Question 1

Portfolio rebalancing refers to buying and selling activities intended to return a portfolio to its target allocation levels.

Accepted Answer

A) True 
 B)False

Question 2

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-A [broker | investor] can be a member of a "syndicate" when taking orders for a new IPO.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 3

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The maximum amount of money you could lose in a short sale is [known | unknown] at the time of the transaction.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 4

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The [broker | dealer] market is made up of both the NASDAQ market and the OTC market.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 5

In addition to a description of any investments owned,the worksheet listing your investments should include

Accepted Answer

A)  the purchase price. 
B)  the original amount of the investment. 
C)  the current annual income. 
D)  the latest market value. 
E)  all of the above. 
A)  the purchase price. 
B)  the original amount of the investment. 
C)  the current annual income. 
D)  the latest market value. 
E)  all of the above.

Question 6

Two prerequisites to investing are above average risk and clear understanding of market direction.

Accepted Answer

A) True 
 B)False

Question 7

A prospectus describes the firm and the issue of a new security.

Accepted Answer

A) True 
 B)False

Question 8

The Securities Investor Protection Corporation insures brokerage firm accounts up to

Accepted Answer

A)  $500,000 per account and $250,000 in cash. 
B)  $250,000 per account and $100,000 in cash 
C)  $1,000,000 per account and $500,000 in cash, 
D)  $500,000 per account and $250,000 in cash 
E)  $500,000 per account and $100,000 in cash.. 
A)  $500,000 per account and $250,000 in cash. 
B)  $250,000 per account and $100,000 in cash 
C)  $1,000,000 per account and $500,000 in cash, 
D)  $500,000 per account and $250,000 in cash 
E)  $500,000 per account and $100,000 in cash..

Question 9

When a brokerage house holds your securities for you,they hold them in a street name.

Accepted Answer

A) True 
 B)False

Question 10

The ____ Index reflects the total market value of over 98% of all publicly traded stock in the US.

Accepted Answer

A)  Dow Jones Industrial Average 
B)  S & P 500 
C)  NASDAQ 
D)  Wilshire 5000 
E)  New York Stock Exchange 
A)  Dow Jones Industrial Average 
B)  S & P 500 
C)  NASDAQ 
D)  Wilshire 5000 
E)  New York Stock Exchange

Question 11

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-If you want to set a specific price in your order,you will use a [market | limit] order.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 12

Minimum margin requirements that brokers must observe are set by the

Accepted Answer

A)  brokerage firm. 
B)  corporation issuing stock. 
C)  Securities and Exchange Commission. 
D)  Securities Investor Protection Corporation. 
E)  Federal Reserve System. 
A)  brokerage firm. 
B)  corporation issuing stock. 
C)  Securities and Exchange Commission. 
D)  Securities Investor Protection Corporation. 
E)  Federal Reserve System.

Question 13

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The Securities Investors Protection Corporation would make payment to you if [the corporation in which you bought stock | the brokerage firm holding your stock] went bankrupt.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 14

The Federal Reserve Board (Fed)has the power to raise and lower the margin requirements for stock purchases.

Accepted Answer

A) True 
 B)False

Question 15

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-A(n)[underwriting | prospectus] is a document made available to prospective security buyers that describes the firm and a new security issue.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 16

The Standard and Poor's Index includes 30 industrial stocks.

Accepted Answer

A) True 
 B)False

Question 17

If a company's common stock is traded on an exchange,the company is said to be

Accepted Answer

A)  an exchange member. 
B)  seated on the exchange. 
C)  marketed on the exchange. 
D)  listed on the exchange. 
E)  licensed by the exchange. 
A)  an exchange member. 
B)  seated on the exchange. 
C)  marketed on the exchange. 
D)  listed on the exchange. 
E)  licensed by the exchange.

Question 18

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-NYSE Euronext is a part of the broker market totaling about [40% | 80%] of world equity markets.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 19

The federal margin requirement for common stock is 50%.

Accepted Answer

A) True 
 B)False

Question 20

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Margin requirements are set by the [SEC | Federal Reserve].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Portfolio rebalancing refers to buying and selling activities intended to return a portfolio to its target allocation levels.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A [broker | investor] can be a member of a "syndicate" when taking orders for a new IPO.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The maximum amount of money you could lose in a short sale is [known | unknown] at the time of the transaction.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The [broker | dealer] market is made up of both the NASDAQ market and the OTC market.

In addition to a description of any investments owned,the worksheet listing your investments should include

Two prerequisites to investing are above average risk and clear understanding of market direction.

A prospectus describes the firm and the issue of a new security.

The Securities Investor Protection Corporation insures brokerage firm accounts up to

When a brokerage house holds your securities for you,they hold them in a street name.

The ____ Index reflects the total market value of over 98% of all publicly traded stock in the US.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -If you want to set a specific price in your order,you will use a [market | limit] order.

Minimum margin requirements that brokers must observe are set by the

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The Securities Investors Protection Corporation would make payment to you if [the corporation in which you bought stock | the brokerage firm holding your stock] went bankrupt.

The Federal Reserve Board (Fed)has the power to raise and lower the margin requirements for stock purchases.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A(n)[underwriting | prospectus] is a document made available to prospective security buyers that describes the firm and a new security issue.

The Standard and Poor's Index includes 30 industrial stocks.

If a company's common stock is traded on an exchange,the company is said to be

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -NYSE Euronext is a part of the broker market totaling about [40% | 80%] of world equity markets.

The federal margin requirement for common stock is 50%.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Margin requirements are set by the [SEC | Federal Reserve].

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 11: Investment Planning

Portfolio rebalancing refers to buying and selling activities intended to return a portfolio to its target allocation levels.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A [broker | investor] can be a member of a "syndicate" when taking orders for a new IPO.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The maximum amount of money you could lose in a short sale is [known | unknown] at the time of the transaction.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The [broker | dealer] market is made up of both the NASDAQ market and the OTC market.

In addition to a description of any investments owned,the worksheet listing your investments should include

Two prerequisites to investing are above average risk and clear understanding of market direction.

A prospectus describes the firm and the issue of a new security.

The Securities Investor Protection Corporation insures brokerage firm accounts up to

When a brokerage house holds your securities for you,they hold them in a street name.

The ____ Index reflects the total market value of over 98% of all publicly traded stock in the US.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -If you want to set a specific price in your order,you will use a [market | limit] order.

Minimum margin requirements that brokers must observe are set by the

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The Securities Investors Protection Corporation would make payment to you if [the corporation in which you bought stock | the brokerage firm holding your stock] went bankrupt.

The Federal Reserve Board (Fed)has the power to raise and lower the margin requirements for stock purchases.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A(n)[underwriting | prospectus] is a document made available to prospective security buyers that describes the firm and a new security issue.

The Standard and Poor's Index includes 30 industrial stocks.

If a company's common stock is traded on an exchange,the company is said to be

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -NYSE Euronext is a part of the broker market totaling about [40% | 80%] of world equity markets.

The federal margin requirement for common stock is 50%.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Margin requirements are set by the [SEC | Federal Reserve].

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters