Personal Finance Ch.8-12
In the year 2005, an ounce of gold was worth about _____
$425
helps pay for marketing and advertising a mutual fund
12b-1 fee
To reach maturity, Treasury bills take between
4 to 52 weeks
Which Standard and Poor rating designates the riskiest investment?
BBB
Which is not a speculative investment?
Bonds
What is the formula for calculating the total return on stock?
Current return + capital gain
Science and technology is an example of an index fund
False
Stocks issued by Home Depot are considered cyclical stocks
False
backed by the full faith and credit of the government that issued it
General obligation bond
Which kind of investment offers the least diversification?
Land purchases
a mutual fund in which you pay commission every time you buy or sell shares
Load fund
Most over-the-counter stock is traded through
NASDAQ
The purpose of the Dow Industrial Average is to _____
Provide statistical averages
A stop order requests that a stockholder ______?
Sell a stock for a specific amount
Index funds may have lower management fees.
True
Of the following investments, the one with the most predictable income is
U.S savings bond
An apartment building is considered
a commercial property
Corporate bond
a company's written pledge to repay a specified amount of money along with interest
Diversification is a key reason for buying what?
a mutual fund
A participation feature provides preferred stockholders with ______
a share in the earnings that remain after required and stated dividends are paid
An advantage of using the internet for adding to a collection is
access to sellers from around the world
The investment that offers the highest rate of interest is _____
an EE savings bond
Dividend
distributions of money, stock, or other property that a corporation sometimes pays to a stockholder
A diamond will get the same rating each time its graded
false
REITS sell real estate for quick profits
false
allows investors to adjust their investments conveinently to suit their changing needs or to maximize profits over time
family of funds
preferred stock
gives the owner the advantage of receiving cash dividends before common stockholders receive any
What is the largest financial asset for most Americans
home ownership
the earnings a mutual fund pays to shareholders
income dividends
a zero coupon bond differs from other bonds because
it provides no interest payments
Only a fixed number of shares are issued for
load fund
Preferred stock offers investors all the following advantages except
more potential growth than common stock
Precious gems are rated for all the following characteristics except
origin
Factors that affect financial markets are _____
political and social conditions
The largest financial advisers are motivated by the ____
securities and exchange Commission
A marketplace where brokers meet to buy and sell stock is called
securities exchange
a corporation gets its equity from its
stockholders
Participation certificates are issued by
the U.S treasury department
A typical corporate bond states all the following facts about the bond EXCEPT
the amount of interest paid
The value of real estate investment may decrease if
the economy declines
A speculative investment is one that might earn a large profit in a short period of time
true
If you invest in an equity REIT, your money will be invested properly
true
the rate of return earned by an investor who holds a bond for a certain amount of time
yield
