Exam 15: Pricing and Distribution

The two financial markets in which securities are sold are the

The money derived from the sale of the stocks or bonds goes to

Marcela is a professional investor and is preparing to research the general movement of U.S. stock prices. As she sits down to her computer, which website would most likely provide Marcela with a picture of the total stock market?

Your hometown is looking to build a new multi purpose stadium for the local semi pro soccer team. Proceeds from ticket sales go directly to the city. In order to fund the stadium, the city has decided to issue bonds. The bonds can be best classified as a ________ bond.

Liorit has been monitoring a specific stock for the past month. He calls his broker and tells him to buy 20 shares when he feels the price is most optimum. This can be best described as a ________ order.

The ________ index is referred to as "the total stock market index."

Which statement describes investing for growth?

Provide an overview of the ways that stocks are valued.

Keston left his career in information technology to focus on investing. He loves the thrill of taking a risk that could lead to income. His favorite investment activity centers around buying stock at a low price and then quickly selling it at a higher price. Which investment strategy does this best represent?

Latosha has a broker she uses to make trades for her and to give her investment advice based on research. What type of broker does Latosha use?

Loren's broker knows Loren doesn't know anything about how the stock market works, so she advises him to trust her to decide when to buy and sell. This illustrates ________ orders.

Carina is considering the purchase of stock in a company. She tells her broker about her interest. At this point the broker must provide Carina with a

Irene and Serena recently were married. They want to ensure they start investing for their future, so they sit down to review their income. When they are done, they want to reach an agreement as to how much they will invest from each of their respective paychecks. Which of the factors that make up an investor's profile does this best represent?

Aeron owns shares of a mutual fund and decides to purchase additional shares. After making the purchase he notices that he was charged a 3 percent commission. Aeron's mutual fund can best be described as a(n) _______ fund.

Kahina keeps a very close eye on world affairs and always considers how particular issues might impact the financial environment. If she sees an issue, Kahina is quick to adjust her investments to adapt to the changes. Which of the factors that make up an investor's profile does this best represent?

Diana is planning to begin investing, so she schedules time to do some research. Diana is intrigued when she finds some information about a type of investment that interests her. While there are some fees associated with the investment, she will be able to easily spread out her risk thanks to the many different options that are available. The investments are also professionally managed, so she can read a short summary before purchasing any shares without having to do any research. Diana has most likely discovered

Rasheed is considering purchasing stock in a few companies. He wants to start by researching whether the stock for any of the companies is underpriced at this time. Rasheed's best course of action would be to review the ________ for each stock.

Define the three types of securities and provide at least two examples of each one.

E-Trade is a ________ broker because it doesn't offer advice or tax planning and charges a low fee for trades.

Opeyemi is discussing his investment strategy with a friend. The friend tells Opeyemi to review his portfolio to ensure he has options he can convert to cash in the event of an emergency. Which of the factors that make up an investor's profile does this best represent?