Investment and Finance
The most frequently asked tax questions related to Investment and Finance
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Answer Tax QuestionsUp to what date can I make a Educational IRA contribution?
Asked Tuesday, January 16, 2001 by an anonymous user
Contributions to an Educational IRA must be completed by the due date of your individual tax return, (generally 4/15/XX) NOT including extensions.
Investments & Financial Planning
Educational IRA - Contribution Due Date
Asked Tuesday, January 16, 2001 by an anonymous user
Contributions to an Educational IRA must be completed by the due date of the return 4/15/XX , NOT including extensions.
IRA - Early distribution for medical expenses
Asked Tuesday, January 16, 2001 by an anonymous user
In the current year, you can receive an early distribution from your IRA to pay for your wife's medical expenses and will not be subject to a 10 % penalty on the amount that exceeds 10% / 7.5% of your Adjusted Gross Income.
The money can be used to hire a nurse, pay for prescription drugs and other items such as hearing aids, dentures and eyeglasses.
The money can be used to hire a nurse, pay for prescription drugs and other items such as hearing aids, dentures and eyeglasses.
Investments & Financial Planning
What is a " Put " option ?
Asked Tuesday, January 16, 2001 by an anonymous user
Put
A "Put" is an option granting the right to "Sell" the underlying futures contract. This is opposite of a call.
A "Call" is an option that gives the holder the right to "Buy" the underlying futures contract.
Investments & Financial Planning
What is a Pyramid scheme ?
Asked Tuesday, January 16, 2001 by an anonymous user
Pyramid scheme is an fraudulent, illegal scheme in which a con artist convinces victims to invest by promising an extraordinary large return on their investment but instead simply use newly invested funds to pay off any investors who insist on terminating their investment.
This timing scheme usually continues to a point in which the con artist disappears with the bulk of the investors funds.
This timing scheme usually continues to a point in which the con artist disappears with the bulk of the investors funds.
Investments & Financial Planning
What is an Investment letter ?
Asked Friday, January 12, 2001 by an anonymous user
An Investment letter is a letter of intent between the issuer of new securities and the buyer, in the private placement of these new securities. The letter of intent establishes that the securities are being bought for a minimum time period and are treated as an investment, not for resale. If no such letter exists, the securities must be registered with Securities and Exchange Commission.
Investments & Financial Planning
Does Italy have a stock exchange ?
Asked Friday, January 12, 2001 by an anonymous user
Yes. Italian Stock Exchange is based
in Milan. It came into effect after the unification of Italy's 10 national exchanges in 1991. All listed securities are traded electronically. The main indexes are the MIB and the MIBTEL, based on the prices of all listed shares, and the MIB Thirty, based on a sample of the thirty most liquid and highly capitalized shares.
Investments & Financial Planning
In the stock market calendar, what is the January barometer and January effect ?
Asked Friday, January 12, 2001 by an anonymous user
The January barometer is a statistic from "The Stock Traders Almanac" reflecting, with 85-90% accuracy, that the overall stock market rises in a year when the Standard and Poors is up in the month of January and drops when the index for that month is down.
The January effect refers to the historical pattern that stock prices rise in the first few days of January.
Studies have suggested this holds only for small capitalization stocks. In recent years, there has been less evidence of a January effect.
The January effect refers to the historical pattern that stock prices rise in the first few days of January.
Studies have suggested this holds only for small capitalization stocks. In recent years, there has been less evidence of a January effect.
Investments & Financial Planning
What is a public corporation Leveraged buyout ?
Asked Friday, January 12, 2001 by an anonymous user
Leveraged buyout is a strategy used to take a public corporation private that is financed through debt such as bank loans and bonds. Because of the large amount of debt relative to equity in the new corporation, the bonds are typically rated below investment grade, properly referred to as junk bonds or high yield bonds. Investors can participate in an leveraged buyout through either the purchase of the debt (purchase of the bonds or participation in the bank loan) or the purchase of equity through an Leveraged buyout fund that specializes in such investments.
