Markets FAQs

  1. Why should I invest in the market when I can buy and sell houses or cars?

  2. What are some cheaper alternatives to sending children to summer camp?

  3. What burst the Mississippi bubble?

  4. Which statement about the New York Stock Exchange is FALSE?

  5. Is there short selling in China?

  6. When and why did the euro make its debut as a currency?

  7. What is a Greenspan put?

  8. How do indexes determine which stocks are removed or added to them?

  9. When did the U.S. start using paper money?

  10. What was the millionaire boom?

  11. How do I invest in the Nasdaq or the NYSE? Is it even possible? Would I want to?

  12. How do I know if I am buying unregistered securities or stocks?

  13. Which day is known as China's "Black Tuesday" and why?

  14. What are unregistered securities or stocks?

  15. Why would a company do a reverse merger instead of an IPO?

  16. Why did Tyco's financial statements attract the SEC's attention in 2002?

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

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

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

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

  21. What is an unregistered security scam?

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

  23. What is the difference between inflation and stagflation?

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

  25. What is the salad oil scandal?

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

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

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

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

  30. What is a wild-card play?

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

  32. What is a vest fleece?

  33. Where does the name "Wall Street" come from?

  34. What number of shares determines adequate liquidity for a stock?

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

  36. Why do option volume quotes differ on different websites?

  37. What exactly is a company's float?

  38. Are ETFs required to pay out a percentage of income as dividends?

  39. How can I hedge against rising diesel prices?

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

  41. Which is the best index to use to study the possible future price action of a given small-cap stock?

  42. Why are options very active when they are at the money?

  43. What is the history behind the opening and closing bells on the NYSE?

  44. Why do brokers ask for personal information before they make any trades?

  45. Who or what are the turtles?

  46. How do central banks inject money into the economy?

  47. Can I leave my pension to my spouse when I pass away?

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

  49. Why was Microsoft subject to antitrust charges in 1998?

  50. What are leading, lagging and coincident indicators? What are they for?

  51. What is the incentive to buy a stock without dividends?

  52. 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?

  53. Who determines interest rates?

  54. What is GDP and why is it so important?

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

  56. I live in the U.S. How can I trade stocks in China and India?

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

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

  59. What is political risk and what can a multinational company do to minimize exposure?

  60. What is options backdating?

  61. Can I roll my 403(b) and 457 into other low-cost venders when I change jobs?

  62. Why does a crisis in emerging markets cause U.S. Treasury yields to decrease?

  63. How does a credit crunch occur?

  64. Who is Mr. Copper?

  65. What is a Bermuda swaption?

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

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

  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. Why can you short sell an ETF but not an index fund?

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

  71. What is a staggered board?

  72. How is spread calculated when trading in the forex market?

  73. 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?

  74. How does leverage work in the forex market?

  75. Can an option have a negative strike price?

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

  77. If a company undergoes an acquisition can an employee withdraw 401(k) funds tax free?

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

  79. What are cleantech stocks?

  80. How do I open a Swiss bank account, and what makes them so special?

  81. What does "after the bell" mean?

  82. I'm a teacher. Which is better for me, a 401(k) or 403(b)? What is the difference? From whom do I get these plans?

  83. What's the difference between the Dow Jones Industrial Average and the S&P 500?

  84. Can I roll over a profit-sharing plan to an SEP IRA account without suffering any tax penalties and liquidation of current positions held in this account?

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

  86. What's the difference between absolute P/E ratio and relative P/E ratio?

  87. What is the ideal number of stocks to have in a portfolio?

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

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

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

  91. What is the difference between leverage and margin?

  92. How do speculators profit from options?

  93. Do all international markets trade between 9:30am and 4pm local time?

  94. How many attempts at the Series 7 exam are permitted?

  95. How do I receive sponsorship from a member firm in order to write a Series 7 exam?

  96. I have a KSOP through my employer that I've invested 100% in company stock. I am now concerned that I'm not diversified and would like to move out of company stock and into mutual funds. Is this allowed with the funds I've contributed to the account?

  97. 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?

  98. What are elves?

  99. What is meant by "full disclosure"?

  100. What is a blackout period?

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