Investments & Financial Planning
The most frequently asked tax questions related to Investments & Financial Planning
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Answer Tax QuestionsInvestments & 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 the Repurchase of stock strategy ?
Asked Tuesday, January 16, 2001 by an anonymous user
The Repurchase of stock technique is when the corporation pays cash to the firm's shareholders that provides more preferential tax treatment for shareholders than dividends. Generally, after the repurchase, less stocks are available and the price per share increases. Treasury stock is the name given to previously issued stock that has been repurchased by the firm. A repurchase is achieved through either a , open market, purchase, tender offer or Dutch auction.
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.
Investments & Financial Planning
What is an Real Estate Investment Trust ( REIT ) ?
Asked Tuesday, January 16, 2001 by an anonymous user
A Real Estate Investment Trust (REIT)
invest in real estate or loans secured by real estate and issue shares in such investments. A Real Estate Investment Trust is similar to a closed-end mutual fund.
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
What is an Intercommodity spread ?
Asked Friday, January 12, 2001 by an anonymous user
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
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.