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: 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 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...

Q: Discuss the relation between stock prices and the business cycle.

Discuss the relation between stock prices and the business cycle.

Q: What makes an asset liquid? Why hold liquid assets? Would

What makes an asset liquid? Why hold liquid assets? Would 100 shares of IBM stock be considered a liquid investment? Explain.

Q: Explain the characteristics of short-term investments with respect to purchasing

Explain the characteristics of short-term investments with respect to purchasing power and default risk.