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FAQs tagged as

Investing-Basics

  1.

    How are capital gains and dividends taxed differently?

  2. Is a dividend reduction a signal to sell?

  3. What is a stock ticker?

  4. What is an asset?

  5. How do you flip a home?

  6. How do I start using technical analysis?

  7. How are share prices set?

  8. What exactly is being done when shares are bought and sold?

  9. What is the difference between positive and normative economics?

  10. Why do some companies pay a dividend, while other companies do not?

  11. If I am looking to get an Investment Banking job. What education do employers prefer? MBA or CFA?

  12. Is it possible to beat the market?

  13. What is an IPO lock-up period and how long is it?

  14. What is a dividend?

  15. How does TARP affect the economy?

  16. How long can you short sell for?

  17. I recently got married and now we (together) have two houses (hers and mine). I have only lived in mine for 13 months and was wondering if there was an exemption to capital gains tax if we could not reasonably afford the two properties?

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

  19. What is the difference between investing and trading?

  20. What is the difference between arbitrage and speculation?

  21. What is finance?

  22. How does a company switch from one stock exchange to another?

  23. What is a derivative?

  24. If you have a house that is under your company name and you want to sell it back to yourself, do you have to pay capital gains taxes?

  25. What is the correlation between American stock prices and the value of the U.S. dollar?

  26. What is the difference between risk tolerance and risk capacity?

  27. What is the hard-to-borrow list?

  28. How does margin trading in the forex market work?

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

  30. Where do most fund managers get their market information?

  31. What do the different types of mutual fund classes mean?

  32. If my mortgage lender goes bankrupt, do I still have to pay my mortgage?

  33. What are the rules for placing stop and limit orders in forex?

  34. Is it possible to trade forex options?

  35. How can I use layaway plans for budgeting?

  36. What happens during the spending/gifting phase of an investor's life cycle?

  37. I want to start buying stocks. Where do I start?

  38. Is it possible to invest in an index?

  39. What is the double taxation of dividends?

  40. I don't understand how a stock has a trading price of 5.97, but when I buy it I have to pay the asking price of 6.04. How can I be paying more than what the stock is trading for?

  41. Why can't I enter two sell orders on the same stock?

  42. How do open market operations affect the U.S. money supply?

  43. What percentage of a company's float can be shorted?

  44. What is evergreen funding?

  45. Does a company have to notify its investors when it faces legal proceedings?

  46. According to the CAPM, the expected return on a stock, that is part of a portfolio, will depend on all of the following except:

  47. What is a cross hedge?

  48. A formula timing plan which consists of periodic purchases of a fixed dollar amount of an investment company regardless of price is known as:

  49. Which investment would be most suitable for a client investing for retirement and seeking protection from purchasing power risk in the future?

  50. Is there a buy-and-hold strategy in forex, or is the only way to make money by trading?

  51. What's the difference between weighted average accounting and FIFO/LILO accounting methods?

  52. Excessive trading is:

  53. Which of these is not one of Porter's 5 competitive forces?

  54. If a client has a very low risk tolerance, all of the following might be suitable investments EXCEPT:

  55. Type Of Return

  56. How much money do I need to start trading?

  57. The reason why ERISA qualified plans should have an investment policy statement is to:

  58. How do name-brand products compete with their generic competitors?

  59. When and why did brokerages switch from fixed commissions to negotiated ones?

  60. What are some of the key differences between IFRS and U.S. GAAP?

  61. The real rate of return is the amount of interest earned over and above the?

  62. The BEST definition of a benchmark portfolio is:

  63. Is short selling allowed in India?

  64. What is the difference between the bond market and the stock market?

  65. Why are most bonds traded on the secondary market "over the counter"?

  66. What are the advantages and disadvantages of mutual funds?

  67. What is the difference between a Ponzi and a pyramid scheme?

  68. Under the USA, there are antifraud provisions that apply to securities. Which of the following statements is true?

  69. What is a "wash sale"?

  70. Where do I look for fees that I am charged on investments? What are those fees called?

  71. When diversifying a bond portfolio, you should make sure to take into account all of the following EXCEPT:

  72. Which transactions affect the retained earnings statement?

  73. How quickly should my financial advisor sell a stock that I have asked him or her to sell for me?

  74. If I buy a stock at $45 and I put a stop limit in to sell at $40, will I be guaranteed a sell once the stock has reached this price?

  75. Why are traders on the floor of the exchange?

  76. How do I know when to "rebalance" my investments?

  77. Who was the first person charged by the SEC?

  78. Why is Game Theory useful in business?

  79. How are oil reserves accounted for on an oil company's balance sheet?

  80. The “effective date” is defined as:

  81. What are the differences between AMEX and Nasdaq?

  82. The primary reason for an IA to rebalance a client’s portfolio is to:

  83. Should computer software be classified as an intangible asset or part of property, plant and equipment?

  84. In a corporate liquidation, why are unpaid taxes and wages paid before general creditors but after secured bondholders?

  85. The interest rate used to define the “risk-free” rate of return is the

  86. What is the McGinley Dynamic?

  87. What are the GAAP standards for digital document storage?

  88. What's the difference between consumer confidence and consumer sentiment?

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

  90. Which is NOT a component of investment income?

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

  92. What was the South Seas bubble?

  93. Who set the record loss for "rogue traders"?

  94. Who was the youngest CEO to be indicted for securities fraud?

  95. How do companies calculate revenue?

  96. What did Knight Trading Group do to incur a $1.5 million fine for violating trading rules?

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

  98. How do I choose which insurance company to use?

  99. How does accrual accounting differ from cash basis accounting?

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

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