Question 1

A statement specifying how investment capital will be invested in order to reach targeted goals is called a marketing plan.

Accepted Answer

A) True 
 B)False

Question 2

How much would it cost to purchase a round lot (the smallest number you can get and still be a round lot)of Stock A at the closing price for the day?

Accepted Answer

A)  $ 790 
B)  $ 1,950 
C)  $ 2,960 
D)  $ 19,500 
E)  $ 29,600 
A)  $ 790 
B)  $ 1,950 
C)  $ 2,960 
D)  $ 19,500 
E)  $ 29,600

Question 3

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

Question 4

Which of the following variables deserves particular attention by an investor for an effective portfolio strategy?

Accepted Answer

A)  Level and stability of income 
B)  Investment horizon 
C)  Investment experience and age 
D)  Disposition toward risk 
E)  All of the above 
A)  Level and stability of income 
B)  Investment horizon 
C)  Investment experience and age 
D)  Disposition toward risk 
E)  All of the above

Question 5

Portfolio rebalancing refers to buying and selling activities intended to return a portfolio to its target allocation levels.

Accepted Answer

A) True 
 B)False

Question 6

The most widely followed stock average is the:

Accepted Answer

A)  Dow Jones Industrial Average. 
B)  Standard & Poor's Index. 
C)  New York Stock Exchange Index. 
D)  American Stock Exchange Index. 
E)  Wall Street Journal Index. 
A)  Dow Jones Industrial Average. 
B)  Standard & Poor's Index. 
C)  New York Stock Exchange Index. 
D)  American Stock Exchange Index. 
E)  Wall Street Journal Index.

Question 7

The most common reason given for investing is:

Accepted Answer

A)  enhancing current income. 
B)  saving for retirement. 
C)  sheltering earnings from taxes. 
D)  paying for an expensive vacation. 
E)  saving for college education. 
A)  enhancing current income. 
B)  saving for retirement. 
C)  sheltering earnings from taxes. 
D)  paying for an expensive vacation. 
E)  saving for college education.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

A market order to sell would be filled at the highest price available that day.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following types of brokers is most likely to involve an investor trading electronically from his or her personal computer?

Accepted Answer

A)  Full service broker 
B)  Bank broker 
C)  Futures broker 
D)  Online broker 
E)  Market maker 
A)  Full service broker 
B)  Bank broker 
C)  Futures broker 
D)  Online broker 
E)  Market maker

Question 11

A diversified securities portfolio is characterized by:

Accepted Answer

A)  dissimilar risk and return characteristics of the securities. 
B)  concentrating on a single industry. 
C)  minimal loss potential. 
D)  stable earnings. 
E)  formula timing. 
A)  dissimilar risk and return characteristics of the securities. 
B)  concentrating on a single industry. 
C)  minimal loss potential. 
D)  stable earnings. 
E)  formula timing.

Question 12

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

Accepted Answer

A)  bonds. 
B)  common stock. 
C)  mutual funds. 
D)  real estate. 
E)  stock opt ions. 
A)  bonds. 
B)  common stock. 
C)  mutual funds. 
D)  real estate. 
E)  stock opt ions.

Question 13

If a company's common stock is traded on an exchange,the company is said to be:

Accepted Answer

A)  an exchange member. 
B)  seated on the exchange. 
C)  marketed on the exchange. 
D)  listed on the exchange. 
E)  licensed by the exchange. 
A)  an exchange member. 
B)  seated on the exchange. 
C)  marketed on the exchange. 
D)  listed on the exchange. 
E)  licensed by the exchange.

Question 14

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 15

The Securities Investor Protection Corporation insurance guarantees the dollar value of your securities will not dip below a certain level.

Accepted Answer

A) True 
 B)False

Question 16

According to recent legislation,under the FDIC each brokerage account is insured up to $250,000.

Accepted Answer

A) True 
 B)False

Question 17

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].

Accepted Answer

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

Question 18

The _____ is not an organized security exchange.

Accepted Answer

A)  New York Stock Exchange 
B)  American Stock Exchange 
C)  Midwest Stock Exchange 
D)  Pacific Stock Exchange 
E)  Over-the-Counter Exchange 
A)  New York Stock Exchange 
B)  American Stock Exchange 
C)  Midwest Stock Exchange 
D)  Pacific Stock Exchange 
E)  Over-the-Counter Exchange

Question 19

A sale of 450 shares of stock would involve the trade of an odd lot.

Accepted Answer

A) True 
 B)False

Question 20

An individual is more likely to use the secondary markets than the primary market.

Accepted Answer

A) True 
 B)False

A statement specifying how investment capital will be invested in order to reach targeted goals is called a marketing plan.

How much would it cost to purchase a round lot (the smallest number you can get and still be a round lot)of Stock A at the closing price for the day?

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

Which of the following variables deserves particular attention by an investor for an effective portfolio strategy?

Portfolio rebalancing refers to buying and selling activities intended to return a portfolio to its target allocation levels.

The most widely followed stock average is the:

The most common reason given for investing is:

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

A market order to sell would be filled at the highest price available that day.

Which of the following types of brokers is most likely to involve an investor trading electronically from his or her personal computer?

A diversified securities portfolio is characterized by:

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

If a company's common stock is traded on an exchange,the company is said to be:

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

The Securities Investor Protection Corporation insurance guarantees the dollar value of your securities will not dip below a certain level.

According to recent legislation,under the FDIC each brokerage account is insured up to $250,000.

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].

The _____ is not an organized security exchange.

A sale of 450 shares of stock would involve the trade of an odd lot.

An individual is more likely to use the secondary markets than the primary market.

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 statement specifying how investment capital will be invested in order to reach targeted goals is called a marketing plan.

How much would it cost to purchase a round lot (the smallest number you can get and still be a round lot)of Stock A at the closing price for the day?

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

Which of the following variables deserves particular attention by an investor for an effective portfolio strategy?

Portfolio rebalancing refers to buying and selling activities intended to return a portfolio to its target allocation levels.

The most widely followed stock average is the:

The most common reason given for investing is:

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

A market order to sell would be filled at the highest price available that day.

Which of the following types of brokers is most likely to involve an investor trading electronically from his or her personal computer?

A diversified securities portfolio is characterized by:

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

If a company's common stock is traded on an exchange,the company is said to be:

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

The Securities Investor Protection Corporation insurance guarantees the dollar value of your securities will not dip below a certain level.

According to recent legislation,under the FDIC each brokerage account is insured up to $250,000.

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].

The _____ is not an organized security exchange.

A sale of 450 shares of stock would involve the trade of an odd lot.

An individual is more likely to use the secondary markets than the primary market.

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