Question
Please help me I need the answer asap pls thankyou Defined as the chance that an outcome or investment's actual gains will differ from an
Please help me I need the answer asap pls thankyou
Defined as the chance that an outcome or investment's actual gains will differ from an expected outcome or return.*
a. Reward
c. Loss
c. Gain
d. Risk
What is an Initial Public Offering (IPO)?*
a. When a private company stays private
b. When a private company goes public and the company chose to go public to raise money
c. both a and b
d. neither a nor b
What best describes diversification?*
a. The spreading of investments across different areas to reduce risk.
b. Putting the majority of your nest egg into one investment to maximize profits.
c. Investing equally for both retirement and college.
d. none of the above
All of the following are reasons why companies sell their stocks. Which among them does not belong to the list?*
a. to acquire assets
b. for expansion
c. for research and development
d. to acquire more debt
Which of the following best describes BONDS?*
a. A share of ownership in the company.
b. A type of investment that is only offered by depository institutions.
c. A type of debt investment that a company issues to investors for a specified amount of time.
d. A type of Certificate of Deposit with a higher than average rate of return.
A type of stocks wherein the holders are prioritized in terms of dividend distribution.*
a. preferred stocks
b. common stocks
c. both a and b
d. neither a nor b
A type of pooled funds that is issued by the investment companies.*
a. Unit Investment Trust Funds
b. Exchange Traded Funds
c. Mutual Funds
d. Variable Unit Life
A contract in which in which an individual or entity receives financial protection or reimbursement against losses from the company.*
a. Insurance
b. Real Estate
c. Commodities
d. Pooled Funds
When you purchase a stock, that means you are a part owner of the company.*
a. TRUE
b. FALSE
c. MAYBE
Inflation is ______________.*
a. The uncertainty that the return on an investment will deviate from what is expected.
b. The number of times something happens to money.
c. The projected value of an investment at the end of a specified time frame.
d. The rise in the general level of prices.
The following are different signals of an investment scam except one.*
a. Low risk, no risk, or a guarantee
b. Invitations to join exclusive investment organizations.
c. Opportunities for the "next big thing" or "once in a lifetime" deal
d. Sold by licensed/registered people
The relationship between risk and return can be stated as:*
a. Higher risk indicates lower return
b. Lower risk indicates higher return
c. Higher risk indicates higher return
d. No relationship between risk and return
Savings account provides low rate of return but provides the convenience of availability.*
a. TRUE
b. FALSE
c. MAYBE
The following are advantages of pooled funds except ________.*
a. Diversification
b. Turn-around time for redemption
c. Less management on your part
d. Low barrier to entry
A type of asset that is acquired by an investor with the intent to utilize it to generate income and eventually accumulate wealth.*
a. Loans
b. Investment
c. Savings
d. Emergency Fund
This type of investor values maximizing returns and is willing to accept substantial risk.*
a. Aggressive
b. Moderate
c. Conservative
d. none of the above
This type of investor values protecting principal over seeking appreciation and is comfortable in lower returns.*
a.Aggressive
b. Moderate
c. Conservative
d. none of the above
A type of pooled funds that is issued by the banks.*
a. Variable Unit Life
b. Unit Investment Trust Fund
c. Exchange Traded Fund
d. Mutual Fund
Investors profit from investment in stocks by:*
a. receiving dividends
b. capital gains
c..both a and b
d. neither a nor b
You can buy shares of stocks directly from the issuing company.*
a. TRUE
b. FALSE
c. MAYBE
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