FAQs tagged as

Investing-Basics

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

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

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

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

  5. What are the listing requirements for the Nasdaq?

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

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

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

  9. What is an earnings conference call?

  10. What is the difference between yield and return?

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

  12. 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?

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

  14. What is a staggered board?

  15. 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?

  16. 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?

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

  18. What is the difference between leverage and margin?

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

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

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

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

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

  24. Can I donate stock to charity?

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

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

  27. Why did dotcom companies crash so drastically?

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

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

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

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

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

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

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

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

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

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

  38. What exactly is a company's float?

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

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

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

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

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

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

  45. Is there a difference between ADR and ADS?

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

  47. What is a debt/equity swap?

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

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

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

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

  52. What is socially responsible investing?

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

  54. What is the "squawk box scandal"?

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

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

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

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

  59. Where can I find a company's annual report and its SEC filings?

  60. Who or what is Dow Jones?

  61. What's the difference between a stop and a limit order?

  62. Is a company allowed to reduce its dividends?

  63. What is an efficient market and how does it affect individual investors?

  64. Can stocks be traded on more than one exchange, such as, for example, on both the Nasdaq and the NYSE?

  65. What happens to the fines collected by the Securities and Exchange Commission?

  66. What are the components of the risk premium for investments?

  67. How does an IPO get valued? What are some good methods for analyzing IPOs?

  68. I am a non-U.S. citizen living outside the U.S. and trading stocks through a U.S. internet broker. Do I have to pay taxes on the money I earn?

  69. Where do I place my target when the price of a stock breaks out of a technical chart pattern?

  70. How does leverage affect pip value?

  71. Is it possible to lose all of your investment in an index fund?

  72. Why are the bid and ask quotes usually so far away from each other in after-hours trading?

  73. Does a company's American depositary share equal one share of common stock?

  74. Why do some preferred stocks have a higher yield than common stocks?

  75. Who bears the risk of bad debts in securitization?

  76. How should I estimate my income from fixed sources like bonds, CDs and stocks?

  77. One of my stocks missed the deadline to file its quarterly financial statements. What happens next?

  78. What is foreclosure investing?

  79. Does the closing price have to equal the last price traded?

  80. What is an odd-lot buyback?

  81. What is the homo economicus?

  82. What is the difference between asset-based lending and asset financing?

  83. What are goldbrick shares?

  84. What is a tuck-in acquisition?

  85. What is Ginzy trading?

  86. How does a company move from an OTC market to a major exchange?

  87. What is the quickest, easiest and cheapest way to buy a bond?

  88. Where can I find all of the stocks in the Nasdaq Composite Index?

  89. Which statements about fill-or-kill orders are FALSE?

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