stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Investing #2 Flashcards | StudBud
Explore
/
Investing #2
Investing #2
36 terms
·
StudBud Administration
·
144 plays
Investment review #2
Flashcards
36 cards
F
Practice quiz
P
Host live
L
Questions
36
Answers
1
A professional dealer in securities.
Broker of Stock
Pawn Broker
Bond Broker
Stockbroker
2
Pays fixed dividends when a company decides to pay its shareholders.
Preferred Stock
Trump Tower
Common Stock
Bond
3
Savings goals are not based on your values or lifestyle.
False
True
4
Investing in junk bonds can be very risky.
True
False
5
Gary buys 10 shares of stock..$10 each and sells all stock at $15 per share...ROR ??
30%
20%
40%
50%
6
The percentage by which a person’s savings grows in a single year.
Interest Rate
Yield
Interest
7
There are more corporations listed on stock exchanges than the OTC markets
False
True
8
The money made from bonds is called interest.
False
True
9
Savings accounts in which a fixed amount of money is held for a certain period of time.
CD
Yield
Passbook Account
Bond account
10
Corporate profits paid to shareholders.
Finance Charges
Profits
Dividends
Interest
11
Preferred stockholders are paid before the common stockholders.
True
False
12
No penalty charges if all your money is withdrawn from a money market savings account.
True
False
13
The date on which a person may withdraw his/her money from a CD without incurring a penalty.
May 31 of current year
Maturity Date
Ending Date
Closing Date
14
When purchasing a bond, a person becomes part owner of the corporation.
True
False
15
The FSLIC generally insures commercial banks.
False
True
16
Gary buys 10 shares of stock..$10 each and sells all stock at $15 per share;
$100 capital gain
$50 capital gain
$20 capital gain
$5 capital gain
17
A loan to a corporation that must be paid back on a specific date.
Common Stock
Preferred Stock
Twizzler's
Bond
18
A market of falling prices.
Beaver Market
Bear Market
Bunny Market
Bull Market
19
Important documents should be stored in a safety deposit box at a bank.
True
False
20
Money used by an investment company to buy securities from several different companies
Money Market Fund
Mutual Fund
Money Market Savings account
Securities
21
A stock is:
“a” and “c”
guaranteed to return at least 2% per year or more
Ownership in a certain company
A riskier investment than putting money in a savings acct
22
What is one reason that corporations sell stock?
To diversify the investments they already own
To decrease sources of revenue in order to decrease expense
To increase sources of revenue in order to expand
To decrease the risks involved with their particular company
23
It is a good idea to put money into a CD when interest rates on savings accounts are falling.
False
True
24
The FDIC insures credit unions.
False
True
25
Savings accounts are generally insured up to $100,000.
True
False
26
401(K) plans have these characteristics:
A. Are tax deferred
C. Contributions are taken directly out of your paycheck
D. Both “a” and “c”
B. You can withdraw funds at any age without penalty
27
When investing in stock, all you can lose is what you invested.
False
True
28
The amount realized by selling stocks/bonds at a price higher than were purchased.
Capital Loss
Capital Gane
Capital attrition
Capital Gain
29
Passbook accounts and CD's both have high liquidity.
True
False
30
Commercial banks offer more services than most other financial institutions.
True
False
31
Holders of perferred stock have the right to vote for the
OFFICERS
of a corporation.
False
True
32
When a corporation goes bankrupt, the PERSONAL assets of owners can be taken away.
True
False
33
As a general rule, the lower the liquidity, the higher the interest rate.
False
True
34
The ease with which savings can be changed to cash.
Capital Gain
Yield
Liquidity
Passbook Account
35
A market of rising prices.
Bear Market
Bull Market
Bunny Market
Beaver Market
36
The most common form of corporate ownership.
Common Stock
Bonds
Trump Tower
Preferred Stock
