Characteristics, Uses and Taxation of Investments - Sample Questions 1 - 7
- Joseph and Mary McCracken have the following bank accounts. In his own name, Joseph has $373,546.52; in her own name, Mary has $87,986.03 and jointly, they have an account with $987,901. Under current law, to what extent are they covered under SIPC rules?
- Joseph's account up to $100,000; Mary's entire account and the joint account up to $100,000.
- The entire joint account, up to the lesser of the account total or $100,000.
- Not more than $100,000 in the aggregate.
- With respect to futures and forwards
- Forwards are marked to market on a daily basis.
- Futures carry greater default risk than forward contracts.
- Futures trades are private transactions.
- A requirement of forwards is a high degree of creditworthiness on the part of both parties to the transaction.
- An investor in a hedge fund has as her primary objective
- Risk management.
- Long term capital appreciation.
- The ability to hedge.
- None of the above.
- The SEC was allowed to create SROs pursuant to
- The 1933 Act
- The 1934 Act
- The Maloney Act
- Real Estate investors seek the following objective
- Long-term growth
- Tax-deferred growth
- Both c. and d.
- Warrants and options share all of the following features, EXCEPT
- Tradable in the secondary market.
- Are subject to the volatility of the underlying.
- Are issued by the company upon whose underlying stock they are based.
- May serve as a less expensive means to gain exposure to an equity security than the actual purchase of that security.
- REITs and Direct Participation Programs in real estate are different in the following respects, except for
- Tax benefits.
- A less expensive manner in which to gain exposure to real estate than direct investment.
EconomicsWhile there is nothing much that can be done against the market volatility, there is a protection mechanism in place in case the broker firm runs into a financial trouble.
Options & FuturesThe SIPC and FDIC insure against personal financial ruin when banks or brokerages go belly up.
TermA return of capital is an investment return that is not considered income.
Mutual Funds & ETFsFrom REITs to owning your own home, find out how diversify your portfolio with real estate assets.
Home & AutoHistory suggests that real estate can provide diversification and a hedge against inflation.
InvestingInvesting in real estate can require more capital than most investors have available, but there are options to invest in real estate for less.
Investing BasicsOptions contracts grant the owner the right to buy or sell shares of a security in the future at a given price.
Investing BasicsA buy limit order allows traders and investors to specify the price that they are willing to pay for a security, such as a stock.
Home & AutoThe best real estate investors all share these traits and practices.
Mutual Funds & ETFsLearn about three mutual funds with exposure to the real estate industry and a broad range of diversification and investment objectives.
A bank or brokerage account that is shared between two or more ...
A nonprofit corporation created by an act of Congress to protect ...
1. A method of hedging a portfolio of stocks against the market ...
A legal term describing a transaction or agreement where two ...
A Definition of "Private Equity Real Estate" and how it applies ...
A filing with the Securities and Exchange Commission (SEC) that ...
Understand what a hedge fund is and how it differs from a mutual fund. Learn about the ways in which a hedge fund becomes ... Read Answer >>
Invest in real estate equity through buying and selling real property or through other more liquid investments like real ... Read Answer >>
First things first, it's only partially correct to think that a portion of your bank deposits is protected. The Federal Deposit ... Read Answer >>
Learn what the average annual return on real estate investments has been over the past 20 years and how it compares to the ... Read Answer >>
Discover why real estate can be a good addition to a traditional stock and bond portfolio. Real estate is affected by economic ... Read Answer >>
The correct answer is b). Wrap account programs are designed for those who trade often within their accounts and want to ... Read Answer >>