Options And Futures FAQs

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

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

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

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

  5. What is options backdating?

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

  7. What are managed futures?

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

  9. 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?

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

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

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

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

  14. What is authorized stock?

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

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

  17. Who is Mr. Copper?

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

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

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

  21. 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?

  22. How does leverage work in the forex market?

  23. Who sets the price of commodities?

  24. Who or what are the turtles?

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

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

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

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

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

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

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

  32. What is the difference between leverage and margin?

  33. What does "squeezing the shorts" mean?

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

  35. What is variable life insurance?

  36. What is earnings management?

  37. 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?

  38. What exactly is a company's float?

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

  40. How is a put option exercised?

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

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

  43. How are stock warrants different from stock options?

  44. What is market capitulation?

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

  46. 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

  47. How do restricted stocks, treasury stocks and stock appreciation rights benefit employees?

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

  49. Why are corporations so concerned about their stock price?

  50. 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?

  51. How does pyramiding work?

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

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

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

  55. 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?

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

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

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

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

  60. How does somebody make money short selling?

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

  62. How can I hedge against rising diesel prices?

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

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

  65. How does the ISIN numbering system work?

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

  67. What does "guns and butter" refer to?

  68. What is a Bermuda swaption?

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

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

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

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

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

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

  75. Can I roll my 403(b) and 457 into other low-cost venders when I change jobs?

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

  77. 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?

  78. 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?

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

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

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

  82. Can an option have a negative strike price?

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

  84. 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?

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

  86. How do I "vest" something?

  87. What are goldbrick shares?

  88. What is Ginzy trading?

  89. What does it mean to book the basis?

Trading Center