1. What will happen to my U.S.-based stock portfolio if the U.S. dollar substantially ...

    The effect of a significant depreciation in the value of the U.S. dollar on the value of an investor's U.S-based portfolio is very much a function of the portfolio's contents. In other words, if the dollar declines substantially in value against a number of other currencies, your portfolio might be worth ...
  2. I want to buy a stock at $30, sell when it reaches $35, don't want to hang on to ...

    Once you've identified a security that you want to purchase, you need to determine a price at which you want to sell if the price heads in an adverse direction and a price at which you want to take profits when the price moves in your favor. In many cases, this data is relayed to the broker using three ...
  3. Does issuing preferred shares offer a tax advantage for corporations?

    There is no direct tax advantage to the issuing of preferred shares when compared to other forms of financing such as common shares or debt. The reason for this is that preferred shares, which are a form of equity, are paid fixed dividends with after-tax dollars.
  4. Where can I find information about pre- and after-hours trading on the NYSE and the ...

    The stock market, particularly the NYSE and Nasdaq, is traditionally open between 9:30am and 4pm EST. Over time, with the adoption of new technology and increases in demand for trading, these hours have been extended to include what is known as pre- and after-hours trading.
  5. I have some stocks in a taxable account. Can I use them to fund my Roth IRA instead ...

    Regular IRA contributions must be made in cash. Contributions of securities are not allowed. Internal Revenue Code Section § 219(e)(1) and IRS Publication 590 provide detailed information about IRA contribution rules.Exceptions apply to rollover contributions if the same security was distributed.For ...
  6. Can a bond have a negative yield?

    The return a bond provides to an investor is measured by its yield, which is quoted as a percentage. Current yield is a commonly quoted yield calculation, used to evaluate the return on a bond for a one-year period. It only accounts for the interest, or coupon payments, that the bond returns to investors.
  7. How do I calculate the adjusted closing price for a stock?

    When trading is done for the day on a recognized exchange, all stocks are priced at close. The price that is quoted at the end of the trading day is the price of the last lot of stock that was traded for the day. This is called a stock's closing price.
  8. What happens if a company doesn't think it will collect on some of its receivables?

    The accounts receivable account, or receivables for short, is created when a company extends credit to a customer based on a sale. However, there are times when a company will not collect on a particular sale, and the company must account for this on its financial statements.
  9. Why do some stock quotes appear in bold print in the newspaper?

    When it comes to keeping track of a stock's movements, many investors still look up the latest data in the local newspaper. Some of the most important data found in these stock tables includes a company's name, ticker symbol, weekly highs and lows, volume, previous high, low, close and the net change ...
  10. Given a good bookkeeping system, would financial accounting be necessary?

    Bookkeeping and financial accounting may seem like they are new creations, but variations have been around for millennia. The first record keeping systems, according to some, originated in about 4500 B.C. These early forms of record keeping were simple, single entry entities as it related to the company ...
  11. How do I buy an over-the-counter stock?

    The process of purchasing over-the-counter (OTC) stocks is different than purchasing stock from companies on the NYSE and the NASDAQ. The major difference is that OTC securities are unlisted, so there is no central exchange for the market. All orders of OTC securities must be made through market makers ...
  12. Can a church issue a bond?

    The North American Securities Administrators Association (NASAA) has acknowledged that "church bonds" are allowed to be issued under certain guidelines. These bonds can be issued only by religious affiliates that are identified as being a "church", "parish", "mosque" or a "synagogue", and can only be ...
  13. When looking at my online broker account, I see an account value, cash value and ...

    When looking at some online brokerage accounts, there are a few figures that may be confusing, including account value, cash value and purchasing power.The first figure, account value or total equity, is the total dollar value you have in your trading account.
  14. How many attempts at the Series 7 exam are permitted?

    The National Association of Securities Dealers (NASD) has not placed any limits on the number of times you can attempt to pass the Series 7 exam. However, there are restrictions on the amount of time that must pass between exam attempts. For your first three attempts you must wait 30 days after each ...
  15. How is the Parabolic SAR used in trading?

    The parabolic SAR is a popular indicator that is mainly used by traders to determine the future short-term momentum of a given asset. The indicator was developed by the famous technician known as Welles Wilder and can also easily be applied to a trading strategy, enabling a trader to determine where ...
  16. What is the difference between arithmetic and geometric averages?

    An arithmetic average is the sum of a series of numbers divided by the count of that series of numbers. If you were asked to find the class (arithmetic) average of test scores, you would simply add up all the test scores of the students, and then divide that sum by the number of students.
  17. How do I avoid paying excess taxes on securities I have sold?

    If you dispose of securities during the tax year, the profit or losses from the transaction are either capital gains or losses. If you held the asset for more than one year, the gain/loss is treated as long-term gains/losses. If you held the assets for up to one year, the gain/loss is treated as short-term ...
  18. How can I tell if I'm eligible for an EITC?

    According to the IRS, over 22 million taxpayers received $41.4 billion dollars in earned income tax credit (EITC) for tax year 2005. On the other hand, it was not claimed by approximately 20 to 25% of eligible taxpayers.The EITC goes toward reducing eligible taxpayers federal taxes, or increase the amount ...
  19. Why do longer term CDs pay a higher rate than the short-term CDs?

    To address this question, let's employ the concept of distance. In the city, a short taxi ride from your hotel to a convention center might cost about $5.00. However, when you depart from your hotel for a ride to the airport located outside the city limits, you're more likely to pay more than $30.00.
  20. What is the maximum amount of time that can elapse between CFA examinations?

    According to the CFA Institute, a candidate can take as much time as necessary between examinations. Therefore, if you passed the June 2006 CFA Level I examination, you could take the CFA Level II examination in June 2008, or even June 2010, instead of in June 2007.
  21. Are any special forms or documents required when transferring an IRA/SEP/SIMPLE to ...

    Most firms require that you complete their account transfer request form, which they use to request the transfer of assets (to your receiving account) on your behalf. Other than this document and the paperwork used to establish the receiving account, there is no legal documentation required.Keep in mind ...
  22. Profiting From The Bollinger Squeeze

    Learn how Bollinger's "squeeze" can help you determine breakout direction.
  23. Can I donate stock to charity?

    Giving stock, instead of cash, as a donation can greatly benefit both parties. You will find that most charities, hospitals, schools and other nonprofit organizations will accept stock as a gift or donation. If the stock has increased in value from the time of purchase, the owner can avoid paying the ...
  24. Where are the testing centers for the Series 7 examination?

    Testing centers for the Series 7 and other FINRA (Financial Industry Regulatory Authority), administered exams are located throughout the United States and in Australia, Canada, China, France, Germany, Japan, Singapore, South Korea, and the United Kingdom.To find a test center near you, click here.
  25. Analyzing IRA And ESA Statements

    Learn how to read and verify 5498 and 5498-ESA reporting your retirement-account contributions.
  26. Does a broker always have to buy a stock if I want to sell it?

    There are certain times when a broker must purchase the stock that you are selling. For example, if the broker is a market maker, the stock in question is traded on the Nasdaq and the broker is the highest bidder, that broker has a responsibility to purchase the shares.
  27. What is a subprime mortgage?

    A subprime mortgage is a type of loan granted to individuals with poor credit histories (often below 600), who, as a result of their deficient credit ratings, would not be able to qualify for conventional mortgages. Because subprime borrowers present a higher risk for lenders, subprime mortgages charge ...
  28. Trader's Corner - An Interview With A Success

    You too can use the strategies of one man who turned $11,000 into more than $18 million in 18 months.
  29. Which is better, a fixed or variable rate loan?

    A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest rates change. As a result, your payments will vary as well (as long as your payments are blended with principal and interest).
  30. What types of plans allow catch-up contributions?

    Catch-up contributions can only be made to plans with salary deferral features.If you want to make catch-up contributions, you will need to amend your profit-sharing plan to include a salary deferral feature if it does not already have one. Most profit-sharing documentation includes a check-box option ...
  31. New Retirement Plan Limits For 2011

    New changes to the law can have a huge impact on your nest egg.
  32. Can I leave my pension to my spouse when I pass away?

    In most cases, an individual with a pension plan should have the option to leave at least a portion of his or her pension to a surviving spouse and/or child. Oftentimes, this can be done by purchasing an option on the pension plan. However, depending on the specifics and conditions mentioned in the plan, ...
  33. What is the "random walk theory" and what does it mean for investors?

    The random walk theory is the occurrence of an event determined by a series of random movements - in other words, events that cannot be predicted. For example, one might consider a drunken person's path of walking to be a random walk because the person is impaired and his walk would not follow any predictable ...
  34. What is estate planning?

    Estate planning involves making plans for the transfer of your estate after death. Your estate is all the property that you own. It can include cash, clothes, jewelry, cars, houses, land, retirement, investment and savings accounts, etc. Estate planning usually has several objectives and goals.
  35. What is market cannibalization?

    Market cannibalism is defined as the negative impact a company's new product has on the sales performance of existing products. This is best illustrated by the "Cola Wars" - the marketing fight between Pepsi (NYSE:PEP) and Coca-Cola (NYSE:COKE), which lasted most of the 1970s and 1980s.
  36. How do I use a rollercoaster swap?

    A rollercoaster swap is the name for a swap (the exchange of one security for another) with a notional principal that differs during various payment periods. In other words, it is a swap agreement in which counterparties agree to a flexibility of payments.
  37. What is an echo bubble?

    To understand the term "echo bubble", you have to understand what a bubble is. A financial or economic bubble occurs when stocks trade at prices that exceed their intrinsic or true values. A stock trading beyond its true value eventually crashes, resulting in the decline of the stock price.
  38. What was the Whitewater scandal?

    The Whitewater scandal refers to a real estate controversy involving former President Bill Clinton and his wife Hillary. In 1978, when Bill Clinton was attorney general of Arkansas, he and his wife partnered with James and Susan McDougal to purchase 220 acres of land that would become the Whitewater ...
  39. Use the following information about a customer’s margin account to answer the question.

    ABC stock – 200 shares. CMV $40/share PDQ stock – 100 shares. CMV $30/share LIB stock – 100 shares. CMV $50/ share Debit balance -- $6,400If this customer used any SMA in the account to its maximum by purchasing stock, the DR balance in the account would be: A) $12,800B) $9,600 C) $8, ...
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  41. Delving Into Insider Investments

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  42. Top 5 Reasons For A Stock Slide

    Prices seldom drop without cause. Find out what might make your stock hit the skids.
  43. Solving Mixed Options Problems On The Series 7

    Learn to ace the questions that involve both options contracts and stock positions.
  44. Principal-Protected Investments: Risks, Fees And Regulations

    Discover if these instruments hit the right note for you.
  45. Mechanical Investing Not A Golden Key

    Direct paths to wealth are getting narrower, fewer and may be locked up tight.
  46. Top 7 Social Security Myths: Exposed

    A look at several myths that surround Social Security benefits.
  47. Downshift To Simplify Your Life

    Learn how to ditch the rat race with voluntary simple living.
  48. How Your Annuity Company Determines Renewal Rates

    Find the firm that's right for you by uncovering how it makes its investment choices.
  49. Eliot Spitzer - Man Of A Thousand Scandals

    Learn about the Wall Street scandals Eliot Spitzer prosecuted before perpetrating his own.
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    Calculate how much your property will need to appreciate to cover the costs of owning it.
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