Question 1

Reggie believed that the price of his stock was going to drop in the near future his strategy was to short sell that stock to make a profit.

Accepted Answer

A) True 
 B)False

Question 2

A ________ is an order to buy or sell a set number of securities immediately at the best price available.

Accepted Answer

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

Question 3

You just concluded a stock purchase transaction via a computer hookup rather than in an organized exchange.This trade took place in the

Accepted Answer

A)  over-the-counter market. 
B)  NYSE. 
C)  AMEX. 
D)  primary market. 
E)  none of the above. 
A)  over-the-counter market. 
B)  NYSE. 
C)  AMEX. 
D)  primary market. 
E)  none of the above.

Question 4

An investor owns stock from seven different companies,two rental houses,and three government bonds.Together these assets are considered to be the investor's

Accepted Answer

A)  collection. 
B)  derivative holding. 
C)  asset class. 
D)  portfolio. 
E)  none of the above. 
A)  collection. 
B)  derivative holding. 
C)  asset class. 
D)  portfolio. 
E)  none of the above.

Question 5

An ask on offer price is one at which an individual is willing to sell a security.

Accepted Answer

A) True 
 B)False

Question 6

Investing in bonds tends to be riskier financial strategy than investing in common stocks.

Accepted Answer

A) True 
 B)False

Question 7

According to the Keown book,overconfidence afflicts women more often than men,and it also leads women to trade too often.

Accepted Answer

A) True 
 B)False

Question 8

Patti DeVry has been trading stocks in the over-the-counter market.When she wants to sell her stocks she will specify the ________ price and when she wants to purchase stocks she will specify the ________ price.

Accepted Answer

A)  ask on offer; bid 
B)  bid; ask on offer 
C)  starting; minimum 
D)  ask; minimum 
E)  bid; minimum 
A)  ask on offer; bid 
B)  bid; ask on offer 
C)  starting; minimum 
D)  ask; minimum 
E)  bid; minimum

Question 9

Barney Hopkins is the financial manager for Amax Corporation.He knows that ________ risk deals with good or bad management decisions and ________ is associated with his company's use of debt.

Accepted Answer

A)  market; business 
B)  market; financial 
C)  business; interest rate 
D)  business; financial 
E)  financial; business 
A)  market; business 
B)  market; financial 
C)  business; interest rate 
D)  business; financial 
E)  financial; business

Question 10

Merrill Lynch,Edward Jones and Morgan Stanley Smith Barney are all full service brokers.

Accepted Answer

A) True 
 B)False

Question 11

Market risk is the risk of fluctuations in security prices due to changes in the market interest rate.

Accepted Answer

A) True 
 B)False

Question 12

The disposition effect involves

Accepted Answer

A)  holding onto winners too long. 
B)  selling losers too soon. 
C)  both A and B. 
D)  neither A nor B. 
A)  holding onto winners too long. 
B)  selling losers too soon. 
C)  both A and B. 
D)  neither A nor B.

Question 13

Diversification eliminates all the risk from your portfolio.

Accepted Answer

A) True 
 B)False

Question 14

You and your spouse have decided to incorporate bonds into your newly-formed retirement portfolio.You will most likely purchase them

Accepted Answer

A)  directly from a bond dealer. 
B)  with your broker acting as intermediary. 
C)  directly from the issuing institution. 
D)  with an underwriter acting as intermediary. 
A)  directly from a bond dealer. 
B)  with your broker acting as intermediary. 
C)  directly from the issuing institution. 
D)  with an underwriter acting as intermediary.

Question 15

As the owner of a corporate bond this means I hold an ownership position within that corporation.

Accepted Answer

A) True 
 B)False

Question 16

In addition to your own investment,you borrowed money from your broker to purchase shares of a stock.Your broker called to tell you that the price of your stock has fallen and you now need to contribute more of your own money to keep the account at the minimum level.This is termed a(n)

Accepted Answer

A)  account validation. 
B)  margin call. 
C)  minimum validation. 
D)  stop-loss order. 
E)  none of the above. 
A)  account validation. 
B)  margin call. 
C)  minimum validation. 
D)  stop-loss order. 
E)  none of the above.

Question 17

What is an advantage to being a "preferred" stock holder?

Accepted Answer

A)  Preferred stock holders always get to vote for the board of directors of the company. 
B)  Preferred stock holders receive a better coupon interest rate. 
C)  Preferred stock holders receive dividend payouts before common stock holders do. 
D)  Preferred stock holders never pay commissions on their stock trades. 
E)  There are no advantages to being a preferred stock holder. 
A)  Preferred stock holders always get to vote for the board of directors of the company. 
B)  Preferred stock holders receive a better coupon interest rate. 
C)  Preferred stock holders receive dividend payouts before common stock holders do. 
D)  Preferred stock holders never pay commissions on their stock trades. 
E)  There are no advantages to being a preferred stock holder.

Question 18

Jennifer has money invested in stocks.She earns a return on her investment,which is a portion of the company's profits,called

Accepted Answer

A)  interest. 
B)  a return. 
C)  dividends. 
D)  growth. 
E)  retained earnings. 
A)  interest. 
B)  a return. 
C)  dividends. 
D)  growth. 
E)  retained earnings.

Question 19

The primary sources of information about the stock market and individual stocks are Moody's Investors Service,Standard & Poor's Stock Reports,Morningstar Investment Reports,and the Value Line Investment Survey.

Accepted Answer

A) True 
 B)False

Question 20

If you purchases securities jointly with another person,how the account is registered is not very important.

Accepted Answer

A) True 
 B)False

Reggie believed that the price of his stock was going to drop in the near future his strategy was to short sell that stock to make a profit.

A ________ is an order to buy or sell a set number of securities immediately at the best price available.

You just concluded a stock purchase transaction via a computer hookup rather than in an organized exchange.This trade took place in the

An investor owns stock from seven different companies,two rental houses,and three government bonds.Together these assets are considered to be the investor's

An ask on offer price is one at which an individual is willing to sell a security.

Investing in bonds tends to be riskier financial strategy than investing in common stocks.

According to the Keown book,overconfidence afflicts women more often than men,and it also leads women to trade too often.

Patti DeVry has been trading stocks in the over-the-counter market.When she wants to sell her stocks she will specify the price and when she wants to purchase stocks she will specify the price.

Barney Hopkins is the financial manager for Amax Corporation.He knows that risk deals with good or bad management decisions and is associated with his company's use of debt.

Merrill Lynch,Edward Jones and Morgan Stanley Smith Barney are all full service brokers.

Market risk is the risk of fluctuations in security prices due to changes in the market interest rate.

The disposition effect involves

Diversification eliminates all the risk from your portfolio.

You and your spouse have decided to incorporate bonds into your newly-formed retirement portfolio.You will most likely purchase them

As the owner of a corporate bond this means I hold an ownership position within that corporation.

In addition to your own investment,you borrowed money from your broker to purchase shares of a stock.Your broker called to tell you that the price of your stock has fallen and you now need to contribute more of your own money to keep the account at the minimum level.This is termed a(n)

What is an advantage to being a "preferred" stock holder?

Jennifer has money invested in stocks.She earns a return on her investment,which is a portion of the company's profits,called

The primary sources of information about the stock market and individual stocks are Moody's Investors Service,Standard & Poor's Stock Reports,Morningstar Investment Reports,and the Value Line Investment Survey.

If you purchases securities jointly with another person,how the account is registered is not very important.

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

Reggie believed that the price of his stock was going to drop in the near future his strategy was to short sell that stock to make a profit.

A ________ is an order to buy or sell a set number of securities immediately at the best price available.

You just concluded a stock purchase transaction via a computer hookup rather than in an organized exchange.This trade took place in the

An investor owns stock from seven different companies,two rental houses,and three government bonds.Together these assets are considered to be the investor's

An ask on offer price is one at which an individual is willing to sell a security.

Investing in bonds tends to be riskier financial strategy than investing in common stocks.

According to the Keown book,overconfidence afflicts women more often than men,and it also leads women to trade too often.

Patti DeVry has been trading stocks in the over-the-counter market.When she wants to sell her stocks she will specify the ________ price and when she wants to purchase stocks she will specify the ________ price.

Barney Hopkins is the financial manager for Amax Corporation.He knows that ________ risk deals with good or bad management decisions and ________ is associated with his company's use of debt.

Merrill Lynch,Edward Jones and Morgan Stanley Smith Barney are all full service brokers.

Market risk is the risk of fluctuations in security prices due to changes in the market interest rate.

The disposition effect involves

Diversification eliminates all the risk from your portfolio.

You and your spouse have decided to incorporate bonds into your newly-formed retirement portfolio.You will most likely purchase them

As the owner of a corporate bond this means I hold an ownership position within that corporation.

In addition to your own investment,you borrowed money from your broker to purchase shares of a stock.Your broker called to tell you that the price of your stock has fallen and you now need to contribute more of your own money to keep the account at the minimum level.This is termed a(n)

What is an advantage to being a "preferred" stock holder?

Jennifer has money invested in stocks.She earns a return on her investment,which is a portion of the company's profits,called

The primary sources of information about the stock market and individual stocks are Moody's Investors Service,Standard & Poor's Stock Reports,Morningstar Investment Reports,and the Value Line Investment Survey.

If you purchases securities jointly with another person,how the account is registered is not very important.

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

Patti DeVry has been trading stocks in the over-the-counter market.When she wants to sell her stocks she will specify the price and when she wants to purchase stocks she will specify the price.

Barney Hopkins is the financial manager for Amax Corporation.He knows that risk deals with good or bad management decisions and is associated with his company's use of debt.