PF FINAN 208 Final Review (Ch 10-13)

Question 1

A stock issued by a stable corporation that generally attracts conservative investors is called a(n) ________ stock.

Accepted Answer

blue chip

Question 2

High-yield, Municipal, Long Term U.S. Government, Intermediate Corporate are examples of:

Accepted Answer

Bond Funds

Question 3

Which of the following types of stock funds invests in stock issued by companies throughout the world outside the US?

Accepted Answer

International funds

Question 4

To become one of the owners of a corp. when it initially became available to the general public, you participate in the

Accepted Answer

Initial public offering

Question 5

If you invest $100 automatically in a stock each month and not buy high and sell low it is called

Accepted Answer

dollar cost averaging technique

Question 6

This ratio uses the market price per share of the stock and the earning per share.

Accepted Answer

Price-earnings ratio

Question 7

Commission that is charged to the buyer of a mutual fund at the sell of the fund

Accepted Answer

Back-end Load

Question 8

Type of commission charged on a mutual fund that is taken out at purchase is

Accepted Answer

Front-end load

Question 9

Aggressive Growth, Mid-Cap, International are all types of:

Accepted Answer

Stock Funds

Question 10

NYSE stands for

Accepted Answer

New York Stock Exchange.

Question 11

Many mutual funds charge a commission every time shares are purchased by investors. These are called

Accepted Answer

Load funds.

Question 12

Which of the following has returned an average of almost 10% per year since 1926?

Accepted Answer

Stocks

Question 13

Establishing Investment Goals STARTS with asking:

Accepted Answer

How much $ do you need to satisfy your investment goals?

Question 14

A report of what the mutual fund consists of, fees, manager's profile, holdings, etc. is callled a

Accepted Answer

prospectus

Question 15

Which of the following types of stock funds invests in the same companies included in the S&P 500 stock index?

Accepted Answer

Index funds

Question 16

Which of the following investments typically has the most risk?

Accepted Answer

Stocks

Question 17

After you purchase an investment, you should

Accepted Answer

Continually evaluate your investment.

Question 18

A ________ allows for $5500 contribution, possible tax-deductible, interest accumulates tax free until withdrawal

Accepted Answer

Traditional IRA

Question 19

A distribution of money, stock, or other property that is paid to the stockholders of a company is called a

Accepted Answer

Dividend

Question 20

The potential return on any investment should

Accepted Answer

Be directly related to the risk the investor assumes.

Question 21

What isn't one of the 4 major sources of retirement income

Accepted Answer

Certificate of Deposit

Question 22

Brian purchased common stock in XYZWidgets.com. To be a successful investor, he should

Accepted Answer

Continue to evaluate his investment in XYZWidgets.com after the purchase.

Question 23

Which of the following types of stock funds invests in stock issued by companies with a long history of paying dividends

Accepted Answer

Income funds

Question 24

The process of spreading your assets among several different types of investments is called

Accepted Answer

Asset allocation

Question 25

Which of the following investments is the least liquid?

Accepted Answer

Real Estate

Question 26

When estimating retirement living expenses you should consider

Accepted Answer

All of these

Question 27

What provides guaranteed income for life

Accepted Answer

Annuities

Question 28

If you invest $4,000 per year over the next 40 years for retirement, which of the following is correct?

Accepted Answer

A high rate of return will give you the highest total dollar return.

Question 29

Which of the following investments typically has the largest potential growth?

Accepted Answer

Stocks

Question 30

Which of the following steps should be completed before making your first investment?

Accepted Answer

Work to balance your budget.

Question 31

What kind of order do you want to "lock in" your gain of your stock going up from 20 to 35, and selling at drop at $33

Accepted Answer

Stop-loss order.

Question 32

A ________ is an employer-sponsored retirement account and always add to it when you can

Accepted Answer

401(k) account

Question 33

Major sources of Retirement include ALL except

Accepted Answer

Gifts, Windfalls, Inheritance

Question 34

Getting the money needed to start an investing program includes all except:

Accepted Answer

Borrow small amounts of money to start investing

Question 35

Oakley wants to be part of the most basic form of ownership for a corporation. She should invest in

Accepted Answer

Common stock

PF FINAN 208 Final Review (Ch 10-13)

Questions 35

PF FINAN 208 Final Review (Ch 10-13)

Questions 35