Securities Markets and Investment Companies

nothing

After the bankruptcy of 2008, investors in Lehman Brothers received _.

False

An investment advisor most likely first worked as a commodities and futures broker.

promissory notes, issued by a bank

Certificates of deposit are __.

a wealthy person who attempts to add to her wealth dishonestly, a 19th-century American capitalist who became wealthy dishonestly

Descriptions of a robber baron include __.

True

Financial products may include those offered by banks, insurance companies, and brokerage or securities firms.

shares were of a company that is not actively traded

Mia buys 1,000 shares of ABC Corporation as an over-the-counter sale. This means that the __________.

are taxed at ordinary income tax rates, come from investments bought and sold in less than 12 months

Short-term gains __.

True

The Securities Investor Protection Corporation is a government agency charged with administering the liquidation of failed securities firms to protect the interests of investors as much as possible.

safety, liquidity

The main reason investors choose money market products are __.

standardized

The process used by the SEC to approve securities products can be said to be _.

certificates of deposit

promissory note with restricted withdrawals

banker's acceptance notes

short-term debt instruments similar to Treasury bills

corporate bonds

short-term investment in publicly traded companies that carries some risk

commercial paper

short-term money market instrument used in business

municipal bonds

tax-exempt money market fund which is a type of government bond