Exam 11: Investment Planning

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Brokerage commissions on bond transactions are likely to be a [flat fee per transaction | fee per number of bonds involved in transactions].

Which of the following was not an intention of The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010?

In terms of market capitalization,Apple is the largest company in the world.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[Speculating | Investing] is considered to be a long-term activity.

A market order would be transacted at the

The most important investment prerequisites are

Owning common stock represents a debt investment.

Which of the following is characteristic of a limit order?

A bull market is characterized by

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Diversification should [reduce the possibility of losing all your money | have little impact on the risk of losing money].

The most widely followed stock average is the

All OTC stocks are listed on the NASDAQ.

The SEC has the power to raise and lower the margin requirements for stock purchases.

Based on a retired person's needs,one should choose investments offering high current income with high risk.

Common stock pays interest payments on a quarterly basis.

Preferred stocks are the common stocks of ultra blue-chip companies.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The [broker | dealer] market is made up of both the NASDAQ market and the OTC market.

The NASDAQ is now the second-largest broker market in the United States.

An essential ingredient of an effective investment strategy is

Discount brokers discount the price of securities to below the prevailing market price.