FUNDAMENTALS OF INVESTING UPDATED
ACTUAL QUESTIONS AND CORRECT
ANSWERS COMPLETE STUDY GUIDE FULL
SOLUTION
●● Brockage Form
Answer: Facilities the buying and selling of investments from a stock
exchange
●● Capital Gain
Answer: Unearned income received from the sale of the asset above its
purchase price
●● Discount Brokerage Firm
Answer: 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 financial
decisions
, ●● Full-service brokerage firms
Answer: Offer investment transactions as well as investment advice and
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 made up an index
●● Inflation
Answer: THe rise in the general levels 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
ACTUAL QUESTIONS AND CORRECT
ANSWERS COMPLETE STUDY GUIDE FULL
SOLUTION
●● Brockage Form
Answer: Facilities the buying and selling of investments from a stock
exchange
●● Capital Gain
Answer: Unearned income received from the sale of the asset above its
purchase price
●● Discount Brokerage Firm
Answer: 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 financial
decisions
, ●● Full-service brokerage firms
Answer: Offer investment transactions as well as investment advice and
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 made up an index
●● Inflation
Answer: THe rise in the general levels 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