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