Exam 11: Investment Planning

Which of the following securities/investment acts regulates the sale of mutual fund shares?

When a brokerage house gives a margin call,you need to provide more collateral or your investment will be liquidated.

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. -Publicly traded corporations [are required to | may choose to] provide annual reports to their stockholders.

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 deep discount broker will execute orders and [pick the stocks for you to buy | offer little to no other services].

The NYSE index includes all stocks listed on the "big board."

You have been offered an opportunity to buy shares of a diversified collection of securities.You will be investing in

Abe owns 1,000 shares of Amazon,which he purchased for $12 per share 3 months ago.Abe just checked the price of Amazon and found that it is selling for $19 per share.He is so excited about his gain that he has booked a $6,000,20-day trip to Hawaii for he and his wife.He wants to be sure that the trip will be paid for entirely from gains in his Amazon shares because his wife has been nagging him about his frequent stock trading habit and he feels that this trip will demonstrate to her once and for all that he has the skills,acumen,and instincts to get rich trading stocks.He feels strongly that the price of Amazon stock will go through the roof in the intermediate term but is concerned about short-term volatility.Abe's plan is to sell the shares only if the value of his shares either declines below $18,000 or if the value climbs to $30,000.He would like to submit his stock orders right now,because for the next three weeks it is very important to his marriage that he not trade or even follow the market (maybe just a peek at CNBC while his wife is in the shower).What set of stock orders would accomplish his pathetic goals?

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. -[Common stocks | Bonds] have no maturity date.

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. -Ownership in a corporation would be represented by [stock | bonds].

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 going to buy stock on margin.You will be required to put up a minimum of [50 | 60] percent of the money needed to make the purchase.

Unlisted securities are traded on the

A stockbroker buys and sells securities on behalf of clients.

The federal government regulates securities markets through the

When you buy 300 shares of a company you have purchased

There are 50 shares in a round lot.

Your goals tend to set the tone for your investment program,and they play a major role in determining how conservative or aggressive you're likely to be in making investment decisions.

The most common reason given for investing is

An immediate order to buy or sell common stock at the best price is a

Convertible securities provide the fixed income features of bonds while offering the price appreciation potential of common stock.

A diversified securities portfolio is characterized by