Question 1

The maintenance margin requirement is greater than the initial margin requirement.

Accepted Answer

A) True 
 B)False

Question 2

A risk seeker is someone willing to undertake risky investments,regardless of the potential return.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following acts was meant to enhance financial disclosures and make financial analysts more responsive to investors.

Accepted Answer

A) Sarbanes Oxley Act 
B) Registered Investment Advisors Act 
C) Financial Institutions Act 
D) Grasso Public Disclosure Act 
A) Sarbanes Oxley Act 
B) Registered Investment Advisors Act 
C) Financial Institutions Act 
D) Grasso Public Disclosure Act

Question 4

If you instruct your broker to buy a stock at a specific price,you have given a market order.

Accepted Answer

A) True 
 B)False

Question 5

The over-the-counter market refers to

Accepted Answer

A) a section of the NYSE where stocks of small companies are traded. 
B) an illegal operation where securities in non-existing companies are scammed. 
C) a network of securities dealers who trade securities through an electronic communication system. 
D) stock trading in different regions of the country. 
A) a section of the NYSE where stocks of small companies are traded. 
B) an illegal operation where securities in non-existing companies are scammed. 
C) a network of securities dealers who trade securities through an electronic communication system. 
D) stock trading in different regions of the country.

Question 6

A round lot is

Accepted Answer

A) 100 shares. 
B) 10 shares. 
C) 1,000 shares. 
D) an even number group of shares. 
A) 100 shares. 
B) 10 shares. 
C) 1,000 shares. 
D) an even number group of shares.

Question 7

A stop order is simply a market order that is automatically triggered at a specific market price.

Accepted Answer

A) True 
 B)False

Question 8

If you purchase a stock put,the put allows you to

Accepted Answer

A) buy stock at a stated price. 
B) buy stock at the current market price. 
C) sell stock at a stated price. 
D) sell stock at the current market price. 
A) buy stock at a stated price. 
B) buy stock at the current market price. 
C) sell stock at a stated price. 
D) sell stock at the current market price.

Question 9

Which item below is not an investment newspaper?

Accepted Answer

A) Wall Street Week 
B) Barron's 
C) The Wall Street Journal 
D) Investor's Business Daily 
A) Wall Street Week 
B) Barron's 
C) The Wall Street Journal 
D) Investor's Business Daily

Question 10

Commodity and financial futures contracts

Accepted Answer

A) are highly risky investments. 
B) are highly liquid assets. 
C) are tangible investments. 
D) impose no obligation on buyers. 
A) are highly risky investments. 
B) are highly liquid assets. 
C) are tangible investments. 
D) impose no obligation on buyers.

Question 11

SIPC insures the delivery of shares but does not insure their market value.

Accepted Answer

A) True 
 B)False

Question 12

A corporate stock is never redeemed by its issuer.

Accepted Answer

A) True 
 B)False

Question 13

A mutual fund is a pooling arrangement.

Accepted Answer

A) True 
 B)False

Question 14

Which one of the items below is not an investment advisory service?

Accepted Answer

A) Moody's 
B) Barron's 
C) Value Line 
D) Standard and Poor's 
A) Moody's 
B) Barron's 
C) Value Line 
D) Standard and Poor's

Question 15

You bought a stock at $50 a share,and it has increased in price to $70 a share.You think its price will increase even more but you are also concerned that it might go back to $50,eliminating the entire gain.Given this information,you should place which kind of order?

Accepted Answer

A) Stop-loss 
B) Profit-retention 
C) Limit 
D) Deferred sales 
A) Stop-loss 
B) Profit-retention 
C) Limit 
D) Deferred sales

Question 16

If you purchase a stock option,the option allows you to

Accepted Answer

A) buy stock at a stated price. 
B) buy stock at the current market price. 
C) sell stock at a stated price. 
D) sell stock at the current market price. 
A) buy stock at a stated price. 
B) buy stock at the current market price. 
C) sell stock at a stated price. 
D) sell stock at the current market price.

Question 17

The Securities Exchange Act of 1933 created the requirement for a document called a prospectus.

Accepted Answer

A) True 
 B)False

Question 18

Forbes magazine is exclusively investment-oriented.

Accepted Answer

A) True 
 B)False

Question 19

Put and call options are classified as tangible investments.

Accepted Answer

A) True 
 B)False

Question 20

Which alternative is not characteristic of an Internet broker?

Accepted Answer

A) Easy account access for placing and monitoring orders 
B) Typically offers an excellent Web site 
C) Places restrictions on the number of trades you can make 
D) Has very low commissions 
A) Easy account access for placing and monitoring orders 
B) Typically offers an excellent Web site 
C) Places restrictions on the number of trades you can make 
D) Has very low commissions

The maintenance margin requirement is greater than the initial margin requirement.

A risk seeker is someone willing to undertake risky investments,regardless of the potential return.

Which of the following acts was meant to enhance financial disclosures and make financial analysts more responsive to investors.

If you instruct your broker to buy a stock at a specific price,you have given a market order.

The over-the-counter market refers to

A round lot is

A stop order is simply a market order that is automatically triggered at a specific market price.

If you purchase a stock put,the put allows you to

Which item below is not an investment newspaper?

Commodity and financial futures contracts

SIPC insures the delivery of shares but does not insure their market value.

A corporate stock is never redeemed by its issuer.

A mutual fund is a pooling arrangement.

Which one of the items below is not an investment advisory service?

You bought a stock at $50 a share,and it has increased in price to $70 a share.You think its price will increase even more but you are also concerned that it might go back to $50,eliminating the entire gain.Given this information,you should place which kind of order?

If you purchase a stock option,the option allows you to

The Securities Exchange Act of 1933 created the requirement for a document called a prospectus.

Forbes magazine is exclusively investment-oriented.

Put and call options are classified as tangible investments.

Which alternative is not characteristic of an Internet broker?

Financial Planning: Why Its Important to You

The Time Value of Money: All Dollars Are Not Created Equal

Financial Statement and Budgets: Where Are You Now and Where Are You Going

Taxes: the Governments Share of Your Rewards

Liquidity Management: Managing Current Assets and Current Liabilities

Short-Term Credit Management: Consumer Credit

Consumer Durables: the Personal Auto

Housing: the Cost of Shelter

Investment Basics: Understanding Risk and Return

Stocks and Bonds: Your Most Common Investments

Mutual Fundsother Pooling Arrangements: Simplifying, Maybe Improving Investment Performance

Property and Liability Insurance: Protecting Your Lifestyle Assets

Health Care and Disability Insurance: Protecting Your Earning Capacity

Life Insurance and Estate Planning: Protecting Your Dependents

Retirement Planning: Planning for Your Long-Term Needs

Filters

Exam 9: Financial Markets and Instruments: Learning the Investment Environment

The maintenance margin requirement is greater than the initial margin requirement.

A risk seeker is someone willing to undertake risky investments,regardless of the potential return.

Which of the following acts was meant to enhance financial disclosures and make financial analysts more responsive to investors.

If you instruct your broker to buy a stock at a specific price,you have given a market order.

The over-the-counter market refers to

A round lot is

A stop order is simply a market order that is automatically triggered at a specific market price.

If you purchase a stock put,the put allows you to

Which item below is not an investment newspaper?

Commodity and financial futures contracts

SIPC insures the delivery of shares but does not insure their market value.

A corporate stock is never redeemed by its issuer.

A mutual fund is a pooling arrangement.

Which one of the items below is not an investment advisory service?

You bought a stock at $50 a share,and it has increased in price to $70 a share.You think its price will increase even more but you are also concerned that it might go back to $50,eliminating the entire gain.Given this information,you should place which kind of order?

If you purchase a stock option,the option allows you to

The Securities Exchange Act of 1933 created the requirement for a document called a prospectus.

Forbes magazine is exclusively investment-oriented.

Put and call options are classified as tangible investments.

Which alternative is not characteristic of an Internet broker?

Financial Planning: Why Its Important to You

The Time Value of Money: All Dollars Are Not Created Equal

Financial Statement and Budgets: Where Are You Now and Where Are You Going

Taxes: the Governments Share of Your Rewards

Liquidity Management: Managing Current Assets and Current Liabilities

Short-Term Credit Management: Consumer Credit

Consumer Durables: the Personal Auto

Housing: the Cost of Shelter

Investment Basics: Understanding Risk and Return

Stocks and Bonds: Your Most Common Investments

Mutual Fundsother Pooling Arrangements: Simplifying, Maybe Improving Investment Performance

Property and Liability Insurance: Protecting Your Lifestyle Assets

Health Care and Disability Insurance: Protecting Your Earning Capacity

Life Insurance and Estate Planning: Protecting Your Dependents

Retirement Planning: Planning for Your Long-Term Needs

Filters