A stock certificate:Is always issued to the individual investor.Represents a primary claim on the firm’s assets.Represents ownership in a corporation.Is handwritten.
The highest denomination of U.S. currency is:The $20 billThe $100 billThe $1,000 billThe $100,000 bill
The financial pyramid implies that:An investment near the top of the pyramid has a higher potential return, but also carries higher risk.Egyptian pharoahs were astute investors.Eating nutritious meals from the "food pyramid" will make you a better investor."Pyramid" or "Ponzi" schemes are good investments.
Credit cards:Are a cost effective way of financing investment purchases.Have interest payments that are not tax deductible.Typically have lower interest rates than home equity loans.Often have 3 month grace periods on new purchases.
The term generally used to describe the market in which prices fully reflect all available information is:The greater fool hypothesis.Random walk hypothesis.The size-effect hypothesis.Efficient markets hypothesis.
Dividends are taxed:At the investor’s marginal income tax rate.At a maximum rate of 15%.Only when the stock is sold.Dividends are never taxed.
Buying on margin::Precludes the advantage of using leverage.Is not affected by limits on borrowing established by ERISA.Minimizes losses if the price of a security declines.Is possible by borrowing from a broker.
If a mutual fund manager increases his/her cash position, it can be said:The manager is anticipating a bear market.The manager is anticipating a bull market.The manager is trying to reduce the fund’s taxable gains.The manager is aggressive.
