Questions from Personal Finance


Q: Name and describe three basic types of orders.

Name and describe three basic types of orders.

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Q: Describe how the return on an investment is calculated.

Describe how the return on an investment is calculated.

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Q: What is a short sale? Explain the logic behind it.

What is a short sale? Explain the logic behind it. How much could be gained or lost on a short sale investment?

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Q: Briefly discuss the four basic types of information that you, as

Briefly discuss the four basic types of information that you, as an investor, should follow.

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Q: What role do market averages and indexes play in the investment process

What role do market averages and indexes play in the investment process?

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Q: Briefly describe the DJIA, S&P 400, S&

Briefly describe the DJIA, S&P 400, S&P 500, NASDAQ Composite, Russell 2000, and Dow Jones Wilshire 5000 indexes. Which segments of the market does each measure track?

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Q: Describe the Internet’s impact on the world of investing.

Describe the Internet’s impact on the world of investing.

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Q: Briefly describe several types of online investment tools, and note how

Briefly describe several types of online investment tools, and note how they can help you become a better investor.

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Q: What is day trading, and how is it different from the

What is day trading, and how is it different from the more traditional approach to investing?

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Q: Briefly describe the concept of asset allocation and note how it works

Briefly describe the concept of asset allocation and note how it works.

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