Which of the Following Is Least Likely to Be an Investment

question 54

Multiple Choice

Which of the following is least likely to be an investment objective?

• A)enhance current income
• B)save for a major purchase
• C)pay monthly bills
• D)accumulate funds for retirement
• E)seek shelter from taxes

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Definitions:

Convertibles

Securities, usually bonds or preferred shares, that can be converted into a specific number of shares of the issuing company's common stock.

Call Protection

Call Protection is a feature of some bonds that prohibits the issuer from redeeming the bond before a specified period, protecting bondholders from early repayment.

Conversion Feature

Refers to an option within a bond or preferred stock that allows the holder to convert it into a certain number of shares of the issuing company's common stock.

Dividend Yield

The ratio of a company's annual dividends relative to its share price, indicating how much income investors are getting from their investment.