1. Define margin requirement for purchasing stock?
2. What is the key effect of having a 50% margin requirement? (it is very simple)
3. What does it mean to be long a stock bond or futures position? What is shorting a stock?
4. What is the rule of 72?
5. What is are load and no-load mutual funds?
6. Describe a basis point and how to properly express 25 basis points in decimal format?
7. Name the four arguments used in Excel for solving time value of money problems such as payment?
8. Write the formula for future value with present value format then present value with future value. Explain this relationship?
9. Describe the yield curve and why it is important?
10. What are three potential shapes of the yield curve?
11. Describe beta and how it used in finance?
12. Describe CAPM and how it used in finance?
13. Describe the primary market for stocks and the key players?
14. Describe the secondary market for stocks and the key players
15. Describe the role of investment bankers?
16. Why are U.S. government bonds considered risk free?
17. Explain a stock split and why they are done by companies?
18. What are the dogs of the Dow?
19. What are they key risks with holding a non-government (risky) bond?
20. Describe an option contract and the 5 key parameters in their valuation?
21. What is a call and put? How can they be used by investors?
22. What is behavioral finance?
23. What are some technical indicators that are broadly talked about in the popular press? (Think the main page in Yahoo/finance)
24. What is effective duration of bond?
25. What are the policy instruments available to the Fed for monetary policy?