Which of the following statements is FALSE? There is no need to evaluate mutual fund investments because investment companies hi
re the best professional managers they can to manage their funds. Professional fund managers do make mistakes. Individual investors should be involved in choosing a mutual fund because they know how the objectives of a mutual fund match their own investment objectives. Although investing in mutual funds provides professional management, individual investors should continually evaluate their mutual fund investments.
Answer: Statement that “There is no need to evaluate mutual fund investments because investment companies hire the best professional managers they can to manage their funds “ is FALSE
A mutual fund is a pool of stocks, bonds or other funds where an investor purchase his shares. He gets one to meet his investment goals so evaluating a mutual fund's performance is needed and must involve thorough research to lessen risk.
Professional fund managers do make mistakes, so it is a must that investors continually evaluate their mutual fund investments.
There is no need to evaluate mutual fund investments because investment companies hire the best professional managers they can to manage their funds: this statement is False.
Explanation:
A mutual fund is an investment cart that is created for a pond of funds collected from a lot of shareholders to vest in securities such as Bonds, stocks, money market instrument and same assets.
Mutual funds are carried by those who manage the money, who vest the capital fund's and carried out activity to produce capital gains and income for the fund's Investor.
Answer: D. The company reissues the treasury stock it holds.
Explanation:
Earnings per share is calculated by dividing the Net Income by the weighted average number of shares that a company has outstanding. If the company reissues treasury stock, this would increase the number of average stock outstanding thereby increasing the denominator of the EPS equation which would have the effect of reducing the Earnings per share.
For instance, if a company had net income of $50 and common equity outstanding of $40, the EPS would be;
= 50/40
= $1.25
If the company reissues treasury stock of $30, the EPS would change to;
Advertising: It is a creative marketing strategy to promote product and service by using paid communication channel. It help to spread awareness to the target audience. This technique is used to aware public about product, social cause, scheme or government policies.
There are three primary objective of advertising:
Inform
Persuade.
Remind.
Advertising follow the AIDA model, which states awareness leads to Interests which lead to Desire and finally lead to Action.
Answer: The donor may incur a gift tax liability. Also, the cost basis will be $50 per share to the recipient of the gift.
Explanation:
From the question, we are informed that a customer owns 200 shares of ABC, that were bought 2 years ago at $50 per share and that the current market value of ABC stock is $60 per share.
If the customer gifts the stock to his son, the result is the donor may incur a gift tax liability. Also, the cost basis will be $50 per share to the recipient of the gift.
