1. What is the difference between investment and speculation?

2. Explain the difference between direct and indirect investing.

3. How would you describe the investment environment?

4. Explain the difference between long-term and short term financial assets with examples.

5. Comment on the differences between investment in financial and physical assets

using following characteristics:
a. Divisibility
b. Liquidity
c. Holding period
d. Information ability

6. Why preferred stock is called hybrid financial security?

7. Why Treasury bill is considered being a risk free investment?

8. Describe how investment funds, pension funds and life insurance companies each
act as financial intermediaries.

9. Distinguish closed-end funds and open-end funds.

10.How do you understand why word hedge currently is misapplied to hedge funds?

11.Why the role of the organized stock exchanges is important in the modern economies?

12.What factors might an individual investor take into account in determining his/her
investment policy?

13.Define the objective and the content of a five-step procedure.

14.What are the differences between technical and fundamental analysis?

15.Explain why the issues of selectivity, timing and diversification are important when
forming the investment portfolio.