Intro to Finance Test #5

What is a mutual fund?

• a basket of two or more securities

• networks of computers that are used to communicate

• the ease with which a security can be converted to cash

• the difference between the bid price and the ask price

What does ETF stand for?

When do you pay a back end load?

• when you buy a stock

• when you increase the price of a stock

• when you owe a company money

• when you sell a mutual fund

Which of these options are packaged securities with expiration dates?

• ETFs

• UITs

• REITs

• ECNs

What does diversification mean?

• make sure you put all your money into one stock

• don't put all your eggs in one basket

• talk to different investors

• invest into diverse companies

Tags

CCSS.RI.7.5

CCSS.RI.8.5

CCSS.RI.6.5

CCSS.RI.9-10.5

CCSS.RI.5.5

What is The Trading Desk?

• a company that employs traders and helps you trade

• the table where traders work

• the location where trades trade a stock or security

• where trades come into the exchange

If an exchange is run by traders on a trading floor where

people trade in-person and are screaming everywhere,

is it an AUCTION exchange or AUTOMATED exchange?

True or False: ECNs are available 24/7, this is called liquidity.

What two risks do we take when we invest in foreign stocks?

• exchange rate risk

• political risk

• monetary risk

• fee risk

Pick the term that describes the employee of a brokerage

who sends the trading orders to the traders at the exchange.

• indices

• specialist

• runner

• broker