Q:
All of the following statements are true with respect to the various ways that equity investments may be classified except:
a) Indexing is a form of a passive investment strategy.
b) From a U.S. investor point of view, international investing implies purchasing stocks domiciled all over the world, including the U.S.
c) Sector investing should be deemed as a complementary strategy to a well established portfolio.
d) Purchasing only stocks that exhibit a low P/E ratio is a form of "style" investing. 
A:
The correct answer is: b)
Global investing is the proper definition for investing in stocks from all over the world. International investing generally involves investing in securities domiciled outside of the investor's home country.

MORE FAQS

  1. What is the difference between risk and opportunity cost?

  2. What are the differences between debt and equity markets?

  3. The general investing public is under the opinion that today's new tech stock is going to take off and ...

  4. Under the Uniform Securities Act, federal covered securities include those sold to qualified purchasers ...

  5. Under the Uniform Securities Act, federal covered securities include those sold to qualified purchasers ...

  6. What is the difference between a global fund and an international fund?

  7. What effect has globalization had on international investments?

  8. How can I protect my portfolio from market corrections?

  9. What are some of the limitations of only looking at the rate of return for an investment?

  10. What investments have been the poorest historical performers?

  11. Which financial instruments have par values?

  12. What proportion of my overall investments should be in securities?

  13. How does price elasticity affect my stock purchase decisions?

  14. A Straddle

  15. A formula timing plan which consists of periodic purchases of a fixed dollar amount of an investment company regardless of price is known as:

  16. How do marketable securities impact a company's financial statements?

  17. What is the difference between a sunk cost and an opportunity cost?

  18. What is the difference between a sharpe ratio and an information ratio?

  19. Are short-term investments a good strategy for cash-rich small businesses"?

  20. Which of the following statements is (are) true with respect to the factors that a manager must take ...

RELATED FAQS

  1. What is the difference between risk and opportunity cost?

    Learn the subtle differences between the concepts of risk and opportunity cost as well as how they impact your investment ...
  2. What are the differences between debt and equity markets?

    Understand the basic, fundamental differences between the two primary investment markets of debt securities and equity investments.
  3. The general investing public is under the opinion that today's new tech stock is ...

    The correct answer is C). Mary invests with a contrarian investment strategy, a style that does not follow public opinion ...
  4. Under the Uniform Securities Act, federal covered securities include those sold ...

    The correct answer is b. Qualified purchasers are defined under the Uniform Securities Act as either a person who owns at ...
  5. Under the Uniform Securities Act, federal covered securities include those sold ...

    The correct answer is b. Qualified purchasers are defined under the Uniform Securities Act as either a person who owns at ...
  6. What is the difference between a global fund and an international fund?

    In the English language, "global" and "international" tend to be used interchangeably - hence the confusion in the investing ...
RELATED TERMS
  1. Long-Term Investments

    An account on the asset side of a company's balance sheet that ...
  2. Investing

    The act of committing money or capital to an endeavor with the ...
  3. International Investing

    The strategy of selecting globally-based investment instruments ...
  4. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment ...
  5. Style Analysis

    The process of determining what type of investment behavior an ...
  6. Passive Investing

    An investment strategy involving limited ongoing buying and selling ...

You May Also Like

Hot Definitions
  1. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  2. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  5. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  6. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
Trading Center