S&I Fall EOS

Front

The possibility that an investment will fail to pay the expected return or fail to pay a return at all is called:

Back

investment risk

Front

Shares of ownership in a company are called bonds.

Back

false

Answer explanation

Shares of ownership in a company are called STOCKS.

Front

When a company is doing well it may distribute the profits to its shareholders in the form of: dividends, stocks, bonds, mutual funds

Back

dividends

Front

Dividends can be paid in cash or with additional shares

Back

true

Front

To help diversify their portfolio, an investor may choose to invest in a mutual fund which combines the funds of many different investors into a combination portfolio of stocks and bonds.

Back

true

Front

The type of investment where you lend money to a company or a government is called a

Back

bond

Front

Funds are provided to the INITIAL issuer of securities in the SECONDARY market.

Back

False

Answer explanation

Funds are provided to the initial issuer of securities in the primary market.

Front

The Securities Act of 1933 was for this purpose:

Back

required complete disclosure of relevant financial information for publicly offered securities in the PRIMARY market.

Front

Which of these is NOT a depository institution? Credit Union, Commercial Bank, Savings Institutions

Back

A finance company

Front

An example of a debt security is a bond.

Back

true

Answer explanation

debt securities represent borrowed funds incurred by the issuer.