Disability income insurance:Can cover part of your lost income while you are disabled.Pays medical expenses associated with a disability.Should only be purchased by star athletes.Is primarily for the unemployed.
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.
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.
A zero coupon bond:Is sold at a discount to face value.Is worthless.Matures immediately.Always has a call feature.
If a mutual fund manager increases his/her cash position, it can be said:The manager is anticipating a bear market.The manager is anticipating a bull market.The manager is trying to reduce the fund’s taxable gains.The manager is aggressive.
Variable life insurance:Offers tax deferral.May provide higher return potential and greater risk than a whole life policy.Allows you to invest a portion of the premium in various subaccounts.All of the above.
Technical analysis is a technique based on factors that are inherent to the market and include:Number of shares sold on a specific day.Number of consecutive days of price increases of a stock.Changes in the direction of movement of a market index.All of the above
Credit cards:Are a cost effective way of financing investment purchases.Have interest payments that are not tax deductible.Typically have lower interest rates than home equity loans.Often have 3 month grace periods on new purchases.