FAQs tagged as

Portfolio Management

  1. What is the difference between investing and trading?

  2. What is the difference between weighted average shares outstanding and basic weighted average shares?

  3. What is the difference between risk tolerance and risk capacity?

  4. What do the different types of mutual fund classes mean?

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

  6. Is it possible to invest in an index?

  7. I don't understand how a stock has a trading price of 5.97, but when I buy it I have to pay the asking price of 6.04. How can I be paying more than what the stock is trading for?

  8. According to the CAPM, the expected return on a stock, that is part of a portfolio, will depend on all of the following except:

  9. If a client has a very low risk tolerance, all of the following might be suitable investments EXCEPT:

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

  11. The reason why ERISA qualified plans should have an investment policy statement is to:

  12. When and why did brokerages switch from fixed commissions to negotiated ones?

  13. The real rate of return is the amount of interest earned over and above the?

  14. The BEST definition of a benchmark portfolio is:

  15. What are the advantages and disadvantages of mutual funds?

  16. Where do I look for fees that I am charged on investments? What are those fees called?

  17. When diversifying a bond portfolio, you should make sure to take into account all of the following EXCEPT:

  18. How quickly should my financial advisor sell a stock that I have asked him or her to sell for me?

  19. How do I know when to "rebalance" my investments?

  20. The primary reason for an IA to rebalance a client’s portfolio is to:

  21. The interest rate used to define the “risk-free” rate of return is the

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

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

  24. What is a permanent portfolio?

  25. What is the difference between investing and speculating?

  26. What does churning mean?

  27. What is financial double-dipping?

  28. Where do investors tend to put their money in a bear market?

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

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

  31. Why should investors pick less risky investments as they approach retirement?

  32. I'm new to this. Can I sell or buy stock by myself?

  33. Are mutual fund performance numbers reported net of fees (operating expenses and 12b-1)?

  34. What exactly is a portfolio? Is it something I can carry around?

  35. Can I sell mutual fund shares below their minimum intial purchase amount without being penalized?

  36. What is the difference between a blend fund and a balanced fund?

  37. What is an Islamic investment policy?

  38. What does it mean when people say they "beat the market"? How do they know they have done so?

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

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

  41. What is a pure play?

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

  43. What is a trailing commission?

  44. How can I buy an S&P 500 fund?

  45. What are green investments?

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

  47. 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?

  48. What is hedging as it relates to forex trading?

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

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

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

  52. Are long-term U.S. government bonds risk-free?

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

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

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

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

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