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Mutual Funds FAQs

  1. Is it a good idea to buy mutual funds from banks?

  2. Is it possible to beat the market?

  3. Where do most fund managers get their market information?

  4. What do the different types of mutual fund classes mean?

  5. Is it possible to invest in an index?

  6. Do ETFs have a board of directors?

  7. What is a cross hedge?

  8. What advantages do exchange-traded funds have over mutual funds?

  9. What are the advantages and disadvantages of mutual funds?

  10. Where do I look for fees that I am charged on investments? What are those fees called?

  11. What is a long-short mutual fund?

  12. How much of a company's stock can a mutual fund own?

  13. What is "leverage" as it is used in closed-end funds?

  14. How do I find out how much money a mutual fund manager has in his or her fund?

  15. What was the first mutual fund?

  16. What is the difference between systemic risk and systematic risk?

  17. All of the following are regulated by the Investment Companies Act of 1940 EXCEPT

  18. Do speculators have a destabilizing effect on the financial system?

  19. What is an unregistered mutual fund?

  20. What is high-frequency trading?

  21. When did mutual funds come to the U.S.A.?

  22. Under the Investment Company Act of 1940, an investment company must have minimum net assets of how much before it can issue shares to the public?

  23. Under the Investment Company Act of 1940, an investment company, or mutual fund company, must have minimum net assets of how much before it can issue shares to the public?

  24. Can I still make money with a couch-potato portfolio?

  25. What is the performance cult?

  26. Compute the offering price for a mutual fund with NAV of $1,200,000,000, an 8% front-end load, and 1,000,000 shares outstanding.

  27. What is the difference between exchange-traded funds and mutual funds?

  28. How did Peter Young gain infamy as a "rogue trader"?

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

  30. What are soft dollars?

  31. What is the difference between municipal bonds and standard money market funds?

  32. When my mutual fund declares an income distribution, the fund price falls by a similar amount. How does this distribution benefit me?

  33. What is market capitulation?

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

  35. Why is it that when investors realize returns on a mutual fund, its price tends to fall?

  36. What is a liquidity squeeze?

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

  38. What is a mutual fund's NAV?

  39. Can a corporation deduct dividend payments to shareholders before taxes are calculated?

  40. What is securitization?

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

  42. Is it possible to lose all of your investment in an index fund?

  43. 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?

  44. Who's in charge of managing exchange-traded funds?

  45. How can I buy an S&P 500 fund?

  46. Are ETFs subject to the short sale uptick rule?

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

  48. Why do some closed-end mutual funds trade above or below their net asset values?

  49. What is a "socially responsible" mutual fund?

  50. How do you calculate the cost basis for a mutual fund over an extended time period?

  51. Can I match a fund to my religion?

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

  53. How do segregated funds differ from mutual funds?

  54. What's the difference between a load and no-load mutual fund?

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

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

  57. What's the difference between absolute and relative return?

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

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

  60. What is a wrap account and what are the advantages of using one?

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

  62. Can I sell mutual fund shares below their minimum intial purchase amount without being penalized?

  63. Who is Mr. Copper?

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

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

  66. What careers are popular among CFA charterholders?

  67. What is the difference between a blend fund and a balanced fund?

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

  69. Can you place a stop-loss order on a mutual fund?

  70. How do you find out the price of a mutual fund?

  71. How is the value of the S&P 500 calculated?

  72. How do I find mutual funds that track indexes?

  73. How does pyramiding work?

  74. What is mutual fund timing, and why is it so bad?

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

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

  77. What is late-day trading? Why is it any different from buying and selling stocks in the after-hours market?

  78. What's the difference between institutional and non-institutional investors?

  79. Is it possible to buy mutual funds using a margin account?

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

  81. Can an open-ended fund's price appreciate significantly?

  82. The risk an investor is most likely to encounter when investing in a Standard & Poor’s 500 Index fund is:

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Last Questions Asked:
  1.

    Is it a good idea to buy mutual funds from banks?

  2. Is it possible to beat the market?

  3. Where do most fund managers get their market information?

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