1. You're concerned with maintaining your standard of living even after the effects of inflation.The risk that best describes this issue is _______ risk.
A. event C. market
B. purchasing power D. liquidity
2. You've purchased stock in a company from the underwriter of the company's stock after reviewing the prospectus for this initial PUBLIC offering. Therefore, you purchase the stock in which market?
A. Over-the-counter market C. The New York Stock Exchange
B. The secondary market D. The primary market
3. The price of the majority of stocks has generally been rising steadily for the past year.This situation is an example of what kind of market?
A. Bull market C. Growth market
B. Pig market D. Bear market
4. Care should be exercised in selecting a securities BROKERAGE FIRM even though such firmsare subject to enforcement regulations at the federal level from the
A. National Association of Securities Dealers.
B. Securities Investor Protection Corporation.
C. Securities and Exchange Commission.
D. Securities National Fraud Commission.
5. Which of the following is an advantage of INVESTING IN MUTUAL FUNDS ?
A. MUTUAL FUNDS offer a high level of convenience.
B. MUTUAL FUNDS allow you to target your investment onto one security.
C. Individual investors personally manage the investment decisions.
D. MUTUAL FUNDS require a large investment from their investors.