Investment & Portfolio Management Ch. 1

Which of the following is NOT an investment as defined in the text?

A new automobile

Which of the following are true concerning institutional investors? I. Institutional investors are professionals who manage money for other people. II. Banks, insurance companies and mutual funds are all institutional investors. III. Institutional investors are individuals who invest indirectly through financial institutions. IV. Institutional investor invest large sums of money.

I, II, and IV only

On a net basis, funds in the financial markets are generally supplied by

Individuals

Investors seeking a diversified, professionally managed portfolio of securities can purchase shares of

Mutual funds

Which of the following companies had its IPO this week?

SnapcChat

One feature that mutual funds & exchange traded funds have in common is

They invest in broadly diversified portfolios of securities.

An exchange traded fund that invests in the stocks of large corporations is an example of

indirect investment

Which of the following would be the most liquid investment?

money market mutual fund

Speculative and growth oriented investments are least appropriate for

retired investors