Exam 11: Investment Basics

For most typical married couples,joint tenancy with the right of survivorship is not an appropriate form of account ownership.

A(n)________ is a legal document that describes a securities issue and is made available to potential investors.

If you purchases securities jointly with another person,how the account is registered is not very important.

Acting upon assumed good advice,your brother buys stock in I-Link,an upcoming communications firm.Since this is the first time I-Link is trading its stock,your brother will be involved in a(n)

Seasoned new issues are stock offerings by companies that already have common stock traded in the marketplace.

The two types of securities offerings in the primary markets are ________ and ________.

The price at which an individual investor is willing to buy a security is the bid price.

Brokerage firm reports

The ________ is the stated amount on the face of a bond,which the firm is to repay at the maturity date.

In trying to "time the market" investors are just as likely to miss out on upswings in the market as well as avoid down turns.

Barbara Ann ordered 50 shares of stock,which is called a(n)________ lot on the NYSE.

Gracie Johnson saw the securities announcement for New York Bagel Enterprises that provided the details of the offering and a listing of the underwriting syndicate.She saw the

Bruce Lee owns stocks,bonds,real estate,gold coins,T-Bills,and gemstones.He has a(n)

Changes in the capital gains tax rate,or in the tax deductibility on municipal bonds are examples of ________ risk.

Securities are generally sold in the primary markets with the help of a(n)________ serving as a(n)________.

Investors who trade with a very short time horizon,generally holding onto stocks for only a few hours,are called

A put option gives the owner the right to ________,while a call option gives the owner the right to ________.

Which of the following questions is relevant to setting investment goals?

Real estate investments can be income-producing investments.Which of these would be included as an income-producing real estate investment?

You just concluded a stock purchase transaction via a computer hookup rather than in an organized exchange.This trade took place in the