Options Trading, Finance And Accounting

Question: Why might an options trader have portfolios based on expiration?
A
Because it makes it easier to manage

B
Because the only way to classify options is by expiration

C
Because options expiring in the near term need to be monitored more actively

D
Because it reduces the tax obligation

Note: Answer not sure
1. Report
Question: What is meant by a "bear market"?
A
When expectations are that the market will fall

B
When there is a temporary increase in stock prices

C
When there is a temporary decrease in stock prices

D
When expectations are that the market will rise

Note: Answer not sure
1. Report
Question: What is a sideways chart?
A
When a stock price varies drastically

B
When a stock price moves within a relatively narrow band

C
When a stock is losing value quickly

D
When a stock has just had news come out

Note: Answer not sure
1. Report
Question: Why would an options trader invest only in options of companies which have a history of paying dividends?
A
Because it creates an income stream

B
Because it lowers risk in investment

C
Because it creates a return on investment

D
All of these

Note: Answer not sure
1. Report
Question: Which of the following is an advantage of having multiple portfolios instead of only one?
A
It lowers the trader's tax obligations.

B
It makes it easier to trade and profit.

C
It takes away all risk.

D
Goals can be set for each portfolio and tracked separately.

Note: Answer not sure
1. Report
Question: What happens to an investment if risk is mitigated properly?
A
Nothing specific happens to any one investment; risk mitigation is an overall portfolio tool.

B
The stocks you purchase are guaranteed to increase.

C
It makes for a zero sum game, with no losses or profits.

D
Risk is assigned to someone else.

Note: Answer not sure
1. Report
Question: What is portfolio management?
A
Having a suite of investments to reach a goal while minimizing risk

B
Buying shares all in one industry

C
Actively trading stocks in your portfolio

D
Selling off securities which are not performing

Note: Answer not sure
1. Report
Question: Which of the following is a criticism of both fundamental and technical analyses?
A
Neither one can accurately predict future stock price movements.

B
Both help people make money, the question is which one helps them make more money.

C
The numbers needed are not readily available.

D
There are other strategies which work better.

Note: Answer not sure
1. Report
Question: Why do investors often expect the beginning of the year stock prices to rise?
A
Because new year means companies can restart and forget the past

B
Because management is always more driven

C
Because the year end sales typically bolster profits and increase demand

D
Because employee cuts are made reducing expenses typically after the holidays

Note: Answer not sure
1. Report
Question: Why would an investor be unlikely to hold growth, value, small cap, and index portfolios all at once?
A
Because it requires too much time to manage

B
Because they are completely different investment perspectives

C
Because taxes would be excessive

D
Because it would be too difficult to earn a return on any one portfolio

Note: Answer not sure
1. Report

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Question: Why might an options trader have portfolios based on expiration?

Question: What is meant by a "bear market"?

Question: What is a sideways chart?

Question: Why would an options trader invest only in options of companies which have a history of paying dividends?

Question: Which of the following is an advantage of having multiple portfolios instead of only one?

Question: What happens to an investment if risk is mitigated properly?

Question: What is portfolio management?

Question: Which of the following is a criticism of both fundamental and technical analyses?

Question: Why do investors often expect the beginning of the year stock prices to rise?

Question: Why would an investor be unlikely to hold growth, value, small cap, and index portfolios all at once?