Sapm

Investment is the ________

• A. net additions made to the nations capital stocks

• B. persons commitment to buy a flat or house

• C. employment of funds on assets to earn returns

• D. employment of funds on goods and services that are used in production process

In financial terms, appreciation is ____________.

• A)an amount of money the bank pays you for having a CD

• B)the increase in value of a financial investment

• C)a cash payment based on the profitability of a company

• D)the same as cash

The process of holding an investment in shares in electronic form is _________.

• A) Dematerialisation

• B)Demutualisation

• C)Speculation

• D)None of the above

A shareholder-funded investment program that trades in a variety of assets

• A)Mutual Funds

• B)Dividends

• C) Share program

• D)None of the answers

the __ market assists existing investors in selling their stocks.

• A) Primary market

• B) Commodity market

• C) Capital market

• D) Secondary market

Amount of money paid to a company’s shareholders on a regular basis.

• A) bonds

• B) Profit

• C) cashback

• D) Dividends

Investment decision making traditionally consists of two steps______________.

• A. investment banking and security analysis

• B. buying and selling

• C. risk and expected return.

• D. security analysis and portfolio management.

Which of the following investment areas is heavily tied to work using mathematical and statistical

models?

• A. security analysis.

• B. portfolio management.

• C. institutional investing.

• D. retirement planning.

Which of the following is not a characteristic of investments companies?

• A. pooled investing.

• B. diversification.

• C. managed portfolios.

• D. reduced expenses.

In order to avoid paying income taxes, an investment company must_____________.

• A. be classified as a non-profit organization.

• B. invest only in municipal bonds.

• C. pass on interest, dividends, and capital gains to the stockholders.

• D. be registered as a closed-end investment company.