Americans short on investor know-how ...
Don't put too much stock in America's investors.
That may be the message behind a survey by the Securities Investor Protection Corp. and the National Association of Investors Corp.
A five-question quiz was given to more than 2,000 adult investors nationwide. Among the findings:
About 2 of 5 investors polled did not know that "Chapter 11" means that a company is seeking protection under bankruptcy law, intending to reorganize itself.
Fewer than 1 in 5 investors understand that there is no "insurance" against stock-market losses.
Fewer than 1 in 4 investors understands that by placing a "limit order" on a stock, they can avoid a loss. (With the limit order, a broker buys only when the price falls to the amount named.)
More than 4 in 5 investors do not understand that when the funds in a margin account - essentially borrowed funds advanced by a brokerage - exceed 25 percent of the total assets in a trader's account, the brokerage may require an investor to boost his or her personal investment.
Almost 2 in 3 investors don't know that they should put broker-related concerns in writing.
