Exam 11: Investment Planning

A round lot consists of multiples of 100 shares of stock.

Retired people often choose investments offering high current income with high risk.

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 issuer of the security would get no money from a trade in the [primary | secondary] market.

Preferred stocks are the common stocks of ultra-blue-chip companies.

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 [bull | bear] market is characterized by rising stock prices.

Listed securities are traded on organized exchanges.

You have inherited $250,000.You have decided that since you don't need the money currently,you should invest for the long-term.After seeking advice,you decide on an asset allocation plan that puts 10% in short-term securities,75% in equities,and 15% in bond funds.How much money would you put in each category?

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

Stockbrokers are also known as:

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.

How many shares of Stock A traded on this day?

In terms of market capitalization,Apple is the biggest company in the world.

The over-the-counter market is not an organized security exchange.

There are 50 shares in a 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. -Stockbrokers prefer clients who [buy and hold | trade actively.]

Common stock pays interest payments on a quarterly basis.

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 [primary | secondary] market is where new securities are sold to the public.

The federal government regulates securities markets through the:

_____ is a short-term investment activity.

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. -Retired people often choose investments offering [high current income | low current income].