Questions from General Investment

Q: Differentiate between each of the following pairs of terms. a

Differentiate between each of the following pairs of terms. a. Money market and capital market b. Primary market and secondary market c. Broker market and dealer market

Q: How are after-hours trades typically handled? What is the

How are after-hours trades typically handled? What is the outlook for after-hours trading?

Q: Briefly describe the key requirements of the following federal securities laws:

Briefly describe the key requirements of the following federal securities laws: a. Securities Act of 1933 b. Investment Company Act of 1940 c. Investment Advisors Act of 1940 d. Insider Trading and Fr...

Q: What is a long purchase? What expectation underlies such a purchase

What is a long purchase? What expectation underlies such a purchase? What is margin trading, and what is the key reason why investors sometimes use it as part of a long purchase?

Q: How does margin trading magnify profits and losses? What are the

How does margin trading magnify profits and losses? What are the key advantages and disadvantages of margin trading?

Q: Describe the procedures and regulations associated with margin trading. Be sure

Describe the procedures and regulations associated with margin trading. Be sure to explain restricted accounts, the maintenance margin, and the margin call. Define the term debit balance, and describe...

Q: What is the primary motive for short selling? Describe the basic

What is the primary motive for short selling? Describe the basic short-sale procedure. Why must the short seller make an initial equity deposit?

Q: What relevance do margin requirements have in the short-selling process

What relevance do margin requirements have in the short-selling process? What would have to happen to experience a margin call on a short-sale transaction? What two actions could be used to remedy suc...

Q: Following is a sample of eight Level-1 CFA exam questions

Following is a sample of eight Level-1 CFA exam questions that deal with many of the topics covered in Chapters 11, 12 and 13 of this text, including the structure of mutual funds, portfolio diversifi...

Q: Select the security in the left-hand column that best fits

Select the security in the left-hand column that best fits the investor’s desire described in the right-hand column.