Question 1

Day traders always trade

Accepted Answer

A)  in the primary market. 
B)  in either the primary or secondary markets. 
C)  with an objective of buying and selling within two hours. 
D)  using margin funding. 
A)  in the primary market. 
B)  in either the primary or secondary markets. 
C)  with an objective of buying and selling within two hours. 
D)  using margin funding.

Question 2

All of the following are true regarding stock prices, except they

Accepted Answer

A)  are influenced by supply and demand. 
B)  are regulated by the Federal Reserve Board. 
C)  have no set limit. 
D)  generally increase with good financial news. 
A)  are influenced by supply and demand. 
B)  are regulated by the Federal Reserve Board. 
C)  have no set limit. 
D)  generally increase with good financial news.

Question 3

The Internet should be used for all of the following, except

Accepted Answer

A)  company financial statements. 
B)  specific recommendation on which stocks to buy. 
C)  stock prices. 
D)  analysis of stocks and industries. 
A)  company financial statements. 
B)  specific recommendation on which stocks to buy. 
C)  stock prices. 
D)  analysis of stocks and industries.

Question 4

Publicly traded indexes are typically purchased by investors who expect an increase in

Accepted Answer

A)  an inflation index. 
B)  an unemployment index. 
C)  an index representing the political approval rating of the president of the United States. 
D)  a particular stock index. 
A)  an inflation index. 
B)  an unemployment index. 
C)  an index representing the political approval rating of the president of the United States. 
D)  a particular stock index.

Question 5

Which of the following statements is not true regarding individual investors?

Accepted Answer

A)  They commonly invest a portion of the money earned from their jobs. 
B)  They invest in stocks to earn a reasonable return on their investments. 
C)  They expect their money to grow by the time they wish to use it to make purchases. 
D)  The percentage of individual Americans who own stocks increased immediately following the financial crisis of 2008-2009. 
A)  They commonly invest a portion of the money earned from their jobs. 
B)  They invest in stocks to earn a reasonable return on their investments. 
C)  They expect their money to grow by the time they wish to use it to make purchases. 
D)  The percentage of individual Americans who own stocks increased immediately following the financial crisis of 2008-2009.

Question 6

Of the following, which is not used in measuring a stock's return?

Accepted Answer

A)  Price of the stock at the time of purchase 
B)  Average price of the stock during the period owned 
C)  Price of the stock at the time of sale 
D)  Dividends earned during the period owned 
A)  Price of the stock at the time of purchase 
B)  Average price of the stock during the period owned 
C)  Price of the stock at the time of sale 
D)  Dividends earned during the period owned

Question 7

Most investors are fully aware of the risk involved when pursuing investments that have the potential for very large returns.

Accepted Answer

A) True 
 B)False

Question 8

You have $10,000 to invest and would like to set these funds aside for retirement in 20 years. You should

Accepted Answer

A)  put the money in a money market savings account. 
B)  buy a one-year CD. 
C)  buy stocks of relatively stable firms that have low risk. 
D)  invest in a diversified stock mutual fund. 
A)  put the money in a money market savings account. 
B)  buy a one-year CD. 
C)  buy stocks of relatively stable firms that have low risk. 
D)  invest in a diversified stock mutual fund.

Question 9

An initial public offering (IPO) is characterized by all of the following, except that

Accepted Answer

A)  it is the first time offering of publicly traded stock by a corporation. 
B)  it has the potential to be sold later for a profit in the secondary market. 
C)  it can result in losing the investment. 
D)  it is available to individual investors before institutional investors. 
A)  it is the first time offering of publicly traded stock by a corporation. 
B)  it has the potential to be sold later for a profit in the secondary market. 
C)  it can result in losing the investment. 
D)  it is available to individual investors before institutional investors.

Question 10

Preferred stock dividends are paid before a firm can pay dividends on its common stock.

Accepted Answer

A) True 
 B)False

Question 11

Before investing you should consider paying off loans before making investments.

Accepted Answer

A) True 
 B)False

Question 12

Newly issued securities are traded in the ________.

Accepted Answer

The answer of Newly issued securities are traded in the...

Question 13

All of the following gains from investments are taxed as ordinary income, except

Accepted Answer

A)  coupon payments. 
B)  interest. 
C)  short-term capital gains. 
D)  long-term capital gains. 
A)  coupon payments. 
B)  interest. 
C)  short-term capital gains. 
D)  long-term capital gains.

Question 14

If you purchase 100 shares of XYZ Corporation for $50 per share, receive a dividend check for $200, and then sell the stock for $62 per share, what will your return on the stock be?

Accepted Answer

A)  4% 
B)  424% 
C)  24% 
D)  28% 
A)  4% 
B)  424% 
C)  24% 
D)  28%

Question 15

It is easy to predict the level of demand for certain investments since future economic conditions are fairly measurable.

Accepted Answer

A) True 
 B)False

Question 16

Use the following two columns of items to answer the matching questions below:
-institutional investors
A)first offering of a firm's stock to the public
B)facilities that allow investors to purchase or sell existing stocks
C)investors owning this type of stock have priority over common stockholders in receiving dividends
D)market where existing securities are sold
E)individual investors who buy and sell stocks within a day
F)financial instruments that represent partial ownership of a firm
G)debt instruments issued by the government or corporations to borrow money from investors
H)professionals responsible for clients' funds

Accepted Answer

The answer of Use the following two columns of items...

Question 17

If you believe that a firm will grow rapidly in the future, you should buy its

Accepted Answer

A)  bonds. 
B)  notes. 
C)  common stock. 
D)  preferred stock. 
A)  bonds. 
B)  notes. 
C)  common stock. 
D)  preferred stock.

Question 18

The largest market where existing securities are sold is called the ________ market.

Accepted Answer

A)  primary 
B)  secondary 
C)  third 
D)  fourth 
A)  primary 
B)  secondary 
C)  third 
D)  fourth

Question 19

Investors who buy and sell stock, sometimes in the same day, are called

Accepted Answer

A)  individual investors. 
B)  growth investors. 
C)  institutional investors. 
D)  day traders. 
A)  individual investors. 
B)  growth investors. 
C)  institutional investors. 
D)  day traders.

Question 20

Stock prices are characterized by all of the following, except they

Accepted Answer

A)  can plummet with poor economic conditions. 
B)  have a set lower limit. 
C)  can be affected by negative earnings. 
D)  can be affected by the quality of the company's management. 
A)  can plummet with poor economic conditions. 
B)  have a set lower limit. 
C)  can be affected by negative earnings. 
D)  can be affected by the quality of the company's management.

Day traders always trade

All of the following are true regarding stock prices, except they

The Internet should be used for all of the following, except

Publicly traded indexes are typically purchased by investors who expect an increase in

Which of the following statements is not true regarding individual investors?

Of the following, which is not used in measuring a stock's return?

Most investors are fully aware of the risk involved when pursuing investments that have the potential for very large returns.

You have $10,000 to invest and would like to set these funds aside for retirement in 20 years. You should

An initial public offering (IPO) is characterized by all of the following, except that

Preferred stock dividends are paid before a firm can pay dividends on its common stock.

Before investing you should consider paying off loans before making investments.

Newly issued securities are traded in the ________.

All of the following gains from investments are taxed as ordinary income, except

If you purchase 100 shares of XYZ Corporation for $50 per share, receive a dividend check for $200, and then sell the stock for $62 per share, what will your return on the stock be?

It is easy to predict the level of demand for certain investments since future economic conditions are fairly measurable.

If you believe that a firm will grow rapidly in the future, you should buy its

The largest market where existing securities are sold is called the ________ market.

Investors who buy and sell stock, sometimes in the same day, are called

Stock prices are characterized by all of the following, except they

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

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Exam 14: Investing Fundamentals

Day traders always trade

All of the following are true regarding stock prices, except they

The Internet should be used for all of the following, except

Publicly traded indexes are typically purchased by investors who expect an increase in

Which of the following statements is not true regarding individual investors?

Of the following, which is not used in measuring a stock's return?

Most investors are fully aware of the risk involved when pursuing investments that have the potential for very large returns.

You have $10,000 to invest and would like to set these funds aside for retirement in 20 years. You should

An initial public offering (IPO) is characterized by all of the following, except that

Preferred stock dividends are paid before a firm can pay dividends on its common stock.

Before investing you should consider paying off loans before making investments.

Newly issued securities are traded in the ________.

All of the following gains from investments are taxed as ordinary income, except

If you purchase 100 shares of XYZ Corporation for $50 per share, receive a dividend check for $200, and then sell the stock for $62 per share, what will your return on the stock be?

It is easy to predict the level of demand for certain investments since future economic conditions are fairly measurable.

If you believe that a firm will grow rapidly in the future, you should buy its

The largest market where existing securities are sold is called the ________ market.

Investors who buy and sell stock, sometimes in the same day, are called

Stock prices are characterized by all of the following, except they

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters