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 collection of investments you select to meet your investment goals is called your [portfolio | allocation].

A collection of investments is called

A round lot consists of multiples of 100 shares of stock.

The federal margin requirement for common stock is 50%.

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. -[Common stocks | Bonds] have no maturity date.

The major reason most people invest is to shelter current income from taxes.

AMEX is the second largest organized exchange in the world.

Which of the following securities/investment acts regulates the sale of mutual fund shares?

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 [primary | secondary] market is where new securities are sold to the public.

According to recent legislation,under the FDIC each brokerage account is insured up to $250,000.

Once one's asset allocation plan is developed and securities are selected,these decisions do not have to be made again until there is a major life change.

The over-the-counter market is not an organized security exchange.

A bull market is characterized by

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 going to buy stock on margin.You will be required to put up a minimum of [50 | 60] percent of the money needed to make the purchase.

The most widely followed stock average is the

One buys a block of stock and then hypes the stock over the Internet before selling it.This is called

The securities market which you could not locate on the map is the

When you buy 300 shares of a company you have purchased

During a bear market,security prices generally

Your goals tend to set the tone for your investment program,and they play a major role in determining how conservative or aggressive you're likely to be in making investment decisions.