PF C8 Study Guide
Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
1.Which risk component is most likely at fault when an investor’s stock becomes worthless? _______________________.
2.Of the following investments, the one with the most predictable income is ______________________.
3.“Growth” companies typically reinvest their profits rather than _______________________________.
4.A corporation gets it equity capital from its _______________________________.
5.After a company fails, who has first rights to its remaining assets?____________________________
6.Which question should you ask when selling real estate?______________________________________
7.In an investment program "pyramid," investing in baseball cards would be a possible investment for
_____________________________.
8.The largest financial planners are monitored by the _________________________________.
9.Short-term capital gains are _________________________________________.
10.The purpose of the Dow Industrial Average is to ___________________________________.
11.________________________________is the distribution of money, stock, or other property that a corporation
sometimes pays to a stockholder
12.________________________________is a company’s written pledge to repay a specified amount of money, along
with interest
13.________________________________ gives the owner the advantage of receiving cash dividends before common
stockholders receive any
14.________________________________is the written pledge of a government or a municipality’s to repay a specified
amount of money with interest
15.________________________________is the ability to buy or sell an investment quickly without substantially
affecting its value
16.________________________________ discloses information about a company’s earnings, assets, and liabilities; its
products or services; and the qualifications of its management
17.________________________________is income that is taxed at a later date
18.________________________________is profit from the sale of assets such as stocks, bonds, or real estate
19.________________________________is income that is not taxed
20.________________________________are profits that are reinvested in the company