Markets FAQs

  1. I know there is a form of deposit insurance where a portion of my bank account deposits is protected. Is there anything like this for my investments?

  2. Who employs the specialists at New York Stock Exchange (NYSE)? Do they work for themselves, for the NYSE or for brokerage firms?

  3. How does a pump and dump scam work?

  4. I made involuntary contributions to a retirement plan while temporarily employed. Can I withdraw these funds without penalty?

  5. What does the term "stock-for-stock" mean?

  6. I am a non-U.S. citizen living outside the U.S. and trading stocks through a U.S. internet broker. Do I have to pay taxes on the money I earn?

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

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

  9. How do businesses decide whether to do FDI via green field investments or acquisitions?

  10. Are eurodollars related to the currency called the euro?

  11. Where do investors tend to put their money in a bear market?

  12. Am I qualified once I complete my FINRA certification exam?

  13. What causes a recession?

  14. Why did dotcom companies crash so drastically?

  15. What is variable life insurance?

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

  17. What's the difference between "top-down" and "bottom-up" investing?

  18. Why should I invest?

  19. I'm about to retire. If I pay off my mortgage with after-tax money I have saved, I can save 6.5%. Should I do this?

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

  21. What is after-hours trading? Am I able to trade at this time?

  22. What's the difference between old- and new-economy stocks?

  23. What happens to the fines collected by the Securities and Exchange Commission?

  24. What will happen to my U.S.-based stock portfolio if the U.S. dollar substantially decreases in value?

  25. How is a put option exercised?

  26. What is the difference between hedging and speculation?

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

  28. How are futures used to hedge a position?

  29. What are the advantages and disadvantages for a company going public?

  30. I passed my Series 7 exam, but I terminated employment at my sponsoring firm before I received my license. Is my exam still valid?

  31. What is the difference between Series 9/10 and Series 24 qualification exams?

  32. How are stock warrants different from stock options?

  33. What are the Gnomes of Zurich?

  34. What is a back door listing?

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

  36. What exactly is insider trading?

  37. What are some of the features and benefits of SEP IRAs and Roth IRAs?

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

  39. If I am American, can I buy a foreign mutual fund?

  40. What are defensive stocks?

  41. Is technical analysis used only to analyze stocks?

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

  43. What is dilutive stock?

  44. Where can I get bond market quotes?

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

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

  47. Why would a multinational corporation conduct a vertical foreign direct investment?

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

  49. Is it possible to take the Series 7 exam without being sponsored?

  50. What is the best method of analysis for forex trading?

  51. What is a blank-check company?

  52. What does it mean to be "above water"?

  53. What is earnings management?

  54. What do the S&P, Dow and Nasdaq futures contracts represent?

  55. If everyone is selling in a bear market, does your broker have to buy your shares from you? If so, won't he be losing his shirt?

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

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

  58. Why would a person choose a mutual fund over an individual stock?

  59. Short selling vs. purchasing a put option: how do the payoffs differ?

  60. I have several jobs. Can I contribute the maximum to multiple employer retirement plans?

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

  62. How do companies benefit from interest rate and currency swaps?

  63. What risks do organizations face when engaging in international finance activities?

  64. Why do companies postpone earnings announcements?

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

  66. What are the most common currency pairs traded in the forex market?

  67. What is a liquidity squeeze?

  68. What types of accounts are available for forex trading?

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

  70. What is market capitulation?

  71. I do not want to totally get out of my retirement 401(k), but I want to take 72(t) distributions. What should I consider?

  72. Are we in a bull market or a bear market?

  73. How does the government influence the securities market?

  74. Why did the New York Stock Exchange report prices in fractions before it switched to decimal reporting?

  75. What's the difference between a regular option and an exotic option?

  76. I make over $100,000/yr and my adjusted gross income precludes standard IRA contributions. My contributions to my 401(k) plan at work are limited to about $7,000/yr. It seems I'm being penalized for my income. Are there other retirement savings options av

  77. Do I own a stock as of the trade date or the settlement date?

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

  79. Can an option be exercised on the expiration date?

  80. Can investors short sell pink sheet or over-the-counter stocks?

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

  82. What is happening during a risk repricing?

  83. What are managed futures?

  84. Are oil prices and interest rates correlated?

  85. Which of the following terms are associated with the purchase/redemption of open-end investment company shares?

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

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

  88. How does somebody make money short selling?

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

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

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

  92. 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?

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

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

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

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

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

  98. How does the ISIN numbering system work?

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

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

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