An investment program should be started before one pays off credit card balances.

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False

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Question 2 1 pts

A long-term investor can purchase a small number of extra shares in a company in a convenient, systematic, and inexpensive way through dividend reinvestment plans.

True

False

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Question 3 1 pts

The first step in the investment planning process is to study available investment alternatives and learn as much as you can about the ones you like.

True

False

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Question 4 1 pts

Typically, preferred stockholders do receive voting rights.

True

False

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Question 5 1 pts

The potential return for any investment over a period of years can be determined by adding anticipated income to the future value of the investment minus its original cost.

True

False

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Question 6 1 pts

A limit order instructs the stockbroker to buy or sell at a specific price.

True

False

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Question 7 1 pts

Unless otherwise indicated, any order received by a stockbroker is assumed to be a good-til-canceled order.

True

False

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Question 8 1 pts

The first step in selecting which bond to invest in is to look for the highest yield to maturity.

True

False

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Question 9 1 pts

A mutual fund can be arranged to keep its proceeds out of probate, in case of the owner's death.

True

False

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Question 10 1 pts

The writer of a put may incur a loss when the market price of an optioned asset rises above the striking price.

True

False

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Question 11 1 pts

The break even price is not a necessary consideration when buying option contracts.

True

False

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Question 12 1 pts

You should not consider investing in an annuity until all other tax-sheltered vehicles to save and invest for retirement have been maximized.

True

False

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Question 13 1 pts

A beneficiary designation on an asset allows that asset to go directly through the probate process.

True

False

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Question 14 1 pts

Trusts can be used to transfer assets outside of probate.

True

False

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Question 15 1 pts

In community property states, all property owned by spouses is jointly owned by the spouses, no matter how it was acquired.

True

False