expense ratio. Custodial fees are negligible and the sales charge is a one-time expense. The “best” reflection of mutual fund costs is the expense ratio.

they are issued in denominations of $1,000 to $1,000,000. Remember, the question asks what is “not” true. The smallest denomination for a US treasury bill is $10,000.

specialists. This description defines the function of the specialists.

$10. A point is 1% and bonds are priced in $1,000 increments. Multiplying $1,000 by 1% equals $10.

120%. The toll facility usually sets rates to cover 120% of maintenance and debt service.

their shares are traded at prices determined in the open market. The other choices describe open-end investment companies.

long one put and short one call. This is a short straddle. A position that is long one put and long one call is a long straddle.

takedown. The takedown is an additional allowance on bonds sold by a member.

rate of return. Because T-bills pay no interest, Bubba’s rate of return is the discount as a percentage of the face value he receives at maturity.

common stock. Leverage refers to the existence of securities that are senior to common stock. There can be debt leverage and equity leverage.