Bonds FAQs

  1. What was the Whitewater scandal?

  2. Use the following information about a customer’s margin account to answer the question.

  3. What is market capitulation?

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

  5. Can I establish more than one IRA?

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

  7. What is a stripped bond?

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

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

  10. 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?

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

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

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

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

  15. What is arbitrage?

  16. What is the difference between yield and return?

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

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

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

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

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

  22. What is a basis point (BPS)?

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

  24. How can I hedge against rising diesel prices?

  25. 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?

  26. How does the marginal tax rate system work?

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

  28. What is an assumable mortgage?

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

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

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

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

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

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

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

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

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

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

  39. Who sets the price of commodities?

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

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

  42. What happens to my call options if the underlying company is bought out?

  43. How can a futures trader exit a position prior to expiration?

  44. What aids will help me file my own tax return?

  45. I sold my house. Can I exclude the gain from my income?

  46. I would like to invest in a dividend-paying stock. How can I find out which stocks pay dividends?

  47. Is it required to order the CFA guides in order to prepare for the CFA?

  48. Can I contribute to both a 401(k) and an IRA?

  49. How do I calculate the percentage gain or loss for my portfolio when all of the stocks have different prices?

  50. Are there any continuing education requirements after I pass the Series 7 examination?

  51. How is margin interest calculated?

  52. I have a small business (LLC), which I operate part-time. I also work full time for a company and am enrolled in a 401(k) plan. Am I still eligible to make contributions to an individual 401(k) from earnings of my part-time LLC?

  53. What is the highest achievable FICO score?

  54. What effect will a prenuptial agreement have on a 401(k)?

  55. How much will it cost me to become a casual investor on my own?

  56. What causes a recession?

  57. Why did dotcom companies crash so drastically?

  58. What is a "gypsy swap"?

  59. What is an entrepreneur's elevator pitch?

  60. What is a blackout period?

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

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

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

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

  65. Can either a SEP IRA or a SIMPLE IRA be attached in a bankruptcy or malpractice action, or are they safe from any financial judgments like these?

  66. If I am no longer employed, can I roll over a 403(b) plan into an IRA?

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

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

  69. What are the sources of funding available for companies?

  70. What are the "certain requirements" that must be met for substantially equal periodic payments (SEPPs)? Is it taxed at 20%? Is there any downside to the SEPP?

  71. Is my 403(b) account owned by me or by the institution?

  72. I get multiple mailings to my house from companies that my spouse, children and I all own. Is there any way to stop the duplicate mailings?

  73. Who determines interest rates?

  74. Where can I get a company's prospectus and/or financial statements?

  75. What is the "percentage off the 52-week high or low"? How is this calculated?

  76. What does 'going public' mean?

  77. What exactly is a company's float?

  78. How do I take qualitative factors into consideration when using fundamental analysis?

  79. What is an efficient market and how does it affect individual investors?

  80. If I short sell $5,000 worth of stock and the stock becomes worthless, I have made $5,000 with a very small investment. Isn't the return here much greater than 100%?

  81. What are the minimum margin requirements for a short sale account?

  82. After an initial public offering, does a company profit from increases in its share price?

  83. My certificate of deposit (CD) has just matured and I plan to contribute $10,000 of it to my current Roth IRA account. The person doing my taxes can't tell me why I can't make such a large contribution except for my low income - I am a disabled veteran on

  84. If an IRA owner dies after starting required minimum distributions (RMD) but the spouse is under 70.5, can the spouse roll over the IRA into his/her own IRA, and stop RMDs until age 70.5?

  85. Why do companies issue debt and bonds? Can't they just borrow from the bank?

  86. How are moving averages used in trading?

  87. What does the 'FIG' at an investment bank refer to?

  88. In an IPO, who is a greensheet distributed to and for what purpose?

  89. How is my credit score calculated?

  90. Do stop or limit orders protect you against gaps in a stock's price?

  91. If I reject the tender offer for acquisition of the stock that I own in a company and the company goes private, what happens to my stock?

  92. If a country's currency is determined by the strength of its economy, why isn't the U.S. dollar worth more than the British pound?

  93. Is there a difference between ADR and ADS?

  94. What happens to a company's stocks and bonds when it declares chapter 11 bankruptcy protection?

  95. How does leverage work in the forex market?

  96. Why is the U.S. stock market doing well despite the recent U.S. economic downturn?

  97. What are the risks of having both high operating leverage and high financial leverage?

  98. What is a debt/equity swap?

  99. Can an IRA owner disclaim his widow's account but exclude one spendthrift contingent beneficiary?

  100. What economic indicators are especially important to oil traders?

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