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






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






3. Not much risk is involved






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






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






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






7. Call feature - sinking fund - serial redemption






8. 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






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






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






11. 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






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






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






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






16. A lot of risk is involved






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






18. Fundamental analysis - technical analysis - efficient market theory






19. 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






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






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






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






23. 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






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






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






26. 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






27. 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






28. Securities exchanges - over the counter market






29. 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






30. Initial public offerings - investment banks






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






32. Medium amount of risk is involved






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






34. 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)






35. 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






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






37. Online research about listed companies






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






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






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






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






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






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






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






45. 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






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






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






48. 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






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






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