Exam 20: A: Understanding Personal Finances and Investments

Adam contacts his account executive and tells him to purchase 500 shares of Intel stock immediately. Adam placed a ____ order with his account executive.

All of the following would satisfy the safety factor of investing except

Which of the following investments has the highest returns since 1926?

Pro-future, Inc. Sandy is a personal financial planner at Pro-future, Inc. Pro-future is a financial company that focuses on personal and business financing. When potential customers come to Sandy for financial advice, she first determines their investment goals in order to create a financial plan that fits their needs. Once she has created a suitable financial plan for a customer, Sandy gives her clients a pamphlet with suggestions for helping to accumulate the amount of money that they need. Advice about risk is given to all of Sandy's clients. Sandy also makes strategic financial plans for each of her customers, which helps them to track and achieve their financial goals. -Refer to Pro-future, Inc. Why would Sandy consider risk to be a good thing?

If Mondell Barnett purchases stock valued at $10,000 and is charged 1 percent commission, what is the total amount he must pay the brokerage firm?

Fitch Ratings is an example of a(n)

Instead of paying dividends to their stockholders, growing corporations typically

Christine wants to start purchasing stock from individual companies, but she wants to maintain a conservative investment strategy with only safe stocks. What type of stocks should Christine invest in?

Once all the shares are originally sold, an investor must purchase shares in a(n) ____ fund from some other investor who is willing to sell them.

To make a profit from a short transaction, the investor must do all of the following except

An account executive who provides research reports and generally charges higher commissions is employed by a(n) ____ brokerage firm.

Andrew buys 1,000 shares of AT&T stock with a margin requirement of 50 percent. At the time of the original transaction, AT&T stock was $24 per share. When AT&T stock then falls to about $12 per share, Andrew will likely receive a(n) ____ from the brokerage firm.

What financial risks are associated with selling stock short? What financial risks are associated with a margin transaction?

In bond quotations, prices are quoted as

What is the general relationship between risk and return?

Which of the following would most likely be classified as a traditional investment?

Which of the following statements is false?

Kenneth is concerned because a dollar does not buy what it used to buy. He decides to invest his money in real estate because he knows it is a good way to protect his money from

The purpose of asset allocation is to

To determine his net worth, Joe Gillian subtracts ____ from ____.