Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
351. Jason instructed his stockbroker to buy 100 shares of Utah Industries common stock if
and when the price falls to $25 per share. Jason placed a(n):
352. Idle Time Gaming announced a 2-for-1 common stock split for investors on record. Which
of the following will occur?
353. Before the announcement of a three-for-one stock split, the selling price for a share of
stock in Olympia Oil Refineries was $150 per share. Immediately after the stock split, the
probable price per share is:
354. Lupe's stockbroker called to inform Lupe of a margin call that requires that she pay
$1,000. This indicates that the value of Lupe's stock has:
355. Laura read about Living Longer Biotechnology, Inc., and wants to buy 100 common
shares at $45 per share. Unfortunately, she only has $3,000 available to invest. One risky strategy
Laura could consider is:
356. Bondholders can sell their bonds:
357. Which of the following organizations provides an assessment of the relative level of risk
of a particular firm's bond issue?
358. Bonds sold at a ________ sell for less than face value.
359. Bonds offering a higher interest rate than other bonds of similar risk will likely sell at a:
360. The higher the risk associated with a bond issue, the ________ the interest rate the
organization must offer investors.
361. Which of the following offers low risk, guaranteed income, backed by the full faith and
credit of the federal government?
362. Bonds that pay very high interest rates and typically have a higher risk of default are
known as:
363. High-risk, high-interest bonds are called:
364. Bond prices in the newspaper or online are quoted as a percentage of their face value of
$1,000. If the bond price is 103.25, this bond's value is equal to:
365. A recent publication referred to a series of bonds as "the 6s of 25."
366. When market interest rates increase, the selling price of existing bonds will:
367. Abraham found a $1,000 face value bond that belonged to his father. He checked
The
Wall Street Journal
and found the bond was currently selling for $1,220. This bond sells at a:
368. The risk associated with Firm A's bond is greater than the risk of Firm B's bond. All other
things being equal, investors would be willing to pay ________ for Firm B's bond.
369. U.S. government bonds are considered a secure investment because:
370. The new issue $1,000 face value bonds due in 2020 issued by Bay Books Ltd., are
perceived by investors as being less attractive than other bonds offered by other businesses at
the same time. The coupon rate attached to these bonds will need to be __________ than other
corporate bond issues in order to attract investors.
371. Erica invests $5,000 in five ABC Corporation bonds that mature in 10 years. Unexpectedly
just the week after she invests, she has the opportunity to work abroad, which she has always
wanted to do, but she needs cash. Which of the following most likely applies to Erica?
372. An investment that pools together investors' money in order to buy securities in many
different companies or governments is a __________.
373. A mutual fund company buys securities from corporations and governments and
packages them together into a "mutual fund." It then _______________.
374. Which of the following describes a benefit enjoyed by investors in mutual funds?
375. New investors may want to consider _______ funds, which are mutual funds that invest in
one particular kind of stock or a particular kind of bond, or even stocks that are representative of
the entire market.
376. __________ are collections of stocks that are traded on exchanges but are traded more
like individual stocks than like mutual funds.
377. Buying several different investment alternatives to spread the risk helps an investor
achieve:
378. ____________ means that the mutual fund company does not show a fee or commission
for investing in the fund.
379. _____________ have a set dollar goal the fund manager wants to manage. Once the fund
has reached that goal, it does not accept new investors.
380. When reading mutual fund quotations, the ________ is the price per share.
381. ________ represent the best way for investors to have their investments managed by a
trained specialist for a fee.
382. To reduce the risk of investing in an individual stock, an ownership position in many
different companies can be achieved by purchasing shares in a(n):
383. Which of the following describes a mutual fund that charges no commission to buy or sell
its shares?
384. Mutual fund investors will note that:
385. The initial cost of investing in mutual funds depends in part on:
386. Yolanda has an ownership interest in many different companies, yet she owns the shares
of stock of just one organization. Yolanda undoubtedly owns shares in a(n):
