Exam 20: A: Understanding Personal Finances and Investments

Personal Accents, Inc. (PAI) Personal Accents, Inc., (PAI) is a publicly-held company that specializes in selling a variety of skin- and hair-care products. The company owns specialty stores that appeal to both men and women. Recently PAI has obtained financing through the sale of bonds which have been rated as AAA by Standard & Poor's. Charlotte is an investor who pays very close attention to high-risk investments because she she's interested in the huge profits that can be obtained from this type of investment. Charlotte usually prefers moderately risky investments so that she can obtain a profit; but in case something goes sour, she will not lose everything. Fearing the potential loss of money in high-risk investments, she has invested in PAI. She feels that the company is established and has maintained stable profits over the years. She is well aware of the different types of high-risk investments, but she chooses to invest more conservatively. -Refer to Personal Accents, Inc. Which of the following was required of PAI when it first issued publicly-traded stock for the company?

Alicia places a limit order to buy Coca-Cola stock at $37 per share. Her limit order does not have an expiration date. This order is good

Personal Accents, Inc. (PAI) Personal Accents, Inc., (PAI) is a publicly-held company that specializes in selling a variety of skin- and hair-care products. The company owns specialty stores that appeal to both men and women. Recently PAI has obtained financing through the sale of bonds which have been rated as AAA by Standard & Poor's. Charlotte is an investor who pays very close attention to high-risk investments because she she's interested in the huge profits that can be obtained from this type of investment. Charlotte usually prefers moderately risky investments so that she can obtain a profit; but in case something goes sour, she will not lose everything. Fearing the potential loss of money in high-risk investments, she has invested in PAI. She feels that the company is established and has maintained stable profits over the years. She is well aware of the different types of high-risk investments, but she chooses to invest more conservatively. -Refer to Personal Accents, Inc. If Charlotte purchases PAI bonds, how often will she receive interest payments?

Three of the most widely accepted investors' services are Standard & Poor's, Mergent, Inc., and

A charge made by an investment company to redeem shares in a mutual fund is called a

Jack Watkins purchased 50 shares in the New York High Performance Mutual Fund. He paid no commission charges to buy the fund, and there are no redemption fees. Which of the following terms describes this mutual fund?

An investor who buys stock with the anticipation of an increase in value and a chance to sell at a profit is

NAV is equal to the

The stock market reached an all-time high at ___ in the fall of 2007.

What features make convertible bonds different than other bonds? Do convertible bonds appear to be a solid, attractive investment to you? Why or why not?

The type of investment that combines and invests the funds of many individual investors under the guidance of professional managers is called a(n)

A 12b-1 fee is

A security average is also known as

Jim Andrews purchased a government security that cost $50. At maturity, this security will be worth $100. Jim purchased a

Which of the following statements is most in keeping with investment counselors' suggestions for investment goals?

Robert has been saving his money and decides he wants to invest it. Which of the following is considered the most speculative?

What steps are required to construct a personal budget? How can the information in a personal budget help you manage your personal finances and prepare for an investment program?

An individual who pays a sales charge every time he or she purchases shares in a mutual fund is investing in a(n) ____ fund.

The variety of management fees, 12b-1 fees, if any, and additional operating costs for a specific fund are referred to as

A government security that is sold in minimum units of $100 and has maturities that may be as long as one year is a