Path: senator-bedfellow.mit.edu!dreaderd!not-for-mail Message-ID: Supersedes: Expires: 17 Mar 2003 10:19:33 GMT X-Last-Updated: 2002/08/14 From: lott@invest-faq.com (Christopher Lott) Newsgroups: misc.invest.misc,misc.invest.stocks,misc.invest.technical,misc.invest.options,misc.answers,news.answers Subject: The Investment FAQ (part 1 of 19) Followup-To: misc.invest.misc Reply-To: lott at invest-faq dot com Summary: Answers to frequently asked questions about investments. Should be read by anyone who wishes to post to misc.invest.* Organization: The Investment FAQ publicity department Keywords: invest, finance, stock, bond, fund, broker, exchange, money, FAQ URL: http://invest-faq.com/ Approved: news-answers-request@MIT.Edu Originator: faqserv@penguin-lust.MIT.EDU Date: 01 Feb 2003 10:23:34 GMT Lines: 304 NNTP-Posting-Host: penguin-lust.mit.edu X-Trace: 1044095014 senator-bedfellow.mit.edu 3930 18.181.0.29 Xref: senator-bedfellow.mit.edu misc.invest.misc:38844 misc.invest.stocks:761206 misc.invest.technical:96998 misc.invest.options:48639 misc.answers:15576 news.answers:245644 Archive-name: investment-faq/general/part1 Version: $Id: part01,v 1.58 2002/08/14 10:20:04 lott Exp lott $ Compiler: Christopher Lott, lott at invest-faq dot com This is the table of contents for the plain-text version of The Investment FAQ, and is the first part of a 19-part posting. Please visit The Investment FAQ web site for the latest version: http://invest-faq.com/ The Investment FAQ is a collection of articles about investments and personal finance, including stocks, bonds, mutual funds, options, discount brokers, information sources, life insurance, etc. Although the FAQ is more of a reference than a tutorial, if you pick your articles carefully, the FAQ can serve as a comprehensive, unbiased introduction to investing. Terms of Use The following terms and conditions apply to the plain-text version of The Investment FAQ that is posted regularly to various newsgroups. Different terms and conditions apply to documents on The Investment FAQ web site. The Investment FAQ is copyright 2002 by Christopher Lott, and is protected by copyright as a collective work and/or compilation, pursuant to U.S. copyright laws, international conventions, and other copyright laws. The contents of The Investment FAQ are intended for personal use, not for sale or other commercial redistribution. The plain-text version of The Investment FAQ may be copied, stored, made available on web sites, or distributed on electronic media provided the following conditions are met: + The URL of The Investment FAQ home page is displayed prominently. + No fees or compensation are charged for this information, excluding charges for the media used to distribute it. + No advertisements appear on the same web page as this material. + Proper attribution is given to the authors of individual articles. + This copyright notice is included intact. Disclaimers Neither the compiler of nor contributors to The Investment FAQ make any express or implied warranties (including, without limitation, any warranty of merchantability or fitness for a particular purpose or use) regarding the information supplied. The Investment FAQ is provided to the user "as is". Neither the compiler nor contributors warrant that The Investment FAQ will be error free. Neither the compiler nor contributors will be liable to any user or anyone else for any inaccuracy, error or omission, regardless of cause, in The Investment FAQ or for any damages (whether direct or indirect, consequential, punitive or exemplary) resulting therefrom. Rules, regulations, laws, conditions, rates, and such information discussed in this FAQ all change quite rapidly. Information given here was current at the time of writing but is almost guaranteed to be out of date by the time you read it. Mention of a product does not constitute an endorsement. Answers to questions sometimes rely on information given in other answers. Readers outside the USA can reach US-800 telephone numbers, for a charge, using a service such as MCI's Call USA. All prices are listed in US dollars unless otherwise specified. Availability of the FAQ Web: http://invest-faq.com/ Anonymous ftp: site: rtfm.mit.edu path: /pub/usenet-by-group/news.answers/investment-faq/general/* Email: address: mail-server@rtfm.mit.edu required msg body: send usenet-by-group/news.answers/investment-faq/general/* News: posted monthly to misc.invest.misc, misc.invest.stocks, misc.invest.mutual-funds, misc.invest.technical, misc.invest.options, and the moderated groups misc.answers & news.answers. Please send comments and new submissions to the compiler. --------------------Check http://invest-faq.com/ for updates------------------ TABLE OF CONTENTS Advice - Beginning Investors part 2 Advice - Buying a Car at a Reasonable Price part 2 Advice - Errors in Investing part 2 Advice - Using a Full-Service Broker part 2 Advice - One-Line Wisdom part 2 Advice - Paying for Investment Advice part 2 Advice - Researching a Company part 2 Advice - Target Stock Prices part 2 Analysis - Annual Reports part 2 Analysis - Beta and Alpha part 2 Analysis - Book-to-Bill Ratio part 2 Analysis - Book Value part 2 Analysis - Computing Compound Return part 2 Analysis - Future and Present Value of Money part 2 Analysis - Goodwill part 2 Analysis - Internal Rate of Return (IRR) part 2 Analysis - Paying Debts Early versus Making Investments part 3 Analysis - Price-Earnings (P/E) Ratio part 3 Analysis - Risks of Investments part 3 Analysis - Return on Equity versus Return on Capital part 3 Analysis - Rule of 72 part 3 Analysis - Same-Store Sales part 3 Bonds - Basics part 3 Bonds - Amortizing Premium part 3 Bonds - Duration Measure part 3 Bonds - Moody Bond Ratings part 3 Bonds - Municipal Bond Terminology part 3 Bonds - Relationship of Price and Interest Rate part 3 Bonds - Tranches part 3 Bonds - Treasury Debt Instruments part 4 Bonds - Treasury Direct part 4 Bonds - U.S. Savings Bonds part 4 Bonds - U.S. Savings Bonds for Education part 4 Bonds - Value of U.S. Treasury Bills part 4 Bonds - Zero-Coupon part 4 Derivatives - Basics part 4 Derivatives - Black-Scholes Option Pricing Model part 4 Derivatives - Futures part 4 Derivatives - Futures and Fair Value part 4 Derivatives - Stock Option Basics part 5 Derivatives - Stock Option Covered Calls part 5 Derivatives - Stock Option Covered Puts part 5 Derivatives - Stock Option Ordering part 5 Derivatives - Stock Option Splits part 5 Derivatives - Stock Option Symbols part 5 Derivatives - LEAPs part 5 Exchanges - The American Stock Exchange part 5 Exchanges - The Chicago Board Options Exchange part 5 Exchanges - Circuit Breakers, Curbs, and Other Trading part 5 Exchanges - Contact Information part 5 Exchanges - Instinet part 5 Exchanges - Market Makers and Specialists part 5 Exchanges - The NASDAQ part 5 Exchanges - The New York Stock Exchange part 5 Exchanges - Members and Seats on AMEX part 5 Exchanges - Ticker Tape Terminology part 6 Financial Planning - Basics part 6 Financial Planning - Choosing a Financial Planner part 6 Financial Planning - Compensation and Conflicts of Interest part 6 Financial Planning - Estate Planning Checkup part 6 Information Sources - Books part 6 Information Sources - Conference Calls part 7 Information Sources - Free to All Who Ask part 7 Information Sources - Investment Associations part 7 Information Sources - Value Line part 7 Information Sources - Wall $treet Week part 7 Insurance - Annuities part 7 Insurance - Life part 7 Insurance - Viatical Settlements part 7 Insurance - Variable Universal Life (VUL) part 8 Mutual Funds - Basics part 8 Mutual Funds - Average Annual Return part 8 Mutual Funds - Buying from Brokers versus Fund Companies part 8 Mutual Funds - Distributions and Tax Implications part 8 Mutual Funds - Fees and Expenses part 8 Mutual Funds - Index Funds and Beating the Market part 8 Mutual Funds - Money-Market Funds part 8 Mutual Funds - Reading a Prospectus part 8 Mutual Funds - Redemptions part 8 Mutual Funds - Types of Funds part 8 Mutual Funds - Versus Stocks part 9 Real Estate - 12 Steps to Buying a Home part 9 Real Estate - Investment Trusts (REITs) part 9 Real Estate - Renting versus Buying a Home part 9 Regulation - Accredited Investor part 9 Regulation - Full Disclosure part 9 Regulation - Money-Supply Measures M1, M2, and M3 part 9 Regulation - Federal Reserve and Interest Rates part 9 Regulation - Margin Requirements part 9 Regulation - Securities and Exchange Commission (U.S.) part 9 Regulation - SEC Rule 144 part 9 Regulation - SEC Registered Advisory Service part 9 Regulation - SEC/NASDAQ Settlement part 9 Regulation - Series of Examinations/Registrations part 9 Regulation - SIPC, or How to Survive a Bankrupt Broker part 10 Retirement Plans - 401(k) part 10 Retirement Plans - 403(b) part 10 Retirement Plans - Education IRA part 10 Retirement Plans - Co-mingling funds in IRA accounts part 10 Retirement Plans - Keogh part 10 Retirement Plans - Roth IRA part 10 Retirement Plans - SEP-IRA part 10 Retirement Plans - Traditional IRA part 11 Software - Archive of Free Investment-Related Programs part 11 Software - Portfolio Tracking and Technical Analysis part 11 Stocks - Basics part 11 Stocks - American Depositary Receipts (ADRs) part 11 Stocks - Cyclicals part 11 Stocks - Dividends part 11 Stocks - Dramatic Price Changes part 11 Stocks - Holding Company Depositary Recepits (HOLDRs) part 11 Stocks - Income and Royalty Trusts part 11 Stocks - Types of Indexes part 11 Stocks - The Dow Jones Industrial Average part 12 Stocks - Other Indexes part 12 Stocks - Investor Rights Movement part 12 Stocks - Initial Public Offerings (IPOs) part 12 Stocks - Mergers part 12 Stocks - Market Capitalization part 12 Stocks - Outstanding Shares and Float part 12 Stocks - Preferred Shares part 12 Stocks - Price Basis part 12 Stocks - Price Tables in Newspapers part 12 Stocks - Price Data part 12 Stocks - Replacing Lost Certificates part 12 Stocks - Repurchasing by Companies part 12 Stocks - Researching the Value of Old Certificates part 12 Stocks - Reverse Mergers part 13 Stocks - Shareholder Rights Plan part 13 Stocks - Splits part 13 Stocks - Tracking Stock part 13 Stocks - Unit Investment Trusts and SPDRs part 13 Stocks - Warrants part 13 Strategy - Dogs of the Dow part 13 Strategy - Dollar Cost and Value Averaging part 13 Strategy - Hedging part 13 Strategy - Buying on Margin part 13 Strategy - Offshore Holdings part 13 Strategy - Writing Put Options To Acquire Stock part 13 Strategy - Socially Responsible Investing part 13 Strategy - When to Buy/Sell Stocks part 13 Strategy - Survey of Stock Investment Strategies part 14 Strategy - Value and Growth part 14 Tax Code - Backup Withholding part 14 Tax Code - Capital Gains Cost Basis part 14 Tax Code - Capital Gains Computation part 14 Tax Code - Capital Gains Tax Rates part 14 Tax Code - Cashless Option Exercise part 14 Tax Code - Deductions for Investors part 14 aSubject: Tax Code - Estate and Gift Tax part 14 Tax Code - Gifts of Stock part 14 Tax Code - Non-Resident Aliens and US Holdings part 15 Tax Code - Reporting Option Trades part 15 Tax Code - Short Sales Treatment part 15 Tax Code - Tax Swaps part 15 Tax Code - Uniform Gifts to Minors Act (UGMA) part 15 Tax Code - Wash Sale Rule part 15 Technical Analysis - Basics part 15 Technical Analysis - Bollinger Bands part 15 Technical Analysis - Black-Scholes Model part 15 Technical Analysis - Commodity Channel Index part 15 Technical Analysis - Charting Services part 15 Technical Analysis - Data Sources part 15 Technical Analysis - Elliott Wave Theory part 15 Technical Analysis - Information Sources part 16 Technical Analysis - MACD part 16 Technical Analysis - McClellan Oscillator and Summation Index part 16 Technical Analysis - On Balance Volume part 16 Technical Analysis - Relative Strength Indicator part 16 Technical Analysis - Stochastics part 16 Trading - Basics part 16 Trading - After Hours part 16 Trading - Bid, Offer, and Spread part 16 Trading - Brokerage Account Types part 16 Trading - Discount Brokers part 16 Trading - Direct Investing and DRIPs part 17 Trading - Electronically and via the Internet part 17 Trading - Free Ride Rules part 17 Trading - By Insiders part 17 Trading - Introducing Broker part 17 Trading - Jargon and Terminology part 17 Trading - NASD Public Disclosure Hotline part 17 Trading - Buy and Sell Stock Without a Broker part 17 Trading - Non-Resident Aliens and US Exchanges part 17 Trading - Off Exchange part 17 Trading - Opening Prices part 17 Trading - Order Routing and Payment for Order Flow part 18 Trading - Day, GTC, Limit, and Stop-Loss Orders part 18 Trading - Pink Sheet Stocks part 18 Trading - Price Improvement part 18 Trading - Process Date part 18 Trading - Round Lots of Shares part 18 Trading - Security Identification Systems part 18 Trading - Shorting Stocks part 18 Trading - Shorting Against the Box part 18 Trading - Size of the Market part 18 Trading - Tick, Up Tick, and Down Tick part 18 Trading - Transferring an Account part 18 Trading - Can You Trust The Tape? part 19 Trading - Selling Worthless Shares part 19 Trivia - Bull and Bear Lore part 19 Trivia - Presidential Portraits on U.S. Notes part 19 Trivia - Getting Rich Quickly part 19 Trivia - One-Letter Ticker Symbols on NYSE part 19 Trivia - Stock Prices in Sixteenths part 19 Warning - Advertisement in the misc.invest.* groups part 19 Warning - Wade Cook part 19 Warning - Charles Givens part 19 Warning - Dave Rhodes and Other Chain Letters part 19 Warning - Ken Roberts part 19 Warning - Selling Unregistered Securities part 19 --------------------Check http://invest-faq.com/ for updates------------------ Compiler's Acknowledgements: My sincere thanks to the many contributors for their efforts. Compilation Copyright (c) 2002 by Christopher Lott. .