Question 1

The yield to maturity is a more accurate measure of effective return on a bond investment than current yield.

Accepted Answer

A) True 
 B)False

Question 2

Municipal bonds almost always offer a lower stated return than other bonds.

Accepted Answer

A) True 
 B)False

Question 3

U.S.government bonds are debentures.

Accepted Answer

A) True 
 B)False

Question 4

I bonds pay an earnings rate that is a combination of two rates.

Accepted Answer

A) True 
 B)False

Question 5

Small oil exploration businesses,game companies,and genetic engineering firms are examples of speculative companies.

Accepted Answer

A) True 
 B)False

Question 6

____ analysis is a method of evaluating securities that focuses on statistics generated by market activity,such as past prices and sales volume.

Accepted Answer

A) fundamental 
B) value 
C) technical 
D) Speculative 
A) fundamental 
B) value 
C) technical 
D) Speculative

Question 7

Which of the following statements accurately describes preferred stock investments?

Accepted Answer

A) Preferred stock is a lending investment. 
B) Preferred stock is a fixed-income investment. 
C) Dividends on preferred stock are guaranteed by the corporation. 
D) Preferred stockholders get paid before bondholders. 
A) Preferred stock is a lending investment. 
B) Preferred stock is a fixed-income investment. 
C) Dividends on preferred stock are guaranteed by the corporation. 
D) Preferred stockholders get paid before bondholders.

Question 8

The types of companies that are available to any investor who wishes to have stocks in their portfolios are

Accepted Answer

A) partnerships. 
B) corporations. 
C) privately-held corporations. 
D) public corporations. 
A) partnerships. 
B) corporations. 
C) privately-held corporations. 
D) public corporations.

Question 9

The type of business ownership that has the potential to raise large amounts of capital through the sale of stock is called

Accepted Answer

A) a partnership. 
B) a corporation. 
C) a sole proprietorship. 
D) none of these. 
A) a partnership. 
B) a corporation. 
C) a sole proprietorship. 
D) none of these.

Question 10

Johnson and Grubb,Inc.has 26,000 shares of common stock outstanding with a market value of $78 a share.Johnson and Grubb's total sales over the past year were $2,500,000.What is this company's price-to-sales ratio?

Accepted Answer

A) 0.30 
B) 0.65 
C) 0.75 
D) 0.81 
A) 0.30 
B) 0.65 
C) 0.75 
D) 0.81

Question 11

Which of the following serve as the intermediaries between companies and investors when new issues of stocks or bonds are offered?

Accepted Answer

A) Mutual funds 
B) Stock brokers 
C) IPOs 
D) Investment banking firms 
A) Mutual funds 
B) Stock brokers 
C) IPOs 
D) Investment banking firms

Question 12

Common stockholders are guaranteed dividends.

Accepted Answer

A) True 
 B)False

Question 13

Discount brokerage firms do not normally conduct research or provide specific investment advice to customers.

Accepted Answer

A) True 
 B)False

Question 14

You can purchase ____ directly from the issuer and avoid the transaction fees.

Accepted Answer

A) municipal bonds 
B) Treasury securities 
C) corporate bonds 
D) zero-coupon bonds 
A) municipal bonds 
B) Treasury securities 
C) corporate bonds 
D) zero-coupon bonds

Question 15

Blue-chip stocks typically have betas of.

Accepted Answer

A) less than 0.0. 
B) 0.0 to 0.5 
C) 1.0 
D) 1.5 or more. 
A) less than 0.0. 
B) 0.0 to 0.5 
C) 1.0 
D) 1.5 or more.

Question 16

Common stockholders in a corporation that goes bankrupt could lose not only their original investment but might need to come up with more money to cover the corporation's obligations.

Accepted Answer

A) True 
 B)False

Question 17

Some of the least risky stocks on the market are called

Accepted Answer

A) blue-chip stocks. 
B) well-known growth stocks. 
C) cyclical stocks. 
D) lesser-known growth stocks. 
A) blue-chip stocks. 
B) well-known growth stocks. 
C) cyclical stocks. 
D) lesser-known growth stocks.

Question 18

Shares of a privately-held corporation can only be purchased on an public stock exchange such as the New York Stock Exchange.

Accepted Answer

A) True 
 B)False

Question 19

You can earn profits when the price of a security declines by

Accepted Answer

A) selling long. 
B) selling short. 
C) margin calling. 
D) buying long. 
A) selling long. 
B) selling short. 
C) margin calling. 
D) buying long.

Question 20

The most common denomination for a bond is $10,000.

Accepted Answer

A) True 
 B)False

The yield to maturity is a more accurate measure of effective return on a bond investment than current yield.

Municipal bonds almost always offer a lower stated return than other bonds.

U.S.government bonds are debentures.

I bonds pay an earnings rate that is a combination of two rates.

Small oil exploration businesses,game companies,and genetic engineering firms are examples of speculative companies.

____ analysis is a method of evaluating securities that focuses on statistics generated by market activity,such as past prices and sales volume.

Which of the following statements accurately describes preferred stock investments?

The types of companies that are available to any investor who wishes to have stocks in their portfolios are

The type of business ownership that has the potential to raise large amounts of capital through the sale of stock is called

Johnson and Grubb,Inc.has 26,000 shares of common stock outstanding with a market value of $78 a share.Johnson and Grubb's total sales over the past year were $2,500,000.What is this company's price-to-sales ratio?

Which of the following serve as the intermediaries between companies and investors when new issues of stocks or bonds are offered?

Common stockholders are guaranteed dividends.

Discount brokerage firms do not normally conduct research or provide specific investment advice to customers.

You can purchase ____ directly from the issuer and avoid the transaction fees.

Blue-chip stocks typically have betas of.

Common stockholders in a corporation that goes bankrupt could lose not only their original investment but might need to come up with more money to cover the corporation's obligations.

Some of the least risky stocks on the market are called

Shares of a privately-held corporation can only be purchased on an public stock exchange such as the New York Stock Exchange.

You can earn profits when the price of a security declines by

The most common denomination for a bond is $10,000.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

Exam 14: Investing in Stocks and Bonds

The yield to maturity is a more accurate measure of effective return on a bond investment than current yield.

Municipal bonds almost always offer a lower stated return than other bonds.

U.S.government bonds are debentures.

I bonds pay an earnings rate that is a combination of two rates.

Small oil exploration businesses,game companies,and genetic engineering firms are examples of speculative companies.

____ analysis is a method of evaluating securities that focuses on statistics generated by market activity,such as past prices and sales volume.

Which of the following statements accurately describes preferred stock investments?

The types of companies that are available to any investor who wishes to have stocks in their portfolios are

The type of business ownership that has the potential to raise large amounts of capital through the sale of stock is called

Johnson and Grubb,Inc.has 26,000 shares of common stock outstanding with a market value of $78 a share.Johnson and Grubb's total sales over the past year were $2,500,000.What is this company's price-to-sales ratio?

Which of the following serve as the intermediaries between companies and investors when new issues of stocks or bonds are offered?

Common stockholders are guaranteed dividends.

Discount brokerage firms do not normally conduct research or provide specific investment advice to customers.

You can purchase ____ directly from the issuer and avoid the transaction fees.

Blue-chip stocks typically have betas of.

Common stockholders in a corporation that goes bankrupt could lose not only their original investment but might need to come up with more money to cover the corporation's obligations.

Some of the least risky stocks on the market are called

Shares of a privately-held corporation can only be purchased on an public stock exchange such as the New York Stock Exchange.

You can earn profits when the price of a security declines by

The most common denomination for a bond is $10,000.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters