Securities & Investments QBA #2

The higher rate of return = less risky the investment is.

• True

• False

In a bull market investors purchase stocks and are optimistic about the market.

• True

• False

Vanguard is a well-known investment advisory firm.

• True

• False

When you are short selling a stock you hope the price of the stock rises.

• True

• False

Bonds can only be issued by the government.

• True

• False

ETFs are more cost efficient than mutual funds.

• True

• False

ETF's, a type of mutual fund, usually follow an index like the Dow.

• True

• False

Bonds are a riskier investment tool than stocks.

• True

• False

You can earn dividends from mutual funds.

• True

• False

Which is not a characteristic of a bull market?

• Number of shares traded is high

• More companies enter the stock market

• Unemployment usually rises

• A healthy economy exists