Question 1

Investment bankers sell securities to ________ investors, or large organizations such as pension funds and insurance companies.

Accepted Answer

A)  corporate 
B)  mega 
C)  institutional 
D)  organized 
E)  brokerage 
A)  corporate 
B)  mega 
C)  institutional 
D)  organized 
E)  brokerage

Question 2

Anatoliy had purchased five shares of stock with a par value of $20 last year. At a financial review, his advisor tells Anatoliy that he now owns 10 shares of stock with a par value of $10. What has most likely occurred in this situation?

Accepted Answer

A)  The company completed a stock split. 
B)  The company finalized a diversification. 
C)  The company received a limit order. 
D)  The company increased its market value. 
E)  The company approved a dividend payout. 
A)  The company completed a stock split. 
B)  The company finalized a diversification. 
C)  The company received a limit order. 
D)  The company increased its market value. 
E)  The company approved a dividend payout.

Question 3

Adriann purchased a 10-year bond. After three years paying 5 percent interest, the interest rate drops to 3 percent. Adriann is surprised when the bond issuer recalled her bond shortly after the rate drop. Adrianna had most likely purchased a ________ bond.

Accepted Answer

A)  convertible 
B)  sinking-fund 
C)  common 
D)  serial 
E)  callable 
A)  convertible 
B)  sinking-fund 
C)  common 
D)  serial 
E)  callable

Question 4

Mortimer is preparing an agreement to buy a large amount of oranges at their current prices. Due to an early freeze in Florida, he believes prices will soon increase significantly. Mortimer is most likely participating in

Accepted Answer

A)  exchange trading. 
B)  asset allocation. 
C)  commodity trading. 
D)  buying and holding 
E)  sinking-fund trading. 
A)  exchange trading. 
B)  asset allocation. 
C)  commodity trading. 
D)  buying and holding 
E)  sinking-fund trading.

Question 5

When a new company goes public and sells stock for the first time, it is called

Accepted Answer

A)  a primary securities sale. 
B)  a secondary securities market. 
C)  an open auction. 
D)  an initial public offering. 
E)  a closed auction. 
A)  a primary securities sale. 
B)  a secondary securities market. 
C)  an open auction. 
D)  an initial public offering. 
E)  a closed auction.

Question 6

Salvatrice is a commodities investor. He loves looking for opportunities that offer the possibility for tremendous profit, even if they pose a large risk. Which of the factors that make up an investor's profile does this best represent?

Accepted Answer

A)  risk 
B)  goals 
C)  risk allocation 
D)  available funds 
E)  speculation 
A)  risk 
B)  goals 
C)  risk allocation 
D)  available funds 
E)  speculation

Question 7

Of the five investment strategies, which has the highest risk?

Accepted Answer

A)  buying and holding 
B)  investing for income 
C)  investing for growth 
D)  market timing 
E)  value investing 
A)  buying and holding 
B)  investing for income 
C)  investing for growth 
D)  market timing 
E)  value investing

Question 8

Catherine invests her retirement savings in no-load funds, which means she

Accepted Answer

A)  pays no sales charges. 
B)  doesn't use a broker. 
C)  doesn't pay a management fee. 
D)  pays a small flat rate for every trade. 
E)  won't pay taxes when she withdraws the funds. 
A)  pays no sales charges. 
B)  doesn't use a broker. 
C)  doesn't pay a management fee. 
D)  pays a small flat rate for every trade. 
E)  won't pay taxes when she withdraws the funds.

Question 9

Bjorn wants to pay for his son's college education so that his son can be debt-free when he graduates. Bjorn needs to have a reliable source of income so that he can make regular payments to the school. Which investment strategy would be best for Bjorn's situation?

Accepted Answer

A)  investing for growth 
B)  market timing 
C)  value investing 
D)  investing for income 
E)  buying and holding 
A)  investing for growth 
B)  market timing 
C)  value investing 
D)  investing for income 
E)  buying and holding

Question 10

Portia has a high-risk tolerance, so she decides to use futures contracts to buy lumber in spite of the fact that the United States may be placing tariffs on Canadian lumber. Portia is most likely

Accepted Answer

A)  investing in mutual finds that focus on lumber. 
B)  buying exchange-traded funds. 
C)  engaging in commodities trading. 
D)  buying stock in Canadian companies. 
E)  diversifying her portfolio. 
A)  investing in mutual finds that focus on lumber. 
B)  buying exchange-traded funds. 
C)  engaging in commodities trading. 
D)  buying stock in Canadian companies. 
E)  diversifying her portfolio.

Question 11

When considering how much money you can afford to invest, you are considering which element of your investment profile?

Accepted Answer

A)  available funds 
B)  liquidity 
C)  risk 
D)  speculation 
E)  asset allocation 
A)  available funds 
B)  liquidity 
C)  risk 
D)  speculation 
E)  asset allocation

Question 12

Prerefunded bonds, also known as ________ bonds, are those in which the issuer makes annual deposits to a bank to accumulate funds for paying off the bonds on maturity.

Accepted Answer

A)  junk 
B)  callable 
C)  convertible 
D)  serial 
E)  sinking-fund 
A)  junk 
B)  callable 
C)  convertible 
D)  serial 
E)  sinking-fund

Question 13

Eevi has been researching and monitoring a company all day and logs into the E-Trade app on her phone to purchase 100 shares shortly before the market closes for the day. Eevi's purchase was most likely facilitated by a(n) ________ broker.

Accepted Answer

A)  traditional 
B)  discount 
C)  on-demand 
D)  full-service 
E)  speculation 
A)  traditional 
B)  discount 
C)  on-demand 
D)  full-service 
E)  speculation

Question 14

Jerry tracks stock on the New York Stock Exchange every morning while he has breakfast. He then purchases stocks when he feels they have strong possibility for growth. Jerry is most likely using the ________ market.

Accepted Answer

A)  common stock 
B)  primary securities 
C)  open auction 
D)  institutional investment 
E)  secondary securities 
A)  common stock 
B)  primary securities 
C)  open auction 
D)  institutional investment 
E)  secondary securities

Question 15

Which statement describes value investing?

Accepted Answer

A)  I want an attractive return over the long haul without having to constantly track my investments. 
B)  I want a steady flow of income, even though the value of the investments won't increase much. 
C)  I want to increase my wealth fast and am willing to take risks. 
D)  I'm willing to risk my time and money hunting for undervalued stocks that might become profitable. 
E)  I'm willing to take big risks and pay very close attention to buy low and sell high for quick profits. 
A)  I want an attractive return over the long haul without having to constantly track my investments. 
B)  I want a steady flow of income, even though the value of the investments won't increase much. 
C)  I want to increase my wealth fast and am willing to take risks. 
D)  I'm willing to risk my time and money hunting for undervalued stocks that might become profitable. 
E)  I'm willing to take big risks and pay very close attention to buy low and sell high for quick profits.

Investment bankers sell securities to ________ investors, or large organizations such as pension funds and insurance companies.

Anatoliy had purchased five shares of stock with a par value of $20 last year. At a financial review, his advisor tells Anatoliy that he now owns 10 shares of stock with a par value of $10. What has most likely occurred in this situation?

Adriann purchased a 10-year bond. After three years paying 5 percent interest, the interest rate drops to 3 percent. Adriann is surprised when the bond issuer recalled her bond shortly after the rate drop. Adrianna had most likely purchased a ________ bond.

Mortimer is preparing an agreement to buy a large amount of oranges at their current prices. Due to an early freeze in Florida, he believes prices will soon increase significantly. Mortimer is most likely participating in

When a new company goes public and sells stock for the first time, it is called

Salvatrice is a commodities investor. He loves looking for opportunities that offer the possibility for tremendous profit, even if they pose a large risk. Which of the factors that make up an investor's profile does this best represent?

Of the five investment strategies, which has the highest risk?

Catherine invests her retirement savings in no-load funds, which means she

Bjorn wants to pay for his son's college education so that his son can be debt-free when he graduates. Bjorn needs to have a reliable source of income so that he can make regular payments to the school. Which investment strategy would be best for Bjorn's situation?

Portia has a high-risk tolerance, so she decides to use futures contracts to buy lumber in spite of the fact that the United States may be placing tariffs on Canadian lumber. Portia is most likely

When considering how much money you can afford to invest, you are considering which element of your investment profile?

Prerefunded bonds, also known as ________ bonds, are those in which the issuer makes annual deposits to a bank to accumulate funds for paying off the bonds on maturity.

Eevi has been researching and monitoring a company all day and logs into the E-Trade app on her phone to purchase 100 shares shortly before the market closes for the day. Eevi's purchase was most likely facilitated by a(n) ________ broker.

Jerry tracks stock on the New York Stock Exchange every morning while he has breakfast. He then purchases stocks when he feels they have strong possibility for growth. Jerry is most likely using the ________ market.

Which statement describes value investing?

Fundamentals of the Business World

Acting Ethically and Socially Responsible

Fundamentals of Economics and Types of Markets

The Development of the Global Economy

Entrepreneurship: From Startup to Growth

Accounting and Financial Statements

Core Components of Finance and Banking

Securities, Investments, and Financial Literacy

Essentials of Leadership and Management

Operations Management

Human Resource Management and Labor Relations

Organizational Behavior

Introduction to Marketing

Products

Promotion Mix: Tools, Goals, and Strategies

Filters

Exam 15: Pricing and Distribution

Investment bankers sell securities to ________ investors, or large organizations such as pension funds and insurance companies.

Anatoliy had purchased five shares of stock with a par value of $20 last year. At a financial review, his advisor tells Anatoliy that he now owns 10 shares of stock with a par value of $10. What has most likely occurred in this situation?

Adriann purchased a 10-year bond. After three years paying 5 percent interest, the interest rate drops to 3 percent. Adriann is surprised when the bond issuer recalled her bond shortly after the rate drop. Adrianna had most likely purchased a ________ bond.

Mortimer is preparing an agreement to buy a large amount of oranges at their current prices. Due to an early freeze in Florida, he believes prices will soon increase significantly. Mortimer is most likely participating in

When a new company goes public and sells stock for the first time, it is called

Salvatrice is a commodities investor. He loves looking for opportunities that offer the possibility for tremendous profit, even if they pose a large risk. Which of the factors that make up an investor's profile does this best represent?

Of the five investment strategies, which has the highest risk?

Catherine invests her retirement savings in no-load funds, which means she

Bjorn wants to pay for his son's college education so that his son can be debt-free when he graduates. Bjorn needs to have a reliable source of income so that he can make regular payments to the school. Which investment strategy would be best for Bjorn's situation?

Portia has a high-risk tolerance, so she decides to use futures contracts to buy lumber in spite of the fact that the United States may be placing tariffs on Canadian lumber. Portia is most likely

When considering how much money you can afford to invest, you are considering which element of your investment profile?

Prerefunded bonds, also known as ________ bonds, are those in which the issuer makes annual deposits to a bank to accumulate funds for paying off the bonds on maturity.

Eevi has been researching and monitoring a company all day and logs into the E-Trade app on her phone to purchase 100 shares shortly before the market closes for the day. Eevi's purchase was most likely facilitated by a(n) ________ broker.

Jerry tracks stock on the New York Stock Exchange every morning while he has breakfast. He then purchases stocks when he feels they have strong possibility for growth. Jerry is most likely using the ________ market.

Which statement describes value investing?

Fundamentals of the Business World

Acting Ethically and Socially Responsible

Fundamentals of Economics and Types of Markets

The Development of the Global Economy

Entrepreneurship: From Startup to Growth

Accounting and Financial Statements

Core Components of Finance and Banking

Securities, Investments, and Financial Literacy

Essentials of Leadership and Management

Operations Management

Human Resource Management and Labor Relations

Organizational Behavior

Introduction to Marketing

Products

Promotion Mix: Tools, Goals, and Strategies

Filters