Exam 11: Investment Planning

There is a trade-off between earning a high current income from an investment and obtaining significant capital appreciation from it.

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].

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. -Retired people often choose investments offering [high current income | low current income].

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 buy or sell a security at the best price available at the time the order is received is a [market | limit] order.

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 convertible bond would let the investor exchange it for [preferred | common] stock.

The most popular average/index covering stocks listed on the New York Stock Exchange is the New York Stock Exchange Index.

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

Buying on margin is buying

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. -Fifty shares of stock would constitute [an odd lot | a round lot].

The term "investment' refers to money placed in some medium where value and level of return are totally unpredictable.

An annual stockholder report will contain audited financial statements of the company.

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 deep discount broker will execute orders as well as [pick the stocks for you to buy | provide extensive information about various securities | offer little to no other services].

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 | gains and losses].

A market order would be transacted at the

Buying on margin would allow you to purchase securities using borrowed funds.

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.

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.

Prices are rising in bear markets,indicating economic optimism.

A systematic investment routine involves investing similar sums in regular intervals.

Which of the following is least likely to be an investment objective?