Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

_____ 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 3

The Internet allows individual investors to legally:

Accepted Answer

A)  perform investment research and screening. 
B)  make trades without using a brokerage firm. 
C)  participate in pump and dump schemes. 
D)  obtain information that is always completely accurate from chat rooms. 
E)  more than one of the above 
A)  perform investment research and screening. 
B)  make trades without using a brokerage firm. 
C)  participate in pump and dump schemes. 
D)  obtain information that is always completely accurate from chat rooms. 
E)  more than one of the above

Question 4

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 5

Preferred stock combines the fixed income features of bonds with the same price appreciation potential as common stocks.

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

Accepted Answer

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

Question 8

Instructing your broker to buy or sell a stock at a particular price is a:

Accepted Answer

A)  limit order. 
B)  market order. 
C)  margin order. 
D)  regular order. 
E)  stop order. 
A)  limit order. 
B)  market order. 
C)  margin order. 
D)  regular order. 
E)  stop order.

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.
-A security is sold only once in the [primary | secondary] market.

Accepted Answer

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

Question 10

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

Accepted Answer

A)  stop order. 
B)  market order. 
C)  limit order. 
D)  stop-loss order. 
E)  discount order. 
A)  stop order. 
B)  market order. 
C)  limit order. 
D)  stop-loss order. 
E)  discount order.

Question 11

A portfolio is a collection of investment assets assembled to meet your investment objectives.

Accepted Answer

A) True 
 B)False

Question 12

_____ is a portfolio characteristic which leads to reduced risk with good return.

Accepted Answer

A)  Maturity 
B)  Price-earnings ratio 
C)  Diversification 
D)  Stratification 
E)  Duration 
A)  Maturity 
B)  Price-earnings ratio 
C)  Diversification 
D)  Stratification 
E)  Duration

Question 13

Portfolio management involves making decisions in order to:

Accepted Answer

A)  buy low and sell high. 
B)  maximize risk and return. 
C)  accept risk. 
D)  own stocks in bear markets. 
E)  meet your investment needs and objectives. 
A)  buy low and sell high. 
B)  maximize risk and return. 
C)  accept risk. 
D)  own stocks in bear markets. 
E)  meet your investment needs and objectives.

Question 14

During a bear market,security prices generally:

Accepted Answer

A)  hold value. 
B)  rapidly increase in value. 
C)  remain neutral. 
D)  decline in value. 
E)  consolidate in value. 
A)  hold value. 
B)  rapidly increase in value. 
C)  remain neutral. 
D)  decline in value. 
E)  consolidate in value.

Question 15

The Standard and Poor's Index is an industrial average which is based on 30 blue-chip stocks.

Accepted Answer

A) True 
 B)False

Question 16

Exchange traded notes face both market risk and the risk of the issuing bank defaulting.

Accepted Answer

A) True 
 B)False

Question 17

Investing is the process of placing money in some medium such as stocks or bonds in the expectation of receiving some future benefit.

Accepted Answer

A) True 
 B)False

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

Accepted Answer

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

Question 19

The most important investment prerequisites are:

Accepted Answer

A)  adequate income and savings. 
B)  adequate income and insurance. 
C)  adequate insurance and liquidity. 
D)  an investment plan and professional advice. 
E)  consistency and risk awareness. 
A)  adequate income and savings. 
B)  adequate income and insurance. 
C)  adequate insurance and liquidity. 
D)  an investment plan and professional advice. 
E)  consistency and risk awareness.

Question 20

A diversified portfolio should be less risky than putting your money into a single security.

Accepted Answer

A) True 
 B)False

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

_____ is not a normal brokerage service.

The Internet allows individual investors to legally:

Discount brokers will:

Preferred stock combines the fixed income features of bonds with the same price appreciation potential as common stocks.

Instructing your broker to buy or sell a stock at a particular price is a:

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 security is sold only once in the [primary | secondary] market.

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

A portfolio is a collection of investment assets assembled to meet your investment objectives.

_____ is a portfolio characteristic which leads to reduced risk with good return.

Portfolio management involves making decisions in order to:

During a bear market,security prices generally:

The Standard and Poor's Index is an industrial average which is based on 30 blue-chip stocks.

Exchange traded notes face both market risk and the risk of the issuing bank defaulting.

Investing is the process of placing money in some medium such as stocks or bonds in the expectation of receiving some future benefit.

The most important investment prerequisites are:

A diversified portfolio should be less risky than putting your money into a single security.

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

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

_____ is not a normal brokerage service.

The Internet allows individual investors to legally:

Discount brokers will:

Preferred stock combines the fixed income features of bonds with the same price appreciation potential as common stocks.

Instructing your broker to buy or sell a stock at a particular price is a:

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 security is sold only once in the [primary | secondary] market.

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

A portfolio is a collection of investment assets assembled to meet your investment objectives.

_____ is a portfolio characteristic which leads to reduced risk with good return.

Portfolio management involves making decisions in order to:

During a bear market,security prices generally:

The Standard and Poor's Index is an industrial average which is based on 30 blue-chip stocks.

Exchange traded notes face both market risk and the risk of the issuing bank defaulting.

Investing is the process of placing money in some medium such as stocks or bonds in the expectation of receiving some future benefit.

The most important investment prerequisites are:

A diversified portfolio should be less risky than putting your money into a single security.

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