QUESTION After 36 years with the same engineering firm, Leonard retired last month. After making sure his investments grew to a substantial nest egg, now he needs to shift strategies so his savings provide living expenses. What type of fund should Leonard shift his retirement money into? A) money market B) balanced C) index D) […]
QUESTION Alison has just opened an account with ClickVest, an online discount broker. What is ClickVest best suited to provide Alison? A) optimized returns on discretionary orders B) customized tax planning advice C) low fees on three-day limit orders D) fast execution of market orders E) reduced commission fees on common stock ANSWER Answer: […]
QUESTION Which type of mutual fund reflects more than financial considerations in its portfolio of investments? A) balanced B) socially responsible C) global D) index E) growth ANSWER Answer: B Explanation: B) Socially responsible funds invest in companies that meet certain standards, such as ethical behavior and environmental protection. Like all mutual funds, it […]
QUESTION On September 16, Marya places a limit order to buy 3,000 shares of Dairy Deelite Inc. stock with a threshold price of $9.00. Which of the following describes the trade made by her broker? A) 3,000 shares of Dairy Deelite were sold at $9.45 on September 16. B) 3,000 shares of Dairy Deelite were […]
QUESTION A biotech company is planning to build a new manufacturing plant. The board is weighing the advantages and disadvantages of going public and issuing stock to raise funds. Which of the following does NOT describe a factor of this stock issue? A) The company avoids incurring additional debt by issuing stock. B) The company […]
QUESTION What is the world’s largest stock exchange? A) NASDAQ B) American Stock Exchange C) over-the-counter market D) New York Stock Exchange E) Boston Stock Exchange ANSWER Answer: D Explanation: D) The NYSE was established in 1792 and accounts for about 45 percent of all stock trading done in the United States.
QUESTION Which of the following is NOT true of a stock exchange? A) It can execute stock trades via brokers on a trading floor. B) It can sell stocks issued directly from corporations. C) It can link buyers and sellers of stock directly. D) It can focus on trading stock of particular types of companies. […]
QUESTION Gloria likes to be able to vote on major issues that are being considered by companies she invests in. What type of securities should Gloria buy? A) secured bonds B) preferred stock C) callable bonds D) common stock E) convertible bonds ANSWER Answer: D Explanation: D) With common stock, stockholders are able to […]
QUESTION Which of the following companies would NOT be traded on the NASDAQ? A) Dell B) Apple C) Volkswagen D) Google E) Microsoft ANSWER Answer: C Explanation: C) The NASDAQ exchange lists about 2,250 companies with an emphasis on high-tech firms. Volkswagen is a German auto manufacturer.
QUESTION Which term does NOT belong in this list? A) NYSE B) AMEX C) ECNs D) OTC market E) the Dow ANSWER Answer: E Explanation: E) The NYSE (New York Stock Exchange), AMEX (American Stock Exchange), electronic communications networks (ECNs), and over-the-counter (OTC) market are all secondary markets for securities. The Dow Jones Industrial […]
