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All time popular questions

30701. Can you please explain why reinvestment risk exists?

30702. Can you give me an example of the difference between the nominal rate of return and the real rate of return?

30703. How do you calculate the yield to maturity as opposed to the yields shown in the text?

30704. How do you calculate the annual price change for the approximate yield to maturity?

30705. What causes the inverse relationship between interest rates and bond prices?

30706. Can you explain the bond switching technique of moving into long-term high-coupon bonds when interest rates are falling?

30707. Why would longer-term coupons with low coupon rates be the most appropriate combination to own when interest rates are falling?

30708. What is the reasoning behind a low-coupon bond being more volatile in price change versus a high-coupon bond?

30709. Can you give more of an explanation of duration?

30710. Why would callable bonds trading at a premium be treated as a short-term bond while a callable bond trading at a discount would be treated as a long-term bond?

30711. Why own long-term low-coupon bonds when interest rates are falling and own short-term high-coupon bonds when interest rates are rising?

30712. What is the purpose of calculating accrued interest?

30713. Why does a bond trading at a premium make a difference when considering settlement dates?

30714. What is the present value of the principal?

30715. Can you give me an example of the ex dividend date and how itaffects who gets a dividend?

30716. What is dollar cost averaging?

30717. Can you please explain the taxation of foreign dividends?

30718. Can you please explain share splitting and consolidation?

30719. How do stock price changes affect a companys equity on thebalance sheet?

30720. Do payout ratios exceed 100% on a regular basis?

30721. What is the difference between the dividend yield and dividendpayout ratio?

30722. Where do the companys dividend payments come from?

30723. What is the relationship between common share prices andpreferred share prices?

30724. How do preferred shares differ from common shares?

30725. How do interest rates affect preferred share prices?

30726. Can you please describe the difference between a purchase fundand sinking fund?

30727. Does the level of the premium on convertible preferred sharesever change?

30728. What did you mean when you wrote that an investor must be morecareful when buying a convertible that is selling off the stock?

30729. Can you give me an overview of auction preferreds?

30730. Why wouldn't all investors just sell their deferred preferred before maturity?

30731. What are the differences between split shares and strip bonds?

30732. What is the difference between accruing and compounding?

30733. Can you please explain the meaning of the minimum tradeweightedprice?

30734. Can you give me an example of how to construct an index?

30735. Can you elaborate further on how an index differs from anaverage?

30736. How is the divisor for the djia calculated?

30737. How can you say the average is unweighted if an average is price weighed?

30738. Why are yields generally higher on some intstruments over others?

30739. Would the loan value plus margin be based on the current market value?

30740. Why would a dealer have to close investors' short sale positions?

30741. What is the minimum credit balance requirement for short sales?

30742. What is the point of using a stop loss order?

30743. Can you give me an example of the benefits of using a stop loss?

30744. What are rights and warrants and why are they issued?

30745. What is an offsetting transaction?

30746. Are the costs for purchasing an option similar to the costs forpurchasing a futures contract?

30747. What does hedging refer to?

30748. Is short selling more or less risky than put options buying?

30749. What does assigned mean?

30750. Can you please explain the calculation of time value?

30751. Can you give me a mathematical example of how to calculate timevalue?

30752. Why would the time value be different for two different optionsthat trade at the same price and have the same strike price?

30753. What happens if I write a put & I already own the underlying common shares?

30754. Can you provide an example of the risk of naked call writing?

30755. What are covered puts and covered calls?

30756. On what day of the week would options and right expire?

30757. Can you give me an example of a swap?

30758. Why would anyone want to buy stock index futures or options?

30759. How can you say that the price is a future price if it is set on the basis of the current market?

30760. Can you give me an example of how the leveraged aspects of a future contract would work?

30761. What does it mean: "Two business days before the record date, the shares start trading ex rights and the rights begin to trade as a separate entity"?

30762. What is the subscription price of a right currently trading ex-rights?

30763. What is the difference between debt and equity?

30764. What is the difference between preferred shares and commonshares?

30765. Can you give me an example of how the public float differs fromoutstanding shares?

30766. How can a shareholder or a group of shareholders owning lessthan 50% of voting shares control a corporation?

30767. What are the roles of the chairman, ceo and president of acorporation?

30768. Why would a stocks market price be more volatile if thecompany has a smaller public float?

30769. Can the investor still trade their shares when a voting trust takes over?

30770. What is the difference between a typical underwriting deal and a bought deal?

30771. What are the journal entries for dividends declared and for newbond issues?

30772. Can you please explain the difference between FIFO and LIFO with an example?

30773. Could you please explain why accounting principles would differfrom government taxation principles?

30774. How come the taxes a company has to pay to the government maynot be the same as they show on their financial statements?

30775. What should I remember regarding permanent and temporary differences between tax provision and actual tax payable?

30776. Can you explain the amortization of bond premiums when bondsare sold for higher than par?

30777. How is a gain or loss on the earning statement recorded on the balance sheet?

30778. Why would dividends not be recorded on the earnings statementthat were paid from an affiliated company?

30779. How would revenue, which affects the earnings statement, ultimately be recorded on the balance sheet?

30780. Can you please explain where minority interest comes from on the earnings statement?

30781. Can you summarise the differences between the consolidated method, equity method, and cost method of accounting?

30782. What impact do non-cash items have on the financial statementthat differ from their impact on ratio calculations?

30783. What is the difference between minority interest one the balanceheet and minority interest on the earnings statement?

30784. Why do we add back some non-cash items when calculating ratios?

30785. What portion of US homeowners take the mortgageinterest deduction?

30786. Which president was elected 4 times?

30787. What symbolizes the Holy Spirit?

30788. Which file should you check within the /proc tree to learn which IRQs are being used by which kernel drives when you suspect that a new ethernet card might be conflicting with another device in...

30789. Can you type in the file name and full path of the configuration file where you would set the variable HISTSIZE for all users of the system?

30790. How much free space should you reserve for the Linux partition to build a fresh new Linux system?

30791. Which file system type causes the least impact when upgrading an Ext2 file system?

30792. What is the maximum number of primary partitions you can create if you are formatting a single hard disk for a Linux install?

30793. How can you achieve a 30 seconds delay before your system boots to the default kernel?

30794. Which steps are necessary to compile and install a source code program?

30795. What type in the command to update the apt-get database with new or updated packages?

30796. What is the next command to run?

30797. What command can you run to compile the code while installing from source code you don't see the configuration script?

30798. What is the full path including the filename of the configuration file that stores thelocations of all library files on the system?

30799. What file is read by the program ldconfig?

30800. Which command line would you use to install a debian package using dpkg called debianpackage.deb in Linux?