CH 3: Investment Securities/Opportunities

What is the primary purpose of the Johannesburg Securities Exchange (JSE)?

Which of the following is NOT a type of share traded on the JSE?

What is the primary characteristic of a unit trust?

Which of the following is NOT considered an investment opportunity mentioned in the text?

What is the primary difference between business investments and unit trusts?

Which type of share offers the highest level of ownership and control in a company?

What is the primary purpose of investing in unit trusts?

Which investment opportunity mentioned in the text involves the highest level of risk?

What is the primary benefit of investing in preference shares?

Which investment opportunity mentioned in the text is most suitable for individual investors with limited capital?

What type of investment is suitable for individuals looking to preserve capital while earning interest?

Which type of interest involves the interest on interest, leading to exponentially growing returns?

What fundamental concept is crucial for making investment decisions according to the text?

Which investment option involves investing in startups or expanding businesses with high risk and potential returns?

What is a characteristic of endowments and retirement annuities according to the text?

Which factor plays a significant role in determining the viability and attractiveness of investment opportunities?

What is a potential disadvantage of investing in managed portfolios according to the text?

What does the relationship between risk and return suggest in investment decisions?

What is the purpose of understanding one's risk tolerance in investing?

What type of account is a low-risk savings option with slightly higher returns than a regular savings account but less liquidity?

Which of the following statements about compound interest is true?

What is the primary advantage of investing in government retail bonds?

Which of the following is NOT a factor that should inform investment decisions according to the text?

What is the primary disadvantage of investing in venture capital?

Which investment opportunity mentioned in the text is considered a low-risk savings option with slightly higher returns than a regular savings account?

What is the primary purpose of understanding one's risk tolerance in investing?

Which of the following investment opportunities is considered a long-term, low-risk option aimed at building wealth over time?

What is the primary advantage of investing in managed portfolios according to the text?

Which of the following statements about the relationship between risk and return is true?

Which of the following statements about debentures is true?

What distinguishes unit trusts from direct business investments?

Which type of share provides its holders with priority in receiving dividends and assets during liquidation?

What is the main function of the Johannesburg Securities Exchange (JSE) as mentioned in the text?

What distinguishes founders' shares from ordinary shares?

Which investment opportunity mentioned in the text involves spreading risk across various securities managed by professionals?

What is the primary purpose of investing in mutual funds according to the text?

Which type of investment opportunity caters well to individual investors with limited capital?

What distinguishes founders' shares from preference shares?

What differentiates unit trusts from mutual funds?

Which characteristic applies specifically to investing in ordinary shares?

What is a key feature of investing in government retail bonds?

Which type of investment carries the highest level of uncertainty but also the potential for significant returns?

What is a common characteristic of bonus shares?

How do managed portfolios differ from direct investments?

What is a distinguishing feature of endowments and retirement annuities?

What role does the Johannesburg Securities Exchange (JSE) primarily play in the financial market?

What is a significant difference between preference shares and unit trusts?

What factor plays a crucial role in determining the overall viability and attractiveness of investment opportunities?

Which investment type is characterized by fixed-interest securities issued by companies?

What distinguishes 32-Day Notice Accounts from regular savings accounts?

Which investment opportunity provides a way to invest collectively but is susceptible to risks like mismanagement or fraud?

What is the primary advantage of investing in endowments and retirement annuities?

Which type of interest is calculated only on the principal amount and does not consider interest on interest?

What is the primary role of liquidity in investment decisions?

Which investment opportunity provides the highest level of ownership and control in a business, but also carries the greatest risk?

What is the primary distinction between ordinary shares and preference shares?

Which of the following statements accurately describes the relationship between risk and return in investment opportunities?

Which investment opportunity involves pooling funds from multiple investors into a single portfolio managed by professionals, allowing for diversification and risk-sharing?

What is the primary advantage of investing in endowments and retirement annuities, as mentioned in the text?

Which investment opportunity involves lending money to a company or government entity in exchange for interest payments and the eventual return of the principal amount?

What is the primary purpose of understanding one's risk tolerance when considering investment opportunities?

Which investment opportunity combines relatively low risk with the potential for substantial returns?

What is the primary advantage of investing in managed portfolios over direct investments?

Which investment factor is NOT mentioned in the text as crucial for making informed investment decisions?

What characteristic distinguishes compound interest from simple interest?

Which investment opportunity mentioned in the text is considered a low-risk savings option with slightly higher returns than a regular savings account?

What is the primary purpose of understanding one's risk tolerance in investing?

Which investment opportunity mentioned in the text is susceptible to the risks of mismanagement or fraud?

What is the primary advantage of investing in government retail bonds?