Test your basic knowledge |

CSM Financial Management

Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Initial public offerings - investment banks






2. A stock that rises quickly when economic growth is strong and falls rapidly when growth is slowing down






3. Written promise to pay with legal conditions (indenture) - face value - maturity date - interest rate=coupon rate - trustee






4. A marketable fixed interest U.S. government debt security with a maturity of more than 10 years






5. Illiquidity - declining property values - lack of diversification - long depreciation period - management problems - syndicate investment is not a tax shelter






6. An order that an investor makes through a broker or brokerage service to buy or sell an investment immediately at the best available current price






7. Fundamental analysis - technical analysis - efficient market theory






8. Company could fail - market volatility - uncertain yield - management time required - risk






9. An order to buy or sell a security when it's price surpasses a certain point






10. A marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years






11. Corporate earnings - earnings per share - price earnings rato (PE) - dividend payout - dividend yield - total return - beta - market to book ratio






12. To raise money for start up - on going activities or expansion - no repayment required - dividends are not mandatory - they lose some control of the company through voting rights






13. Balance your budget including an account for investments - pay off credit cards - start an emergency fund - have access to other cash for emergencies






14. The process of selecting investments with a higher risk in order to profit from an anticipated price movement






15. A debt security issued by a corporation and sold to investors - higher risk higher risk and government bond






16. Call feature - sinking fund - serial redemption






17. Shares in a company whose earnings are expected to grow at an above average rate relative to the market






18. A market that exists between companies and financial institutions that is used to raise equity capital for the companies






19. A type of preferred stock with a provision that stipulates that if any dividends have been omitted in the past they must be paid out to preferred stockholders before common shareholders can receive dividends






20. A short term debt obligation backed by the U.S. government with a maternity of less than one year






21. Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares after a predetermined date






22. Investing in something that could have a risk of a world wide issue






23. The risk inherent to the entire market or entire market segment unsystematic: company or industry specific risk that is inherent in each investment






24. Stocks Day trading - margin buying - selling short - option trading






25. The risk that an investments value will change due to the change due to the change in the absolute level of interest rates






26. A debt security issued by a government spending most often issued in the country's domestic currency






27. Primary residence: you hold legal title - place to live - mortage interest is tax deductible - usually an inflation hedge - beware of housing bubbles






28. An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks and bonds






29. Investing stock in a company and having the risk that it will shut down






30. A portfolio management strategy and model for investing in fixed income that involves purchasing multiple bonds - each with different maturity dates






31. An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goal






32. A lot of risk is involved






33. Securities exchanges - over the counter market






34. Hedge against inflation - safe haven during political or economic upheavals - need a storage place - can be risky-not easy to turn to cash - difficult to appraise






35. Interest rate risk - face value volatility - no hedge against inflation - principal does not appreciate - difficult to compound






36. A stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market






37. Online research about listed companies






38. An order placed with a brokerage to buy or sell a set number of shares at a specific price or better






39. Diversification - affordability - professional management - liquidity - low transaction costs - no disadvantages






40. Pay yourself and make investing automatic - save extra funds like gifts - partcipate in your employeers retirement plan - make installment payments to yourself - break a habit - get a part-time job






41. An equity security that pays regular often steadily increases dividends and offers a high yield that may generate the majority of overall returns






42. Combines funds of investors and invests those monies in a diversified portfolio of securities issued by corporations or governments that meet the fund objective






43. By make a risky investment you can be returned with a lot of money or losing some






44. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price






45. Not much risk is involved






46. Medium amount of risk is involved






47. Stocks buy& hold - dollar cost averaging - direct investment and DRIPS






48. Income from dividends - potential stock split - appreciation of stock value






49. Evaluate potential investments - seek assistance if needed - monitor the value of investments - keep accurate and current records - consider tax consequences of selling






50. Close ended funds (2%): shares are traded limited and must purchase from another investor -exchange trade funds (6%): tied to a specfic index - open end funds (92%): shares issued and redeemed by the company at net asset value (NAV)