Question 1

A GTC order remains effective until filled or cancelled.

Accepted Answer

A) True 
 B)False

Question 2

A ________ is an order that specifies a securities trade is to be made only at a certain price or better.

Accepted Answer

A)  day order 
B)  market order 
C)  limit order 
D)  GTC order 
E)  none of the above 
A)  day order 
B)  market order 
C)  limit order 
D)  GTC order 
E)  none of the above

Question 3

You specify that your trade is to be made only at a certain price or better.You are placing a(n)

Accepted Answer

A)  stop order. 
B)  limit order. 
C)  market order. 
D)  open order. 
E)  closed order. 
A)  stop order. 
B)  limit order. 
C)  market order. 
D)  open order. 
E)  closed order.

Question 4

You are considered to be engaging in ________ when you purchase an asset whose value depends solely on supply and demand.

Accepted Answer

A)  investing 
B)  speculation 
C)  hedging 
D)  optioning 
E)  none of the above 
A)  investing 
B)  speculation 
C)  hedging 
D)  optioning 
E)  none of the above

Question 5

A ________ is a trading order that expires at the end of the trading day during which it was made.

Accepted Answer

A)  day order 
B)  market order 
C)  limit order 
D)  GTC order 
E)  fill-or-kill order 
A)  day order 
B)  market order 
C)  limit order 
D)  GTC order 
E)  fill-or-kill order

Question 6

Name the major organizations regulating the stock market and tell why they came about.

Accepted Answer

A federal agency,called The Securities a

Question 7

A primary market is a market in which new,as opposed to previously issued,securities are traded.

Accepted Answer

A) True 
 B)False

Question 8

You have just purchased a large number of Italian bonds,and you reside in the United States.The variability in earnings that you might experience as the relationship between the euro and the U.S.dollar fluctuates is called

Accepted Answer

A)  currency volatility risk. 
B)  international risk. 
C)  exchange rate risk. 
D)  fluctuation risk. 
E)  none of the above. 
A)  currency volatility risk. 
B)  international risk. 
C)  exchange rate risk. 
D)  fluctuation risk. 
E)  none of the above.

Question 9

Your emergency fund should always be invested in illiquid assets.

Accepted Answer

A) True 
 B)False

Question 10

Insider trading is both unfair and illegal.It occurs when officers,directors,major stockholders,or others trade securities while

Accepted Answer

A)  intoxicated. 
B)  in prison. 
C)  in possession of illegal drugs. 
D)  in possession of "material" nonpublic security information. 
E)  having relatives working at the firm whose stock they are trading. 
A)  intoxicated. 
B)  in prison. 
C)  in possession of illegal drugs. 
D)  in possession of "material" nonpublic security information. 
E)  having relatives working at the firm whose stock they are trading.

Question 11

What makes up the interest rate risk?

Accepted Answer

The inflation risk premium is the rate i

Question 12

On average,just by chance,half of the stock market's investors will outperform the market and half will underperform the market.

Accepted Answer

A) True 
 B)False

Question 13

Under the risk aversion effect,investors who lose money are more reluctant to take risks.

Accepted Answer

A) True 
 B)False

Question 14

Provide an explanation of the four points of making a comparison of investing returns on an after-tax basis.

Accepted Answer

The tax rate we should be concerned with

Question 15

The collateral an investor must put up when conducting a short sale is known as a margin requirement.

Accepted Answer

A) True 
 B)False

Question 16

You recently purchased a stock for $30.It is now worth $40,and it paid a $5 dividend during the time you held it.Your rate of return on this stock is closest to which of the following?

Accepted Answer

A)  67% 
B)  50% 
C)  38% 
D)  33% 
E)  17% 
A)  67% 
B)  50% 
C)  38% 
D)  33% 
E)  17%

Question 17

You have decided to borrow stock from your broker,sell it in the market,and then (you hope)replace the borrowed shares when the price drops in the future.This is an example of

Accepted Answer

A)  borrowed selling. 
B)  selling short. 
C)  reverse hedging. 
D)  IOU trading. 
E)  none of the above. 
A)  borrowed selling. 
B)  selling short. 
C)  reverse hedging. 
D)  IOU trading. 
E)  none of the above.

Question 18

You can make investments on a ________ basis,which means that not only does your investment grow free of taxes,but the money you invest isn't taxed until you liquidate your investment.

Accepted Answer

A)  tax-eliminated 
B)  progressive tax 
C)  tax-deferred 
D)  asset management 
A)  tax-eliminated 
B)  progressive tax 
C)  tax-deferred 
D)  asset management

Question 19

Day trading has been called

Accepted Answer

A)  "a trading method for transferring wealth from unsophisticated investors to sophisticated investors." 
B)  "a trading method for transferring wealth from sophisticated investors to unsophisticated investors." 
C)  "the safest, most conservative trading method." 
D)  "the long-term investors' preferred trading method." 
A)  "a trading method for transferring wealth from unsophisticated investors to sophisticated investors." 
B)  "a trading method for transferring wealth from sophisticated investors to unsophisticated investors." 
C)  "the safest, most conservative trading method." 
D)  "the long-term investors' preferred trading method."

Question 20

Investing prior to age 54 is a time of ________ by investing the majority of one's savings into ________.

Accepted Answer

A)  wealth preservation; conservative funds 
B)  wealth preservation; preferred stocks 
C)  wealth accumulation; common stocks 
D)  wealth accumulation; bonds 
E)  wealth dispersal; common and preferred stocks 
A)  wealth preservation; conservative funds 
B)  wealth preservation; preferred stocks 
C)  wealth accumulation; common stocks 
D)  wealth accumulation; bonds 
E)  wealth dispersal; common and preferred stocks

A GTC order remains effective until filled or cancelled.

A ________ is an order that specifies a securities trade is to be made only at a certain price or better.

You specify that your trade is to be made only at a certain price or better.You are placing a(n)

You are considered to be engaging in ________ when you purchase an asset whose value depends solely on supply and demand.

A ________ is a trading order that expires at the end of the trading day during which it was made.

Name the major organizations regulating the stock market and tell why they came about.

A primary market is a market in which new,as opposed to previously issued,securities are traded.

You have just purchased a large number of Italian bonds,and you reside in the United States.The variability in earnings that you might experience as the relationship between the euro and the U.S.dollar fluctuates is called

Your emergency fund should always be invested in illiquid assets.

Insider trading is both unfair and illegal.It occurs when officers,directors,major stockholders,or others trade securities while

What makes up the interest rate risk?

On average,just by chance,half of the stock market's investors will outperform the market and half will underperform the market.

Under the risk aversion effect,investors who lose money are more reluctant to take risks.

Provide an explanation of the four points of making a comparison of investing returns on an after-tax basis.

The collateral an investor must put up when conducting a short sale is known as a margin requirement.

You recently purchased a stock for $30.It is now worth $40,and it paid a $5 dividend during the time you held it.Your rate of return on this stock is closest to which of the following?

You have decided to borrow stock from your broker,sell it in the market,and then (you hope)replace the borrowed shares when the price drops in the future.This is an example of

You can make investments on a ________ basis,which means that not only does your investment grow free of taxes,but the money you invest isn't taxed until you liquidate your investment.

Day trading has been called

Investing prior to age 54 is a time of by investing the majority of one's savings into .

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Student and Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters

Exam 11: Investment Basics

A GTC order remains effective until filled or cancelled.

A ________ is an order that specifies a securities trade is to be made only at a certain price or better.

You specify that your trade is to be made only at a certain price or better.You are placing a(n)

You are considered to be engaging in ________ when you purchase an asset whose value depends solely on supply and demand.

A ________ is a trading order that expires at the end of the trading day during which it was made.

Name the major organizations regulating the stock market and tell why they came about.

A primary market is a market in which new,as opposed to previously issued,securities are traded.

You have just purchased a large number of Italian bonds,and you reside in the United States.The variability in earnings that you might experience as the relationship between the euro and the U.S.dollar fluctuates is called

Your emergency fund should always be invested in illiquid assets.

Insider trading is both unfair and illegal.It occurs when officers,directors,major stockholders,or others trade securities while

What makes up the interest rate risk?

On average,just by chance,half of the stock market's investors will outperform the market and half will underperform the market.

Under the risk aversion effect,investors who lose money are more reluctant to take risks.

Provide an explanation of the four points of making a comparison of investing returns on an after-tax basis.

The collateral an investor must put up when conducting a short sale is known as a margin requirement.

You recently purchased a stock for $30.It is now worth $40,and it paid a $5 dividend during the time you held it.Your rate of return on this stock is closest to which of the following?

You have decided to borrow stock from your broker,sell it in the market,and then (you hope)replace the borrowed shares when the price drops in the future.This is an example of

You can make investments on a ________ basis,which means that not only does your investment grow free of taxes,but the money you invest isn't taxed until you liquidate your investment.

Day trading has been called

Investing prior to age 54 is a time of ________ by investing the majority of one's savings into ________.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Student and Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters

Investing prior to age 54 is a time of by investing the majority of one's savings into .