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. -The single most important reason for investing is for [home purchase down payment | retirement].

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 Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 included provisions to improve [accountability | sustainability].

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. -Before you start investing,you should plan to have a minimum of [$500 | $5,000] available.

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 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.

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. -If you want to set a specific price in your order,you will use a [market | limit] order.

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. -Investments with high current income typically have [high | low] potential capital appreciation.

Once you meet the conditions of ample insurance and liquidity,you're ready to start investing.

Portfolio management involves making decisions in order to

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

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 issuer of the security would get no money from a trade in the [primary | secondary] market.

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 [bid | ask] price for a stock sold on the OTC market represents the price you would receive when you sold the stock.

Accumulating funds for the purchase of a home is the single most important reason for investing.

The federal government regulates securities markets through the Securities and Exchange Commission.

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. -Using margin will magnify [only gains | only losses].

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. -Fifty shares of stock would constitute [an odd lot | a round lot].

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

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 axiom that explains diversification is [Don't cry over spilt milk | Don't put all of your eggs in one basket].

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 is the most significant change in financial regulation since the Great Depression.

Common stock generally allows the stockholder an equal vote in electing the management of the corporation.

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 [DJIA | S&P Index] is based on 500 different stocks.