Before You Start to Invest, You Should Ensure Liquidity by Owning

question 11

Multiple Choice

Before you start to invest, you should ensure liquidity by owning

• A) individual stocks.
• B) money market securities.
• C) options and puts.
• D) corporate bonds.

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Definitions:

Capital Gain

The profit made from the sale of a capital asset, like real estate or stocks, that exceeds the purchase price.

Worthless

Pertaining to an asset that has lost all monetary value.

Short-term Loss

A monetary deficit incurred from the sale or trade of an asset owned for less than a year.

Surtax

An additional tax levied on top of the base tax rate for specific purposes or income brackets.