1) Buying on impulse not only results in higher spending but failure to obtain what is
really wanted..
2) An indenture is a written legal agreement between a group of bondholders and the
debtor describing the terms of the debt by setting forth the maturity date, interest rate,
and other factors.
3) NOW accounts and share draft accounts with tiered interest will pay higher interest
rates on larger balances.
4) Microcaps are firms with less than $100 million in capitalization.
5) Pre-emptive rights enable stockholders to purchase additional shares before new
shares are offered to the public.
6) If you are owed a refund on your income tax return you can either have the funds
sent to you or apply them to next year’s taxes.
7) Puts allow the holder of the contract to sell an asset at a specific striking price for a
certain time period before the expiration date.
8) Pay-day lenders are businesses that grant credit when they honor a personal check
but agree not to deposit the check for a week or longer.
9) Reinvestment risk is the risk that the return on a future investment will not be the
same as the return earned by the original investment.
10) A trailing commission is compensation paid to salespersons for months or years in
the future.
11) Capital gains distributions represent the net gains that a fund realizes on its sale of
securities from its portfolio.
12) Trusts can be used to transfer assets outside of probate.
13) When one of the major bond-rating services downgrades a bond rating, the market
price of that bond generally falls.
14) All states require registration of all securities sold within the state.
15) You would want your financial planner to provide you with an investment policy
statement that details your investment philosophy, your financial situation, and the risks
you are willing to take, as well as what the advisor will do for you.
16) Deeded timesharing provides buyers with actual titles and deeds to limited time
periods of use of real estate.
17) A person who inherits or is entitled by law or by the terms of a will to inherit some
asset is called an heir.
18) All of the income received from Social Security benefits must be reported as gross
income on your federal income tax return.
19) Less than 50 percent of Americans are covered by some type of private or
government health care plan.
20) Negotiating is a waste of time for most big ticket purchases we make.
21) The actual decision to grant credit is made by a credit bureau.
22) A long-term investor generally has a high-risk investment philosophy.
23) Making the minimum payment on a credit card that you continue to use will bring
your balance down over time.
24) Everyone should use an asset management account to simplify their monetary asset
management.
25) The cost of a $1 million professional liability policy would vary slightly regardless
of the profession of the policy buyer.
26) A lease typically protects the landlord but not the renter.