WISE Investing

What is the largest equities market in the world?

• American Stock Exchange (AMEX)
• NASDAQ market
• New York Stock Exchange (NYSE)
• Over-the-counter (OTC) market

As an investment, a person decides to buy a small house that has three rental apartments. The profits from this investment may be lower then expected if the

• tenant in an apartment decides to paint the hallways
• mortgage on the house is paid off.
• taxes on the house are lowered.
• one of the apartments is not rented

Before the Kiss Corporation can issue stocks or bonds, it must register the issue with:

• Its Board of Directors
• The Federal Reserve
• The World Bank
• The Securities and Exchange Commission (SEC)

Using a brokerage firm, a qualified investor buys 1000 shares of a common stock at $50 a share on 50% margin. This means that the

• investor will pay only $5000 for the shares.
• investor is buying 2000 shares.
• brokerage firm is lending the investor 50% of the money.
• brokerage firm will own 50% of the 1000 shares of stock that were purchased.

An investor bought 40 shares of ABC corporation's stock at $80 a share. Two weeks later, the investor receives notice that the corporation has approved a 2-for-1 stock split. Based on this information, the investor would own at the moment of the split 

• 20 shares of the stock and the price of each share is $80.
• 40 shares of the stock and the price of each share is $40.
•  80 shares of the stock and the price of each share is $40.
• 80 shares of the stock and the price of each share is $80.

A person owns a stock that pays a $2.00 a share dividend. If the person chooses to reinvest that dividend, this means that the $2.00 will go toward buying

• more of the same stock.
• stocks that are similar to those already owned.
• preferred stock in the corporation.
• bonds in the corporation.

The interest earned on United States Series EE Savings Bonds is 

• exempt from state and local taxes.
• paid in a lump sum at the time the face value on the bond is reached.
• equal to the money paid to purchase it.
• deducted at the time of the bond's purchase.

Buying a treasury bill (T-bill) is best for investors who are looking for

• a place to invest between $100-$500
• a secure, low risk investment.
• a higher yield on their investment than corporate bonds offer.
• an investment that matures in 10-30 years.

A pharmacy is to drugs as the American Stock Exchange is to:

• Interest
• Stock advisors
• Securities
• Mutual funds

David bought stock for $4,000 and one year later he sold it for $1,000.  The sale resulted in a:

• Price earning
• Market value
• Capital loss
• Yield