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  3. 1. financial advisors typically recommend that equ

1. Financial advisors typically recommend that equity investors: a. trade frequently to make more money...

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Accounting

1. Financial advisors typically recommend that equity investors: a. trade frequently to make more money b. only buy stocks with P/E ratio greater than 10 c. lock in short term gains for the tax advantage d. buy and hold good quality stocks for long term gains

2. Divdends on stocks: a. are guranteed by law b. can increase an investor's total return c. cannot be reinvested into the company's stock d. all of the above

3. A 401-K plan: a. can only be set up by your employer b. does not require a mathcing contribution by your employer c. typically requires the employee to choose from a limited number of options determined by their employer d. all of the above

4. A Roth IRA: a. limits who can contribute to a roth IRA based on income b. penalizes early withdrawl of principal c. can only be used to purchase stocks d. allows the investor's contributions to be tax deductible

5. Compared to a Roth IRA: a. The contributions to a 401-K are tax free, while contributions to the Roth IRA are taxed b. The earnings in a 401-K are tax free, while the earnings in a Roth IRA are tax deferred c. Both the Roth IRA and the 401-K earnings are taxed as ordinary income d. The earnings in a 401-K are tax deferred, while the earnings in a Roth IRA are tax free

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