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Test your basic knowledge |
Investments
Start Test
Study First
Subject
:
personal-finance
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. A sales charge levied when investors redeem shares (also called a 'back-end' load).
Put Option
Normal Distribution
CDSC
12b-1 Fees
2. Underlying asset is a real asset - typically either an agricultural product or a natural resource product
Short Interest
Turnover
Fixed-Income Securities
Commodity Futures
3. The price you pay to buy an option
Turnover
Effective Annual Return (EAR)
Option Premium
Short Sale
4. The annual stock dividend as a percentage of the initial stock price
Margin Call
Dividend Yield
Securities Investor Protection Corporation (SIPC)
Front-End Load
5. A financial asset that is derived from an existing traded asset rather than issued by a business or government to raise capital. More generally - any financial asset that is not a primary asset.
Closed-End Fund
Initial Margin
CDSC
Derivative Asset
6. Selection of specific securities within a particular class
Security Selection
Current Yield
Commodity Futures
Money Market Mutual Fund
7. Or market cap for short is equal to its stock price multiplied by the number of shares of stock. It's the total value of the company's stock.
Total Market Capitalization
Hypothecation
Open-End Fund
Margin
8. A mutual fund specializing in money market instruments
Fixed-Income Securities
Money Market Mutual Fund
Street Name
Hypothecation
9. An investment company with a fixed number of shares that are bought and sold only in the open stock market.
Closed-End Fund
Total Percent Return
Primary Asset
12b-1 Fees
10. The amount of common stock held in short positions
Capital Gains Yield
Financial Futures
Short Interest
Effective Annual Return (EAR)
11. An investment company not accessible by the general public
Hedge Fund
CDSC
Security Selection
Risk Premium
12. Annual coupon divided by the current bond price
Cash Account
Current Yield
Initial Margin
Total Percent Return
13. A brokerage account in which - subject to limits - securities can be bought an sold on credit
Variance
12b-1 Fees
Risk Premium
Margin Account
14. An investment company that stands ready to buy and sell shares at any time.
Net Asset Value
Market Timing
Open-End Fund
NYSE Uptick Rule
15. An arrangement under which a broker is the registered owner of a security
Strike Price
Variance
Commodity Futures
Street Name
16. An agreement made today regarding the terms of a trade that will take place later.
Option Premium
Futures Contract
Street Name
Dividend Yield
17. Buying and selling in anticipation of the overall direction of a market
Short Interest
Front-End Load
Market Timing
Margin Account
18. An agreement that gives the owner the right - but not the obligation - to buy or sell a specific asset at a specified price for a set period of time.
Closed-End Fund
Market Timing
Arithmetic Average Return
Option Contract
19. The value of assets less liabilities held by a mutual fund - divided by the number of shares outstanding.
Net Asset Value
Geometric Average Return
12b-1 Fees
Derivative Asset
20. An option that gives the owner the right - but not the obligation - to buy an asset
Call Option
Dividend Yield
Margin Account
Derivative Asset
21. Simply a means of combining or pooling the funds of a large group of investors. The buy and sell decisions for the resulting pool are then made by a fund manager - who is compensated for the service provided.
Closed-End Fund
Capital Gains Yield
Mutual Fund
Margin Call
22. The change in stock price as a percentage of the initial stock price.
Option Contract
Capital Gains Yield
Asset Allocation
Street Name
23. The return on an investment measured in dollars that accounts for all cash flows and capital gains or losses
Total Dollar Return
Commodity Futures
Financial Futures
Front-End Load
24. Debt obligations of large corporations and governments with an original maturity of one year or less
Hedge Fund
Money Market Mutual Fund
Money Market Instuments
Front-End Load
25. The distribution of investment funds among broad classes of assets
Asset Allocation
Primary Asset
Open-End Fund
Put Option
26. A sale in which the seller does not actually own the security that is sold
Call Money Rate
Front-End Load
Short Sale
Option Contract
27. A common measure of volatility
Total Percent Return
Margin Call
Net Asset Value
Variance
28. The rate of return on a riskless investment
Strike Price
Margin
12b-1 Fees
Risk-Free Rate
29. Insurance fund convering investors' brokerage accounts with member firms
Short Interest
Securities Investor Protection Corporation (SIPC)
Option Premium
Hedge Fund
30. The interest rate brokers pay to borrow bank funds for lending to customer margin accounts
Turnover
Standard Deviation
Call Money Rate
Fixed-Income Securities
31. Longer-term debt obligations - often of corporations and governments - that promise to make fixed payments according to a preset schedule.
Short Sale
NYSE Uptick Rule
Fixed-Income Securities
Primary Asset
32. The price specified in an option contract at which the underlying asset can be bought (for a call option) or sold (for a put option). Also called the striking price or exercise price.
Strike Price
CDSC
Geometric Average Return
12b-1 Fees
33. The minimum margin that must be supplied on a securities purchase
Call Option
Margin Call
Initial Margin
CDSC
34. The return earned in an average year over a multiyear period
Total Market Capitalization
NYSE Uptick Rule
Net Asset Value
Arithmetic Average Return
35. An option that gives the owner the right - but not the obligation - to sell an asset
Current Yield
Put Option
Mutual Fund
Option Premium
36. The portion of the value of an investment that is not borrowed
Risk Premium
Net Asset Value
Margin
Arithmetic Average Return
37. The return on an investment measured as a percentage that accounts for all cash flows and capital gains or losses
Call Money Rate
REIT
Total Percent Return
Hypothecation
38. The average compound return earned per year over a multiyear period.
Financial Futures
Variance
Geometric Average Return
Money Market Instuments
39. A demand for more funds that occurs when the margin in an account drops below the maintenance margin
Financial Futures
12b-1 Fees
CDSC
Margin Call
40. Pledging securities as collateral against a loan
Hypothecation
Open-End Fund
Hedge Fund
Short Sale
41. The extra return on a risky asset over the risk-free rate; the reward for bearing risk.
Risk Premium
Put Option
Open-End Fund
Margin Account
42. Security originally sold by a business or government to raise money
Market Timing
Margin
Primary Asset
Current Yield
43. A sales charge levied on purchases of shares in some mutual funds
Money Market Instuments
Dollar-Weighted Average Return
Normal Distribution
Front-End Load
44. The return on an investment expressed on a per-year - or 'annualized -' basis
Securities Investor Protection Corporation (SIPC)
Effective Annual Return (EAR)
Street Name
Normal Distribution
45. Named for SEC rule 12b-1 - which allows funds to spend up to 1 percent of fund assets annually to cover distribution and marketing costs
Street Name
12b-1 Fees
Effective Annual Return (EAR)
Closed-End Fund
46. A symmetric - bell-shaped frequency distribution that is completely defined by its average and standard deviation.
Normal Distribution
REIT
Street Name
Dividend Yield
47. The square root of the variance
Standard Deviation
Open-End Fund
Risk Premium
CDSC
48. A company that owns income producing real estate
REIT
Strike Price
Standard Deviation
Financial Futures
49. The minimum margin that must be present at all times in a margin account
Maintenance Margin
Derivative Asset
Arithmetic Average Return
12b-1 Fees
50. Rule for short sale requiring that before a short sale can be executed - the last price change must be an uptick
Front-End Load
Total Market Capitalization
Geometric Average Return
NYSE Uptick Rule