Podcast
Questions and Answers
What is the main responsibility of fund managers?
What is the main responsibility of fund managers?
- Regulating the issuance of securities
- Enforcing insider trading rules
- Disclosing financial information to the public
- Choosing which securities to buy and sell (correct)
Which type of investment competes with other investments for funds?
Which type of investment competes with other investments for funds?
- Mortgage-backed securities (correct)
- Savings accounts
- Corporate stock
- Ownership investments
What is the key characteristic of a safe investment?
What is the key characteristic of a safe investment?
- Little risk of losing money (correct)
- Quick liquidity conversion
- High yield potential
- Return on investment guarantee
What does liquidity refer to in investments?
What does liquidity refer to in investments?
Which type of investment locks up investor funds?
Which type of investment locks up investor funds?
In what way can mortgages be utilized in investment?
In what way can mortgages be utilized in investment?
What is the key characteristic that investors look at regarding investment advantages?
What is the key characteristic that investors look at regarding investment advantages?
What makes an investment liquid?
What makes an investment liquid?
Which option best defines the term 'mortgage-backed securities'?
Which option best defines the term 'mortgage-backed securities'?
Which characteristic is often less valued in safe investments?
Which characteristic is often less valued in safe investments?
Flashcards
What is the main responsibility of fund managers?
What is the main responsibility of fund managers?
Fund managers are responsible for choosing which securities to purchase and sell.
Which type of investment competes with other investments?
Which type of investment competes with other investments?
Mortgage-backed securities compete with other investments for funding.
What makes an investment safe?
What makes an investment safe?
Safe investments are characterized by minimal risk of losing money.
What does 'liquidity' mean in investments?
What does 'liquidity' mean in investments?
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What types of investments lock up investor funds?
What types of investments lock up investor funds?
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How can mortgages be used for investments?
How can mortgages be used for investments?
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What are the key investment advantages investors look at?
What are the key investment advantages investors look at?
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What makes an investment liquid?
What makes an investment liquid?
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What are 'ownership investments'?
What are 'ownership investments'?
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What are 'debt investments'?
What are 'debt investments'?
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Study Notes
Fund Manager Responsibilities
- Fund managers select which securities to buy and sell.
Investment Competition
- Mortgage-backed securities compete with other investments for funds.
Safe Investments
- A safe investment has little risk of losing money.
Liquidity in Investments
- Liquidity means investments can be quickly converted into cash.
Illiquid Investments
- Mortgage-backed securities lock up investor funds.
Mortgage Utilization in Investment
- Mortgages are pooled and securitized as mortgage-backed securities for investment.
Investment Criteria
- Safety, liquidity, and yield are key investor considerations.
Liquidity Definition
- Liquid investments are easily converted into cash.
SEC Function
- The SEC enforces financial disclosures made by companies.
Ownership Investments
- Corporate stock represents ownership in a company.
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