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