Options And Futures FAQs

  1. 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?

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

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

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

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

  6. 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?

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

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

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

  10. What is the difference between options and futures?

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

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

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

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

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

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

  17. Is technical analysis used only to analyze stocks?

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

  19. What is the difference between hedging and speculation?

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

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

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

  23. Why should I invest?

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

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

  26. What is dilutive stock?

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

  28. How are futures used to hedge a position?

  29. What happens to my call options if the underlying company is bought out?

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

  31. What was "Operation Wooden Nickel"?

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

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

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

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

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

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

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

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

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

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

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

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

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

  45. What is options backdating?

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

  47. What are managed futures?

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

  49. 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?

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

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

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

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

  54. What is authorized stock?

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

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

  57. Who is Mr. Copper?

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

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

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

  61. 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?

  62. How does leverage work in the forex market?

  63. Who sets the price of commodities?

  64. Who or what are the turtles?

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

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

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

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

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

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

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

  72. What is the difference between leverage and margin?

  73. What does "squeezing the shorts" mean?

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

  75. What is variable life insurance?

  76. What is earnings management?

  77. 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?

  78. What exactly is a company's float?

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

  80. How is a put option exercised?

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

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

  83. How are stock warrants different from stock options?

  84. What's the difference between a golden handshake and a golden parachute?

  85. What is Ginzy trading?

  86. What does it mean to book the basis?

  87. How do I "vest" something?

  88. What are goldbrick shares?

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