FAQs tagged as

Investing-Basics

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

  2. Where did the term "tenbagger" originate?

  3. Does a company logo change require a material disclosable event?

  4. What is the difference between systemic risk and systematic risk?

  5. What are all of the securities markets in the U.S.A?

  6. What does "gather in the stops" mean?

  7. What is a V-shaped recovery and how is it different from other recoveries?

  8. What does it mean when futures prices are in contango?

  9. What happens to a stop order after a stock splits?

  10. What is the significance of a Schedule 13D?

  11. Do speculators have a destabilizing effect on the financial system?

  12. What is an unregistered mutual fund?

  13. What is a permanent portfolio?

  14. How do you use a back-to-back loan?

  15. What is a growth recession?

  16. Is it possible to short sell real estate?

  17. Does the balance sheet always balance?

  18. The conduit theory...

  19. What is the difference between investing and speculating?

  20. What is moral hazard?

  21. Which statement(s) is/are FALSE about market risk?

  22. What is the difference between an acquisition and a takeover?

  23. What does it mean when "N/A" appears for a company's P/E ratio?

  24. What does churning mean?

  25. What was the first company with a $1 billion market cap?

  26. Why should I invest in the market when I can buy and sell houses or cars?

  27. How did corporate ownership almost lead to the ruin of Adelphia in 2002?

  28. What burst the Mississippi bubble?

  29. Which statement about the New York Stock Exchange is FALSE?

  30. What is "hammering"?

  31. Is there short selling in China?

  32. Which statement is FALSE about a prospectus issued under the Securities Act of 1933?

  33. What is a "phishing scam" and how can they be avoided?

  34. What was the millionaire boom?

  35. What would happen to a company's external fund requirements if it reduces the payout ratio, or if it suffers a decline in its profit margin?

  36. What is the performance cult?

  37. What's the difference between EBITDA, EBITDAR and EBITDARM?

  38. Given the below information, all of the following statements are FALSE regarding this existing margin account EXCEPT:

  39. All of the following statements about convertible bonds are FALSE EXCEPT:

  40. What is the Coppock curve?

  41. What was the Mahonia company and why did it become the subject of a lawsuit?

  42. How do I invest in the Nasdaq or the NYSE? Is it even possible? Would I want to?

  43. Why did the Department of Justice launch an inquiry into the sale of ImClone shares in 2001?

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

  45. Why would a company do a reverse merger instead of an IPO?

  46. Why did Tyco's financial statements attract the SEC's attention in 2002?

  47. What is financial double-dipping?

  48. Why is Frank Quattrone credited with contributing to the growth of the dotcom bubble?

  49. The "effective date" is defined as:

  50. Where can I find all of the stocks in the Dow Jones Industrial Average?

  51. What is the difference between return on equity and return on capital?

  52. According to the U.S., prohibited conduct of an investment advisor is defined as:

  53. Why is a "hockey stick bid" considered fraudulent?

  54. What currency is affected by the interest rate decisions of the Bank of England (BoE)?

  55. How did Peter Young gain infamy as a "rogue trader"?

  56. How much more will it cost me to buy an odd lot of shares?

  57. A customer has the following in his long margin account. Market value: $18,000, debit balance: $10,000 and SMA: $2,000. How much of the SMA may be used to purchase additional securities?

  58. What is leakage?

  59. What is the salad oil scandal?

  60. How do sunshine laws help investors?

  61. What is a Chinese hedge?

  62. How did Joseph Jett cause Kidder, Peabody & Co. to lose over $350 million?

  63. What are the penalties for withdrawing from my Traditional IRA less than a year after acquisition?

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

  65. How did derivatives trader Nick Leeson contribute to the fall of Barings Bank?

  66. What business processes were used to establish the Chevrolet motor company?

  67. What is the doctor advisory scam?

  68. How did currency trader John Rusnak hide $691 million in losses before being caught for bank fraud?

  69. Your client has a net short-term gain of $3,000 and a net long-term loss of $8,000. Which of the following statements are true?

  70. What are the differences between chapter 7 and chapter 11 bankruptcy?

  71. What's the difference between bottom-line and top-line growth?

  72. What's the difference between a load and no-load mutual fund?

  73. How does somebody make money short selling?

  74. What's the smallest number of shares of stock that I can buy?

  75. What are unrealized gains and losses?

  76. When must a company announce earnings?

  77. What is a tranche?

  78. What is the difference between fast and slow stochastics in technical analysis?

  79. If I short sell $5,000 worth of stock and the stock becomes worthless, I have made $5,000 with a very small investment. Isn't the return here much greater than 100%?

  80. Can technical analysis be called a self-fulfilling prophecy?

  81. What's the difference between net present value and internal rate of return? How are they used?

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

  83. If I sell my shares before the ex-dividend date will I still get the dividend?

  84. What does it mean when the shares in my account have been liquidated?

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

  86. What are the risks of having both high operating leverage and high financial leverage?

  87. How do businesses decide whether to do FDI via green field investments or acquisitions?

  88. Who sets the price of commodities?

  89. What is a GTEM order?

  90. Who or what are the turtles?

  91. What is fair capital?

  92. Are mortgage-backed securities backed by any guarantees?

  93. Is there such a thing as a foolproof stock-picking strategy?

  94. What causes a recession?

  95. What is market capitulation?

  96. What do the S&P, Dow and Nasdaq futures contracts represent?

  97. Why are P/E ratios generally higher during times of low inflation?

  98. Is it important to check the professional history of my investment advisor?

  99. What happens if I maintain a short position in a stock that is delisted and declares bankruptcy?

  100. What is a DRIP?

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