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 _____ Index reflects the total market value of over 98% of all publicly traded stock in the US.

Accepted Answer

A)  Dow Jones Industrial Average 
B)  S & P 500 
C)  NASDAQ 
D)  Dow Jones Wilshire 5000 
E)  New York Stock Exchange 
A)  Dow Jones Industrial Average 
B)  S & P 500 
C)  NASDAQ 
D)  Dow Jones Wilshire 5000 
E)  New York Stock Exchange

Question 3

Which of the following is a true statement about the Dow Jones Industrial Average?

Accepted Answer

A)  It is based on 30 industrial stocks. 
B)  It is based on 50 transportation stocks. 
C)  It is a composite index for the 500 largest industrial publicly traded companies. 
D)  It is based on 100 utilities stocks. 
E)  It contains 50 blue chip stocks. 
A)  It is based on 30 industrial stocks. 
B)  It is based on 50 transportation stocks. 
C)  It is a composite index for the 500 largest industrial publicly traded companies. 
D)  It is based on 100 utilities stocks. 
E)  It contains 50 blue chip stocks.

Question 4

An odd lot transaction is generally more expensive than a round lot transaction.

Accepted Answer

A) True 
 B)False

Question 5

The bid price would be the price paid by an investor for an OTC stock.

Accepted Answer

A) True 
 B)False

Question 6

Securities markets include:

Accepted Answer

A)  capital and money markets. 
B)  primary and secondary markets. 
C)  stock exchanges. 
D)  all of these 
E)  none of these 
A)  capital and money markets. 
B)  primary and secondary markets. 
C)  stock exchanges. 
D)  all of these 
E)  none of these

Question 7

Which of the following is a characteristic of an organized securities exchange?

Accepted Answer

A)  They facilitate trading unlisted securities. 
B)  Municipal bonds are primarily traded in organized exchanges. 
C)  Pink sheets are commonly used in these markets. 
D)  The NASDAQ is an example of an organized exchange. 
E)  Trading in securities is carried out in a physical location. 
A)  They facilitate trading unlisted securities. 
B)  Municipal bonds are primarily traded in organized exchanges. 
C)  Pink sheets are commonly used in these markets. 
D)  The NASDAQ is an example of an organized exchange. 
E)  Trading in securities is carried out in a physical location.

Question 8

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.
-Two hundred shares of stock would constitute [odd lot | round lot].

Accepted Answer

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

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.
-[Speculating | Investing] is considered to be a long-term activity.

Accepted Answer

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

Question 10

A long-term investment strategy includes all of the following except:

Accepted Answer

A)  stock and bond selection. 
B)  diversification. 
C)  immediate financial needs to pay current bills. 
D)  risk-return behavior study. 
E)  investor education. 
A)  stock and bond selection. 
B)  diversification. 
C)  immediate financial needs to pay current bills. 
D)  risk-return behavior study. 
E)  investor education.

Question 11

The first step in asset allocation is selecting the securities that should go into your portfolio.

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 $200,000 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 $200,000 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

Two prerequisites to investing are above average risk and clear understanding of market direction.

Accepted Answer

A) True 
 B)False

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.
-The [DJIA | S&P Index] is based on 500 different stocks.

Accepted Answer

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

Question 15

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 as well as [| provide extensive information about various securities | offer little to no other services].

Accepted Answer

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

Question 16

When completed,an investment plan is a way of translating an abstract investment target into a specific investment program.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a characteristics of a limit order?

Accepted Answer

A)  The order that provides the quickest way to have an order filled. 
B)  Buy orders are filled at the lowest available price. 
C)  Stock is purchased at the current market price. 
D)  The order is executed as soon as the specified price is reached. 
E)  Securities are always bought on margin. 
A)  The order that provides the quickest way to have an order filled. 
B)  Buy orders are filled at the lowest available price. 
C)  Stock is purchased at the current market price. 
D)  The order is executed as soon as the specified price is reached. 
E)  Securities are always bought on margin.

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.
-Listed securities would be purchased from [a securities exchange | the over the counter market].

Accepted Answer

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

Question 19

Newly issued securities are sold to the public in the secondary market.

Accepted Answer

A) True 
 B)False

Question 20

All OTC stocks are part of NASDAQ.

Accepted Answer

A) True 
 B)False

Which of the following terms best describes a day trader?

The _____ Index reflects the total market value of over 98% of all publicly traded stock in the US.

Which of the following is a true statement about the Dow Jones Industrial Average?

An odd lot transaction is generally more expensive than a round lot transaction.

The bid price would be the price paid by an investor for an OTC stock.

Securities markets include:

Which of the following is a characteristic of an organized securities exchange?

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. -Two hundred shares of stock would constitute [odd lot | round lot].

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. -[Speculating | Investing] is considered to be a long-term activity.

A long-term investment strategy includes all of the following except:

The first step in asset allocation is selecting the securities that should go into your portfolio.

The Securities Investor Protection Corporation insures brokerage firm accounts up to:

Two prerequisites to investing are above average risk and clear understanding of market direction.

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 [DJIA | S&P Index] is based on 500 different stocks.

When completed,an investment plan is a way of translating an abstract investment target into a specific investment program.

Which of the following is a characteristics of a limit order?

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. -Listed securities would be purchased from [a securities exchange | the over the counter market].

Newly issued securities are sold to the public in the secondary market.

All OTC stocks are part of NASDAQ.

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 _____ Index reflects the total market value of over 98% of all publicly traded stock in the US.

Which of the following is a true statement about the Dow Jones Industrial Average?

An odd lot transaction is generally more expensive than a round lot transaction.

The bid price would be the price paid by an investor for an OTC stock.

Securities markets include:

Which of the following is a characteristic of an organized securities exchange?

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. -Two hundred shares of stock would constitute [odd lot | round lot].

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. -[Speculating | Investing] is considered to be a long-term activity.

A long-term investment strategy includes all of the following except:

The first step in asset allocation is selecting the securities that should go into your portfolio.

The Securities Investor Protection Corporation insures brokerage firm accounts up to:

Two prerequisites to investing are above average risk and clear understanding of market direction.

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 [DJIA | S&P Index] is based on 500 different stocks.

When completed,an investment plan is a way of translating an abstract investment target into a specific investment program.

Which of the following is a characteristics of a limit order?

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. -Listed securities would be purchased from [a securities exchange | the over the counter market].

Newly issued securities are sold to the public in the secondary market.

All OTC stocks are part of NASDAQ.

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