Exam 16: Securities and Investments

Of the following forms of funding for small business, which is MOST often used in the early stages?

What is the first thing a company's financial manager does once her company has decided to finance with bonds?

A bull market is distinguished by ________.

The S&P 500 tracks more companies than does the DJIA.

Why would a 65-year-old likely be best served by owning an income stock rather than a growth stock?

Which of the following is NOT an advantage of issuing bonds to raise funds for a company?

A corporate bond backed only by a company's promise to pay is called a ________.

The lower the interest rate on the bonds it issues, the better the situation for the company.

What are the four main advantages of mutual funds?

Which federal agency oversees and regulates the buying and selling of stocks and bonds?

What are the most important factors to consider when deciding which particular stock to purchase?

Why do companies issue stock?

Which of the following Standard & Poor's bond rating categories is most likely to pay the lowest interest rate?

If you wanted a moderate risk and moderate return for your investment, you would be wisest to choose ________.

In a bond offering, financial advisors MOST often buy bonds of the company ________.

The first time a company sells stock, it does so through an initial public offering.

A wise investor will practice either diversification or asset allocation, but not both.

Both the New York Stock Exchange and the NASDAQ use only electronic methods for stock trading.

An option requires that you purchase the asset in question unless you sell the option first.

What are the basic characteristics of a bull market and a bear market in terms of stock market performance and investor confidence?