Markets FAQs

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

  2. What does the diluted share price reveal about a company's financial strength?

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

  4. What should I use as a benchmark for my small-cap stock portfolio?

  5. How does the ISIN numbering system work?

  6. What happens when a circuit breaker is put into effect?

  7. I just opened an IRA. What can I do to help my money grow?

  8. What is Black Monday?

  9. How does pyramiding work?

  10. What is an echo bubble?

  11. What does "in street name" mean, and why are securities held this way?

  12. Why don't stocks begin trading at the previous day's closing price?

  13. How does somebody make money short selling?

  14. I own some stock warrants. How do I exercise them?

  15. What are the "Dogs of the Dow"?

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

  17. 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?

  18. Is a Canadian resident allowed to participate in a direct stock purchase plan from a U.S. company such as Pfizer?

  19. What is a stock-for-stock merger and how does this corporate action affect existing shareholders?

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

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

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

  23. Who or what are the turtles?

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

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

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

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

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

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

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

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

  32. What exactly is a company's float?

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

  34. How can I hedge against rising diesel prices?

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

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

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

  38. What is options backdating?

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

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

  41. How does a credit crunch occur?

  42. Who is Mr. Copper?

  43. What is a Bermuda swaption?

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

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

  46. 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?

  47. Who determines interest rates?

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

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

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

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

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

  53. How does leverage work in the forex market?

  54. Can an option have a negative strike price?

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

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

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

  58. What are cleantech stocks?

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

  60. What does "after the bell" mean?

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

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

  63. 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.

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

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

  66. What is a staggered board?

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

  68. 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?

  69. What is the difference between leverage and margin?

  70. How do speculators profit from options?

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

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

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

  74. 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?

  75. 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?

  76. What are elves?

  77. What is meant by "full disclosure"?

  78. What is a blackout period?

  79. 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?

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

  81. 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?

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

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

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

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

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

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

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

  89. What is authorized stock?

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

  91. I want to start my own brokerage company, how do I become a member of FINRA?

  92. How do I register for the CFA program for the first time?

  93. What is the Pac-Man defense?

  94. What kinds of investments are allowed in a qualified retirement plan, and what kinds are forbidden?

  95. Where did the bull and bear market get their names?

  96. Who or what is Dow Jones?

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

  98. Does the seller (the writer) of an option determine the details of the option contract?

  99. How can my stock's price change after hours, and what effect does this have on investors? Can I sell the stock at the after-hours price?

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

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