Questions from General Investment

Q: Define each of the following: a. Open-end

Define each of the following: a. Open-end investment companies b. Closed-end investment companies c. Exchange-traded funds d. Real estate investment trusts e. Hedge funds

Q: What is the difference between a load fund and a no-

What is the difference between a load fund and a no-load fund? What are the advantages of each type? What is a 12(b)-1 fund? Can such a fund operate as a no-load fund?

Q: Describe a back-end load, a low load, and

Describe a back-end load, a low load, and a hidden load. How can you tell what kinds of fees and charges a fund has?

Q: Briefly describe each of the following types of mutual funds:

Briefly describe each of the following types of mutual funds: a. Aggressive-growth funds b. Equity-income funds c. Growth-and-income funds d. Bond funds e. Sector funds f. Socially responsible fund...

Q: What is an asset allocation fund and how does it differ from

What is an asset allocation fund and how does it differ from other types of mutual funds? How does a target date fund work?

Q: Name five variables that can affect the price of options, and

Name five variables that can affect the price of options, and briefly explain how each affects prices. How important are intrinsic value and time value to in-the-money options? To out-of-the-money opt...

Q: What is a futures contract? Briefly explain how it is used

What is a futures contract? Briefly explain how it is used as an investment vehicle.

Q: The Reverend Mark Thomas is the minister of a church in the

The Reverend Mark Thomas is the minister of a church in the San Diego area. He is married, has one young child, and earns a “modest income.” Because religious organizations are not notorious for their...

Q: What is the difference between physical commodities and financial futures? What

What is the difference between physical commodities and financial futures? What are their similarities?

Q: Describe a currency future and contrast it with an interest rate future

Describe a currency future and contrast it with an interest rate future. What is a stock index future, and how can it be used by investors?