Questions from General Investment

Q: An investor short sells 500 shares of a stock for $35

An investor short sells 500 shares of a stock for $35 per share. The initial margin is 45%. How much equity will be required in the account to complete this transaction?

Q: You hear a market analyst on television say that the advance/

You hear a market analyst on television say that the advance/decline ratio for the session was 2.2. What does that mean?

Q: At the end of a trading day you find that on the

At the end of a trading day you find that on the NYSE 1,200 stocks advanced and 2,000 stocks declined. What is the value of the advance-decline line for that day?

Q: You are given the following information for the number of stocks making

You are given the following information for the number of stocks making new highs and new lows for each day: a. Calculate the 10-day moving-average NH-NL indicator. b. If there are 120 new highs and 2...

Q: A 9%, 20-year bond is callable in 12 years

A 9%, 20-year bond is callable in 12 years at a call price of $1,090. The bond is currently priced in the market at $923.68. What is the issue’s current yield?

Q: Caleb buys an 8.75% corporate bond with a current

Caleb buys an 8.75% corporate bond with a current yield of 5.6%. When he sells the bond one year later, the current yield on the bond is 6.6%. How much did Caleb make on this investment?

Q: In early January 2014, you purchased $100,000 worth

In early January 2014, you purchased $100,000 worth of some high-grade corporate bonds. The bonds carried a coupon of 6% and mature in 2027. You paid a price of 102.625 when you bought the bonds. Over...

Q: Rhonda purchased a 12%, zero-coupon bond with a 20

Rhonda purchased a 12%, zero-coupon bond with a 20-year maturity and a $15,000 par value 20 years ago. The bond matures tomorrow. How much will Rhonda receive in total from this investment, assuming a...

Q: Burt purchased an interest-bearing security last year, planning to

Burt purchased an interest-bearing security last year, planning to hold it until maturity. He received interest payments and, to his surprise, a sizable amount of the principal was paid back in the fi...

Q: Letticia Garcia, an aggressive bond investor, is currently thinking about

Letticia Garcia, an aggressive bond investor, is currently thinking about investing in a foreign (non-dollar-denominated) government bond. In particular, she’s looking at a Swiss government bond that...