Questions from General Investment

Q: Differentiate between individual investors and institutional investors.

Differentiate between individual investors and institutional investors.

Q: What are short-term investments? How do they provide liquidity

What are short-term investments? How do they provide liquidity?

Q: What is common stock, and what are its two sources of

What is common stock, and what are its two sources of potential return?

Q: Mary and Nick Stalcheck have an investment portfolio containing four investments.

Mary and Nick Stalcheck have an investment portfolio containing four investments. It was developed to provide them with a balance between current income and capital appreciation. Rather than acquire m...

Q: Briefly define and differentiate among the following investments. Which offer fixed

Briefly define and differentiate among the following investments. Which offer fixed returns? Which are derivative securities? Which offer professional investment management? a. Bonds b. Convertible se...

Q: What is ratio analysis? Describe the contribution of ratio analysis to

What is ratio analysis? Describe the contribution of ratio analysis to the study of a company’s financial condition and operating results.

Q: Under what three conditions would an investment holding be a candidate for

Under what three conditions would an investment holding be a candidate for sale? What must be true about the expected return on a risky investment, when compared with the return on a low-risk investme...

Q: What should an investor establish before developing and executing an investment program

What should an investor establish before developing and executing an investment program? Briefly describe the elements of an investment policy statement.

Q: Define and differentiate among the following. Explain how each is related

Define and differentiate among the following. Explain how each is related to federal income taxes. a. Active income b. Portfolio and passive income c. Capital gain d. Capital loss e. Tax planning f. T...

Q: Describe the differing investment philosophies typically applied during each of the following

Describe the differing investment philosophies typically applied during each of the following stages of an investor’s life cycle. a. Youth (ages 20 to 45) b. Middle age (ages 46 to 60) c. Retirement y...