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Options And Futures FAQs

  1.

    If a LEAP option is purchased and held for more than 12 months, is the tax treatment long term?

  2. Is there ever a bad time to invest in gold?

  3. Where can I purchase options?

  4. How can I invest in a foreign exchange market?

  5. What is a derivative?

  6. What is the hard-to-borrow list?

  7. How does margin trading in the forex market work?

  8. What is the difference between trading currency futures and spot FX?

  9. Is it possible to trade forex options?

  10. I want to start buying stocks. Where do I start?

  11. What should I look for when choosing a forex trading platform?

  12. What is the difference between LIBOR, LIBID and LIMEAN?

  13. How much money do I need to start trading?

  14. What is the difference between the bond market and the stock market?

  15. What is the difference between an options contract and a futures contract?

  16. After exercising a put option, can I still hold my option contract in order to sell it at a lower price?

  17. What are the requirements to be able to contribute to an HSA?

  18. What is a "wash sale"?

  19. What are some common hand signals on the trading floor?

  20. If I buy a stock at $45 and I put a stop limit in to sell at $40, will I be guaranteed a sell once the stock has reached this price?

  21. Is life insurance good for mortgage protection?

  22. Why is Game Theory useful in business?

  23. What are the differences between AMEX and Nasdaq?

  24. What are the distribution options for an inherited annuity?

  25. What is a call rule?

  26. My variable annuity account took a beating. Should I seek other alternatives?

  27. Why would you want a monthly benefit versus a daily benefit?

  28. Who set the record loss for "rogue traders"?

  29. When holding an option through expiration date, are you automatically paid any profits, or do you have to sell the option and pay commissions?

  30. Which of the following BEST describes tax treatment of a long option that expires without exercise?

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

  32. Which is TRUE about Treasury bond futures?

  33. What are all of the securities markets in the U.S.A?

  34. How do I employ a cash-and-carry trade?

  35. What does it mean when futures prices are in contango?

  36. Which insurance policies do I really need?

  37. What is an unregistered mutual fund?

  38. Is it possible to short sell real estate?

  39. A Straddle

  40. What is the gold standard?

  41. What is an alligator spread?

  42. What is pension maximization?

  43. What was the Gold Reserve Act?

  44. All of these apply to an option exercise notice EXCEPT:

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

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

  47. What is the salad oil scandal?

  48. What is a wild-card play?

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

  50. What is a vest fleece?

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

  52. What is earnings management?

  53. What is market capitulation?

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

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

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

  57. 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?

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

  59. Can I roll my 401(k) and/or IRA funds into a more liquid investment fund without penalty?

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

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

  62. I overcontributed to my 401(k). What are my options?

  63. Why should I invest?

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

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

  66. 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?

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

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

  69. 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?

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

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

  72. How does somebody make money short selling?

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

  74. 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?

  75. 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.

  76. 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?

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

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

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

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

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

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

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

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

  85. What exactly is a company's float?

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

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

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

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

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

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

  92. What is the difference between options and futures?

  93. Is technical analysis used only to analyze stocks?

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

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

  96. I've heard that workers who don't roll over their 401(k)s after retiring face some problems related to estate planning. I was told it was some type of final 2002 government regulation. Is this true?

  97. What is the best way to save for private school expenses? A 529 plan, a Coverdell ESA or a mutual fund?

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

  99. What investments are available to someone with no earned income?

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

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Last Questions Asked:
  1.

    If a LEAP option is purchased and held for more than 12 months, is the tax treatment long term?

  2. Is there ever a bad time to invest in gold?

  3. Where can I purchase options?

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