Stocks FAQs

  1. How do I start using technical analysis?

  2. What is the difference between weighted average shares outstanding and basic weighted average shares?

  3. What does it mean when there is "price action"?

  4. What is a cross hedge?

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

  6. What is the McGinley Dynamic?

  7. Do stocks that trade with a large daily volume generally have less volatility?

  8. Why is the 1982 AT&T breakup considered one of the most successful spinoffs in history?

  9. Which two companies underwent the biggest corporate merger of the 1990s?

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

  11. How do I value the shares that I own in a private company?

  12. How do I use the Nova/Ursa ratio?

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

  14. What is the significance of a Schedule 13D?

  15. What is high-frequency trading?

  16. Does the balance sheet always balance?

  17. What is the difference between an acquisition and a takeover?

  18. What does it mean when "N/A" appears for a company's P/E ratio?

  19. What was the first company with a $1 billion market cap?

  20. What is the Coppock curve?

  21. Why would a company do a reverse merger instead of an IPO?

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

  23. What are the penalties for withdrawing from my Traditional IRA less than a year after acquisition?

  24. How do I use a premium put convertible?

  25. What business processes were used to establish the Chevrolet motor company?

  26. What is a split-adjusted share price?

  27. In the forex market, how is the closing price of a currency pair determined?

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

  29. What is a stock-for-stock merger and how does this corporate action affect existing shareholders?

  30. How do businesses decide whether to do FDI via green field investments or acquisitions?

  31. When is a takeover bid legally canceled?

  32. Which of the following terms are associated with the purchase/redemption of open-end investment company shares?

  33. What are pro forma earnings?

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

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

  36. Which is the best index to use to study the possible future price action of a given small-cap stock?

  37. Can investors short sell pink sheet or over-the-counter stocks?

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

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

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

  41. Can technical analysis be called a self-fulfilling prophecy?

  42. What do the "BxA" numbers on my brokerage's trading screen mean?

  43. Where can I find information about pre- and after-hours trading on the NYSE and the Nasdaq?

  44. What should I use as a benchmark for my small-cap stock portfolio?

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

  46. What does it mean to use technical divergence in trading?

  47. What is Fibonacci retracement, and where do the ratios that are used come from?

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

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

  50. Why would a multinational corporation conduct a vertical foreign direct investment?

  51. What is the best method of analysis for forex trading?

  52. What is the "Nifty 50"?

  53. What does it mean when a stock trades on the Pink Sheets or the OTCBB?

  54. Is it possible for a company to have a positive cash flow and a negative net income?

  55. What is the pitchfork indicator that I keep hearing about, and how do I use it?

  56. What is the difference between a logarithmic price scale and a linear one?

  57. Where do I place my target when the price of a stock breaks out of a technical chart pattern?

  58. What do the bracketed numbers following a technical indicator mean?

  59. Is scalping a viable forex trading strategy?

  60. What is a blank-check company?

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

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

  63. Stocks with high P/E ratios can be overpriced. Is a stock with a lower P/E always a better investment than a stock with a higher one?

  64. What is the difference between economic value added and market value added?

  65. Why would my stock's value decline despite good news being released?

  66. If a company undergoes an acquisition can an employee withdraw 401(k) funds tax free?

  67. What are managed futures?

  68. How do I take qualitative factors into consideration when using fundamental analysis?

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

  70. I want to buy a stock at $30, sell when it reaches $35, don't want to hang on to it if it dips below $27, and I want to do all this in one trading order. What type of order should I use?

  71. What is the difference between leverage and margin?

  72. What is a GTEM order?

  73. What is the "random walk theory" and what does it mean for investors?

  74. How does pyramiding work?

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

  76. What is the difference between options and futures?

  77. How can I hedge against rising diesel prices?

  78. Would a slow stochastic be effective in day trading?

  79. In M&A how does an all-stock or all-cash deal affect the equity of the buying company?

  80. What is a virtual trailing stop order (VTSO)?

  81. A cash buyout agreement has been announced for a stock I own, but why isn't my stock trading at a per-share price equal to the buyout price?

  82. What is a Bermuda swaption?

  83. What is the difference between fundamental and technical analysis?

  84. How does a pump and dump scam work?

  85. I placed a limit order to buy a stock after the market closed, but the stock's price gapped above the entry price and my order never got filled. How can I prevent this from happening?

  86. What is the haircut rate imposed by clearing corporations?

  87. Why do some stock quotes appear in bold print in the newspaper?

  88. Does a strong trend (ADX > = 40) cause an increase in volatility?

  89. How are the interest charges calculated on my margin account?

  90. What's the difference between old- and new-economy stocks?

  91. What technical tools can I use to measure momentum?

  92. How long does a stock that has done a reverse split keep the letter "D" at the end of its symbol?

  93. Can an option have a negative strike price?

  94. How is the Parabolic SAR used in trading?

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

  96. Why are P/E ratios generally higher during times of low inflation?

  97. Is technical analysis used only to analyze stocks?

  98. What is a staggered board?

  99. How is spread calculated when trading in the forex market?

  100. How can I determine a stock's next resistance level or target price?

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