Dividends are taxed:At the investor’s marginal income tax rate.At a maximum rate of 15%.Only when the stock is sold.Dividends are never taxed.
Junk bonds:Are bonds issued by junk yards.Are sometimes called "high yield bonds."Are less risky than government bonds.Are not actually bonds.
For tax purposes, a capital gain is considered long term if the investment was held more than:1 day.1 month.1 year.10 years.
A 35-year old individual with 4 young children and a spouse who doesn’t work should probably consider purchasing which of the following types of insurance:Long-term care insurance.Disability insurance.Life insurance.(b) and (c).
Of the following, the safest type of investment is:Under the mattress.An FDIC-insured CD.An international growth mutual fund.An Internet stock.
Gold may be a good investment if:Inflation is expected to increase.You like the color.World peace comes to pass.Foreign governments sell their gold reserves.
The financial pyramid implies that:An investment near the top of the pyramid has a higher potential return, but also carries higher risk.Egyptian pharoahs were astute investors.Eating nutritious meals from the "food pyramid" will make you a better investor."Pyramid" or "Ponzi" schemes are good investments.
The net asset value (NAV) of a bond fund:Cannot be determined.Changes as interest rates change.Is determined by the average coupon rates of the bonds in the fund.Will not change as bonds in the fund are bought or sold.
