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. Securities exchanges - over the counter market






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






3. 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






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






5. 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






6. Cash dividends - price appearance - hedge against inflation - low minimum investment - limited liability - liquidity






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






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






9. 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






10. 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






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






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






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






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






15. 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






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






17. 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






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






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






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






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






23. 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






24. Medium amount of risk is involved






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






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






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






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






29. Online research about listed companies






30. A lot of risk is involved






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






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






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






34. Initial public offerings - investment banks






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






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






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






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






39. 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






40. 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)






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






42. 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






43. Fundamental analysis - technical analysis - efficient market theory






44. Call feature - sinking fund - serial redemption






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






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






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






48. 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






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






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