1. What are "I Bonds" and how can I buy them?

    The term "I Bond" is industry lingo for inflation-linked savings bonds issued by the U.S. Treasury. You've probably heard of investment opportunities in government-issued securities before - think T-bills or Treasury bonds. I bonds are very similar in nature: backed by the monetary power of the U.S.
  2. Is there such a thing as a nano cap or micro cap index?

    While there are indexes that track micro cap stocks, there are few indexes tracking nano caps. Although definitions vary, a nano cap stock generally has a market capitalization of less than $50 million and a micro cap has $50 million to $300 million. A company's market cap is simply its share price multiplied ...
  3. What investments are available to someone with no earned income?

    Disability income, such as income received by disabled veterans, is not considered "compensation" for the purpose of contributing to an IRA. However, all is not lost. You may invest your income in bonds, mutual funds or other assets. Some investments allow you to defer paying taxes on the interest and ...
  4. If one of your stocks splits, doesn't that make it a better investment? If one of ...

    Unfortunately, no. To understand why this is the case, let's review the mechanics of a stock split.Basically, companies choose to split their shares so they can lower the trading price of their stock to a range deemed comfortable by most investors. Human psychology being what it is, most investors are ...
  5. How do I calculate how much I've gained or lost on a stock holding?

    This may seem like a fairly simple question, but it can be confusing if you fail to break it down into the proper steps. Stock trades generate dollar profits and/or losses, which are measured in percentages. Let's use a simple example to illustrate:Suppose an investor buys 100 shares of Cory's Tequila ...
  6. Cost-Push Inflation Versus Demand-Pull Inflation

    Gain a deeper understanding of aggregate supply and demand, forces which raise the price of goods and services.
  7. Is divorce an exception to the SIMPLE IRA's two-year waiting period rule?

    First, some background: during the first two years after a SIMPLE IRA is established, assets held in the SIMPLE must not be transferred or rolled to another retirement plan. This two-year period begins the first day the employer deposits a contribution to the SIMPLE IRA.
  8. If an employee covered by a SIMPLE leaves his employer within the two-year period ...

    During the first two years after the SIMPLE IRA is established, assets held in the SIMPLE must not be transferred or rolled to another retirement plan. This two-year period, to which you refer in your question, begins the first day the employer deposits a contribution to the SIMPLE.
  9. How is the value of the S&P 500 calculated?

    The S&P 500 is a U.S. market index that gives investors an idea of the overall movement in the U.S. equity market. The value of the S&P 500 constantly changes based on the movement of 500 underlying stocks. The index is computed by weighted average market capitalization.
  10. Should I put money into a retirement account even if it isn't tax deductible?

    One of the biggest and most often-touted advantages of putting money into a retirement account is the tax savings that come from income deferral. There is no doubt that this is a major benefit, but it is not the only factor you should consider when thinking about saving for your post-work years.
  11. What is the difference between a merger and a takeover?

    In a general sense, mergers and takeovers (or acquisitions) are very similar corporate actions - they combine two previously separate firms into a single legal entity. Significant operational advantages can be obtained when two firms are combined and, in fact, the goal of most mergers and acquisitions ...
  12. I want to purchase a five-year period certain single premium immediate annuity (SPIA) ...

    The income from a SPIA IRA is subject to the early distribution penalty unless an exception applies. As you may know, the substantially equal periodic payment (SEPP) exception is usually calculated by using one of three IRS approved safe-harbor methods.
  13. Who are the key players in the bond market?

    The bond market can essentially be broken down into three main groups: issuers, underwriters and purchasers. The issuers sell bonds or other debt instruments in the bond market to fund the operations of their organizations. This area of the market is mostly made up of governments, banks and corporations.
  14. Inflation-Protected Annuities: Part Of A Solid Financial Plan

    If you worry about inflation and longevity risks, this may be the investment for you.
  15. Where does the stock come from when convertible bonds are converted to stock?

    First, let's define convertible bonds. A unique combination of debt and equity, they provide investors with the chance to convert a debt instrument into shares of the issuer's common stock, at a set price and usually by a set date. This is usually done at the discretion of the bondholder, but in some ...
  16. If I pay for a course to learn about trading can I write some of it off?

    There are some investing costs that can be written off each year, even if you aren't a day trader. The general rule in determining whether an investment expense is deductible is that the expense needs to be ordinary and necessary to produce or collect income, or in the management of property used to ...
  17. I just learned that my 2004 and 2005 Roth IRA contributions are not allowed because ...

    The 2004 excess amount to your Roth IRA would have to be removed by October 15, 2005, to avoid the 6% penalty (assuming that you filed your tax return or filed for an extension on April 15, you receive an automatic extension to October 15, 2005 to remove excess amounts).
  18. What is the difference between hedging and speculation?

    Hedging involves taking an offsetting position in a derivative in order to balance any gains and losses to the underlying asset. Hedging attempts to eliminate the volatility associated with the price of an asset by taking offsetting positions contrary to what the investor currently has.
  19. Why would my stock's value decline despite good news being released?

    More often than not, when a firm releases an earnings report the market will react to this news by adjusting the firm's stock price. This stock price is based on the expectations investors have for the firm's earning potential. Earnings are a significant underlying evaluation factor when determining ...
  20. What are 'death spiral' convertible bonds?

    Conventional convertible bonds give the bondholder the right to exchange the bond for a certain amount of the issuer's common shares, regardless of the current market price of those shares. The bondholder will see a large payoff in situations where the total value of the underlying common shares appreciate ...
  21. What is the difference between principles-based accounting and rules-based accounting?

    Almost all companies are required to prepare their financial statements as set out by the Financial Accounting Standards Board (FASB), whose standards are generally principles-based. Recently, there has been much debate on whether principle-based accounting would be more efficient than the popular rules-based ...
  22. Is it possible to lose all of your investment in an index fund?

    There are few certainties in the financial world, but we can say that there is almost zero chance that any index fund could ever lose all of its value.There are a few reasons for this. First of all, virtually all index funds operate with a very high level of diversification.
  23. If a company moves its dividend record date forward, does the ex-dividend date change ...

    When a dividend is declared, there are three important dates for investors: the dividend payable date, the dividend date of record and the ex-dividend date.The dividend payable date is the date that the company will actually make the dividend payments that it has announced.
  24. Why are corporations so concerned about their stock price?

    When the share price of a company is high or increasing, generally corporations, or more specifically their management teams, are happy about it and there is good reason for it.First of all, the price of a company's shares is often used as an indication of the overall strength and health of a company.
  25. Anticipate Trends To Find Profits

    Monitoring your trades in real-time can help you anticipate their outcomes.
  26. What does the Pension Protection Act of 2006 say about charitable contributions?

    According to the Pension Protection Act of 2006 (PPA), you can make a distribution from your IRA payable to a charity. A distribution to a charity is not taxable to the IRA owner if the charity satisfies the specifications as described under PPA and the distribution occurs after the IRA owner reaches ...
  27. Does a company's American depositary share equal one share of common stock?

    American depositary shares (ADS) come into play when a foreign company wants its shares to trade on a major American exchange. Securities laws prevent foreign corporations that have shares trading in a foreign market to directly list their shares on U.S.
  28. How can unethical executives use options backdating to evade taxes?

    The practice of options backdating has landed many companies into the hotseat. The SEC constantly investigates possible instances where high level executives have been issued options at a past point in time (or backdating) where the underlying stock's price was at a low.This way the executive would be ...
  29. What possible past activities will prevent me from becoming a Registered Representative?

    There are several events that could either prevent a person from becoming a Registered Representative, or that will result in the loss of membership or registration. According to the NASD, you could be subject to a "statutory disqualification" under the Exchange Act if you: (Note: the following items ...
  30. The Importance Of Segment Data

    Key financials often fail to provide insight into large cap companies.
  31. Do I need to be a U.S. citizen to sit for any NASD examinations?

    No. The National Association of Securities Dealers (NASD) does not require a candidate to be a U.S. citizen to sit for an exam. The NASD offers their exams at many test centers internationally. Click Here to book an exam, find a testing center location, or review the NASD's policies and procedures.
  32. How do I file taxes for income from foreign sources?

    If you are a U.S. citizen or resident alien, your income (except for amounts exempt under federal law), including that which is earned outside the U.S., is usually subject to U.S. income tax.This includes earned income and unearned income, such as: Wages and tips Interest Dividends ...
  33. The Global Electronic Stock Market

    The way trading is conducted is changing rapidly as exchanges turn toward automation.
  34. I am interested in pursing the CFA charter, but I do not have a degree in business ...

    The Chartered Financial Analyst (CFA) program is by no means an introduction to the world of investment. CFA Institute (formerly AIMR) describes the CFA program as being supplementary to any finance-related education and investment experience already completed by an investment professional.
  35. I lost my share certificate. Do I still own the stock?

    Regardless of whether a shareholder loses his or her stock certificate, that person still owns the shares. However, in order to replace the physical certificate, the shareholder must contact the company's stock transfer agent. The corporation should be able to provide the shareholder with information ...
  36. Monte Carlo Simulation With GBM

    Learn to predict future events through a series of random trials.
  37. A company I recently looked up showed institutional holdings of more than 100%. How ...

    It is obviously not technically possible for any shareholder or category of shareholder to hold more than 100% of a company's outstanding shares. Therefore, when you see investment information websites reporting institutional holdings exceeding the 100% mark, something is wrong with the data.
  38. At what point in the ordering process does a broker charge commission?

    When placing a market order for a security through a broker, there will be a commission accompanying the service. The fee charged can vary depending on whether the order is filled, canceled, modified or it expires.In most situations, when an investor places a market order that goes unfilled, that investor ...
  39. Build A Wall Around Your Assets

    Learn how to protect your money from lawsuits, creditors and other judgment proceedings.
  40. I failed the Series 7 exam. How long must I wait before I can take it again?

    If you fail your first attempt at the Series 7 exam, your sponsor can submit an amendment to reopen a window in which you can write the exam again. This window will not open until 30 days since your last exam attempt has transpired. At this point, your window will be open for 90 days.
  41. What is the best way to budget for holiday and special event spending?

    Even though holidays and special events arrive sporadically throughout the year, you can still fight the costs associated with these events using a little foresight and some digging into past spending patterns - and, this is where your budget comes in to save the day.
  42. Can I roll my SEP IRA into a Traditional IRA or should I convert to a Roth?

    Technically, the SEP IRA and the Traditional IRA are the same type of account. The only difference is that the SEP IRA is allowed to receive employer contributions. Therefore, you can combine the SEP IRA into the Traditional IRA without any ramifications.
  43. What types of accounts are available for forex trading?

    There are many different types of forex accounts available to the retail forex trader. Demo accounts are offered by forex brokers as a way to introduce traders to their software and execution methods. After the trader has tried out demo accounts with a few different dealers, a funded trading account ...
  44. Gauging Major Turns With Psychology

    Knowing what the market is thinking is the best way to determine what it will do next.
  45. How do interest rate changes implemented by the Fed affect the stock market?

    The actions of the Federal Reserve are closely followed by the investment community. Scores of analysts work to interpret the statements issued by the Fed and also attempt to predict any changes to interest rates that the Fed might undertake.Because of the effect of these expectations, there can be no ...
  46. What is Black Monday?

    Monday October 19,1987, is known as Black Monday. On that day, stockbrokers in New York, London, Hong Kong, Berlin, Tokyo and just about any other city with an exchange stared at the figures running across their displays with a growing sense of dread.
  47. Different Needs, Different Loans

    Find out what options are available when it comes to borrowing money.
  48. Municipal Bond Tips For The Series 7 Exam

    Learn to distinguish between general obligation and revenue bonds to ace this test.
  49. Navigating Government And Nonprofit Financial Statements

    Learn how to trace where your tax dollars and charitable donations are going.
  50. Dividends Still Look Good After All These Years

    Find out how this "first love" still holds its bloom as it ages.
Save Money
  1. 5 Ways To Make Your Home Remodels Pay Off

    Here are five ways to make your home renovation worth the money and effort you put into it.
  2. Differences Between Private Foundations And Public Charities

    Here's a look at the differences between these types of charitable organizations.
  3. How To Monetize Your YouTube Channel

    YouTube's Partner Program helps users earn money through their channels. Find out how.
  4. The World's Most Valuable Private Companies

    In spite of the rewards going public can bring, some companies prefer to remain private, and they are very successful in this.
  5. Is Cyber Monday The New Black Friday?

    Cyber Monday is becoming more popular than Black Friday. Here's why.
Trading Center