The astute investor is aware that:Investment risk is limited to the fortunes of the specific security purchased.Computers make investment decisions scientific and eliminate much of the risk.Actual outcome of any investment may differ from the expected outcome.When trading on-line, brokerage commissions are always negotiable.
Since the mid-1920s inflation in the United States has averaged:About 3 percent.About 7 percent.About 10 percent.About 12 percent
A limit order:Is used to protect a profit if it is a limit order to buy.Is used to execute a sell at a specific price or lower if possible.Is an order to buy or sell at a specific price or better and can be good till canceled.Is an order to be executed at the best price available and is not known until after confirmation is received.
Technical analysis is a technique based on factors that are inherent to the market and include:Number of shares sold on a specific day.Number of consecutive days of price increases of a stock.Changes in the direction of movement of a market index.All of the above
Buying on margin::Precludes the advantage of using leverage.Is not affected by limits on borrowing established by ERISA.Minimizes losses if the price of a security declines.Is possible by borrowing from a broker.
If you call your broker to purchase a "round lot" you are:Buying a mutual fund of 100 different stocks.Authorizing him/her to decide how many shares to buy.Negotiating commissions on future purchases and sales.Purchasing 100 shares of a specific stock.
If a mutual fund manager increases his/her cash position, it can be said:The manager is anticipating a bear market.The manager is anticipating a bull market.The manager is trying to reduce the fund’s taxable gains.The manager is aggressive.
Mortgage payments:Can be completely deducted from income for tax purposes.Vary from month to month on a fixed rate loan.Represent high principal payments early in the term of the loan.Are typically tax deductible to the extent that they represent payment of interest.
