If you call your broker to purchase a "round lot" you are:Buying a mutual fund of 100 different stocks.Authorizing him/her to decide how many shares to buy.Negotiating commissions on future purchases and sales.Purchasing 100 shares of a specific stock.
The P/E ratio:Is the same for all firms in a given industry.Does not change over time.Is typically higher for firms whose earnings are expected to grow rapidly.Is the same as the dividend yield.
For most Americans, taxes are due on:January 1.April 1.April 15.December 31.
Buying on margin::Precludes the advantage of using leverage.Is not affected by limits on borrowing established by ERISA.Minimizes losses if the price of a security declines.Is possible by borrowing from a broker.
The number of stocks that make up the Dow Jones Industrial Average is:5,000.500.30.10.
A prudent investor:Does not have to consider the tax effect of long-term gains.Evaluates his/her investments on an after-tax basis.Studiously avoids income-shifting among funds.Knows that a drop in the dividend payout signals a stronger firm.
Determining total return typically utilizes the:Inflation-adjusted annual performance of all mutual-funds.Annual capital gain plus dividend payout of a stock or fund.Math skills learned in college-level calculus courses.Dividend yield on the Dow Jones Industrial Average.
Mortgage payments:Can be completely deducted from income for tax purposes.Vary from month to month on a fixed rate loan.Represent high principal payments early in the term of the loan.Are typically tax deductible to the extent that they represent payment of interest.
