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FAQs tagged as

Stocks

  1.

    How do I start using technical analysis?

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

  3. What does it mean when there is "price action"?

  4. What is a cross hedge?

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

  6. What is the McGinley Dynamic?

  7. Do stocks that trade with a large daily volume generally have less volatility?

  8. Why is the 1982 AT&T breakup considered one of the most successful spinoffs in history?

  9. Which two companies underwent the biggest corporate merger of the 1990s?

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

  11. How do I use the Nova/Ursa ratio?

  12. How do I value the shares that I own in a private company?

  13. How do I employ a cash-and-carry trade?

  14. What is the significance of a Schedule 13D?

  15. What is high-frequency trading?

  16. Does the balance sheet always balance?

  17. What is the difference between an acquisition and a takeover?

  18. What does it mean when "N/A" appears for a company's P/E ratio?

  19. What was the first company with a $1 billion market cap?

  20. What is the Coppock curve?

  21. Why would a company do a reverse merger instead of an IPO?

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

  23. What are the penalties for withdrawing from my Traditional IRA less than a year after acquisition?

  24. How do I use a premium put convertible?

  25. What business processes were used to establish the Chevrolet motor company?

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

  27. What is the difference between fast and slow stochastics in technical analysis?

  28. What is the difference between a simple moving average and an exponential moving average?

  29. Do stop or limit orders protect you against gaps in a stock's price?

  30. What is the best time of the day to trade?

  31. How can I use market breadth to my advantage?

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

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

  34. What's the difference between a regular option and an exotic option?

  35. What does the 'FIG' at an investment bank refer to?

  36. Is tracking error a significant measure for determining ex-post risk?

  37. Is maximizing stock price the same thing as maximizing profit?

  38. How can a futures trader exit a position prior to expiration?

  39. What is the Pac-Man defense?

  40. What is a penny stock?

  41. Can a stock have a negative price-to-earnings (P/E) ratio?

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

  43. 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?

  44. What do the numbers that follow the bid and ask numbers in stock quotes represent?

  45. What do you call a candlestick with no shadows, and what does it mean?

  46. How do companies use the Pac-Man defense?

  47. Why do option volume quotes differ on different websites?

  48. Is there such a thing as a nano cap or micro cap index?

  49. How do I measure option liquidity?

  50. I keep hearing about the 50-day, 100-day and 200-day moving averages. What do they mean, how do they differ from each other, and what causes them to act as support or resistance?

  51. Why do futures' prices converge upon spot prices during the delivery month?

  52. What do the different colored candlesticks mean?

  53. Who is Mr. Copper?

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

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

  56. What is the weighted average of outstanding shares? How is it calculated?

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

  58. When computing the PEG ratio for a stock, how is a company's earnings growth rate determined?

  59. Do noise traders have any long-term effect on stock prices?

  60. How do you determine a company's percentage of credit sales?

  61. What is a split-adjusted share price?

  62. In the forex market, how is the closing price of a currency pair determined?

  63. What is the difference between a merger and a takeover?

  64. What is a stock-for-stock merger and how does this corporate action affect existing shareholders?

  65. How do businesses decide whether to do FDI via green field investments or acquisitions?

  66. When is a takeover bid legally canceled?

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

  68. What are pro forma earnings?

  69. What is the cheapest, fastest way to research, buy and trade stock?

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

  71. Which is the best index to use to study the possible future price action of a given small-cap stock?

  72. Can investors short sell pink sheet or over-the-counter stocks?

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

  74. Where can I find a list of all of the stocks in the S&P 500?

  75. What's the difference between absolute P/E ratio and relative P/E ratio?

  76. Can technical analysis be called a self-fulfilling prophecy?

  77. What do the "BxA" numbers on my brokerage's trading screen mean?

  78. Where can I find information about pre- and after-hours trading on the NYSE and the Nasdaq?

  79. What should I use as a benchmark for my small-cap stock portfolio?

  80. What happens to the stock prices of two companies involved in an acquisition?

  81. What does it mean to use technical divergence in trading?

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

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

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

  85. Why would a multinational corporation conduct a vertical foreign direct investment?

  86. What is the best method of analysis for forex trading?

  87. What is the "Nifty 50"?

  88. What does it mean when a stock trades on the Pink Sheets or the OTCBB?

  89. Is it possible for a company to have a positive cash flow and a negative net income?

  90. What is the pitchfork indicator that I keep hearing about, and how do I use it?

  91. What is the difference between a logarithmic price scale and a linear one?

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

  93. What do the bracketed numbers following a technical indicator mean?

  94. Is scalping a viable forex trading strategy?

  95. What is a blank-check company?

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

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

  98. Stocks with high P/E ratios can be overpriced. Is a stock with a lower P/E always a better investment than a stock with a higher one?

  99. What is the difference between economic value added and market value added?

  100. Why would my stock's value decline despite good news being released?

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