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Q 1/50
Score 0
Using a brokerage firm, a qualified investor buys 1000 shares of a common stock at $50 a share on 50% margin. This means that the…
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Brokerage firm is lending the investor 50% of the money.
Investor is buying 2000 shares
Investor will pay only $5000 for the shares
Brokerage firm will own 50% of the 1000 shares of the stock that were purchased.
Q 2/50
Score 0
Before the Kiss Corporation can issue stocks or bonds, it must register the issue with:
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The World Bank
The Securities & Exchange Commission (SEC)
Its Board of Directors
The Federal Reserve
50 questions
Q.
Using a brokerage firm, a qualified investor buys 1000 shares of a common stock at $50 a share on 50% margin. This means that the…
1
30 sec
Q.
Before the Kiss Corporation can issue stocks or bonds, it must register the issue with:
2
30 sec
Q.
Buying a treasury bill (T-bill) is best for investors who are looking for
3
30 sec
Q.
As an investment, a person decides to buy a small house that has three rental apartments. The profits from this investment may be lower than expected if the…
4
30 sec
Q.
A pharmacy is to drugs as the American Stock Exchange is to…
5
30 sec
Q.
What is the largest equities market in the world?
6
30 sec
Q.
The interest earned on a United States Series EE Savings Bonds is
7
30 sec
Q.
A person owns a stock that pays $2.00 a share dividend. If the person chooses to reinvest that dividend, this means that the $2.00 will go towards buying…
8
30 sec
Q.
An investor bought 40 shares of ABC corporation’s stock at $80 a share. Two weeks later the investor receives notice that the corporation has approved a 2-for-1 stock split. Based on this information, the investor would own at the moment of the split…
9
30 sec
Q.
Chris bought stock for $4,000 and one year later he sold it for $5,000. His sale resulted in a :
10
30 sec
Q.
Matthew and Alicia just had a baby. They received money as baby gifts and want to put it away for the baby’s college tuition. Which of the following has the lowest potential growth rate over the next 18 years?
11
30 sec
Q.
When John bought a Microsoft bond, he was:
12
30 sec
Q.
The phrase “don’t put all your eggs in one basket” describes the following investment strategy?
13
30 sec
Q.
Which of the following investment products is guaranteed by the federal government?
14
30 sec
Q.
When an investment company raises money from investors and invests the money in stocks, bonds, or other securities, the investment instrument is called a:
15
30 sec
Q.
When a corporation or government agency borrows money from an investor and pays interest and principal to that same investor, it is a:
16
30 sec
Q.
Municipal bonds are:
17
30 sec
Q.
In comparing the difference in the rate of return between a safe and secure investment and a speculative investment, the investor should be aware that the return on a
18
30 sec
Q.
The price of a security may be affected by
19
30 sec
Q.
David bought stock for $4,000 and one year later he sold it for $1,000. The sale resulted in a:
20
30 sec
Q.
A Dante Oil Corporation tanker collided with another ship causing a major oil spill that will destroy the environment in the area for years and will cost billions to clean up. The price of Dante is likely to…
21
30 sec
Q.
Jane owns common stock, a corporate bond, shares in two mutual funds, and a US Treasury Note. All of these things together are called her:
22
30 sec
Q.
Why does a corporation issue bonds?
23
30 sec
Q.
An investor buys 100 shares of a common stock @ $36.00 per share. The stock is now selling @ $38.00 per share. When deciding whether to hold or sell the stock, which factor is important for the investor to consider?
24
30 sec
Q.
A blue-chip stock can be described as:
25
30 sec
Q.
A government report indicated that the use of Pax’s aspirin-free painkiller resulted in 100 cases of stomach poisoning. A large number of Pax’s stockholders are likely to:
26
30 sec
Q.
Sarah has invested in corporate bonds which are:
27
30 sec
Q.
Which of the following is your right as a shareholder of common stock?
28
30 sec
Q.
Investors select “blue chip” stocks because they:
29
30 sec
Q.
Carmen sold her stock in ABC company for a higher price per share than she bought it for. She realized a:
30
30 sec
Q.
Shares of stock are also known as:
31
30 sec
Q.
Jennie owns Disney shares and cannot attend the annual stockholders meeting. She can:
32
30 sec
Q.
The process of setting aside money and putting it to work by having it earn interest or dividends or gain value in the equities market with the idea of having additional funds to use in the future is described as:
33
30 sec
Q.
Erika and Mark received an inheritance of $100,000. They plan to invest their inheritance money to buy a house in six years. Which of the following carries the greatest risk?
34
30 sec
Q.
A publicly held corporation announces it is planning to merge with another publicly held corporation. Based on this information, an investor should be aware that the price of the stock:
35
30 sec
Q.
What is the chief reason corporations issue stock?
36
30 sec
Q.
If a business wants to raise capital (money) but NOT create debt, it can…
37
30 sec
Q.
Which of the following best describes diversification?
38
30 sec
Q.
George received a dividend from the company in which he is a stockholder. A dividend is:
39
30 sec
Q.
The federal agency that regulates the securities industry is the:
40
30 sec
Q.
Robyn is an investor. Which financial product makes her a shareholder in a corporation?
41
30 sec
Q.
Michael and Claudia have a seven year old son. They won $50,000 on a TV game show and want to put it away for their son’s education. Which of the following has the highest potential for growth and the highest risk?
42
30 sec
Q.
The price of a corporation’s stock will generally increase when there is…
43
30 sec
Q.
One of the benefits of holding an investment for over a year rather than selling it in less than a year is that the…
44
30 sec
Q.
A person complains about how expensive it is to be a cigarette smoker. One of the reasons cigarettes are so expensive it that
45
30 sec
Q.
Goal:
46
30 sec
Q.
You want to gain control over your income and spending so that you will be able to save money. Which step will help you the most?
47
30 sec
Q.
Julain is a single and recent college graduate who just got his first full-time job. Which of the following should be his first financial goal?
48
30 sec
Q.
An example of a fixed expense is:
49
30 sec
Q.
In terms of retirement income, a person should realize that the amount of money the person will receive from the Social Security System’s benefits depends on the person’s: