Investment and Finance
The most frequently asked tax questions related to Investment and Finance
Investments & Financial Planning
What is a Brokered Certificate of Deposit ?
Asked Friday, January 12, 2001 by an anonymous userCPA Answer:
A brokered Certificate of Deposit is a certificate of deposit issued by a bank or thrift institution bought by a brokerage firm in bulk for the purpose of reselling to their brokerage customers. A broker Certificate of Deposit features a higher interest rate, usually 1 percent higher, and is FDIC insured and do not usually have commissions.
Investments & Financial Planning
Can I invest in Bullion coins ?
Asked Friday, January 12, 2001 by an anonymous userCPA Answer:
Bullion coins are metal coins consisting of gold, silver, platinum, or palladium that are actively traded on exchanges. Some examples include the American eagle and the Canadian maple leaf. Their price is directly connected to the underlying price of their metal.
Investments & Financial Planning
What is considered a " block " of stock ?
Asked Friday, January 12, 2001 by an anonymous userCPA Answer:
A "block" is a large quantity of stock or large dollar amount of bonds held or traded. Generally, 10,000 shares or more of stock and $200,000 or more worth of bonds would be described as a block.
Investments & Financial Planning
What is a corporation poison pill ?
Asked Friday, January 12, 2001 by an anonymous userCPA Answer:
Corporation poison pill is a Antitakeover device that gives a prospective acquirer’s shareholders the right to buy shares of the firm or shares of anyone who acquires the firm at a very large discount to their fair market value.
It gets its name after the cyanide pill that secret government agents are said to be instructed to swallow if capture is imminent.
It gets its name after the cyanide pill that secret government agents are said to be instructed to swallow if capture is imminent.
Investments & Financial Planning
What is an Intercommodity spread ?
Asked Friday, January 12, 2001 by an anonymous userCPA Answer:
An Intercommodity spread in the commodities market is a spread consisting of a long position and a short position in different but related commodities. An investor might be speculating that the price relationship between the two commodities will change for example gold and silver commodities.
Investments & Financial Planning
What is the International Monetary Fund ?
Asked Friday, January 12, 2001 by an anonymous userCPA Answer:
The International Monetary Fund also known as the IMF is an organization founded to oversee exchange arrangements of member countries and to lend foreign currency reserves to members with short term balance of payment problems.
Investments & Financial Planning
What is an Investment letter ?
Asked Friday, January 12, 2001 by an anonymous userCPA Answer:
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 userCPA Answer:
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 userCPA Answer:
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.