The face amount of the bond is know as the coupon. T/F

Common stock is debt issued by the company that has to be paid back. T/F

The shareholder's declare when and how much dividends are to be paid to shareholders T/F

Dividends are paid pre-tax to shareholders T/F

Pre-emptive right allows existing stockholders to purchase additional shares before a firm offers new shares to the public. T/F

Beta measures stock volatility - which is how the stock moves in value compared to the rest of the market. T/F

Inverting a P/E ratio of a stock, give you the expected earnings yield of the stock T/F

The lower the price to rent ratio, the better chance you have of earning back your investment. T/F

Depreciation of an investment property is a tax deduction T/F

A tax -free exchange (or 1031 exchange) allows you to trade equity in one property for equity in a similar property providing some money is exchanged in the transaction T/F

Timesharing is a great investment to owning a rental property T/F

Futures are a zero-sum game T/F

It takes a minimum of 10 years to qualify for full social security benefits T/F

ERISA regulates employer sponsored plans by calling for, among items, proper plan reporting T/F

Catch up provision is for ALL employees regardless of age to add additional money to their retirement accounts each year T/F

A Income Stock is:--

a)A stock in a company that pays a cash dividend higher than that which is offered by most companies.

b)A stock in a company that offers the promise of much higher profits tomorrow and has a consistent record of growth in earnings in all economic conditions

c)A stock in a company that trades at a low price relative to its company fundamentals

d)Does not exist because on bonds provide income

A Growth Stock is:

a)A stock in a company that pays a cash dividend higher than that which is offered by most companies.

b)A stock in a company that offers the promise of much higher profits tomorrow and has a consistent record of growth in earnings in all economic conditions

c)A stock in a company that trades at a low price relative to its company fundamentals

d)Does not exist because on bonds provide income

A Value Stock is:

a)A stock in a company that pays a cash dividend higher than that which is offered by most companies.

b)A stock in a company that trades at a low price relative to its company fundamentals

c)A stock in a company that trades at a high price relative to its company fundamentals

d)Does not exist because on bonds provide income

ESO plan is a gift from the employer to the employee. It allows the employee to exercise stock options. It is not the same as a:

a)Discount stock purchase plan

b)A 401k plan

c)A pension plan

d)It is not the same as all of the above

In order to trade stocks, you need to open a brokerage account. Which of the following is not a place to open a brokerage account

a)eTrade

b)Fidelity

c)ShareBuilder

d)Morningstar

Some costs involved in buying and selling a stock or bond and having an account at a brokerage are:

a)Commission

b)Per share fees

c)Annual account maintenance fee

d)All are possible costs involved in having a brokerage account

The margin rate set by the Federal Reserve is now:

a)50% of the value or equity in an investment that is not borrowed

b)25% of the value or equity in an investment that is not borrowed

c)75% of the value or equity in an investment that is not borrowed

d)100% of the value or equity in an investment that is not borrowed

Bond prices are most influenced by which of the following

a)Interest rate risk

b)Coupon rate risk

d)Stock market risk

c)Local Government

All are advantages of investing in Mutual Funds except

a)Diversification

b)Low transaction costs

c)Affordability

d)Better guaranteed returns then individual stocks or bonds

The type of mutual fund that buys back shares and creates more shares as more money is invested is called a(n)

a)Closed end fund

b)Open end fund

c)EFT

d)Unlimited fund

The Net Asset Value is

a)The price that investors bid the per share price to

b)Per share value of a mutual fund ( takes all the investments in the fund, calculates the closing price and divides by the number of outstanding shares)

c)None of the above

d)Answer 1 and 2

In order to have your mutual fund bypass probate proceedings, you should have at least one

a)Executor

b)Beneficiary

c)Living Parent

d)Nothing is needed. All Mutual Funds pass through without probate

Which is not a type of income fund

a)Money Market

b)Bond

c)Income

d)Growth

A 75 year old man insists on buying a mutual fund. What would be the best fund for him if he needs income, but can take some risks?

a)Money Market

b)Aggressive growth

c)Bond fund

d)Small Cap Fund

An example of a growth objective mutual fund is

a)Bond Fund

b)Value Fund

c)Money Market fund

d)US Government bond fund

Funds that levy a sales charge for purchase are called a

a)No - load fund

b)Load fund

c)Money market fund

d)International fee fund

All are types of load mutual fund shares except

a)A shares

b)B shares

c)C shares

d)XX Shares