The astute investor is aware that:Investment risk is limited to the fortunes of the specific security purchased.Computers make investment decisions scientific and eliminate much of the risk.Actual outcome of any investment may differ from the expected outcome.When trading on-line, brokerage commissions are always negotiable.
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.
Of the following, the safest type of investment is:Under the mattress.An FDIC-insured CD.An international growth mutual fund.An Internet stock.
Technical analysis is a technique based on factors that are inherent to the market and include:Number of shares sold on a specific day.Number of consecutive days of price increases of a stock.Changes in the direction of movement of a market index.All of the above
Junk bonds:Are bonds issued by junk yards.Are sometimes called "high yield bonds."Are less risky than government bonds.Are not actually bonds.
Mortgage payments:Can be completely deducted from income for tax purposes.Vary from month to month on a fixed rate loan.Represent high principal payments early in the term of the loan.Are typically tax deductible to the extent that they represent payment of interest.
The number of stocks that make up the Dow Jones Industrial Average is:5,000.500.30.10.
Stocks whose returns are tied closely to the overall national economy are typically called:Blue Chip stocks.Defensive stocks.Speculative stocks.Cyclical stocks.
