Chapter 11 - Chapter 11 Review Questions True/False 1 2 3 4 5 6 7 8 9 10 Two prerequisites to investing are adequate insurance and liquidity Newly

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Chapter 11 Review Questions True/False 1. Two prerequisites to investing are adequate insurance and liquidity. 2. Newly issued securities are sold to the public in the secondary market. 3. An individual is more likely to use the secondary markets than the primary market. 4. The New York Stock Exchange is the largest stock exchange in the world. 5. Prices are rising in bear markets, indicating economic optimism. 6. Brokers charge a commission on security purchases as well as on security sales. 7. Buying on margin would allow you to purchase securities using borrowed funds. 8. The Standard and Poor’s Index includes 30 industrial stocks. 9. On-line trading is the only valuable investment service available through the Internet. 10. A portfolio is a collection of investment assets assembled to meet your investment objectives. Multiple Choice 1. is a short-term investment activity. a. Buying life insurance d. Speculating in common stock b. Buying bonds e. Saving c. Investing in common stock 2. The most common reason for investing is
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This note was uploaded on 08/28/2009 for the course BUS ACG2021 taught by Professor Yost during the Spring '08 term at W. Florida.

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Chapter 11 - Chapter 11 Review Questions True/False 1 2 3 4 5 6 7 8 9 10 Two prerequisites to investing are adequate insurance and liquidity Newly

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