Question 1

A bull market is characterized by:

Accepted Answer

A)  investor optimism. 
B)  governmental stimulus. 
C)  economic slowdown. 
D)  falling stock prices. 
E)  investor pessimism. 
A)  investor optimism. 
B)  governmental stimulus. 
C)  economic slowdown. 
D)  falling stock prices. 
E)  investor pessimism.

Question 2

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.

Accepted Answer

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

Question 3

The SEC requires corporations to issue _____ describing the firm and the security issue it wishes to sell.

Accepted Answer

A)  an advertisement 
B)  a prospectus 
C)  an underwriting journal 
D)  a dealer newsletter 
E)  none of these 
A)  an advertisement 
B)  a prospectus 
C)  an underwriting journal 
D)  a dealer newsletter 
E)  none of these

Question 4

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.
-An investment offering a high current income would likely be more desirable for [a young couple | a retired couple].

Accepted Answer

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

Question 5

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.

Accepted Answer

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

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 fixed dividend would be received with [common | preferred] stock.

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.
-The high price for ABC stock over the past 52 weeks was [29 | 23.98].

Accepted Answer

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

Question 8

The single most important reason for investing is for retirement.

Accepted Answer

A) True 
 B)False

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

Accepted Answer

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

Question 10

The SIPC provides protection to the investor from:

Accepted Answer

A)  declining security prices. 
B)  low or missing dividend payments. 
C)  brokerage firm failure. 
D)  using margin requirements. 
E)  none of these 
A)  declining security prices. 
B)  low or missing dividend payments. 
C)  brokerage firm failure. 
D)  using margin requirements. 
E)  none of these

Question 11

Speculating is a form of investing in which future value and expected returns are highly uncertain.

Accepted Answer

A) True 
 B)False

Question 12

Stop-loss is an order to sell a stock when the market price reaches or drops below a specified level.

Accepted Answer

A) True 
 B)False

Question 13

An essential ingredient of an effective investment strategy is:

Accepted Answer

A)  enough money to diversify. 
B)  a good broker. 
C)  blue-chip stock selections. 
D)  high-income securities. 
E)  a bull market. 
A)  enough money to diversify. 
B)  a good broker. 
C)  blue-chip stock selections. 
D)  high-income securities. 
E)  a bull market.

Question 14

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 convertible bond would let the investor exchange it for [preferred | common] stock.

Accepted Answer

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

Question 15

Mutual funds often sell directly to investors.

Accepted Answer

A) True 
 B)False

Question 16

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.
-[Depositing a lump sum and letting it grow | Making monthly deposits to your investment] would be the least costly way to reach a financial goal.

Accepted Answer

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

Question 17

National stock exchanges are part of broker markets.

Accepted Answer

A) True 
 B)False

Question 18

NASDAQ employs an all-electronic trading platform to execute trades.

Accepted Answer

A) True 
 B)False

Question 19

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 [broker | investor] can be a member of an "underwriting syndicate" when taking orders for a large new issue of shares.

Accepted Answer

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

Question 20

Investing is considered a short-term activity that involves the buying and selling of securities.

Accepted Answer

A) True 
 B)False

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

The SEC requires corporations to issue _____ describing the firm and the security issue it wishes to sell.

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 fixed dividend would be received with [common | preferred] stock.

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 high price for ABC stock over the past 52 weeks was [29 | 23.98].

The single most important reason for investing is for 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. -Investments with high current income typically have [high | low] potential capital appreciation.

The SIPC provides protection to the investor from:

Speculating is a form of investing in which future value and expected returns are highly uncertain.

Stop-loss is an order to sell a stock when the market price reaches or drops below a specified level.

An essential ingredient of an effective investment strategy is:

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 convertible bond would let the investor exchange it for [preferred | common] stock.

Mutual funds often sell directly to investors.

National stock exchanges are part of broker markets.

NASDAQ employs an all-electronic trading platform to execute trades.

Investing is considered a short-term activity that involves the buying and selling of securities.

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

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

The SEC requires corporations to issue _____ describing the firm and the security issue it wishes to sell.

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 fixed dividend would be received with [common | preferred] stock.

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 high price for ABC stock over the past 52 weeks was [29 | 23.98].

The single most important reason for investing is for 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. -Investments with high current income typically have [high | low] potential capital appreciation.

The SIPC provides protection to the investor from:

Speculating is a form of investing in which future value and expected returns are highly uncertain.

Stop-loss is an order to sell a stock when the market price reaches or drops below a specified level.

An essential ingredient of an effective investment strategy is:

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 convertible bond would let the investor exchange it for [preferred | common] stock.

Mutual funds often sell directly to investors.

National stock exchanges are part of broker markets.

NASDAQ employs an all-electronic trading platform to execute trades.

Investing is considered a short-term activity that involves the buying and selling of securities.

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