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 limit order:Is used to protect a profit if it is a limit order to buy.Is used to execute a sell at a specific price or lower if possible.Is an order to buy or sell at a specific price or better and can be good till canceled.Is an order to be executed at the best price available and is not known until after confirmation is received.
A benchmark asset, commonly considered by investors to be risk-free:Treasury Bill (T-Bill).Share of preferred stock.A EurobondA junk bond.
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.
Junk bonds:Are bonds issued by junk yards.Are sometimes called "high yield bonds."Are less risky than government bonds.Are not actually bonds.
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.
Investments in CDs:Are riskier than investments in stocks.Are inferior to investments in 8-tracks and vinyl records.Are always tax deferred.Are insured by the FDIC, but have generally underperformed stock investments over the long run.
Since the mid-1920s inflation in the United States has averaged:About 3 percent.About 7 percent.About 10 percent.About 12 percent
