Exam 20: A: Understanding Personal Finances and Investments

Traditional investments include bank accounts, corporate bonds, and government bonds. If you had $15,000 to invest, which would you choose? Explain your answer.

What does safety in an investment mean? What does risk in an investment mean? How are the two related?

Intel's board of directors declares a three-for-one stock split. Prior to the split, the market price of a share of Intel stock was $30. About how much will each share be worth after the split?

Barron's is published

An individual who buys and sells securities for clients is called a(n)

At the beginning of the year, John Stewart invested $10,000. Twelve months later, John sold his investment for $11,000. Assuming he received no dividends or interest during this time, what is his rate of return?

When a corporation pays a dividend in the form of additional stock, the dividend is called a

Darlene Law has enough money to purchase 1,000 shares of stock in Ana Corporation. If she buys on margin, she can purchase an additional 1,000 shares. What is the margin?

In order to reach goals of high dollar returns on your investments, what must you generally give up?

Tasha invests her savings in a mutual fund called the Salter 500. This fund is based on the S&P 500, which is representative of the stock market as a whole. Tasha's fund is a(n) ____ fund.

A ____ of funds exists when one investment company manages a group of mutual funds.

The type of stock that may be exchanged for common stock is ____ stock.

A certain mutual fund containing both corporate stocks and bonds has a total value of $2,500,000. The fund also has $500,000 in liabilities and 50,000 shares. What is the net asset value per share for this mutual fund?

Sally Williams purchased 40 shares of the New Continental Mutual Fund. The current market value was $22 a share, which is referred to as the

Suggest several factors to consider when setting personal investment goals. Why are these important?

Which of the following is true about matched orders?

A bond's face value is $1,000. Garrett looks it up in the Wall Street Journal and finds it quoted at 87. How much will Garrett have to pay to purchase this bond?

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. What is a possible suggestion Sandy might give her clients in order to meet their retirement goals?

Which of the following statements is incorrect?

For a corporate bond with a face value of $1,000 and a stated interest rate of 6 percent, the owner would receive