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Finance Final Exam
Terms in this set (23)
Which of the following refers to stock that is owned by a relatively small number of people or family members?
Privately held stock
What type of risk does diversification eliminate?
Which of the following refers to organized markets where buyers and sellers conduct stock transactions?
Which of the following refers to the amount of interest that the bond issuer will pay the bondholder?
Which of the following refers to the highest price a buyer will pay to purchase a specified number of stocks at a specific time?
Which of the following refers to a management strategy category used by mutual fund managers?
Both active management and passive management
Bonds are considered
debt owed by a company
Which of the following, by definition, does not charge an upfront fee that saves the investor's money?
A no load fund
Which of the following represents contractual loans to corporations and governments?
Which of the following refers to the contractual interest rate that the bond issuer has agreed to pay the bondholder?
Which of the following refers to an unmanaged grouping of stocks that has been identified as representative of some aspect of the economy or stock or bond market?
How often are dividends typically paid?
Every 3 months (Quarterly)
What should you do if the severity of risk is high and the frequency of the risk event occurring is low?
How does risk affect insurance premiums?
As risk increases, premiums increase
Which of the following provides advice designed to help you fix past financial problems?
How is the money taxed that is withdrawn from a traditional IRA during your retirement?
It is taxed as ordinary income
Which of the following provides specialized advice on tax and IRS questions and prepares tax returns?
Which of the following is a benefit of an individual retirement account (IRA)?
All of these answer choices are correct.
Which of the following is an advantage of bonds?
All of these answer choices are correct
Which of the following refers to when an investor is looking for underpriced stocks or bargains?
How many mutual funds are in the United States?
More than 5,000
Which of the following refers to the cost of the insurance?
Which of the following refers to the amount that you must pay on a claim before insurance comes into play?
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