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. 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






2. Debenture bond - mortage bond - subordinated debenture bond - convertible bond - high yield bond






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






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






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






6. Medium amount of risk is involved






7. 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






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






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






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






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






12. 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






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






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






15. High interest rate than savings account - safe return of principles - less volatile than stocks - regular income - diversification of portfolio - low purchase price - ease of management - municipal bonds are tax free






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






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






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






19. 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






20. 1. What will you use money for 2. how much will you need 3. how long will it take 4. are there obstacles 5. will you make sacrifices 6. what if you don't reach the goal






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






22. Aggressive growth funds - equity income funds - global stock funds - growth stock funds - index funds - international funds - large cap funds - mid cap funds - small cap funds - regional funds - sector funds - socially responsible funds






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






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






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






26. Possible hedge against inflation - easy purchase on indirect ownership - limited financial responsibility for indirect ownership - financial leverage - positive cash flow - no management concerns on indirect ownership






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






28. Fundamental analysis - technical analysis - efficient market theory






29. Not much risk is involved






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






31. The uncertainty over the future real value (after inflation) of your investment






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






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






34. 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






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






36. Asset allocation funds - balanced funds - value funds - money market funds - life cycle funds - funds of funds






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






38. Interest income: -paid semiannually on most bonds registered bonds - bearer bonds - zero coupon bonds - dollar appreciation of bond value - bond repayment at maturity: -bond laddering






39. A risk management technique that mixes a wide variety of invests within a portfolio






40. Securities exchanges - over the counter market






41. A nationally recognized - well-established and financially sound company






42. 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






43. High yield funds ( junk bonds) - long term corporate - long term U.S. - intermediate corporate - intermediate U.S. - short term corporate - short term U.S. - municipal bonds - world bond funds






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






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






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






47. Initial public offerings - investment banks






48. 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






49. Direct: primary and secondary residences - commercial property - undeveloped land - foreclosures - Indirect: real estate syndicates - limited partnerships - real estate investment trusts - mortgages - participation certificates






50. Online research about listed companies