A limit order:Is used to protect a profit if it is a limit order to buy.Is used to execute a sell at a specific price or lower if possible.Is an order to buy or sell at a specific price or better and can be good till canceled.Is an order to be executed at the best price available and is not known until after confirmation is received.
Junk bonds:Are bonds issued by junk yards.Are sometimes called "high yield bonds."Are less risky than government bonds.Are not actually bonds.
Investments in CDs:Are riskier than investments in stocks.Are inferior to investments in 8-tracks and vinyl records.Are always tax deferred.Are insured by the FDIC, but have generally underperformed stock investments over the long run.
For most Americans, taxes are due on:January 1.April 1.April 15.December 31.
Dividends are taxed:At the investor’s marginal income tax rate.At a maximum rate of 15%.Only when the stock is sold.Dividends are never taxed.
A stock certificate:Is always issued to the individual investor.Represents a primary claim on the firm’s assets.Represents ownership in a corporation.Is handwritten.
Buying on margin::Precludes the advantage of using leverage.Is not affected by limits on borrowing established by ERISA.Minimizes losses if the price of a security declines.Is possible by borrowing from a broker.
A 35-year old individual with 4 young children and a spouse who doesn’t work should probably consider purchasing which of the following types of insurance:Long-term care insurance.Disability insurance.Life insurance.(b) and (c).
