FUNDAMENTALS OF INVESTING COMPREHENSIVE EXAMINATION TEST VERIFIED QUESTIONS AND ACCURATE ANSWERS

FUNDAMENTALS OF INVESTING
COMPREHENSIVE EXAMINATION TEST
VERIFIED QUESTIONS AND ACCURATE
ANSWERS

●● Brokerage firm
Answer: Facilitates the buying and selling of investments from a stock
exchange


●● Capital Gain
Answer: Unearned income received from the sale of an asset above its
purchase price


●● Discount brokerage firm
Answer: firm Only completes orders to buy and sell investments


●● dividend
Answer: The share of profits distributed in cash


●● Financial advisor
Answer: A trained professional that helps people make investing
decisions

, ●● Full-service brokerage firm
Answer: firm Offer investment transactions as well as investment advice
and a financial advisor


●● index
Answer: A group of similar stocks and bonds


●● Index fund
Answer: A mutual fund that was designed to reduce fees by investing in
the stocks and bonds that make up an index


●● inflation
Answer: rise in the general level of prices


●● inflation risk
Answer: the danger that money won't be worth as much in the future as
it is today


●● investment
Answer: Assets purchased with the goal of providing additional income
from the asset itself but with the risk of loss