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






2. Call feature - sinking fund - serial redemption






3. 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






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






5. 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






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






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






8. 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






9. A lot of risk is involved






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






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






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






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






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






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






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






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






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






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






20. Online research about listed companies






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






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






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






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






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






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






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






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






29. 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)






30. Not much risk is involved






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






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






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






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






35. Medium amount of risk is involved






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






37. 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






38. 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






39. 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






40. 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






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






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






43. 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






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






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






46. 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






47. Initial public offerings - investment banks






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






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






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







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