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