Aggressive Stock Management

question 43

Multiple Choice

Aggressive stock management

• A) requires holding speculative stocks for the long term.
• B) involves active stock trading in the short-term in the quest for capital gains.
• C) concentrates on the long-term growth aspects of a security.
• D) concentrates on high dividend yielding stocks.

Calculate the nominal rate of interest based on compounding periods.

Analyze and calculate the rate of return on different types of investment vehicles.

Understand how to calculate time until bond maturity using compound interest and bond purchase details.

Calculate the effective payment date considering the time value of money with different compounding periods.

---

Definitions:

Limited Liability

A form of legal protection for shareholders and owners that limits their losses to the amount of investment in the company, protecting personal assets from company debts and liabilities.

Double Taxation

Double Taxation is a tax principle referring to income taxes being paid twice on the same source of earned income. It can occur when income is taxed at both the corporate level and personal level, or in two different countries.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders; it has rights and liabilities independent of those owners and can enter into contracts, sue, and be sued.

Sole Proprietorships

A business structure where a single individual owns and operates the business, bearing full responsibility for its debts and obligations.