stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
BF21 - 3.04 securities products Flashcards | StudBud
Explore
/
BF21 - 3.04 securities products
BF21 - 3.04 securities products
17 terms
·
StudBud Administration
·
45 plays
3.04 Acquire knowledge of securities products and benefits
Flashcards
17 cards
F
Practice quiz
P
Host live
L
Questions
17
Answers
1
Which is a disadvantage of investing in bonds?
offering unmatched reliability
low returns
meeting long-term goals
performing well when the economy is poor
2
mutual funds w/o limits on number of shares issued or amount of money held are::
closed-end fund.
open-end fund.
growth fund.
stock fund.
3
A company issues ___ to raise financing for ongoing operations or expanding the business
corporate bond
municipal bond
treasury bond
savings bond
4
Mutual fund's _____ mean the overall fund is only slightly affected if one stock becomes worthless
convenience
professional money management
diversification
liquidity
5
$100 worth of stock in a company is now worth $150. This is an illustration of:
dividends
a stock exchange.
capital appreciation.
a stock split.
6
Which best describes a marketable bond?
one that is paid back before maturity
one that is bought and sold in the open market
one that comes from a governing body
one that later becomes a stock at a market
7
Mutual funds that contain both stocks and bonds are known as:
index funds.
exchange-traded funds.
balanced funds.
money market funds.
8
Since John wants to know the bond’s interest rate, he needs to look at the bond’s:
coupon.
par value.
maturity.
issuer.
9
Which type of stock comes with voting rights?
small cap
preferred
common
income
10
To know how likely it is that the corporations will pay back bonds, look at the:
bond rating.
issuer.
coupon rate.
bid price.
11
The best place to go for detailed information about a mutual fund is…
mutual fund prospectus
newspaper
trade magazine
mutual fund website
12
A company has earned a profit, and now shareholders receive a cash payment. This is:
a stock split.
capital appreciation.
a stock exchange.
dividends.
13
A bond's profit or loss over a period of time at a particular amount is called the:
yield.
liquidity.
bid price.
maturity.
14
Investors can trade securities that have been issued by a corporation on a/an:
primary market.
secondary market.
stock market index.
initial public offering.
15
Which is considered a reliable bond?
puttable
government
callable
corporate
16
If you had 10 shares worth $10 each, but now have 20 shares worth $5 each, this is due to
dividends.
a stock split.
capital appreciation.
a stock exchange.
17
Which is the least important variable of a bond fund?
The amount of time you spend researching bonds in the fund
The rate at which the money in the fund increases
The maturity of the bonds in the fund
The credibility ratings of the fund