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