1nbspwhich one of the following statements related to


1. Which one of the following statements related to common stock is correct? 
       Corporations are required to pay annual dividends to its common stockholders.
       Corporations have the right to discontinue paying dividends.
       Corporations pay dividends at the discretion of the firm's president.
       Common stock is a form of corporate debt.
       Common stock has a pre-defined liquidation value.

Question 2.2. Rose wants to invest in a bond fund. She is a very conservative investor with a high marginal tax rate. Which one of the following types of bond funds might be most suited for her situation? 
       High-yield corporate
       Long-term world
       Short-term municipal
       Single-state corporate
       Mortgage

Question 3.3. You purchased a stock for $29.40 a share, received a dividend of $0.72 per share, and sold the stock after one year for $31.30 a share. What was your dividend yield on this investment? 
       2.30 percent
       2.38 percent
       2.45 percent
       2.67 percent
       2.80 percent

Question 4.4. Which one of the following best describes the term "initial margin"? 
       Amount of money that must be deposited to open a margin account with a broker
       Amount of cash that must be paid to purchase a security on margin
       Amount of cash that must be paid when a broker issues a margin call
       Amount of money borrowed when a security is purchased
       Total loan amount offered to a customer by a brokerage firm to cover future purchases

Question 5.5. The turnover for a mutual fund refers to ______________. 
       the length of time an average investor holds fund shares
       a measure of trading activity
       replacing the fund's investment manager
       the annual change in the number of shares outstanding
       the percentage change in the ownership of fund shares

Question 6.6. An investment company that will repurchase shares at any time is called a(n) _____ fund. 
       hedge
       closed-end
       open-end
       public
       exchange traded

Question 7.7. Riverside Metals recently issued some debt that had an original maturity of nine months. This debt is best classified as a(n) __________________.
       option contract
       money market instrument
       fixed-income security
       derivative security
       futures contract

Question 8.8. Brooke has decided to invest 55 percent of her money in large company stocks, 40 percent in small company stocks, and 5 percent in cash. This is a(n) _____ decision.
       market timing
       security selection
       tax-advantaged
       active strategy
       asset allocation

Question 9.9. Market timing is the ________________________. 
       placing of an order within the last half-hour of trading for a day
       period of time between the placement of a short sale and the covering of that sale
       buying and selling of securities in anticipation of the overall direction of the market
       staggering of either buy or sell orders to mask the total size of a large transaction
       placing of trades within the last half-hour prior to the commencement of daily trading

Question 10.10. A brokerage account in which purchases can be made using credit is referred to as which type of account? 

       Clearing
       Funds available
       Cash
       Call
       Margin

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