Bonds FAQs

  1. Is there any time I would want to have a zero-principal mortgage?

  2. Who coined the term "entrepreneur"?

  3. What is foreclosure investing?

  4. What is variable life insurance?

  5. What is meant by "full disclosure"?

  6. What does it mean to have "dry powder"?

  7. When is a dividend payment recognized in the shareholders equity portion of the balance sheet?

  8. I am self-employed and do not need most of my IRA RMD for expenses. Can I reinvest it in Roth IRAs?

  9. What does it mean when a stock trades on the Pink Sheets or the OTCBB?

  10. Where can I buy government bonds?

  11. I work for a university, and I have a 403(b) with TIAA-CREF. But TIAA-CREF says I cannot transfer money to another provider. Can they prevent me from transferring my money to a better investment?

  12. Where can I find historical stock/index quotes?

  13. My company is the trustee of our 401k plan (which has 112 participants). What are the pros and cons of having the company instead of the plan provider/vendor as the trustee?

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

  15. Does participation in a 401(k) plan prevent an individual from contributing to a Traditional IRA?

  16. If I am American, can I buy a foreign mutual fund?

  17. I have several Roth IRA conversions, each with different custodians. When I spoke to an IRS representative, he maintained that the total amount of the conversions is always available. He told me that at any time I can take out what I had paid taxes on (wi

  18. Please explain what a short seller is on the hook for when he or she shorts a stock (i.e. dividends, rights offerings, etc.).

  19. What is a Ginnie Mae security?

  20. What is an earnings conference call?

  21. Why do accountants use debits and credits instead of simple pluses and minuses? Why is the notation for a debit "DR"?

  22. A corporate bond I own has just been called by the issuer. How can a company legally take away my bond? How do these call provisions work?

  23. I've come into a large amount of money. Should I invest it or pay off my mortgage?

  24. What happens to the voting rights on shares when the shares are used in a short sale transaction?

  25. I plan to retire in March 2005 at the age of 59.75. When and what percentage or dollar amount can I start withdrawing from my SIMPLE IRA account?

  26. If one of your stocks splits, doesn't that make it a better investment? If one of your stocks splits 2-1, wouldn't you then have twice as many shares? Wouldn't your share of the company's earnings then be twice as large?

  27. How do I calculate how much I've gained or lost on a stock holding?

  28. Is divorce an exception to the SIMPLE IRA's two-year waiting period rule?

  29. How is the value of the S&P 500 calculated?

  30. Should I put money into a retirement account even if it isn't tax deductible?

  31. What is the difference between a merger and a takeover?

  32. I want to purchase a five-year period certain single premium immediate annuity (SPIA) with my IRA account. I'm 53. Will the 10% penalty apply?

  33. Who are the key players in the bond market?

  34. Where does the stock come from when convertible bonds are converted to stock?

  35. If I pay for a course to learn about trading can I write some of it off?

  36. I just learned that my 2004 and 2005 Roth IRA contributions are not allowed because my income exceeds the limits. Can I just withdraw the contributions plus earnings without penalty?

  37. What is the difference between hedging and speculation?

  38. Why would my stock's value decline despite good news being released?

  39. What are 'death spiral' convertible bonds?

  40. What is the difference between principles-based accounting and rules-based accounting?

  41. Is it possible to lose all of your investment in an index fund?

  42. If a company moves its dividend record date forward, does the ex-dividend date change too?

  43. Why are corporations so concerned about their stock price?

  44. What does the Pension Protection Act of 2006 say about charitable contributions?

  45. Does a company's American depositary share equal one share of common stock?

  46. How can unethical executives use options backdating to evade taxes?

  47. What possible past activities will prevent me from becoming a Registered Representative?

  48. Do I need to be a U.S. citizen to sit for any NASD examinations?

  49. How do I file taxes for income from foreign sources?

  50. I am interested in pursing the CFA charter, but I do not have a degree in business and have not worked within the financial or investment environment. Do I still have a chance of successfully completing the course?

  51. A company I recently looked up showed institutional holdings of more than 100%. How is this possible?

  52. At what point in the ordering process does a broker charge commission?

  53. I failed the Series 7 exam. How long must I wait before I can take it again?

  54. What is the best way to budget for holiday and special event spending?

  55. Can I roll my SEP IRA into a Traditional IRA or should I convert to a Roth?

  56. What types of accounts are available for forex trading?

  57. How do interest rate changes implemented by the Fed affect the stock market?

  58. What is Black Monday?

  59. What is term insurance?

  60. Can a company declare a dividend that exceeds its earnings per share?

  61. Is there a world currency? If so, what is it?

  62. How do I use the IRS Free File tax forms?

  63. What is a margin account?

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

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

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

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

  68. 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.

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

  70. 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

  71. 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?

  72. What is a mutual fund's NAV?

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

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

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

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

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

  78. 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

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

  80. 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?

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

  82. 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

  83. What is a staggered board?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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