FAQs tagged as

Options

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

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

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

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

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

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

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

  8. What is options backdating?

  9. 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?

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

  11. What is earnings management?

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

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

  14. How do I measure option liquidity?

  15. How can I invest in gold?

  16. What is authorized stock?

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

  18. What is market capitulation?

  19. How does somebody make money short selling?

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

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

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

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

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

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

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

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

  28. My brokerage firm won't allow naked option positions. What does this mean?

  29. What is the put-call ratio and why should I pay attention to it?

  30. Why are corporations so concerned about their stock price?

  31. I have a KSOP through my employer that I've invested 100% in company stock. I am now concerned that I'm not diversified and would like to move out of company stock and into mutual funds. Is this allowed with the funds I've contributed to the account?

  32. What was "Operation Wooden Nickel"?

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

  34. My company is the trustee of our 401k plan (which has 112 participants). What are the pros and cons of having the company instead of the plan provider/vendor as the trustee?

  35. Do hedge funds and mutual funds invest in commodities in high inflation environments?

  36. What does the term "stock-for-stock" mean?

  37. Can an option be exercised on the expiration date?

  38. How does the ISIN numbering system work?

  39. How do I register for the CFA program for the first time?

  40. Why was Microsoft subject to antitrust charges in 1998?

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

  42. I converted my former IRA to a Roth for tax purposes in 1998, so even though the tax was paid over four years, am I correct to assume that this is now mine to withdraw, if I like, at no penalty? I am 60 years old.

  43. Which option is better on a mutual fund: a growth option or a dividend reinvestment option?

  44. What is dilutive stock?

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

  46. Can I roll my 403(b) and 457 into other low-cost venders when I change jobs?

  47. What are the oldest mutual funds, by date of inception?

  48. What is the difference between a Keogh and an IRA?

  49. I'm a teacher. Which is better for me, a 401(k) or 403(b)? What is the difference? From whom do I get these plans?

  50. Can I roll over a profit-sharing plan to an SEP IRA account without suffering any tax penalties and liquidation of current positions held in this account?

  51. What is the difference between options and futures?

  52. What's the difference between a golden handshake and a golden parachute?

  53. How do I "vest" something?

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