FAQs tagged as


  1. 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?

  2. What is leakage?

  3. What is the salad oil scandal?

  4. How do sunshine laws help investors?

  5. What is a Chinese hedge?

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

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

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

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

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

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

  12. What is the doctor advisory scam?

  13. 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?

  14. What exactly is insider trading?

  15. What's the difference between publicly- and privately-held companies?

  16. What's the difference between a Nasdaq market maker and a NYSE specialist?

  17. Are my investments insured?

  18. I will be receiving monies from a QDRO executed pursuant to my divorce. I would like to take a portion of the money as a distribution to pay for a new home. What are the tax implications of doing this?

  19. What is a treasury stock?

  20. What is a pure play?

  21. Why did the New York Stock Exchange report prices in fractions before it switched to decimal reporting?

  22. What's the difference between old- and new-economy stocks?

  23. What is the ideal number of stocks to have in a portfolio?

  24. Why are some shares priced in the hundreds or thousands of dollars, while other just as successful companies have more normal share prices? For example, how can Berkshire Hathaway's be over $80,000/share, when the shares of even larger companies are only

  25. I placed a limit order to buy a stock after the market closed, but the stock's price gapped above the entry price and my order never got filled. How can I prevent this from happening?

  26. In an IPO, who is a greensheet distributed to and for what purpose?

  27. What causes a significant move in the stock market?

  28. What are the disadvantages of using net present value as an investment criterion?

  29. What does the diluted share price reveal about a company's financial strength?

  30. What are the determinants of a stock's bid-ask spread?

  31. Do noise traders have any long-term effect on stock prices?

  32. Do all international markets trade between 9:30am and 4pm local time?

  33. Where can I find the number of shares shorted on a specific stock?

  34. What are the fifth-letter identifiers on the Nasdaq?

  35. Is it possible to buy mutual funds using a margin account?

  36. What are managed futures?

  37. How can I prevent commissions and fees from eating up my trading profits?

  38. What is a "dog and pony" show?

  39. What are the "big uglies"?

  40. What is earnings management?

  41. Why do stock prices change following news reports?

  42. How are the interest charges calculated on my margin account?

  43. If everyone is selling in a bear market, does your broker have to buy your shares from you? If so, won't he be losing his shirt?

  44. Why do companies report earnings at different times?

  45. Please explain what a short seller is on the hook for when he or she shorts a stock (i.e. dividends, rights offerings, etc.).

  46. What does it mean when someone says that a stock went up X points? Does this refer to a percentage or numerical value?

  47. What is a boiler room operation?

  48. Is technical analysis used only to analyze stocks?

  49. Does the party loaning shares in a short sale transaction benefit in any way other than from the interest earned on the loan?

  50. I have only $500 to invest, am I limited to buying only penny stocks?

  51. I live in the U.S. How can I trade stocks in China and India?

  52. What methods can be used to measure and profit from investor sentiment?

  53. How are foreign exchange rates affected by commodity price fluctuations?

  54. What are reverse stock splits?

  55. Why are options very active when they are at the money?

  56. What are the three phases of a completed initial public offering (IPO) transformation process?

  57. What does "buy on the cannons, sell on the trumpets" mean?

  58. What is authorized stock?

  59. If a company undergoes an acquisition can an employee withdraw 401(k) funds tax free?

  60. What happens when a circuit breaker is put into effect?

  61. How do you determine a company's percentage of credit sales?

  62. What is securitization?

  63. Where can I find information on different companies so that I won't have to read every earnings report?

  64. What is a typical day in the life of someone in M&A? How long does a project last?

  65. How does pyramiding work?

  66. What is an echo bubble?

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

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

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

  70. How does somebody make money short selling?

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

  72. What are unrealized gains and losses?

  73. When must a company announce earnings?

  74. What is a tranche?

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

  76. 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%?

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

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

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

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

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

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

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

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

  85. Who sets the price of commodities?

  86. What is a GTEM order?

  87. Who or what are the turtles?

  88. What is fair capital?

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

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

  91. What causes a recession?

  92. What is market capitulation?

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

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

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

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

  97. What is a DRIP?

  98. What are pro forma earnings?

  99. What are the "Dogs of the Dow"?

  100. Why would a person choose a mutual fund over an individual stock?

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