FP1 Final Exam Rev. Part 3

Front

Which statement is false about using a buy-and-hold strategy? A. Assets need only passive management. B. There are tax benefits for this method. C. Stocks must be carefully monitored. D. Price fluctuations can be ignored.

Back

Stocks must be carefully monitored.

Front

Which is a true statement about ticker symbols?

Back

They uniquely identify a company.

Front

The price-earnings (PE) ratio measures:

Back

The market value per share divided by the earnings per share.

Front

What does the stock price compared to sales indicate?

Back

investors' expectations about a company's performance.

Front

A class of financial ratios that measures the ability of a company to turn available resources into cash and to pay its bills is called:

Back

debt ratios.

Front

Which of the following is not a type of financial ratio? efficiency ratios, liquidity ratios, profitability ratios, asset management ratios

Back

efficiency ratios

Front

Which is a poor way to find companies in which to invest? Options: Read reputable investment magazines and newspapers. Discuss investment opportunities with family and friends.

Back

Discuss investment opportunities with family and friends.

Front

Which of the following is a poor way to protect yourself from investment fraud?
- Check the background of the person selling the investment.
- Be wary of investments that offer high returns with little risk.
- Follow suggestions in unsolicited e-mails and phone calls.
- Investigate businesses that have interesting products and services.

Back

Follow suggestions in unsolicited e-mails and phone calls.

Front

Publicly traded companies are required to provide: A. stock research. B. yearly newsletters. C. financial statements.

Back

financial statements.

Front

A mutual fund that has no limit on the number of shares it can issue or the amount of money it can hold is called a/an:

Back

open-end fund.