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Liquidity is the True

Purpose of diversification is to spread your assets among several types of


investments .. True
Stocks are equity financing .. True
AJ wants to buy at market, he should use a amarket order TRUE

Whats another name for temporary life insurance? TERM


Permanent life insurance? Whole Life
Which of the following is NOT a feature of whole life insurance? The policy will return
all premiums if you survive to the end of the policy (THIS IS NOT TRUE, BUT ITS THE
ANSWER)
Pam started working at XYZ, and doesnt want to take a medical exam to get health
coverage, what type of insurance can she probably buy without taking a medical
exam. GROUP POLICY
Whats the most important part of an insurance agents job? (Unanswered)
What do we call an employer sponsored investment plan? 401K
Spreading your risk? Allocation
3 types of debt US fed? T-bills, T-notes, T-bonds? Shortest Longest
A debt-security (Bond) by a gov is a? Municipal bond, muni
Bond tradable for stock? Convertible
IF interest rates rise, what happens to bonds? They go down.
Tax free yield and making it equivalent to the taxable yield. (Tax free yield/(1-tax
bracket))
Distribution of ? Dividend
Why would a company split its stock?
The ratio that uses market price and earnings? PE Ratio, Price-Earnings
Current price per share, amount paid to investors? Dividend Yield
Calculation that includes dividends and increase on stock price? Total Return
DRIP, dividend reinvestment plan!

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