Bonds FAQs

  1. Why do interest rates tend to have an inverse relationship with bond prices?

  2. Where does the money I have invested in a company go when the stock price decreases?

  3. What requirements must a company meet for options to be traded on its stock?

  4. What does it mean to use technical divergence in trading?

  5. What are "I Bonds" and how can I buy them?

  6. Is there such a thing as a nano cap or micro cap index?

  7. What investments are available to someone with no earned income?

  8. Does a stock split lead to the gapping up/down of the stock?

  9. What does the law say about non-U.S. citizens buying stocks of U.S. companies? Are there any restrictions?

  10. What are some common and useful retirement planner designations? Are they expensive or difficult to obtain?

  11. Earnings within a Roth IRA are tax free, so are these earnings included in the modified adjusted gross income which is used to determine Roth IRA eligibility?

  12. Is it easier to save for retirement if you start earlier in life? Can I make up for what I don't save now by contributing more later on?

  13. Who is responsible for protecting and managing shareholders' interests?

  14. What is an economic moat?

  15. If a trust is named as the beneficiary of an IRA, can the trustee of that trust become the beneficiary without the IRA owner signing the Change of Beneficiary form?

  16. What's the difference between short-term investments in marketable securities and equity?

  17. My company has three partners but plans to hire more this year. Would we be better off with an SBO-401(k) or a SIMPLE IRA?

  18. Do traders, market makers, specialists or others ever deliberately drive a stock's price down to "shake out" the last sellers?

  19. Since stockholders are entitled to a company's assets and earnings, can a stockholder realize profits without selling stocks?

  20. What is an evergreen provision and how does it affect shareholders?

  21. What are the steps to get a company listed on the OTCBB?

  22. I want to try short selling, but how can I sell something that I don't own?

  23. What methods can be used to fund a forex account?

  24. Can I have a self-directed IRA or Roth IRA using the forex market?

  25. What does "buy on the cannons, sell on the trumpets" mean?

  26. What is options backdating?

  27. Why are the bid and ask quotes usually so far away from each other in after-hours trading?

  28. What's the difference between a savings account and a Roth IRA?

  29. Why do people say that September is the worst month for investing?

  30. Where can I find information on multiple annual additions for someone employed by more than one unaffiliated company?

  31. What financial certifications or exams do I need to complete in order to qualify for registration as an Investment Advisor Representative?

  32. I hold a professional degree. Am I eligible to sit for the Certified Financial Planner (CFP)certification examination?

  33. Are there special benefits for U.S. armed forces personnel?

  34. If I already hold a professional certification am I eligible for any exemptions from CFA Program requirements?

  35. Can an open-ended fund's price appreciate significantly?

  36. When my mutual fund declares an income distribution, the fund price falls by a similar amount. How does this distribution benefit me?

  37. What happens if there are no places available for me to sit for my exam within my window?

  38. What is the difference between a 2/28 and a 3/27 ARM?

  39. Why should I bother creating a budget?

  40. My husband left his ex-wife as his retirement plan beneficiary. Can this be changed?

  41. Is scalping a viable forex trading strategy?

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

  43. Who coined the term "entrepreneur"?

  44. What is foreclosure investing?

  45. What is variable life insurance?

  46. What is meant by "full disclosure"?

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

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

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

  50. Can I roll a Traditional IRA into a 529 college account for my grandchild?

  51. What's the difference between a mutual fund and a hedge fund?

  52. When you buy a stock in a company, does it necessarily mean that one of the shareholders is selling it to you?

  53. What's the difference between bottom-line and top-line growth?

  54. What is accrued interest, and why do I have to pay it when I buy a bond?

  55. What's the difference between absolute and relative return?

  56. Is it important to check the professional history of my investment advisor?

  57. I recently and accidentally established a Roth IRA for my spouse instead of myself and contributed additional monies. What should I do?

  58. Can I pull out most of my assets from my IRA and use the cash as long as I replace it in the IRA within a year?

  59. I own options on a stock, and it's just announced a split. What happens to my options?

  60. 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

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

  62. What is a Ginnie Mae security?

  63. What is an earnings conference call?

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

  65. 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?

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

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

  68. 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?

  69. 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?

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

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

  72. If an employee covered by a SIMPLE leaves his employer within the two-year period and his new employer doesn't have a SIMPLE, what happens to the plan? Can the employee roll it over without penalty, or keep it at the old company until the two years expire

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

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

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

  76. 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?

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

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

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

  80. 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?

  81. What is the difference between hedging and speculation?

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

  83. What are 'death spiral' convertible bonds?

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

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

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

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

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

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

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

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

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

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

  94. 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?

  95. I lost my share certificate. Do I still own the stock?

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

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

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

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

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

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