Question 1

The over-the-counter market functions through

Accepted Answer

A) NASDAQ. 
B) an organized exchange. 
C) the tangible goods market. 
D) government auctions. 
A) NASDAQ. 
B) an organized exchange. 
C) the tangible goods market. 
D) government auctions.

Question 2

Pooling arrangements would not include

Accepted Answer

A) mutual funds. 
B) investment trusts. 
C) warrants and rights. 
D) limited partnerships. 
A) mutual funds. 
B) investment trusts. 
C) warrants and rights. 
D) limited partnerships.

Question 3

Ten shares of a stock represents a round lot.

Accepted Answer

A) True 
 B)False

Question 4

A brokerage cash account allows you to borrow cash to buy securities.

Accepted Answer

A) True 
 B)False

Question 5

Blue sky laws refer to State legislation designed to protect investors.

Accepted Answer

A) True 
 B)False

Question 6

An organized exchange refers to

Accepted Answer

A) a physical place where securities transactions are made. 
B) a swap of common stock for bonds arranged by a broker. 
C) a group of investors investing in limited partnerships. 
D) criminal influences in the securities markets. 
A) a physical place where securities transactions are made. 
B) a swap of common stock for bonds arranged by a broker. 
C) a group of investors investing in limited partnerships. 
D) criminal influences in the securities markets.

Question 7

A short position refers to

Accepted Answer

A) inadequate margin in a margin account. 
B) securities you have sold but do not own. 
C) an order to sell stock at a price below its current market price. 
D) securities you purchased but have not yet taken delivery of the shares. 
A) inadequate margin in a margin account. 
B) securities you have sold but do not own. 
C) an order to sell stock at a price below its current market price. 
D) securities you purchased but have not yet taken delivery of the shares.

Question 8

The Securities Investor Protection Act of 1970

Accepted Answer

A) protects investors against all investment losses up to $500,000. 
B) guarantees delivery of shares (up to $500,000)and cash (up to $100,000)held by a bankrupt broker. 
C) is offered only by full-service brokers. 
D) established binding arbitration as the method of resolving broker-related disputes. 
A) protects investors against all investment losses up to $500,000. 
B) guarantees delivery of shares (up to $500,000)and cash (up to $100,000)held by a bankrupt broker. 
C) is offered only by full-service brokers. 
D) established binding arbitration as the method of resolving broker-related disputes.

Question 9

Which of these investments is most likely to have the highest expected risk?

Accepted Answer

A) commodity and financial futures 
B) U.S.Treasury issues 
C) Growth stock funds 
D) Preferred stock 
A) commodity and financial futures 
B) U.S.Treasury issues 
C) Growth stock funds 
D) Preferred stock

Question 10

A future return is described most appropriately as

Accepted Answer

A) dividends or interest. 
B) a total return. 
C) a contractual promise to pay. 
D) price appreciation. 
A) dividends or interest. 
B) a total return. 
C) a contractual promise to pay. 
D) price appreciation.

Question 11

Disputes between clients and brokers are typically resolved through a binding arbitration process.

Accepted Answer

A) True 
 B)False

Question 12

NASDAQ is

Accepted Answer

A) an electronic trading system in the over-the-counter market. 
B) a post on the NYSE where certain stocks trade. 
C) the trading symbol for a certain stock. 
D) a regulatory branch of the SEC. 
A) an electronic trading system in the over-the-counter market. 
B) a post on the NYSE where certain stocks trade. 
C) the trading symbol for a certain stock. 
D) a regulatory branch of the SEC.

Question 13

A company's annual financial report is prepared by the SEC.

Accepted Answer

A) True 
 B)False

Question 14

An investments total return consists of its current return plus its future return.

Accepted Answer

A) True 
 B)False

Question 15

The Sarbanes-Oxley Act intends to enhance corporate responsibility and financial disclosures.

Accepted Answer

A) True 
 B)False

Question 16

The total return from a common stock,such as IBM,consists of interest and dividends.

Accepted Answer

A) True 
 B)False

Question 17

With a cash account you must pay for the stock within three days of purchase.

Accepted Answer

A) True 
 B)False

The over-the-counter market functions through

Pooling arrangements would not include

Ten shares of a stock represents a round lot.

A brokerage cash account allows you to borrow cash to buy securities.

Blue sky laws refer to State legislation designed to protect investors.

An organized exchange refers to

A short position refers to

The Securities Investor Protection Act of 1970

Which of these investments is most likely to have the highest expected risk?

A future return is described most appropriately as

Disputes between clients and brokers are typically resolved through a binding arbitration process.

NASDAQ is

A company's annual financial report is prepared by the SEC.

An investments total return consists of its current return plus its future return.

The Sarbanes-Oxley Act intends to enhance corporate responsibility and financial disclosures.

The total return from a common stock,such as IBM,consists of interest and dividends.

With a cash account you must pay for the stock within three days of purchase.

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

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

The over-the-counter market functions through

Pooling arrangements would not include

Ten shares of a stock represents a round lot.

A brokerage cash account allows you to borrow cash to buy securities.

Blue sky laws refer to State legislation designed to protect investors.

An organized exchange refers to

A short position refers to

The Securities Investor Protection Act of 1970

Which of these investments is most likely to have the highest expected risk?

A future return is described most appropriately as

Disputes between clients and brokers are typically resolved through a binding arbitration process.

NASDAQ is

A company's annual financial report is prepared by the SEC.

An investments total return consists of its current return plus its future return.

The Sarbanes-Oxley Act intends to enhance corporate responsibility and financial disclosures.

The total return from a common stock,such as IBM,consists of interest and dividends.

With a cash account you must pay for the stock within three days of purchase.

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