Markets FAQs

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

  2. 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?

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

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

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

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

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

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

  9. What is the difference between leverage and margin?

  10. How do speculators profit from options?

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

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

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

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

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

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

  17. Who or what is Dow Jones?

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

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

  20. 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?

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

  22. What causes a significant move in the stock market?

  23. How can I find out which stocks also trade as options?

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

  25. What is authorized stock?

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

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

  28. What are the oldest mutual funds, by date of inception?

  29. What's the difference between a Nasdaq market maker and a NYSE specialist?

  30. If the stock market is so volatile, why would I want to put my money into it?

  31. What does membership in the New York Stock Exchange entail, and why is it known as "owning a seat"?

  32. What do all of the letters in a stock option ticker symbol mean?

  33. Can stocks be traded on more than one exchange, such as, for example, on both the Nasdaq and the NYSE?

  34. Should I buy options that are in the money or out of the money?

  35. I am in the second year of taking SEPP distributions from my IRA. Can I transfer some of the funds to a new IRA with different investment options?

  36. When does one sell a put option, and when does one sell a call option?

  37. What is the value of one pip and why are they different between currency pairs?

  38. Who sets the price of commodities?

  39. 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?

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

  41. How long does it take for a merger to go through?

  42. Where can I find a list of all of the stocks in the S&P 500?

  43. How do companies use the Pac-Man defense?

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

  45. What are the listing requirements for the Nasdaq?

  46. What is the difference between a global fund and an international fund?

  47. What is a CUSIP number?

  48. What's the difference between a straddle and a strangle?

  49. What is the weighted average of outstanding shares? How is it calculated?

  50. How do I measure option liquidity?

  51. How many types of markets can an investor choose from?

  52. How do you tell whether an option is American or European style?

  53. Why can't I have fixed rollover costs in forex?

  54. Why do futures' prices converge upon spot prices during the delivery month?

  55. What does "squeezing the shorts" mean?

  56. Why do options with the same underlying stock and strike prices trade for different amounts?

  57. I've noticed executives buy a lot of stock below market value, and then they sell it for a large gain. How can they do this?

  58. How do I calculate forex pivot points?

  59. What is a typical day in the life of someone in M&A? How long does a project last?

  60. How can I buy oil as an investment?

  61. Is there a world currency? If so, what is it?

  62. What does it mean when a stock symbol has a .PK after it?

  63. What is the best way to measure the total market?

  64. Do hedge funds and mutual funds invest in commodities in high inflation environments?

  65. I own shares of a company that just received a delisting notice from Nasdaq. Does this mean I will lose my shares?

  66. Can I make money using put options when prices are going up?

  67. How can I invest in gold?

  68. Do noise traders have any long-term effect on stock prices?

  69. What is the difference between open-market and closed-market transactions?

  70. What will happen to my SEP IRA if I leave my current employer?

  71. When is a takeover bid legally canceled?

  72. How do interest rate changes implemented by the Fed affect the stock market?

  73. What is the "Nifty 50"?

  74. What's the difference between publicly- and privately-held companies?

  75. Where can I find a company's annual report and its SEC filings?

  76. What is a penny stock?

  77. When must a company announce earnings?

  78. Which option is better on a mutual fund: a growth option or a dividend reinvestment option?

  79. What happens when a company buys back its shares?

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

  81. 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?

  82. How do investors lose money when the stock market crashes?

  83. Why isn't the EUR/USD currency pair quoted as USD/EUR?

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

  85. On what days are the American stock exchanges closed?

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

  87. What is hedging as it relates to forex trading?

  88. What do people mean when they say there is a "bubble" going on in the market, such as a "housing bubble" or a "technology bubble"?

  89. What was "Operation Wooden Nickel"?

  90. What is the difference between a Keogh and an IRA?

  91. What happens to the stock prices of two companies involved in an acquisition?

  92. As a temporary resident of the US, can I withdraw funds from my Traditional IRA without penalty when I leave the country?

  93. What's the difference between pre-money and post-money?

  94. How do I go about opening up a Roth IRA?

  95. What are pro forma earnings?

  96. What is the difference between options and futures?

  97. What is the cheapest, fastest way to research, buy and trade stock?

  98. My brokerage firm won't allow naked option positions. What does this mean?

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

  100. What is the difference between forward and futures contracts?

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