Question 1

Preferred stock combines the fixed income features of bonds with the same price appreciation potential as common stocks.

Accepted Answer

A) True 
 B)False

Question 2

Portfolio management involves making decisions in order to

Accepted Answer

A)  buy low and sell high. 
B)  maximize risk and return. 
C)  accept risk. 
D)  own stocks in bear markets. 
E)  meet your investment needs and objectives. 
A)  buy low and sell high. 
B)  maximize risk and return. 
C)  accept risk. 
D)  own stocks in bear markets. 
E)  meet your investment needs and objectives.

Question 3

The Securities Investor Protection Corporation insurance guarantees the dollar value of your securities will not dip below a certain level.

Accepted Answer

A) True 
 B)False

Question 4

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-[Common stocks | Bonds] have no maturity date.

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

How many shares of Stock A traded on this day?

Accepted Answer

A)  2,000 
B)  79,000 
C)  51,000 
D)  10,000 
E)  12,000 
A)  2,000 
B)  79,000 
C)  51,000 
D)  10,000 
E)  12,000

Question 6

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-When you sell short,the proceeds of the sale will be [held until the sale is covered | given to you immediately after the sale].

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 7

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The single most important reason for investing is for [home purchase down payment | retirement].

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 8

A market order to sell would be filled at the highest price available that day.

Accepted Answer

A) True 
 B)False

Question 9

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Two hundred shares of stock would constitute [an odd lot | a round lot].

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 10

You have just bought (on margin)100 shares of IBM Corp.common stock for $108 per share.One year from now you expect to sell the stock for $140.The interest charge will be 9%.What return do you expect to earn on your investment? (Show all work.Ignore commissions.)

Accepted Answer

@#IMG-DLM& Return on

Question 11

Buying on margin is buying

Accepted Answer

A)  at the lowest price. 
B)  at the market price. 
C)  with borrowed funds. 
D)  by trading currently-owned stock. 
E)  with a short sale process. 
A)  at the lowest price. 
B)  at the market price. 
C)  with borrowed funds. 
D)  by trading currently-owned stock. 
E)  with a short sale process.

Question 12

Prices are rising in bear markets,indicating economic optimism.

Accepted Answer

A) True 
 B)False

Question 13

Selling equities you don't own and buying them back to cover the sale is

Accepted Answer

A)  short selling in anticipation of a bear market in that security 
B)  going long. 
C)  discounting the market averages. 
D)  a very safe investment activity. 
E)  considered wise in a bull market. 
A)  short selling in anticipation of a bear market in that security 
B)  going long. 
C)  discounting the market averages. 
D)  a very safe investment activity. 
E)  considered wise in a bull market.

Question 14

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Exchange traded funds face the risk of [market fluctuations | default].

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 15

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The high price for ABC stock over the past 52 weeks was [29 | 23.98].

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 Internet allows individual investors to legally

Accepted Answer

A)  perform investment research and screening 
B)  make trades without using a brokerage firm 
C)  participate in pump and dump schemes 
D)  obtain information that is always completely accurate from chat rooms 
E)  more than one of the above 
A)  perform investment research and screening 
B)  make trades without using a brokerage firm 
C)  participate in pump and dump schemes 
D)  obtain information that is always completely accurate from chat rooms 
E)  more than one of the above

Question 17

Brokers charge a commission on security purchases as well as on security sales.

Accepted Answer

A) True 
 B)False

Question 18

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Day trading is [illegal | risky].

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

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The [primary | secondary] market is where new securities are sold to the public.

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 20

Which of the following are characteristics of an effective portfolio strategy?

Accepted Answer

A)  level and stability of income 
B)  investment time horizon 
C)  investment experience and age 
D)  disposition toward risk 
E)  all of the above 
A)  level and stability of income 
B)  investment time horizon 
C)  investment experience and age 
D)  disposition toward risk 
E)  all of the above

Preferred stock combines the fixed income features of bonds with the same price appreciation potential as common stocks.

Portfolio management involves making decisions in order to

The Securities Investor Protection Corporation insurance guarantees the dollar value of your securities will not dip below a certain level.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Common stocks | Bonds] have no maturity date.

How many shares of Stock A traded on this day?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -When you sell short,the proceeds of the sale will be [held until the sale is covered | given to you immediately after the sale].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The single most important reason for investing is for [home purchase down payment | retirement].

A market order to sell would be filled at the highest price available that day.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Two hundred shares of stock would constitute [an odd lot | a round lot].

You have just bought (on margin)100 shares of IBM Corp.common stock for $108 per share.One year from now you expect to sell the stock for $140.The interest charge will be 9%.What return do you expect to earn on your investment? (Show all work.Ignore commissions.)

Buying on margin is buying

Prices are rising in bear markets,indicating economic optimism.

Selling equities you don't own and buying them back to cover the sale is

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Exchange traded funds face the risk of [market fluctuations | default].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The high price for ABC stock over the past 52 weeks was [29 | 23.98].

The Internet allows individual investors to legally

Brokers charge a commission on security purchases as well as on security sales.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Day trading is [illegal | risky].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The [primary | secondary] market is where new securities are sold to the public.

Which of the following are characteristics of an effective portfolio strategy?

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

Preferred stock combines the fixed income features of bonds with the same price appreciation potential as common stocks.

Portfolio management involves making decisions in order to

The Securities Investor Protection Corporation insurance guarantees the dollar value of your securities will not dip below a certain level.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Common stocks | Bonds] have no maturity date.

How many shares of Stock A traded on this day?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -When you sell short,the proceeds of the sale will be [held until the sale is covered | given to you immediately after the sale].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The single most important reason for investing is for [home purchase down payment | retirement].

A market order to sell would be filled at the highest price available that day.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Two hundred shares of stock would constitute [an odd lot | a round lot].

You have just bought (on margin)100 shares of IBM Corp.common stock for $108 per share.One year from now you expect to sell the stock for $140.The interest charge will be 9%.What return do you expect to earn on your investment? (Show all work.Ignore commissions.)

Buying on margin is buying

Prices are rising in bear markets,indicating economic optimism.

Selling equities you don't own and buying them back to cover the sale is

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Exchange traded funds face the risk of [market fluctuations | default].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The high price for ABC stock over the past 52 weeks was [29 | 23.98].

The Internet allows individual investors to legally

Brokers charge a commission on security purchases as well as on security sales.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Day trading is [illegal | risky].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The [primary | secondary] market is where new securities are sold to the public.

Which of the following are characteristics of an effective portfolio strategy?

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