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Personal Finance: Investment Basics
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There are 4 main types of investments:
Shares. 
Property. ...
Cash.
Fixed interest.

Often, people take investment to be about buying and selling shares only. You buy a stock or bond, with the hope that its value will increase over time. Although investing comes with the risk of losing money, should a stock or bond decrease in value, it also has the potential for greater returns than you'd receive by putting your money in a bank account. Thus the common clubbing of investment and share investing.

Personal Finance: Investment Basics
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25 Questions

1. What is an advantage to being a 'preferred' stock holder?
2. IBM is considering hiring an investment banker who will purchase and subsequently resell an issue of stock for them- This service is called
3. A limit order specifies a securities trade is to be made only at a certain price or better.
4. A market order is an order to buy or sell a set number of securities immediately at the best price available.
5. Jeffery is an underwriter and sells shares on the ________ market for his job- However, in his personal investment life, he will purchase his stocks through the ________ market.
6. Most of the bonds that are bought and sold are not transacted on the organized exchanges- They are bought and sold through bond dealers who do not sell many ________ bonds but do trade many ________ bonds in the secondary market.
7. Stock can only be purchased in round lots.
8. Full service brokers are legally obligated to analyze the recommendations they receive from analysts.
9. A ________ is a member of an exchange who oversees the trading in one or more stocks and is generally responsible for maintaining a 'fair and orderly' market in those stocks by purchasing or releasing stocks into the market.
10. Which of the following purchase orders indicates that you want to buy or sell immediately?
11. An initial public offering is the first time the company's stock is traded publicly.
12. The ________ plays on the fear of regret and the seeking of pride, resulting in selling winning stocks too soon and keeping losing stocks too long.
13. An IPO is the sale of previously issued shares to the general public.
14. The Securities Act of 1934 created the SEC to enforce trading laws.
15. Real estate investments can be income-producing investments- Which of these would be included as an income-producing real estate investment?
16. Assume you have a margin account with a 50% initial margin- You purchase 100 shares of stock at $80 per share- The price increases to $100 per share- What is the net value of your investment (margin) now?
17. Barney Q- Hopkins borrows stock from his broker (short selling) with the goal of ________ and ________.
18. The collateral an investor must put up when conducting a short sale is known as a margin requirement.
19. Specialists maintain a fair and orderly market by buying and selling stock from their inventory to keep the market from fluctuating more than it would otherwise.
20. A margin call requires you to replenish the margin account by adding additional cash or securities to bring the account back up to the minimum.
21. Changes in the capital gains tax rate, or in the tax deductibility on municipal bonds are examples of ________ risk.
22. Which of the following questions is relevant to setting investment goals?
23. Reesa is purchasing stock through the NYSE and the AMEX, as a result she will need to have a different broker to purchase stocks listed on each of these different exchanges.
24. Petrina was told by a successful friend to invest in stocks and income-producing real estate. Both of these are examples of ________ investments.
25. Day trading has been called

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