Investing and Financial Bonds Quiz

False (B)

death benefit, premium payment, and cash value

<p>gross</p> Signup and view all the answers

<p>Treasury Bill = Less than a year Treasury Note = 1-10 years Treasury Bond = 10-30 years Series HH savings bonds = 20 year investments</p> Signup and view all the answers

<p>Speculative Investing (D)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>SEC</p> Signup and view all the answers

<p>withdrawn</p> Signup and view all the answers

<p>Put and Take = Low-risk, liquid savings accounts Accumulation = Preparing to invest in low-risk assets Systematic Investing = Regularly funding an account with a fixed amount Strategic Investing = Actively managing investments and asset allocation</p> Signup and view all the answers

<p>$6,500 (D)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>10-K</p> Signup and view all the answers

<p>401K (D)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Degree of risk (C)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>The spread</p> Signup and view all the answers

<p>record</p> Signup and view all the answers

<p>Firm commitment = Underwriter buys securities from issuer and sells them, assuming inventory risk. Best efforts = Underwriters act as salesman and not as dealers and unsold securities are absorbed by issuer. All or None = Underwriter has authority to sell all shares or the entire underwriting is canceled if any shares remain. Standby underwriting = A company can purchase all unsold shares at a subscription price.</p> Signup and view all the answers

<p>Three days (A)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Ex-dividend date</p> Signup and view all the answers

<p>declaration</p> Signup and view all the answers

<p>(Annual Interest Payment)/(Market Price) (D)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>When stock reaches stop price</p> Signup and view all the answers

<p>double</p> Signup and view all the answers

<p>Level 3 (C)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Certificates of Deposit (CDs) (A)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Asset allocation and security analysis</p> Signup and view all the answers

<p>Derivatives</p> Signup and view all the answers

<p>Households = Supply capital Firms = Purchase capital Investment bankers = Underwrite securities Governments = Can supply and purchase capital</p> Signup and view all the answers

<p>Aligning executive compensation with shareholder interests through stock options. (A)</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>To bring together demanders and suppliers of capital.</p> Signup and view all the answers

<p>Housing</p> Signup and view all the answers

<p>Treasury Bonds (A)</p> Signup and view all the answers

<p>Income (dividends and interest yield) and capital appreciation/depreciation (C)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Place tax inefficient funds in tax-deferred accounts such as IRAs</p> Signup and view all the answers

<p>capital</p> Signup and view all the answers

<p>Total Return = The overall return on an investment, including income and capital appreciation. NAV = The value of a fund's assets less its liabilities, divided by the number of outstanding shares. Tax Loss Carryforwards = Capital losses that can be used to offset capital gains in future years. Distributions = Payments made by a mutual fund to its shareholders from income and capital gains.</p> Signup and view all the answers

<p>The NAV decreases (A)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>All of the above (D)</p> Signup and view all the answers

<p>To discourage short-term trading. (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Letter securities</p> Signup and view all the answers

<p>Underwriting spread</p> Signup and view all the answers

<p>Debenture = Unsecured bond backed by the issuer's creditworthiness. Collateral Trust Bond = Secured by a portfolio of securities held in trust. Convertible Bond = Can be exchanged for a pre-determined number of the issuing company's shares. Income Bond = Pays interest only if the issuer earns sufficient income.</p> Signup and view all the answers

<p>Dollar cost averaging (A)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Premium</p> Signup and view all the answers

<p>Reinvestment</p> Signup and view all the answers

<p>Higher coupon rate (C)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>General obligation bonds</p> Signup and view all the answers

<p>Semiannually</p> Signup and view all the answers

<p>Par Value = Amount the investor will get at maturity Yield to Maturity = Total return of a bond Present Value = Current worth of a stream of cash flows Coupon Rate = Rate paid consistently</p> Signup and view all the answers

<p>No-load funds (D)</p> Signup and view all the answers

Current commitments of money with expected future returns.

Tangible assets that provide net income and create wealth.

Assets providing a consistent income stream based on a formula.

Securities whose value is based on the performance of other assets.

A collection of diverse assets held by an investor.

Issues arising when executives do not act in shareholders' best interests.

The process of distributing financial resources among various investments.

Institutions that connect savers and borrowers to facilitate investments.

Funding provided to startups and private companies with high growth potential.

The process of pooling various types of debt to create new securities.

Short-term government securities with maturities less than one year.

Debt securities issued by local governments, free of federal tax.

Municipal bonds for financing public facilities without specific revenue sources.

Investment products made up of pooled mortgages sold by banks.

Includes death benefit, premium payments, and cash value for dependents.

The overall return of a mutual fund, including income and capital appreciation.

Income generated from dividends and interest, part of total return.

The value of a mutual fund's total assets minus liabilities, per share.

Distributions lower NAV but do not reduce actual shareholder wealth.

Taxes owed on profit from fund distributions, affecting net return.

Funds that frequently buy and sell assets, often tax inefficient.

Capital losses that can offset future capital gains for tax purposes.

Funds designed to minimize tax liabilities for investors.

Uncertainty concerning the occurrence of a loss.

Variation of actual loss from expected loss.

Price an investor is willing to sell a security.

Price an investor is willing to buy a security.

Current price of a security based on bid or ask.

Underwriter buys securities, sells, and pays issuer.

Underwriter sells on behalf, issuer absorbs unsold.

Total return if a bond is held until maturity.

Measure of a bond's volatility based on interest rates.

U.S. Treasury bonds guaranteed to double in value.

Non-marketable bonds with a variable inflation rate.

Date stock trades without the upcoming dividend.

When a sale or deal of a security is executed.

When the transaction of securities must be completed.

Settled on the same day as the trade.

Stage of investing where money is put into low-risk accounts for steady growth.

Gathering money to prepare for investing, typically starting in your 20s or 30s.

Regularly investing a fixed amount into low-risk assets over time.

Actively managing investments by adjusting proportions of stocks and bonds.

Investing in high-risk assets with extra money, often involves high rewards or losses.

Various places to obtain reliable financial data for investing decisions.

Individual can invest up to $5500 into an IRA, $6500 if over 50.

Withdrawals from an IRA are penalized if taken before age 59 and a half.

Retirement accounts offered by employers, can be qualified or unqualified.

After 5 years, withdrawals from a Roth IRA are tax-free, but contributions are taxed.

Mutual funds that charge fees called loads or sales charges.

Mutual funds that do not charge sales commissions or loads.

Investing a fixed amount regularly to reduce risk over time.

Attempting to predict market changes to maximize returns.

Ongoing fees associated with managing a mutual fund, expressed as a percentage.

Time taken to recover the true cost of a bond, reflecting sensitivity to interest changes.

Fees imposed on selling a fund before a certain period, discouraging short-term trading.

The amount paid to a bondholder at maturity, also called par value.

The interest rate paid by bond issuers to bondholders, usually annually or semiannually.

Assets used to secure loans, reducing default risk.

Bonds backed by real assets, perceived as safer investments.

Bonds not backed by specific assets, relies on issuer's creditworthiness.

Government bonds with fixed interest rates, considered safe but no collateral.