Investment Topic 2

Listed below are the investment tools for you to get started with your investment planning and research EXCEPT

• Planning

• Screening

• Quoting and Tracking

• Marketing

Advantages of the Internet as an Investment Tool EXCEPT

• Makes it easier for individuals to do research on investment and to act on that research

• Easy watchout for information

• Free online advice

• Beware of the high risks of margin trading

Define Analytical Information

• factual data on past behavior of economy, market, industry company or given investment

• available current data in conjunction with projections and recommendations about potential investments

Define Stock Market Averages

• reflect the arithmetic average price behavior of a representative group of stocks at a given point in time.

• measure the current price behavior of a representative group of stocks in relation to a base value set at an earlier point in time.

Define Stock Market Indexes

• reflect the arithmetic average price behavior of a representative group of stocks at a given point in time.

• measure the current price behavior of a representative group of stocks in relation to a base value set at an earlier point in time.

Dow Jones Industrial Average (DJIA): average made up of 30 stocks, most of which are issued by large, well-respected companies with long operating histories from industry sectors such as technology, transportation, banking, energy, healthcare, consumer products and many others.

• TRUE

• FALSE

S&P 500 Index: Common stock index comprising 100 large (but not necessarily the largest) companies

• TRUE

• FALSE

The existing Bursa Malaysia indices are calculated using the market capitalization weighted method.

• TRUE

• FALSE

The Role of Stockbrokers–Brokerage Services

-Primary service is to execute clients’ purchase and sale transactions at the best possible price

• TRUE

• FALSE

Do you like Investment

• YES

• NO