FAQs tagged as

Investing-Basics

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

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

  3. How do you calculate working capital?

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

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

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

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

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

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

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

  11. How do I calculate the inventory turnover ratio?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  29. How are capital gains and dividends taxed differently?

  30. Is a dividend reduction a signal to sell?

  31. What is a stock ticker?

  32. What is an asset?

  33. How do you flip a home?

  34. How do I start using technical analysis?

  35. How are share prices set?

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

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

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

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

  40. Is it possible to beat the market?

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

  42. What is a dividend?

  43. How does TARP affect the economy?

  44. How long can you short sell for?

  45. 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?

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

  47. What is the difference between investing and trading?

  48. What is the difference between arbitrage and speculation?

  49. What is finance?

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

  51. What is a derivative?

  52. 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?

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

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

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

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

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

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

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

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

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

  62. Is it possible to trade forex options?

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

  64. How can I use layaway plans for budgeting?

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

  66. Is it possible to invest in an index?

  67. What is the double taxation of dividends?

  68. 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?

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

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

  71. What is evergreen funding?

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

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

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

  75. What is a cross hedge?

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

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

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

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

  80. Excessive trading is:

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

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

  83. Type Of Return

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

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

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

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

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

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

  90. The BEST definition of a benchmark portfolio is:

  91. Is short selling allowed in India?

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

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

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

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

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

  97. What is a "wash sale"?

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

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

  100. Which transactions affect the retained earnings statement?

Trading Center