Exam 11: Investment Planning

Portfolio management involves making decisions in order to

During a bull 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. -[Speculating | Investing] is considered to be a long term activity.

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. -Stockbrokers prefer clients who [buy and hold | trade actively.]

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 order to sell stock when the price drops to a specified price is a [market | limit] order.

A long term investment strategy includes all of the following except

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 closing price of this stock on the previous day was [higher | lower] than today's close.

Which of the following is a characteristic of an organized securities exchange?

Which of these stocks has a closing price has a price earnings multiple of 10?

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. -[2,000 | 148,800] shares of ABC stock were traded on this day.

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. -Most brokerage agreements [will | will not] permit you to sue your broker for malpractice.

The first step in asset allocation is selecting the securities that should go into your portfolio.

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 would expect to receive an annual dividend of [$0.16 | $0.70] per share.

A brokerage fee of 5 percent on a stock purchase would be a low fee.

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 [DJIA | S&P Index] is based on 500 different stocks.

Common stock generally allows the stockholder to vote on issues of corporate governance.

How many shares of Stock A traded on this day?

If a company's shares are traded on the New York Stock Exchange,the company is a member of the 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. -The owner of a bond would expect to receive [steady | variable] annual income.

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 are selling short;you anticipate the price of the stock will [rise | fall].