FAQs tagged as

Investing-Basics

  1. Why do some preferred stocks have a higher yield than common stocks?

  2. What is the formula for calculating compound annual growth rate (CAGR) in Excel?

  3. Why does after-hours trading (AHT) exist?

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

  5. 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?

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

  7. Which day is known as China's "Black Tuesday" and why?

  8. I lost my share certificate. Do I still own the stock?

  9. What is the downtick-uptick rule on the NYSE?

  10. Why would a company make drastic cuts to its dividend payments?

  11. What is an odd-lot buyback?

  12. What is an echo bubble?

  13. What is the formula for calculating the debt-to-equity ratio?

  14. How long can you short sell for?

  15. How do I find historical prices for stocks?

  16. How do I calculate the adjusted closing price for a stock?

  17. Which is better a cash dividend or a stock dividend?

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

  19. What was the most notable hostile takeover of all time?

  20. How does gun control policy affect the stock price of firearm companies?

  21. Why do companies decide to unbundle their lines of business?

  22. What are the main risks of after-hours trading?

  23. What trends and data influence after-hours traders the most?

  24. When would I have to fill out a Schedule D IRS form?

  25. What are the dangers of using the Electronic Federal Tax Payment System (EFTPS)?

  26. How do you buy Bitcoins?

  27. What's the best way to play backwardation in the futures market?

  28. During what time does after-hours trading (AHT) occur?

  29. What are some common traits of undervalued stocks?

  30. What unforeseen circumstances affect what I'll pay in capital gains taxes?

  31. What are the best indicators for evaluating technology stocks?

  32. What is the difference between shorting and naked shorting?

  33. How does Warren Buffett choose the companies he buys?

  34. What technical indicators can I use to find undervalued stock?

  35. What does a high inventory turnover tell investors about a company?

  36. Why is it sometimes better to use an average inventory figure when calculating the inventory turnover ratio?

  37. How do you calculate working capital?

  38. How do changes in working capital affect a company's cash flow?

  39. How do you calculate return on equity (ROE)?

  40. Why is the compound annual growth rate (CAGR) misleading when assessing long-term growth rates?

  41. What are the main differences between return on equity (ROE) and return on assets (ROA)?

  42. What are the main differences between compound annual growth rate (CAGR) and internal rate of return (IRR)?

  43. Are companies with a negative return on equity (ROE) always a bad investment?

  44. How do I calculate the inventory turnover ratio?

  45. Why is return on investment (ROI) a bad measure for calculating long-term investments?

  46. What factors go into calculating social return on investment (SROI)?

  47. How do I calculate the P/E ratio of a company?

  48. How can the price-to-earnings (P/E) ratio mislead investors?

  49. How can return on investment (ROI) calculations be manipulated?

  50. Is there value in comparing companies from different sectors by using the debt-to-equity ratio?

  51. What is the formula for calculating earnings per share (EPS)?

  52. What is the formula for calculating the current ratio?

  53. How do interest rates affect the weighted average cost of capital (WACC) calculation?

  54. What is considered a high debt-to-equity ratio and what does it say about the company?

  55. What are the best uses for trailing EPS, current EPS and forward EPS?

  56. How can the current ratio be misinterpreted by investors?

  57. What's the difference between weighted average cost of capital (WACC) and internal rate of return (IRR)?

  58. What are the main differences between the current ratio and the quick ratio?

  59. Why is earnings per share (EPS) also known as “The Bottom Line”?

  60. What is the Dodd-Frank Act? How does it affect me?

  61. How are capital gains and dividends taxed differently?

  62. Is a dividend reduction a signal to sell?

  63. What is a stock ticker?

  64. What is an asset?

  65. How do you flip a home?

  66. How do I start using technical analysis?

  67. How are share prices set?

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

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

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

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

  72. Is it possible to beat the market?

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

  74. What is a dividend?

  75. How does TARP affect the economy?

  76. 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?

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

  78. What is the difference between investing and trading?

  79. What is the difference between arbitrage and speculation?

  80. What is finance?

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

  82. What is a derivative?

  83. 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?

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

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

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

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

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

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

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

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

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

  93. Is it possible to trade forex options?

  94. How can I use layaway plans for budgeting?

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

  96. Is it possible to invest in an index?

  97. What is the double taxation of dividends?

  98. 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?

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

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

Trading Center