FAQs tagged as

Options

  1. What's the difference between binary options and day trading?

  2. If a LEAP option is purchased and held for more than 12 months, is the tax treatment long term?

  3. Where can I purchase options?

  4. How can I invest in a foreign exchange market?

  5. What is a derivative?

  6. Is it possible to trade forex options?

  7. I want to start buying stocks. Where do I start?

  8. What should I look for when choosing a forex trading platform?

  9. What is the difference between LIBOR, LIBID and LIMEAN?

  10. How much money do I need to start trading?

  11. What is the difference between the bond market and the stock market?

  12. What is the difference between an options contract and a futures contract?

  13. After exercising a put option, can I still hold my option contract in order to sell it at a lower price?

  14. What are the requirements to be able to contribute to an HSA?

  15. What is a "wash sale"?

  16. If I buy a stock at $45 and I put a stop limit in to sell at $40, will I be guaranteed a sell once the stock has reached this price?

  17. Is life insurance good for mortgage protection?

  18. Why is Game Theory useful in business?

  19. What are the differences between AMEX and Nasdaq?

  20. What are the distribution options for an inherited annuity?

  21. My variable annuity account took a beating. Should I seek other alternatives?

  22. Why would you want a monthly benefit versus a daily benefit?

  23. When holding an option through expiration date, are you automatically paid any profits, or do you have to sell the option and pay commissions?

  24. Which of the following BEST describes tax treatment of a long option that expires without exercise?

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

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

  27. Which insurance policies do I really need?

  28. What is an unregistered mutual fund?

  29. Is it possible to short sell real estate?

  30. A Straddle

  31. What is an alligator spread?

  32. All of these apply to an option exercise notice EXCEPT:

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

  34. What does it mean when advertisers say that "financing is available"? Should I trust them to give me a good deal?

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

  36. What is a vest fleece?

  37. What are some of the features and benefits of SEP IRAs and Roth IRAs?

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

  39. I own shares of a company that just received a delisting notice from Nasdaq. Does this mean I will lose my shares?

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

  41. What methods can be used to fund a forex account?

  42. What will happen to my SEP IRA if I leave my current employer?

  43. I just opened an IRA. What can I do to help my money grow?

  44. How can I buy oil as an investment?

  45. I do not want to totally get out of my retirement 401(k), but I want to take 72(t) distributions. What should I consider?

  46. What do the phrases "sell to open", "buy to close", "buy to open", and "sell to close" mean?

  47. I made involuntary contributions to a retirement plan while temporarily employed. Can I withdraw these funds without penalty?

  48. How is a put option exercised?

  49. Can an option have a negative strike price?

  50. What happens to my call options if the underlying company is bought out?

  51. Can I leave my pension to my spouse when I pass away?

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

  53. What is after-hours trading? Am I able to trade at this time?

  54. Short selling vs. purchasing a put option: how do the payoffs differ?

  55. How do restricted stocks, treasury stocks and stock appreciation rights benefit employees?

  56. How do speculators profit from options?

  57. I passed my Series 7 exam, but I terminated employment at my sponsoring firm before I received my license. Is my exam still valid?

  58. What is the incentive to buy a stock without dividends?

  59. What requirements must a company meet for options to be traded on its stock?

  60. I make over $100,000/yr and my adjusted gross income precludes standard IRA contributions. My contributions to my 401(k) plan at work are limited to about $7,000/yr. It seems I'm being penalized for my income. Are there other retirement savings options av

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

  62. What does it mean when a bond has a put option?

  63. How can unethical executives use options backdating to evade taxes?

  64. How are stock warrants different from stock options?

  65. How do I use a "basket" option?

  66. I'm about to retire. If I pay off my mortgage with after-tax money I have saved, I can save 6.5%. Should I do this?

  67. What exactly is a company's float?

  68. If an IRA owner dies after starting required minimum distributions (RMD) but the spouse is under 70.5, can the spouse roll over the IRA into his/her own IRA, and stop RMDs until age 70.5?

  69. How can I find out which stocks also trade as options?

  70. How do you calculate the cost basis for a mutual fund over an extended time period?

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

  72. What's the difference between "top-down" and "bottom-up" investing?

  73. I have a short period of time (1 year or less) during which I will have money to invest. What are my investment options?

  74. I want to invest in equities, but I don't have much money. Is there a minimum number of shares I must buy?

  75. When does one sell a put option, and when does one sell a call option?

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

  77. How do I receive sponsorship from a member firm in order to write a Series 7 exam?

  78. What is earnings management?

  79. Are we in a bull market or a bear market?

  80. Does the seller (the writer) of an option determine the details of the option contract?

  81. Should I buy options that are in the money or out of the money?

  82. How do you tell whether an option is American or European style?

  83. What is options backdating?

  84. I've noticed executives buy a lot of stock below market value, and then they sell it for a large gain. How can they do this?

  85. What does "guns and butter" refer to?

  86. What is market capitulation?

  87. How does somebody make money short selling?

  88. What do all of the letters in a stock option ticker symbol mean?

  89. How do I measure option liquidity?

  90. How can I invest in gold?

  91. What is authorized stock?

  92. At what point in the ordering process does a broker charge commission?

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

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

  95. What's the difference between a straddle and a strangle?

  96. Can I make money using put options when prices are going up?

  97. What is an evergreen provision and how does it affect shareholders?

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

  99. What is the difference between Series 9/10 and Series 24 qualification exams?

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

Trading Center