21 questions
True or False: When choosing a broker or financial planner, you should always choose someone who you are comfortable with.
True
False
Some periodicals as well as information online can be a great source for financial information. One of these sources is:
Time Magazine
US Magazine
Business Week
None of the above
The Securities and Exchange Commission (SEC) requires all corporations that sell stock to the public to prepare a:
Statement of Earnings
Annual Report
Quarterly Report
Monthly Statement of Earnings
An Annual Report is a company's report to shareholders about the financial position of the company which provides:
It's profits or losses
Philanthropic information about the company
Information about the CEO
None of the above
A legal document issued by an investment company that provided details about the securities it offers for sale is called:
Annual Report
Quarterly Report
Prospectus
All of the above
A qualifies stockbroker who provides advise about what securities to buy and sell considering the client's risk tolerance and investment goals is called:
Discount Broker
Full Service Broker
Broker
None of the above
A qualifies stockbroker who buys and sells securities at a reduced commission and provides limited services to clients is called:
Discount Broker
Full Service Broker
Broker
None of the above
An advisor who helps people make investment decisions to meet stated goals is called:
Certified Financial Planner (CFP)
Financial Stock Advisor
Sales Advisor
None of the above
The financial market in which new issues of securities are sold is called:
Primary Market
Secondary Market
NYSE
Dow Jones
The financial market in which previously issued securities are bought and sold is called:
Primary Market
Secondary Market
NYSE
Dow Jones
A marketplace where brokers buy and sell securities for their clients is called:
Primary Market
Securities Exchanges
Secondary Market
None of the above
The largest organized exchange in the United States is called:
New York Stock Exchange
Dow Jones
Wall Street
None of the above
When securities are bought and sold through brokers, but not through a stock exchange the transaction is called:
Sold Seperately
Over the Counter
Broker Induced
None of the above
When investors forgo a cash dividend to receive more shares of stock in a company this is called:
Investing
Reverse Dividend
Reinvesting
Dividend
This occurs when a company issues more stock to current shareholder's in some proportion to the stock they already own:
Stock Dividend
Reinvesting
Stock Split
Dividend
By setting aside cash for investing, you will be ready to buy and sell stock or other securities when you feel it is a good time to do so.
Using credit online
Using cash
Using existing stock
None of the above
Using the Rule of 72, a person who invests $1500 at an interest rate of 8% annually should expect this length of time in order for their money to double:
7 years
8 years
9 years
10 years
A person buys $10,500 worth of stocks and sell the shares two years later for $12,200. What is their Rate of Return?
15%
16%
19%
20%
A person saved $500 in a Certificate of Deposit for six months. At the end of the six months, they had $550. What is their Rate of Return?
5%
10%
15%
20%
Using the Rule of 72, solve this problem: A person who invests $2200 at an interest rate of 1.5% annually should expect this length of time in order for their money to double:
4 years
8 years
12 years
48 years
If you do not use enough cash to make the type of purchase you want, there are still ways you can leverage it. In other words, you can borrow money to complete the trade.
Using cash
Using credit
Using existing stock
None of the above