Title: Securities Exchanges
Course: Demo 1

Q: The oldest established securities exchange in the U.S. is the:
- S&P 500
- NASDAQ
- NYSE
A: NYSE

Q: Historically many methods and markets were used to raise capital, but the primary methods that have evolved in modern times are the:
- bond markets.
- stock markets.
- land markets.
A: bond markets.; stock markets.

Q: Stocks or equity securities are:
- shares of ownership.
- financial instruments that may include share of a company’s future profits.
- traded on stock exchanges through member brokers.
A: shares of ownership.; financial instruments that may include share of a company’s future profits.; traded on stock exchanges through member brokers.

Q: NASDAQ stands for:
- National Association of Securities and Debt Aggregation Qualifiers
- New Association of Securities Dealers and Automatic Quantities
- National Association of Securities Dealers Automated Quotations
A: National Association of Securities Dealers Automated Quotations

Q: FanTec, Inc. is a small start-up tech company that has been successful selling games in the last three years. FanTec now needs funds to expand so it is offering shares to the public. FanTec will most likely be listed on the:
- NYSE
- NASDAQ
- S&P 500
A: NYSE; NASDAQ

Q: Bonds and stocks in the U.S. are traded on these exchanges:
- NIKKEI
- DAX
- NYSE
A: NYSE

Q: An index is a collection of:
- individual stocks and bonds.
- stocks or bonds whose performance is not tracked as an indicator.
- stocks or bonds whose performance is tracked as an indicator of the performance of an entire class or type of security.
A: stocks or bonds whose performance is tracked as an indicator of the performance of an entire class or type of security.

Q: The Dow Jones Industrial Average is an index of ________ stocks of major industrial corporations.
- 100
- 75
- 30
A: 30

Q: The Standard & Poor’s (S&P) 500 is an index of the 500:
- mid sized publicly traded corporations.
- publicly traded technology corporations.
- largest publicly traded corporations.
A: largest publicly traded corporations.

Q: A university professor’s retirement portfolio is invested in a variety of mutual funds through a brokerage firm. The Standard & Poor’s (S&P) 500 index has been climbing at a steady pace and she would like a way to mimic that index and grow her retirement account. She decides to invest money in a(n):
- individual company stock.
- bond fund.
- index fund.
A: index fund.

Q: Bonds are:
- debt.
- a formal contract to repay borrowed money with interest at fixed intervals.
- a way to raise capital through borrowing (used by corporations and governments).
A: debt.; a formal contract to repay borrowed money with interest at fixed intervals.; a way to raise capital through borrowing (used by corporations and governments).

Q: To trade any kind of bond, besides a Treasury bond, you have to go through a broker. A broker provides what services?
- Acts as a principal or dealer, buying from or selling to investors.
- Acts as an agent for another buyer or seller.
- Is an issuer of a bond.
A: Acts as a principal or dealer, buying from or selling to investors.; Acts as an agent for another buyer or seller.

Q: An investor makes the decision to trade in the commodities markets. Which of the following are the types of investments available in this market?
- gold and silver
- cotton
- stock in Google or Apple
A: gold and silver; cotton

Q: A mutual fund is an investment portfolio that:
- consists of individual stocks from one corporation
- is only available for retirement accounts
- consists of diverse investments with minimal transaction costs
A: consists of diverse investments with minimal transaction costs

Q: A mutual fund is:
- a large component of individual retirement accounts and of defined contribution plans
- created and managed by mutual fund companies , brokerages or even banks
- can be purchased without having an account with a mutual fund company, brokerage or bank
A: a large component of individual retirement accounts and of defined contribution plans; created and managed by mutual fund companies , brokerages or even banks

Q: An exchange-traded fund (ETF) is:
- a mutual fund that trades like a share of stock
- valued continuously throughout the day
- executed at the market price
A: a mutual fund that trades like a share of stock; valued continuously throughout the day; executed at the market price

Q: An index fund:
- requires minimal management
- is a mutual fund designed to mimic the performance of an index
- fully consists of commodities
A: requires minimal management; is a mutual fund designed to mimic the performance of an index

Q: A university professor is planning for her retirement and is concerned about her investments providing her with income after she retires. If one of her primary goals is income production, which of the following investments will best suit her needs?
- individual company stocks that may pay a dividend
- commodity future contracts
- government bonds with a stated coupon rate
A: government bonds with a stated coupon rate