?

  36. What is the salad oil scandal?

  37. What is a Chinese hedge?

  38. What is a baby bell?

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

  40. What are the penalties for withdrawing from my Traditional IRA less than a year after acquisition?

  41. What is "hot money"?

  42. What is the downtick-uptick rule on the NYSE?

  43. How do I use a barbell strategy?

  44. How do I use a premium put convertible?

  45. What business processes were used to establish the Chevrolet motor company?

  46. How did derivatives trader Nick Leeson contribute to the fall of Barings Bank?

  47. Am I entitled to any of my ex-spouse's retirement plan benefits?

  48. Which of the following are tools that are employed by the Federal Reserve in its efforts to control the money supply?

  49. What is a wild-card play?

  50. What was the first company to issue stock?

  51. How did currency trader John Rusnak hide $691 million in losses before being caught for bank fraud?

  52. What is the doctor advisory scam?

  53. What happens when someone is given the golden boot?

  54. Your client has a net short-term gain of $3,000 and a net long-term loss of $8,000. Which of the following statements are true?

  55. What does "fool in the shower" mean?

  56. What is a vest fleece?

  57. What is a margin account?

  58. Can I convert non-deductible contributions made to my Traditional IRA to a Roth IRA without being taxed?

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

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

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

  62. I converted my former IRA to a Roth for tax purposes in 1998, so even though the tax was paid over four years, am I correct to assume that this is now mine to withdraw, if I like, at no penalty? I am 60 years old.

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

  64. Can an individual contribute to both a Roth IRA and a Traditional IRA in the same year?

  65. If I am entitled according to my divorce decree to a percentage of my ex-husband's IRA, how can I receive the assets due to me into my own IRA without being taxed? Will he be taxed when he makes the transfer? Will the money he may have to pay in taxes the

  66. I am over 60 years old and have a Roth IRA to which I have made contributions for more than five years. Are all distributions tax free?

  67. What are the requirements that a trust needs to meet to be qualified?

  68. What is a mutual fund's NAV?

  69. If I own stock that drops in price is this a sign that I should buy more?

  70. Why did the New York Stock Exchange report prices in fractions before it switched to decimal reporting?

  71. Is it possible for a company to have a positive cash flow and a negative net income?

  72. What is the difference between fast and slow stochastics in technical analysis?

  73. Can a stop-loss order be used to protect a short sale transaction?

  74. I am 59 (not 59.5) and my husband is 65. We have participated in a SIMPLE IRA with our company for more than two years. Can we convert the SIMPLE IRA to a Roth IRA? If we can convert, do we have to pay tax on the SIMPLE IRA money placed in the Roth? Are t

  75. How can a company trade more shares in one day than there are shares outstanding?

  76. 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?

  77. What is the difference between a company's book value per share and its intrinsic value per share?

  78. What procedure applies to a taxpayer who made excess contributions for 2001, 2002, 2003 and 2004 and has neither withdrawn the excess and the earnings for 2001-2003, nor recharacterized 2004 to a Traditional IRA? How are multiple years such as this to be

  79. Does perfect competition exist in the real world?

  80. What is a staggered board?

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

  82. Is it true that you can sell your home and not pay capital gains tax?

  83. What is the haircut rate imposed by clearing corporations?

  84. Are the deferred earnings in a SIMPLE IRA subject to FICA taxes?

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

  86. I am 61 years old and would like to contribute to my employer's 401(k) plan. Is there an age limit?

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

  88. Can an option be exercised on the expiration date?

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

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

  91. Is an earnings surprise priced into the opening value by market makers or does the buyer/seller response drive the price?

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

  93. I have just been laid off. Can I use my 401(k) for living expenses now and report it as income next year?

  94. What will happen to my SEP IRA if I leave my current employer?

  95. What does it mean to have orphan drug status?

  96. Which is better for tax deductions, itemization or a standard deduction?

  97. I failed the Series 6 exam. How long must I wait before I can re-take it?

  98. When am I not required to submit a social security number on my tax return?

  99. Is there any difference between a holder of a Chartered Financial Analyst Designation and a Certified Financial Analyst?

  100. I have two Roth IRAs, one of which has a balance that is much less than the total contributions I have made to the account. Can I write off the losses for that account?

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