Unit 26: General Stability

Question 1

Examples of Financial Circumstances

Answer 1

Income
Value of home
Liquid net worth
Debt payments
Total debt

Question 2

Examples of Nonfinancial Circumstances

Answer 2

Customers age
Marital status
Number and ages of dependents
Employment status
employment of immediate family

Question 3

What is an investment recommendation

Answer 3

info that a reasonable person would view as suggesting a course of action regarding a security, class of investment or investment strategy that person is making a recommendation

Question 4

Investor objective: preservation of capital/safety

Answer 4

CDs, money market funds, fixed annuities, gov securities, corporate bond funds & bonds

Question 5

Investor objective: Growth

Answer 5

common stock, mutual funds

moderate growth: blue chip, defensive stock

aggressive growth: tech

Question 6

Investor objective: income

Answer 6

Bonds, REITs, CMOs

tax free = municipal bond/funds ROTH IRA

High-yield = below investment grade corporate bonds, bond funds

From stocks = preferred, utility, blue chip stock

Question 7

Investor objective: liquidity

Answer 7

securities listed on exchanges, mutual funds, REITs etc

Question 8

Investor objective: speculation

Answer 8

commodities, futures, precious metals, open contracts, sector funds