Question 1

On the TV show "The Big Bang Theory" the main characters are frequently seen purchasing comic books.Purchasing rare comic books is an example of investing.

Accepted Answer

A) True 
 B)False

Question 2

According to the Keown text,every investor should read?

Accepted Answer

A) Motley Fool 
B) The Wall Street Journal 
C) EDGAR 
D) Time magazine 
A) Motley Fool 
B) The Wall Street Journal 
C) EDGAR 
D) Time magazine

Question 3

What is the purpose of a circuit breaker for the market?

Accepted Answer

A) It prevents the market from declining in value. 
B) It prevents investors from losing money in the market. 
C) It temporarily stops computerized trading to allow investors to analyze the extraordinary market swings. 
D) All of the above are correct. 
E) Only A and B are correct. 
A) It prevents the market from declining in value. 
B) It prevents investors from losing money in the market. 
C) It temporarily stops computerized trading to allow investors to analyze the extraordinary market swings. 
D) All of the above are correct. 
E) Only A and B are correct.

Question 4

A(n)________ account represents the money or investments you have at a brokerage firm.

Accepted Answer

A) discretionary 
B) brokerage 
C) stock purchasing 
D) indemnity 
A) discretionary 
B) brokerage 
C) stock purchasing 
D) indemnity

Question 5

Differentiate between primary and secondary security markets.

Accepted Answer

A primary market is one in which newly i

Question 6

To begin your savings plan it is a good idea to set aside your savings first and only spend what is left over.

Accepted Answer

A) True 
 B)False

Question 7

Stocks of most larger companies trade on the American Stock Exchange,while the stocks of most smaller companies trade on the New York Stock Exchange.

Accepted Answer

A) True 
 B)False

Question 8

Full service brokers are legally obligated to analyze the recommendations they receive from analysts.

Accepted Answer

A) True 
 B)False

Question 9

ABC Corporation is selling additional shares of common stock.Although ABC Corporation has already sold shares of stock in the public equity markets,these are new shares of stock,and have never been sold or traded previously.This is called a(n)

Accepted Answer

A) initial public offering. 
B) seasoned new issue. 
C) secondary issue. 
D) blue chip issue. 
E) none of the above. 
A) initial public offering. 
B) seasoned new issue. 
C) secondary issue. 
D) blue chip issue. 
E) none of the above.

Question 10

A full service broker will always get you a lower share price on your purchases of stock.

Accepted Answer

A) True 
 B)False

Question 11

Liquidity risk is a very important part of the time dimension of investing.

Accepted Answer

A) True 
 B)False

Question 12

Investment advice is very difficult to find and expensive to purchase.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not risk that can be diversified out of a portfolio of stocks?

Accepted Answer

A) unsystematic 
B) systematic 
C) firm specific 
D) company-unique 
A) unsystematic 
B) systematic 
C) firm specific 
D) company-unique

Question 14

Tell how your understanding of efficient markets helps with investing.

Accepted Answer

My understanding tells me several things

Question 15

Examples of political and regulatory risk include

Accepted Answer

A) changes in the tax deductibility of interest on municipal bonds. 
B) changes in the capital gains tax rate. 
C) changes in the exchange rates. 
D) All of the above are correct. 
E) Only A and B are correct. 
A) changes in the tax deductibility of interest on municipal bonds. 
B) changes in the capital gains tax rate. 
C) changes in the exchange rates. 
D) All of the above are correct. 
E) Only A and B are correct.

Question 16

Investors have access to an incredible amount of corporate information on the Internet,including news sites,free software,and discussion groups.According to the Keown book,which websites reflect the greatest online sources of investment information?
I.Yahoo! Finance
II.CNNMoney.com
III.The Motley Fool
IV.EDGAR

Accepted Answer

A) I only 
B) I and II 
C) I,II,and III 
D) I,II,III,and IV 
A) I only 
B) I and II 
C) I,II,and III 
D) I,II,III,and IV

Question 17

It is very tough to consistently beat the market.

Accepted Answer

A) True 
 B)False

Question 18

What are the benefits of a well-diversified portfolio?

Accepted Answer

A) It protects you from systematic risk. 
B) It protects you from firm specific risk. 
C) It protects you from company-unique risk. 
D) All of the above are correct. 
E) All but A are correct. 
A) It protects you from systematic risk. 
B) It protects you from firm specific risk. 
C) It protects you from company-unique risk. 
D) All of the above are correct. 
E) All but A are correct.

Question 19

Recently an oil rig in the Gulf of Texas blew up causing the value of your stock in the company who owns the oil rig to fall.What type of risk does this represent?

Accepted Answer

A) Diversifiable risk 
B) Systematic risk 
C) Political and regulatory risk 
D) Both B and C 
A) Diversifiable risk 
B) Systematic risk 
C) Political and regulatory risk 
D) Both B and C

Question 20

A lending type investment,such as a corporate bond,represents a legal obligation for the issuer to pay its creditors back.

Accepted Answer

A) True 
 B)False

On the TV show "The Big Bang Theory" the main characters are frequently seen purchasing comic books.Purchasing rare comic books is an example of investing.

According to the Keown text,every investor should read?

What is the purpose of a circuit breaker for the market?

A(n)________ account represents the money or investments you have at a brokerage firm.

Differentiate between primary and secondary security markets.

To begin your savings plan it is a good idea to set aside your savings first and only spend what is left over.

Stocks of most larger companies trade on the American Stock Exchange,while the stocks of most smaller companies trade on the New York Stock Exchange.

Full service brokers are legally obligated to analyze the recommendations they receive from analysts.

ABC Corporation is selling additional shares of common stock.Although ABC Corporation has already sold shares of stock in the public equity markets,these are new shares of stock,and have never been sold or traded previously.This is called a(n)

A full service broker will always get you a lower share price on your purchases of stock.

Liquidity risk is a very important part of the time dimension of investing.

Investment advice is very difficult to find and expensive to purchase.

Which of the following is not risk that can be diversified out of a portfolio of stocks?

Tell how your understanding of efficient markets helps with investing.

Examples of political and regulatory risk include

It is very tough to consistently beat the market.

What are the benefits of a well-diversified portfolio?

Recently an oil rig in the Gulf of Texas blew up causing the value of your stock in the company who owns the oil rig to fall.What type of risk does this represent?

A lending type investment,such as a corporate bond,represents a legal obligation for the issuer to pay its creditors back.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters

Exam 11: Investment Basics

On the TV show "The Big Bang Theory" the main characters are frequently seen purchasing comic books.Purchasing rare comic books is an example of investing.

According to the Keown text,every investor should read?

What is the purpose of a circuit breaker for the market?

A(n)________ account represents the money or investments you have at a brokerage firm.

Differentiate between primary and secondary security markets.

To begin your savings plan it is a good idea to set aside your savings first and only spend what is left over.

Stocks of most larger companies trade on the American Stock Exchange,while the stocks of most smaller companies trade on the New York Stock Exchange.

Full service brokers are legally obligated to analyze the recommendations they receive from analysts.

ABC Corporation is selling additional shares of common stock.Although ABC Corporation has already sold shares of stock in the public equity markets,these are new shares of stock,and have never been sold or traded previously.This is called a(n)

A full service broker will always get you a lower share price on your purchases of stock.

Liquidity risk is a very important part of the time dimension of investing.

Investment advice is very difficult to find and expensive to purchase.

Which of the following is not risk that can be diversified out of a portfolio of stocks?

Tell how your understanding of efficient markets helps with investing.

Examples of political and regulatory risk include

It is very tough to consistently beat the market.

What are the benefits of a well-diversified portfolio?

Recently an oil rig in the Gulf of Texas blew up causing the value of your stock in the company who owns the oil rig to fall.What type of risk does this represent?

A lending type investment,such as a corporate bond,represents a legal obligation for the issuer to pay its creditors back.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters