Chapters 11-15 Test Review

Chapters 11-15 Test Review - Chapters 11-15 Review 1 2 3 4...

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Chapters 11-15 Review 1. What is the main objective of an index fund? 2. During a bull market, what typically happens to stock prices? 3. What is the most common reason given for investing? 4. What are mutual funds? 5. What is a stop loss order? 6. What is a prospectus? 7. How many stocks is the Dow Jones Industrial Average based on? 8. What is the NASDAQ? 9. What agency of the federal government regulates the securities market? 10. What is meant by a margin purchase or buying on the margin? 11. What is the difference between an odd lot and a round lot? 12. What is one of the best print sources of today’s market activity? 13. What is the most widely followed stock average? 14. What is “pump and dump”? 15. What is a collection of investments called? 16. What is a major advantage of diversification? 17. How would you describe a day trader? 18. What is a limit order? 19. What does market risk result from? 20. What two types of returns do you expect from your investments? 21. How is risk and return related? Inversely, directly, or not at all? 22. If you own 100 shares of stock and the company declares a 6% stock dividend, how many share of stock do you now own? 23. What are blue-chip stocks? 24. What kind of stock is purchased as a gamble rather than because it has a proven history of good performance? 25. What is an easy method to invest in foreign stock? 26. When evaluating a stock as a possible investment, what factors should you consider? 27.
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This note was uploaded on 03/17/2009 for the course AF 3152 taught by Professor Peggy during the Spring '09 term at Hong Kong Polytechnic University.

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Chapters 11-15 Test Review - Chapters 11-15 Review 1 2 3 4...

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