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. Should a Canadian citizen who lives and works in the U.S. continue to contribute to a RRSP account?

  4. 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?

  5. What is financial double-dipping?

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

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

  8. The "effective date" is defined as:

  9. What is cliff vesting?

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

  11. What is a "force majeure"?

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

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

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

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

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

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

  18. What is an unregistered security scam?

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

  20. How do I use a conduit IRA?

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

  22. What is foreign exchange?

  23. How often do exchange rates fluctuate?

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

  25. 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?

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

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

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

  29. 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?

  30. What is leakage?

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

  32. What is the difference between inflation and stagflation?

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

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

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

  36. What is the salad oil scandal?

  37. How do sunshine laws help investors?

  38. What is a Chinese hedge?

  39. What is a baby bell?

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

  41. What is "hot money"?

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

  43. How do I use a premium put convertible?

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

  45. How do I use a barbell strategy?

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

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

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

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

  50. What was the first company to issue stock?

  51. What is a wild-card play?

  52. What is the doctor advisory scam?

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

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

  55. 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?

  56. What is a vest fleece?

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

  58. What is a blackout period?

  59. What is the relationship between the PPI and the CPI?

  60. Margin accounts are established to allow investors the ability to use leverage with their investments.

  61. Under the Investment Advisers Act of 1940, which of the following are exempt from registration as investment advisers under normal circumstances?

  62. What is market capitulation?

  63. Who qualifies as "single" for tax or retirement purposes when spouses do not live together?

  64. Can I establish more than one IRA?

  65. What's the smallest number of shares I can buy?

  66. What is a stripped bond?

  67. What's the difference between macroeconomics and microeconomics?

  68. Why do some stock symbols have three letters while others have four? What is the difference?

  69. I will be receiving monies from a QDRO executed pursuant to my divorce. I would like to take a portion of the money as a distribution to pay for a new home. What are the tax implications of doing this?

  70. If I have a number of stock shares and that company reports earnings of X amount per share, do I receive those earnings?

  71. Are professionals, such as financial planners and brokers, liable for the advice they give?

  72. If the price of the bond falls, does that mean the company won't pay me the par value?

  73. Why did my stock's ticker symbol change?

  74. What is arbitrage?

  75. What is the difference between yield and return?

  76. Which option is better on a mutual fund: a growth option or a dividend reinvestment option?

  77. Why would a company have multiple share classes, and what are super voting shares?

  78. Does the party loaning shares in a short sale transaction benefit in any way other than from the interest earned on the loan?

  79. How does a point change in a major index effect its equivalent exchange-traded fund?

  80. Which is better a cash dividend or a stock dividend?

  81. What is a basis point (BPS)?

  82. What is the difference between a Traditional and a Roth IRA?

  83. How can I hedge against rising diesel prices?

  84. I am starting a limited liability company (LLC). I will be the sole member. Can I open an SEP IRA? How much tax-deferred money would I be able to contribute each year?

  85. How does the marginal tax rate system work?

  86. What is the difference between a logarithmic price scale and a linear one?

  87. What is an assumable mortgage?

  88. How can I purchase stocks directly from a company?

  89. Is tracking error a significant measure for determining ex-post risk?

  90. How do restricted stocks, treasury stocks and stock appreciation rights benefit employees?

  91. Are credit cards and debit cards considered debt instruments?

  92. What is the put-call ratio and why should I pay attention to it?

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

  94. How do central banks acquire currency reserves and how much are they required to hold?

  95. What are the three phases of a completed initial public offering (IPO) transformation process?

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

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

  98. Who sets the price of commodities?

  99. What do the bracketed numbers following a technical indicator mean?

  100. Do I need to take the Series 6 examination after I have already successfully completed the Series 7?

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