Making a Spending Plan Is an Example of Which Step

question 12

Multiple Choice

Making a spending plan is an example of which step in financial planning?

• A) create a budget
• B) execute the plan
• C) set financial goals
• D) take a financial inventory
• E) know where your money goes

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Definitions:

Common Stock

A type of share or equity ownership in a company, giving holders voting rights and a share in the company's profits via dividends.

Securities Exchange Act

A U.S. law enacted in 1934, which governs the trading of securities, such as stocks and bonds, to protect investors and maintain fair and efficient markets.

Preliminary Prospectus

An initial document given to investors that outlines important details of a potential investment, including risks, objectives, and terms.

Red Herring

A preliminary prospectus provided to potential investors in a new issue of securities, containing information but not the final price.