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WARNING: Reading this financial column may become addictive!
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Wall Street's only personal advice column. Start Here > |
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 Roy Lerman is considered the "Anne Landers" and "Dear Abby" of the financial community. "My aim for this site is to take much of the mystery out of investing, by providing simple answers to your questions and problems with a touch of humor." -Roy |
Dear Roy,
What is the Federal Reserve System, can you tell me in simple terms? - Jorn, TX
Well Jorn, It is not the army, it was established in 1913 to regulate the monetary and banking system,it is comprised of 12 regional federal reserve banks, their 24 branches, and all national and state banks. The main fuctions are to regulate the national money supply,supervise the printing of currency at the mint,and act as a clearing house for the transfer of funds throughout the banking system. - Roy
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Dear Roy,
I heard my brother talking about selling "covered options". Tell me, what is a covered option? - JC, New York
JC, Well JC, for one , its not wall paper, it is a very conservative options strategy that entails buying stock and selling call options on them. The investor receives both the dividends from the stock and the premium from the call option. - Roy
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Dear Roy,
A lot of people have been talking about Options and Warrants, but I feel they would be awfully risky for me. Do you know of any other kinds of investments that are like them? - George, FL
George,
First of all who are these people? To answer your question George, there is an investment which are bonds that can be exchanged for shares of stock. These bonds are called Convertible bonds, they offer you the safety of a steady stream of semi-annual payments and the scheduled return of the principal amount of the bonds, and also you may swap the bond for a specified number of shares of the issuers stock. - Roy
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