1. What is the difference between a company's book value per share and its intrinsic ...

    Book value and intrinsic value are two ways to measure the value of a company.In simple terms, book value is based on the value of total assets less the value of total liabilities - it attempts to measure the net assets a company has built up until the present time.
  2. What procedure applies to a taxpayer who made excess contributions for 2001, 2002, ...

    If the IRA owner filed his/her 2004 tax return by the due date, including any extensions, he/she receives an automatic six-month extension to correct the 2004 excess contribution. The six-month extension begins on the due date of the return, excluding extensions.
  3. Does perfect competition exist in the real world?

    First, let's review what economic factors must be present in an industry with perfect competition: 1. All firms sell an identical product. 2. All firms are price-takers. 3. All firms have a relatively small market share. 4. Buyers know the nature of the product being sold and the prices charged by each ...
  4. Keeping An Eye On The Activities Of Insiders And Institutions

    These transactions reveal much about a stock. We go over what to consider and where to find it.
  5. What is a staggered board?

    A staggered board of directors (also known as a classified board) is a board that is made up of different classes of directors. Usually, there are three classes, with each class serving for a different term length than the other. Elections for the directors of staggered boards usually happen on an annual ...
  6. My brokerage firm won't allow naked option positions. What does this mean?

    A naked position refers to a situation in which a trader sells an option contract without holding a position in the underlying security as protection from an adverse shift in price. Naked positions are regarded as very risky because some positions can, in theory, lead to an unlimited amount of loss.
  7. Is it true that you can sell your home and not pay capital gains tax?

    It is true in most cases. When you sell your home, the capital gains on the sale are exempt from capital gains tax. Based on the Taxpayer Relief Act of 1997, if you are single, you will pay no capital gains tax on the first $250,000 you make when you sell your home.
  8. What is the haircut rate imposed by clearing corporations?

    A haircut rate is a measure that reduces the value of any collateral used in a loan to ensure that when the effects of volatility and adverse price changes are taken into consideration, the collateral will still have enough value so that the lender does not realize any loss.
  9. Are the deferred earnings in a SIMPLE IRA subject to FICA taxes?

    While salary deferral contributions to a savings incentive match plan for employees of small employers (SIMPLE) IRAs and SIMPLE 401(k)s are not subject to income tax withholding, they are subject to tax under the Federal Insurance Contributions Act (FICA), the Federal Unemployment Tax Act (FUTA) and ...
  10. What parties are involved in the creation of an American depositary receipt?

    An American depositary receipt (ADR) is a legal certificate issued by a recognized U.S. bank that represents a specific number of shares of a foreign corporation traded on a U.S. stock exchange. An ADR will be used by a foreign corporation that wishes to have a portion of its equity traded in the U.S.
  11. I am 61 years old and would like to contribute to my employer's 401(k) plan. Is there ...

    There is no age limit. As long as you are still employed by the company that sponsors the 401(k) plan, you may participate in the plan and make contributions.Be sure to check with your employer about financial planning services. Many companies offer professional financial planning services to their employees ...
  12. Triple Screen Trading System - Part 6

    Williams %R can confirm the strength of trends and warn of reversals. Find out how to use it as the second screen in this triple-screen system.
  13. Are high-yield bonds better investments than low-yield bonds?

    Most bonds typically make periodic payments, known as coupon payments, to the bondholder. A bond's indenture, which will be known when the purchaser buys the bond, will specify the coupon payments to be paid by the bond.Different companies will issue different bonds to raise financial capital, and the ...
  14. Can an option be exercised on the expiration date?

    The use of options has increased dramatically over the years as a way to profit from or hedge against the volatile movements of stock prices. Not only can options be traded with stock as the underlying asset, they are also traded on foreign currency, interest rates and various indexes.
  15. Sell Growth Stocks The IBD Way

    Savvy investing is all about learning some smart rules and sticking to them. We give you the rundown.
  16. What does it mean when a bond has a put option?

    A put option on a bond is a provision that allows the holder of the bond the right to force the issuer to pay back the principal on the bond. A put option gives the bond holder the ability to receive the principal of the bond whenever they want before maturity for whatever reason.
  17. The Cost Of Variable Annuity Guarantees

    These products tempt investors with some impressive benefits - but they come at a price.
  18. How do you calculate the cost basis for a mutual fund over an extended time period?

    Investors must pay taxes on any investment gains they realize. Subsequently, any capital gain realized by an investor over the course of a year must be identified when they file their income taxes. For this reason, being able to accurately calculate the cost basis of an investment, particularly one in ...
  19. Is an earnings surprise priced into the opening value by market makers or does the ...

    An earnings surprise is an event where the earnings of a company are greater or lower than the predictions put forth by analysts, usually by a relatively large margin. Depending on the earnings report, it is the buyers/sellers that will respond in the market and drive the price either up or down.
  20. Are eurodollars related to the currency called the euro?

    Eurodollars have little to do with the official currency of the European Union, the euro (EUR). In 1999, the euro was implemented as the official currency of the European Union as a means to further integrate the economies of that region. Most of the member states of the European Union have dropped their ...
  21. I have just been laid off. Can I use my 401(k) for living expenses now and report ...

    Any amounts withdrawn from your 401(k) plan must be treated as ordinary income for the year the amount is distributed from your 401(k) account. Consider the following: If any portion of the withdrawal is rollover eligible, the plan administrator must withhold 20% for federal taxes if the amount ...
  22. What will happen to my SEP IRA if I leave my current employer?

    Because the funding vehicle for the SEP is a Traditional IRA, the same transfer and rollover rules that apply to a Traditional IRA also applies to an SEP IRA. The SEP is treated as a Traditional IRA, except that it is allowed to accept employer contributions.
  23. Side-By-Side Management May Favor Hedge Over Mutual Funds

    Having your firm handle both investments can spell disaster for your returns.
  24. What does it mean to have orphan drug status?

    In 1982, The U.S. Food and Drug Administration (FDA) recognized the lack of incentive for pharmaceutical companies to develop cures for rare diseases and established the Office of Orphan Product Development. This branch of the FDA provides incentives to companies that work toward curing rare diseases ...
  25. 8 Reasons To Never Borrow From Your 401(k)

    Find out why dipping into your future savings can have serious consequences.
  26. Which is better for tax deductions, itemization or a standard deduction?

    Each deduction that you claim may result in a decrease in the amount of taxes that you owe. However, whether you receive the maximum possible deduction could depend on whether your deduction is itemized or standard.In some cases, you have no choice but to itemize your deductions, as you may not be eligible ...
  27. The Pension Bill: A Wolf In Sheep's Clothing

    Find out why the 2006 act may not be all it's cracked up to be.
  28. I failed the Series 6 exam. How long must I wait before I can re-take it?

    If you fail your first attempt at the Series 6 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 after your last exam attempt. At this point, your window will be open for 90 days.
  29. When am I not required to submit a social security number on my tax return?

    When filing your tax return, you are generally required to include the social security numbers of yourself and the individuals for whom you claim as dependents. However, exceptions do apply. ExceptionsChild Born and Died Same YearIf you have a child who died in the year of birth, and you did not apply ...
  30. Use Breakup Value To Find Undervalued Companies

    Find out a company's worth if it were sold in pieces - it may be more than you think.
  31. Is there any difference between a holder of a Chartered Financial Analyst Designation ...

    Using the title "Certified Financial Analyst" to refer to the CFA® program offered by the CFA Institute is incorrect.CFA Institute holds the trademarks associated with the CFA® program. The acronym "CFA®" can refer only to the Chartered Financial Analyst designation or charter.
  32. I have two Roth IRAs, one of which has a balance that is much less than the total ...

    It depends. You are eligible to write off the losses only if the balance for both of your Roth IRAs (combined) is less than your aggregate contributions and conversions to both Roth IRAs, and you distribute the entire balance of both Roth IRAs. The loss is claimed on your Form 1040 - Schedule A as an ...
  33. I have not received my Series 7 exam certificate. Where can I obtain it?

    The National Association of Securities Dealers (NASD) does not provide candidates with any physical certificate signifying the completion of the exam. If current or potential employers wish to view proof of your completion, they have access to this information through the Central Registration Depository ...
  34. I want to roll over a portion of my retirement plan with my employer and I have been ...

    This is based on the rules that an individual can roll over a portion of his or her retirement plan balance, rather than rolling over the entire balance. According to the rules, if an individual rolls over only a portion of his retirement account balance, the portion that is rolled over is deemed to ...
  35. I am not currently employed at a member firm, but I have independently written the ...

    After you have successfully completed your exam, you have two years to become registered or licensed to prevent your completion status from becoming invalid. Once you do obtain employment, the hiring firm must submit form U-4 to the Financial Industry Regulatory Authority or FINRA.
  36. Pinpoint Takeovers First

    Use these seven steps to discover a takeover before the rest of the market catches on.
  37. What is securitization?

    Securitization is the process of taking an illiquid asset, or group of assets, and through financial engineering, transforming them into a security.A typical example of securitization is a mortgage-backed security (MBS), which is a type of asset-backed security that is secured by a collection of mortgages.
  38. How does online banking assist with budgeting?

    Setting up online banking can make a personal budget easier to manage through the use of multiple accounts or expense categories with the same financial institution (for expenses like utility bills, vacation accounts, retirement funding accounts, etc.).
  39. How do I register for the CFA program for the first time?

    CFA Institute provides prospective CFA candidates with a couple registration options.1) Online Registration: This is the quickest and easiest method to register as CFA Institute receives your registration immediately. All you need to do is create an online user account and once that is complete, register ...
  40. What are managed futures?

    Managed futures are futures positions entered into by professional money managers, known as commodity trading advisors, on behalf of investors. Managers invest in energy, agriculture and currency markets (among others) using futures contracts and determine their positions based on expected profit potential.A ...
  41. What is the difference between "hard money" and "soft money"?

    Hard money and soft money are terms that are often used to describe coin money and paper money, respectively. However, these terms are also used to refer to political contributions in the United States, which can be made directly to a specific candidate (hard money) or indirectly to parties and committees ...
  42. What do people mean when they say there is a "bubble" going on in the market, such ...

    A financial "bubble" refers to a situation where there is a relatively high level of trading activity on a particular asset class at price levels that are significantly higher than their intrinsic values. In other words, a bubble occurs when certain investments are bid up to prices that are far too high ...
  43. Let Life Insurance Riders Drive Your Coverage

    Find out how these additional benefits can help you customize your policy.
  44. How did George Soros "break the Bank of England"?

    In Britain, Black Wednesday (September 16, 1992) is known as the day that speculators broke the pound. They didn't actually break it, but they forced the British government to pull it from the European Exchange Rate Mechanism (ERM). Joining the ERM was part of Britain's effort to help along the unification ...
  45. The Top 3 Retiree Worries (And What To Do About Them)

    Discover the most common problems retirees face, and what they can do to solve them.
  46. Where can I find a list of all of the stocks in the S&P 500?

    The actual list of all 500 stocks in the S&P 500 is called the Constituent List. It can be found on the official Standard & Poor's website under the Equities Indexes section.To be added to the S&P 500, a stock must meet a broad spectrum of criteria, including a total market capitalization ...
  47. How do I identify a gray market?

    The term "gray market" refers to the market for the purchase and sale of uncirculated securities that will be offered at a future date. An issuer may execute a customer order prior to the initial public offering of the securities. One benefit of the gray market is that the issuer can gauge demand before ...
  48. Unearth Profits In Oil Exploration And Production

    Drill down into financial statements to tap into the right companies and let returns flow.
  49. Relationship Money Matters

    Whether married, single or somewhere in between, you'll face unique financial challenges.
  50. What does negative shareholder equity on a balance sheet mean?

    Negative shareholder equity could show up on a company's balance sheet for a number of reasons, all of which should serve as red flags to look much closer before investing. To understand why, you need to look no further than the formula for shareholder equity: Total Assets - Total Liabilities = Shareholder ...
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  3. How To Monetize Your YouTube Channel

    YouTube's Partner Program helps users earn money through their channels. Find out how.
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  5. Is Cyber Monday The New Black Friday?

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