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 moral hazard?

  20. What is the difference between investing and speculating?

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

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

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

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

  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. How do sunshine laws help investors?

  60. What is the salad oil scandal?

  61. What is a Chinese hedge?

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

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

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

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

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

  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. Where does the name "Wall Street" come from?

  71. Why don't investors buy stock just before the dividend date and sell right afterwards?

  72. Where can I find historical stock/index quotes?

  73. If I own a stock in a company, do I get a say in the company's operations?

  74. How do you calculate the percentage gain or loss on an investment?

  75. I've heard some "market gurus" claim returns of up to 400% annually. Is this possible?

  76. Who employs the specialists at New York Stock Exchange (NYSE)? Do they work for themselves, for the NYSE or for brokerage firms?

  77. There are so many stockbrokers out there. How do I go about choosing the best one for me?

  78. Can a stock have a negative price-to-earnings (P/E) ratio?

  79. I hold stock certificates in a company that just had a stock split. What happens now?

  80. What does the law say about non-U.S. citizens buying stocks of U.S. companies? Are there any restrictions?

  81. What does the 'FIG' at an investment bank refer to?

  82. What is the difference between a quote driven market and an order driven one?

  83. I keep hearing about the 50-day, 100-day and 200-day moving averages. What do they mean, how do they differ from each other, and what causes them to act as support or resistance?

  84. How do investors lose money when the stock market crashes?

  85. I want to try short selling, but how can I sell something that I don't own?

  86. Given a good bookkeeping system, would financial accounting be necessary?

  87. Why do companies postpone earnings announcements?

  88. What does CHIPS UID mean?

  89. On what days are the American stock exchanges closed?

  90. I would like to invest in a dividend-paying stock. How can I find out which stocks pay dividends?

  91. What constitutes an "intention to call a debt instrument before maturity" for tax purposes?

  92. How can I budget for both short-term expenses and long-term goals?

  93. What is the "random walk theory" and what does it mean for investors?

  94. What are elves?

  95. Where can I find a list of all of the stocks in the S&P 500?

  96. What does "after the bell" mean?

  97. What's the difference between a mutual fund and a hedge fund?

  98. How rapidly can expanding sales reduce a firm's earnings?

  99. If the stock market is so volatile, why would I want to put my money into it?

  100. What does it mean when people say they "beat the market"? How do they know they have done so?

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