Bonds FAQs

  1. What causes a recession?

  2. Why did dotcom companies crash so drastically?

  3. What is a "gypsy swap"?

  4. What is an entrepreneur's elevator pitch?

  5. What is a blackout period?

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

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

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

  9. What is market capitulation?

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

  11. Can I establish more than one IRA?

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

  13. What is a stripped bond?

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

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

  16. 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?

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

  18. 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?

  19. Who determines interest rates?

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

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

  22. What does 'going public' mean?

  23. What exactly is a company's float?

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

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

  26. 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%?

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

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

  29. 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

  30. 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?

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

  32. How are moving averages used in trading?

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

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

  35. How is my credit score calculated?

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

  37. 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?

  38. 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?

  39. Is there a difference between ADR and ADS?

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

  41. How does leverage work in the forex market?

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

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

  44. What is a debt/equity swap?

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

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

  47. I am not a resident of the United States, but would like to be qualified as a registered representative in the U.S. Is it still possible for me to write the Series 7 exam?

  48. How does a stock split affect cash dividends?

  49. Why do all mutual fund tickers have an X at the end?

  50. Do I have to reach a certain age before I can write an NASD exam?

  51. Does everyone have to file a federal tax return?

  52. Are mutual fund performance numbers reported net of fees (operating expenses and 12b-1)?

  53. I have a CFA designation. Do I qualify for any exemptions from FINRA licensing exams?

  54. Can I hold non-dollar currencies in my retirement fund?

  55. Who bears the risk of bad debts in securitization?

  56. How can I find out if my employer is a member of FINRA?

  57. Is there a maximum amount of stock an individual investor or corporation can purchase?

  58. How can I withdraw from my CFA Level 1 exam?

  59. How does the number of credit card accounts I have affect my credit score?

  60. How can a trust lower federal transfer tax liability?

  61. A cash buyout agreement has been announced for a stock I own, but why isn't my stock trading at a per-share price equal to the buyout price?

  62. How are stock warrants different from stock options?

  63. What does "guns and butter" refer to?

  64. What is the "Nifty 50"?

  65. How does someone commit featherbedding?

  66. What is the Pac-Man defense?

  67. How do I use a "basket" option?

  68. Which of the following statements regarding the performance of a mutual fund would be permitted under current rules?

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

  70. 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?

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

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

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

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

  75. 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?

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

  77. How does the government influence the securities market?

  78. My recently deceased spouse's IRA has been rolled over into mine. Does the cost basis change for me?

  79. What do the phrases "sell to open", "buy to close", "buy to open", and "sell to close" mean?

  80. What does a Chief Financial Officer (CFO) do?

  81. What is the investor rights movement?

  82. How can I find an investment club in my area?

  83. What is the difference between options and futures?

  84. I am a first-time home buyer. If I take a distribution from my 401(k) to purchase land and a house, will I have to pay a penalty on this distribution? Also, what kind of form will I need to file with my taxes, showing the IRS that $10,000 went toward a ho

  85. Can 529 plans be used to transfer wealth to other family members if the original beneficiary does not use the money?

  86. When short selling a stock, how long does a short seller have before covering?

  87. What do people mean when they say debt is a relatively cheaper form of finance than equity?

  88. My husband has become eligible for a 401(k) plan (with no matching contribution) at work. How do we get back the $9,000 that we already contributed to our IRA for 2005 without a penalty? My husband earns $144,000/year and we're both over 50 years old.

  89. I am making after-tax contributions to an IRA. Will I get taxed again when I withdraw it (when eligible)?

  90. What are the risks of investing in a bond?

  91. What are the tax consequences of a Roth IRA distribution if the IRA holder is younger than 59.5?

  92. I want to invest in equities, but I don't have much money. Is there a minimum number of shares I must buy?

  93. What is the difference between an industry and a sector?

  94. How does an IPO get valued? What are some good methods for analyzing IPOs?

  95. Why do low interest rates cause investors to shy away from the bond market?

  96. If different bond markets use different day-count conventions, how do I know which one is used in any particular market?

  97. What are the disadvantages of using net present value as an investment criterion?

  98. How can I invest in gold?

  99. What is the difference between a broker and a market maker?

  100. What are the advantages and disadvantages to dealing with internet-only banks?

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