Exam 16: Investment Opportunities in the Securities Market

Trading stocks online yourself is less expensive than using a stockbroker.

In general,the riskier an investment,the greater the opportunity for a large return.

What are the names and characteristics of the three major stock indices in the United States?

What is the prospectus that a company issues prior to an initial public offering? Why is it important?

Which of the following Standard & Poor's bond rating categories denotes the highest risk?

Of the following,which is LEAST likely to buy stock in an IPO?

If the demand for a stock is high and the supply of the stock is low,the price of the stock will ________.

What are the most important factors to consider when deciding which particular stock to purchase?

________ stocks are issued by companies that produce goods or services that are affected by economic trends.

An option requires that you purchase the asset in question unless you sell the option first.

Buying an option is similar to buying ________.

Which of the following types of investments is best for money you may need in an emergency?

A bull market is distinguished by ________.

Of the following investments,which has the greatest risk?

If your retired grandmother had modest means,yet wanted to invest in stock,which type of stock would you advise her to buy?

A utility company that pays a good dividend can best be characterized as a growth stock.

What is the basic premise of the risk-return relationship?

Bonds issued by state and local governments are called ________.

Describe the role that a financial advisory firm fills when a company decides to issue bonds.

What is a capital gain in stock investing?