Exam 11: Investment Planning

A market order would be transacted at the

Which of the following is not a securities market

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 [broker | dealer] market is made up of both the NASDAQ market and the OTC market.

In addition to a description of any investments owned,the worksheet listing your investments should include

Unlisted securities are traded on the

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. -Day trading is [illegal | risky].

Investing and speculating are two entirely different activities.

____ is a portfolio characteristic which leads to reduced risk with good return.

The largest market in terms of the number of issues traded is the

The OTC is the largest regional exchange.

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. -An IPO is be sold in the [primary | secondary] market many times.

Of the following choices,a person is likely to incur the lowest brokerage fee for a market order to buy 100 shares of IBM if the order is placed with

Minimum margin requirements that brokers must observe are set by the

Which of the following are characteristics of an effective portfolio strategy?

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 [bid | ask] price for a stock sold on the OTC market represents the price you would receive when you sold the stock.

A diversified portfolio should be less risky than putting your money into a single security.

Abe owns 1000 shares of Amazon,which he purchased for $12 per share 3 months ago.Abe just checked the price of Amazon and found that it is selling for $19 per share.He is so excited about his gain that he has booked a $6,000 20-day trip to Hawaii for he and his wife.He wants to be sure that the trip will be paid for entirely from gains in his Amazon shares because his wife has been nagging him about his frequent stock trading habit and he feels that this trip will demonstrate to her once and for all that he has the skills,acumen and instincts to get rich trading stocks.He feels strongly that the price of Amazon stock will go through the roof in the intermediate term but is concerned about short-term volatility.Abe's plan is to sell the shares only if the value of his shares either declines below $18,000 or if the value climbs to $30,000.He would like to submit his stock orders right now,because for the next three weeks it is very important to his marriage that he not trade or even follow the market (maybe just a peek at CNBC while his wife is in the shower).Which of the following set of stock orders would accomplish his pathetic goals?

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 corporation [could | could not] have its stock listed on a regional exchange as well as on the NYSE.

An investment in a financial futures contract would represent a fairly low risk investment.

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 first thing you need to determine in order to reach an investment goal is the [rate of return you can receive | the amount of money you need to set aside periodically].