Which of the following is an example of a non-qualified institutional buyer (NQIB)?

a) Individual investor

b) Retail investor

c) Pension fund

d) Hedge fund

What does the term "portfolio diversification" refer to in the context of investing?

a) Concentrating investments in a single asset class or sector

b) Spreading investments across different asset classes or sectors to reduce risk

c) The process of buying and selling securities frequently to generate short-term profits

d) The risk associated with a particular investment

What is the purpose of a stop-limit order in securities trading?

a) Lock in profits by automatically selling a security if it increases in price

b) Limit potential losses by automatically selling a security if it decreases in price

c) Guarantee a profit by automatically selling a security if it reaches a specified price

d) Guarantee a profit by automatically buying a security if it reaches a specified price

Which of the following is a measure of a company's profitability?

a) Price-to-earnings (P/E) ratio

b) Return on investment (ROI)

c) Current ratio

d) Debt-to-equity ratio

What is the primary purpose of the Securities Exchange Act of 1934?

a) Regulate the trading of securities on stock exchanges

b) Promote fair and efficient markets

c) Provide investor protection through disclosure requirements

d) Establish the Securities and Exchange Commission (SEC)