Investments & Financial Planning
The most frequently asked tax questions related to Investments & Financial Planning
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Answer Tax QuestionsInvestments & Financial Planning
In reference to the stock market , what are Fixed income securities ?
Asked Monday, November 13, 2000 by an anonymous user
Fixed income securities are securities that pay interest at set times at either fixed, floating or variable rates, or which are issued at a discount to their principal amount instead of making periodic interest payments. Fixed income securities include corporate bonds, debentures and other similar corporate debt instruments, zero coupon bonds and variable master demand notes.
Investments & Financial Planning
In reference to the stock market , what are Warrants ?
Asked Monday, November 13, 2000 by an anonymous user
Equity securities include common stocks, preferred stocks, securities convertible into common stocks, and rights and warrants to subscribe for the purchase of common stocks. Equity securities may be listed on a stock exchange or NASDAQ National Market System or unlisted.
Warrants are rights to purchase securities at a specified time at a specified price.
Warrants are rights to purchase securities at a specified time at a specified price.
Investments & Financial Planning
In reference to the stock market , what are Equity securities?
Asked Monday, November 13, 2000 by an anonymous user
Equity securities include common stocks, preferred stocks, securities convertible into common stocks, and rights and warrants to subscribe for the purchase of common stocks. Equity securities may be listed on a stock exchange or NASDAQ National Market System or unlisted. Warrants are rights to purchase securities at a specified time at a specified price.
Investments & Financial Planning
What are American Depositary Receipts ( ADRs ) ?
Asked Monday, November 13, 2000 by an anonymous user
American Depositary Receipts ( ADRs ) are U.S. dollar denominated receipts representing shares of foreign based corporations. ADR's are issued by U.S. banks or trust companies and entitle the holder to all dividends and capital gains that are paid out of underlying foreign assets.
Investments & Financial Planning
In reference to the stock market , what is a Derivative ?
Asked Monday, November 13, 2000 by an anonymous user
Derivative instruments are financial contracts whose value is based on an underlying security, a currency exchange rate, an interest rate or a market index. Many types of instruments representing a wide range of potential risks and rewards are derivatives, including futures contracts, options on futures contracts, and forward currency contracts.
Investments & Financial Planning
How long do Federal EE and I bonds earn interest for ?
Asked Monday, November 13, 2000 by an anonymous user
Federal EE and I bonds earn interest for 30 years. The interest rate is reset every 6 months for each bond. You do not have to report the interest earned as income on your tax return until you cash the bond in or it reached its final maturity, whichever comes first.
Investments & Financial Planning
I bonds- maximum purchase
Asked Monday, November 13, 2000 by an anonymous user
The maximum amount of I bonds an individual may buy each year is $10,000 in electronic bonds and $5,000 in paper I bonds. Federal I bonds cannot be exchanged for Federal HH bonds like Federal EE bonds can be.
Investments & Financial Planning
Federal EE bonds - maximum purchase
Asked Monday, November 13, 2000 by an anonymous user
You are limited to a $15,000 annual purchase of EE bonds. You buy an EE bond for half of its face value. Foe example a $100 face baond would cost $50. EE bonds can be exchanged for HH bonds.
Investments & Financial Planning
How is interest on Federal I bonds calculated ?
Asked Monday, November 13, 2000 by an anonymous user
I Bonds have an annual interest rate that reflects the combined effects of a fixed rate and a semiannual inflation rate. They are an accrual-type security. Interest, if any, is added to the bond monthly and is paid when you cash the bond.
I Bonds are sold at face value; i.e., you pay $50 for a $50 bond.
Current Rate: 3.06% through April 30, 2012
Minimum purchase:$50 for a $50 I Bond when purchasing
paper bond certificates. $25 for a $25 I bond when purchased electronically via TreasuryDirect
