Question 1

Every company registered with the Securities and Exchange Commission must report many financial particulars annually to the SEC by filing a ____ report.

Accepted Answer

A) 8-K 
B) 10-K 
C) 13-D 
D) None of these.

Question 2

The figure in the Yld% column of the stock quotes represents the yield as a percentage of dividend income.

Accepted Answer

A) True 
 B)False

Question 3

Many bonds include a sinking fund through which money is set aside with a trustee each year for repayment of the interest portion of the debt.

Accepted Answer

A) True 
 B)False

Question 4

The approximate compound yield formula provides a measure of the annualized compound growth of any long-term investment.

Accepted Answer

A) True 
 B)False

Question 5

____ investments have a variable value and a fixed yield.

Accepted Answer

A) Bond 
B) Common stock 
C) Certificates of deposit 
D) Money market mutual fund

Question 6

Marnie purchased a $1,000,52-week Treasury bill for $955.Assuming she holds it to maturity,her discount yield will be ____ percent.

Accepted Answer

A) 4.50 
B) 4.71 
C) 5.50 
D) 5.37

Question 7

A ____ stock is one that has little or no track record but has a potential for substantial earnings at some time in the future.

Accepted Answer

A) fundamental 
B) speculative 
C) growth 
D) value

Question 8

Use the following stock listing for transactions on December 12 to answer the questions:
 
-How many shares of QPZ traded on December 12?

Accepted Answer

A) 3,289 
B) 32,890 
C) 328,900 
D) 3,289,000

Question 9

____ bonds are long-term,high-risk,high-interest-rate corporate (or municipal) IOUs issued by companies (or municipalities) with poor or no credit ratings.

Accepted Answer

A) Junk 
B) Municipal 
C) Zero-coupon 
D) Investment-grade

Question 10

Owners of a corporation who want to raise more capital by issuing new securities but who also want to retain control of their company could issue

Accepted Answer

A) common stock. 
B) preferred stock. 
C) bonds. 
D) either preferred stock or bonds.

Question 11

If U.S.Treasury bills are earning 4 percent and the stock investment you are considering has a potential return of 10 percent,you would be paid a ____ percent return to take the additional risk of investing in the stock.

Accepted Answer

A) 4 
B) 6 
C) 10 
D) 14

Question 12

When securities are kept in their street name,they are registered in the name of the

Accepted Answer

A) issuing corporation. 
B) individual investor. 
C) brokerage firm. 
D) Security Investors Protection Corporation.

Question 13

Income stocks are typically more volatile than the market as a whole.

Accepted Answer

A) True 
 B)False

Question 14

Interest on bonds must be paid

Accepted Answer

A) monthly. 
B) according to the bond indenture. 
C) only on secured bonds. 
D) at maturity.

Question 15

A stock with a beta of over 1 is considered more risky than the stock market as a whole.

Accepted Answer

A) True 
 B)False

Question 16

A disadvantage for a buyer who places a limit order is that the investor might miss an excellent opportunity if the stock price rises.

Accepted Answer

A) True 
 B)False

Question 17

Most bonds are callable.

Accepted Answer

A) True 
 B)False

Question 18

Treasury notes are the longest-term U.S.government securities.

Accepted Answer

A) True 
 B)False

Question 19

Typically the lowest rate of interest would be paid on

Accepted Answer

A) U.S. Treasury bills. 
B) U.S. Treasury bonds. 
C) U.S. Treasury notes. 
D) federal agency issues.

Question 20

A stop order instructs a stockbroker to sell your shares at the market price if a stock declines to or below a specified price.

Accepted Answer

A) True 
 B)False

Exam 14: Investing in Stocks and Bonds

Every company registered with the Securities and Exchange Commission must report many financial particulars annually to the SEC by filing a ____ report.

The figure in the Yld% column of the stock quotes represents the yield as a percentage of dividend income.

Many bonds include a sinking fund through which money is set aside with a trustee each year for repayment of the interest portion of the debt.

The approximate compound yield formula provides a measure of the annualized compound growth of any long-term investment.

____ investments have a variable value and a fixed yield.

Marnie purchased a $1,000,52-week Treasury bill for $955.Assuming she holds it to maturity,her discount yield will be ____ percent.

A ____ stock is one that has little or no track record but has a potential for substantial earnings at some time in the future.

Use the following stock listing for transactions on December 12 to answer the questions: -How many shares of QPZ traded on December 12?

____ bonds are long-term,high-risk,high-interest-rate corporate (or municipal) IOUs issued by companies (or municipalities) with poor or no credit ratings.

Owners of a corporation who want to raise more capital by issuing new securities but who also want to retain control of their company could issue

If U.S.Treasury bills are earning 4 percent and the stock investment you are considering has a potential return of 10 percent,you would be paid a ____ percent return to take the additional risk of investing in the stock.

When securities are kept in their street name,they are registered in the name of the

Income stocks are typically more volatile than the market as a whole.

Interest on bonds must be paid

A stock with a beta of over 1 is considered more risky than the stock market as a whole.

A disadvantage for a buyer who places a limit order is that the investor might miss an excellent opportunity if the stock price rises.

Most bonds are callable.

Treasury notes are the longest-term U.S.government securities.

Typically the lowest rate of interest would be paid on

A stop order instructs a stockbroker to sell your shares at the market price if a stock declines to or below a specified price.