FAQs tagged as


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

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

  3. What is the difference between investment banks and merchant banks?

  4. Is it true that you can sell your home and not pay capital gains tax?

  5. How many types of markets can an investor choose from?

  6. How does a stop-loss order work, and what price is used to trigger the order?

  7. Does a stock dividend dilute the price per share as would a forward stock split?

  8. Can a corporation deduct dividend payments to shareholders before taxes are calculated?

  9. How do I buy an over-the-counter stock?

  10. What does "squeezing the shorts" mean?

  11. What is a virtual trailing stop order (VTSO)?

  12. Why does a crisis in emerging markets cause U.S. Treasury yields to decrease?

  13. Can an open-ended fund's price appreciate significantly?

  14. How does a credit crunch occur?

  15. How can I find out if a company I like is included in an index?

  16. What was "Operation Wooden Nickel"?

  17. What is meant by "full disclosure"?

  18. When is a dividend payment recognized in the shareholders equity portion of the balance sheet?

  19. Use the following information about a customer’s margin account to answer the question.

  20. What does it mean when a bond is selling at a premium? Is it a good investment?

  21. What's the smallest number of shares I can buy?

  22. Where can I find the P/E ratios for the Dow and S&P 500?

  23. What do T+1, T+2 and T+3 mean?

  24. If I have a number of stock shares and that company reports earnings of X amount per share, do I receive those earnings?

  25. Why can you short sell an ETF but not an index fund?

  26. Where does the money I have invested in a company go when the stock price decreases?

  27. What is a "socially responsible" mutual fund?

  28. Are IPOs available to short sell immediately upon trading, or is there a time limit that must pass before short sales are accepted?

  29. What happens when the lender of the borrowed shares in a short sale transaction wants to sell his/her shares?

  30. After an initial public offering, does a company profit from increases in its share price?

  31. What technical tools can I use to measure momentum?

  32. What is dilutive stock?

  33. Why won't my broker allow me to sell one stock and buy another on the same day?

  34. How are realized profits different from unrealized or so-called "paper" profits?

  35. How does leverage work in the forex market?

  36. How do speculators profit from options?

  37. How are futures used to hedge a position?

  38. How do you get a hard copy of a stock certificate?

  39. Does a strong trend (ADX > = 40) cause an increase in volatility?

  40. Which is better for tax deductions, itemization or a standard deduction?

  41. Can I give stock as a gift?

  42. What are green investments?

  43. What is Black Monday?

  44. Does investing in sustainable or "green" companies provide lower returns?

  45. Can a company declare a dividend that exceeds its earnings per share?

  46. Margin accounts are established to allow investors the ability to use leverage with their investments.

  47. What does "in street name" mean, and why are securities held this way?

  48. What's the difference between shares and stocks?

  49. What are the listing requirements for the Nasdaq?

  50. How are a company's financial statements connected?

  51. My broker just sold securities out of my account without my permission. Is this legal?

  52. Why did my stock's ticker symbol change?

  53. What is an earnings conference call?

  54. What is the difference between yield and return?

  55. What are the generally accepted accounting principles for inventory reserves?

  56. How can my stock's price change after hours, and what effect does this have on investors? Can I sell the stock at the after-hours price?

  57. What do people mean when they say debt is a relatively cheaper form of finance than equity?

  58. What is a staggered board?

  59. I want to buy a stock at $30, sell when it reaches $35, don't want to hang on to it if it dips below $27, and I want to do all this in one trading order. What type of order should I use?

  60. If I reject the tender offer for acquisition of the stock that I own in a company and the company goes private, what happens to my stock?

  61. Since stockholders are entitled to a company's assets and earnings, can a stockholder realize profits without selling stocks?

  62. What is the difference between leverage and margin?

  63. Are domestic and foreign subsidiaries included on a company's financial statements?

  64. What effect does a company's dividend reinvestment plan have on its stock price?

  65. Do underwriters make guarantees to sell an entire IPO issue?

  66. If an employee is paid by commission, who is responsible for withholding taxes?

  67. How do I avoid paying excess taxes on securities I have sold?

  68. Can I donate stock to charity?

  69. Is there a difference between socially responsible investing (SRI) and green investing?

  70. How did George Soros "break the Bank of England"?

  71. Why did dotcom companies crash so drastically?

  72. What does negative shareholder equity on a balance sheet mean?

  73. Which of the following terms are associated with the purchase/redemption of open-end investment company shares?

  74. What's the difference between book and market value?

  75. Why don't stocks begin trading at the previous day's closing price?

  76. What does it mean when a stock symbol has a .PK after it?

  77. Why do some stock symbols have three letters while others have four? What is the difference?

  78. If I am American, can I buy a foreign mutual fund?

  79. Where can I get a company's prospectus and/or financial statements?

  80. If I own stock that drops in price is this a sign that I should buy more?

  81. What exactly is a company's float?

  82. Why would a company have multiple share classes, and what are super voting shares?

  83. What investments are available to someone with no earned income?

  84. What is Fibonacci retracement, and where do the ratios that are used come from?

  85. What does 'froth' mean in terms of the real estate market?

  86. What is the short/current long-term debt account on a company's balance sheet?

  87. If different bond markets use different day-count conventions, how do I know which one is used in any particular market?

  88. Is there a difference between ADR and ADS?

  89. Can someone who is not yet of legal age open a brokerage account?

  90. What is a debt/equity swap?

  91. What is the difference between open-market and closed-market transactions?

  92. Why do people say that September is the worst month for investing?

  93. I sold my house. Can I exclude the gain from my income?

  94. How do I calculate the percentage gain or loss for my portfolio when all of the stocks have different prices?

  95. What is socially responsible investing?

  96. How can I tell if I'm an emotional investor?

  97. What is the "squawk box scandal"?

  98. What is foreclosure investing?

  99. What is the difference between preferred stock and common stock?

  100. What number of shares determines adequate liquidity for a stock?

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