Exam 11: Investment Planning

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The largest stock exchange in the world is the [New York Stock Exchange | Tokyo Exchange].

____ is not a normal brokerage service.

The New York Stock Exchange is the largest stock exchange in the world.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The AMEX is [very close to | way below] the trading volume of the NYSE.

A statement specifying how investment capital will be invested in order to reach targeted goals is called a marketing plan.

Owning common stock represents an debt investment.

Regional exchanges handle most of the volume of stock trades in the United States.

A portfolio is a collection of investment assets assembled to meet your investment objectives.

In order to trade securities on the floor of an exchange,members who are doing the trading must own a "seat" on the exchange.

Which of the following is an order to sell a stock when the market price drops to or below a specified level?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Using margin will magnify [only gains | only losses].

Most investment-oriented Web sites include portfolio-tracking tools.

Long-term securities are traded in the primary market.

The internet allows individual investors to legally

There is strong evidence that the total return on a portfolio is influenced more by its asset allocation plan than by specific security selections.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -A fixed dividend would be received with [common | preferred] stock.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -You will pay a commission to your broker [only when you buy stocks | only when you sell stocks].

All OTC stocks are part of NASDAQ.

An investor can participate in the real estate market by investing in a REIT.

A diversified securities portfolio is characterized by