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Flashcards in Investment Basics Deck (8)
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1
Q

What is the investment fraud that uses organizations or relationships to promote its products?

A

Affinity Fraud

2
Q

What do you call a person’s willingness to weather changes in the values of his investments?

A

Risk tolerance

3
Q

Asset allocation is a long term investment technique and a form of diversification.

A

Yes. This strategy helps control risk.

4
Q

The process of selecting groups of investments with dissimilar risk/return characteristics.

A

Portfolio Diversification

5
Q

A method of systematically investing equal sums of money at regular intervals regardless of the price of the investment

A

Dollar-cost averaging

6
Q

What are the distributions of company profits paid to stockholders?

A

Dividends

7
Q

You would invest in Treasury securities if you had a very conservative investment risk tolerance. True or False

A

True

8
Q

Commissions are paid to individuals and companies for their services in buying or selling investments. Yes or No

A

Yes