Question 1

Which of the following terms best describes a day trader?

Accepted Answer

A) Speculator 
B) Long-term investor 
C) Money market maker 
D) Buy-and-hold mentality 
E) Illegal gambler 
A) Speculator 
B) Long-term investor 
C) Money market maker 
D) Buy-and-hold mentality 
E) Illegal gambler

Question 2

The major reason most people invest is to shelter current income from taxes.

Accepted Answer

A) True 
 B)False

Question 3

The New York Stock Exchange is a dealer market.

Accepted Answer

A) True 
 B)False

Question 4

You have just bought 100 shares of ABC Corporation common stock at 70.50.The commission is calculated as 1.5% of the total value of the transaction plus $30.What commission will you be charged and how much must you pay the broker for the entire transaction? (Show all work.)

Accepted Answer

Market transaction = 100 × $70

Question 5

A short sale transaction will be profitable when prices are falling.

Accepted Answer

A) True 
 B)False

Question 6

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.
-A [bull | bear] market is characterized by falling stock prices.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 7

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.
-Retirees often choose investments offering [stable current income | high appreciation value].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 8

The margin requirement on the purchase of common stock is currently set at

Accepted Answer

A) 30%. 
B) 40%. 
C) 50%. 
D) 60%. 
E) 70%. 
A) 30%. 
B) 40%. 
C) 50%. 
D) 60%. 
E) 70%.

Question 9

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.
-You are selling short; you anticipate the price of the stock will [rise | fall].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 10

Discount brokers will

Accepted Answer

A) execute orders. 
B) give advice. 
C) watch portfolios. 
D) do all of these. 
E) do none of these. 
A) execute orders. 
B) give advice. 
C) watch portfolios. 
D) do all of these. 
E) do none of these.

Question 11

Prices are rising in bear markets,indicating economic optimism.

Accepted Answer

A) True 
 B)False

Question 12

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 13

Securities may be traded in the primary market only once.

Accepted Answer

A) True 
 B)False

Question 14

____ is not a normal brokerage service.

Accepted Answer

A) Providing investment information 
B) Buying and selling securities 
C) Managing your portfolio 
D) Storing security certificates 
E) Providing market quotations 
A) Providing investment information 
B) Buying and selling securities 
C) Managing your portfolio 
D) Storing security certificates 
E) Providing market quotations

Question 15

A portfolio is a collection of investment vehicles assembled to meet an investment goal.

Accepted Answer

A) True 
 B)False

Question 16

A corporation's annual stockholders' report provides financial data and other information related to both past and planned activities.

Accepted Answer

A) True 
 B)False

Question 17

The smallest round lot of stocks quoted at 23.25 would cost you (ignoring commissions)

Accepted Answer

A) $23.25. 
B) $232.50. 
C) $2,325.00. 
D) $23,250.00. 
E) none of these. 
A) $23.25. 
B) $232.50. 
C) $2,325.00. 
D) $23,250.00. 
E) none of these.

Question 18

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.
-In terms of market capitalization,[Apple | IBM] is the largest company in the world.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 19

Buying on margin is buying

Accepted Answer

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

Question 20

Mutual funds provide professional management and diversification that individual investors - especially those with limited resources - can rarely obtain on their own.

Accepted Answer

A) True 
 B)False

Which of the following terms best describes a day trader?

The major reason most people invest is to shelter current income from taxes.

The New York Stock Exchange is a dealer market.

You have just bought 100 shares of ABC Corporation common stock at 70.50.The commission is calculated as 1.5% of the total value of the transaction plus $30.What commission will you be charged and how much must you pay the broker for the entire transaction? (Show all work.)

A short sale transaction will be profitable when prices are falling.

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. -A [bull | bear] market is characterized by falling stock prices.

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. -Retirees often choose investments offering [stable current income | high appreciation value].

The margin requirement on the purchase of common stock is currently set at

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. -You are selling short; you anticipate the price of the stock will [rise | fall].

Discount brokers will

Prices are rising in bear markets,indicating economic optimism.

The Securities Investor Protection Corporation insures brokerage firm accounts up to

Securities may be traded in the primary market only once.

____ is not a normal brokerage service.

A portfolio is a collection of investment vehicles assembled to meet an investment goal.

A corporation's annual stockholders' report provides financial data and other information related to both past and planned activities.

The smallest round lot of stocks quoted at 23.25 would cost you (ignoring commissions)

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. -In terms of market capitalization,[Apple | IBM] is the largest company in the world.

Buying on margin is buying

Mutual funds provide professional management and diversification that individual investors - especially those with limited resources - can rarely obtain on their own.

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

Which of the following terms best describes a day trader?

The major reason most people invest is to shelter current income from taxes.

The New York Stock Exchange is a dealer market.

You have just bought 100 shares of ABC Corporation common stock at 70.50.The commission is calculated as 1.5% of the total value of the transaction plus $30.What commission will you be charged and how much must you pay the broker for the entire transaction? (Show all work.)

A short sale transaction will be profitable when prices are falling.

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. -A [bull | bear] market is characterized by falling stock prices.

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. -Retirees often choose investments offering [stable current income | high appreciation value].

The margin requirement on the purchase of common stock is currently set at

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. -You are selling short; you anticipate the price of the stock will [rise | fall].

Discount brokers will

Prices are rising in bear markets,indicating economic optimism.

The Securities Investor Protection Corporation insures brokerage firm accounts up to

Securities may be traded in the primary market only once.

____ is not a normal brokerage service.

A portfolio is a collection of investment vehicles assembled to meet an investment goal.

A corporation's annual stockholders' report provides financial data and other information related to both past and planned activities.

The smallest round lot of stocks quoted at 23.25 would cost you (ignoring commissions)

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. -In terms of market capitalization,[Apple | IBM] is the largest company in the world.

Buying on margin is buying

Mutual funds provide professional management and diversification that individual investors - especially those with limited resources - can rarely obtain on their own.

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