Question 1

Which of the following orders instructs the broker to sell at or below a specified price?

Accepted Answer

A) Limit-sell order 
B) Stop-loss 
C) Limit-buy order 
D) Stop-buy order 
A) Limit-sell order 
B) Stop-loss 
C) Limit-buy order 
D) Stop-buy order

Question 2

Block transactions are transactions for more than _______ shares, and they account for about _____ percent of all trading on the NYSE.

Accepted Answer

A) 1,000; 5 
B) 500; 10 
C) 100,000; 50 
D) 10,000; 30 
A) 1,000; 5 
B) 500; 10 
C) 100,000; 50 
D) 10,000; 30

Question 3

Specialists on stock exchanges perform which of the following functions?

Accepted Answer

A) Act as dealers in their own accounts 
B) Analyze the securities in which they specialize 
C) Provide liquidity to the market 
D) Act as dealers in their own accounts and analyze the securities in which they specialize 
E) Act as dealers in their own accounts and provide liquidity to the market 
A) Act as dealers in their own accounts 
B) Analyze the securities in which they specialize 
C) Provide liquidity to the market 
D) Act as dealers in their own accounts and analyze the securities in which they specialize 
E) Act as dealers in their own accounts and provide liquidity to the market

Question 4

You sell short 100 shares of Loser Co.at a market price of $45 per share.Your maximum possible loss is

Accepted Answer

A) $4,500. 
B) unlimited. 
C) zero. 
D) $9,000. 
A) $4,500. 
B) unlimited. 
C) zero. 
D) $9,000.

Question 5

You want to purchase IBM stock at $80 from your broker using as little of your own money as possible.If initial margin is 50% and you have $2,000 to invest, how many shares can you buy?

Accepted Answer

A) 100 shares 
B) 200 shares 
C) 50 shares 
D) 500 shares 
A) 100 shares 
B) 200 shares 
C) 50 shares 
D) 500 shares

Which of the following orders instructs the broker to sell at or below a specified price?

Block transactions are transactions for more than ___ shares, and they account for about _ percent of all trading on the NYSE.

Specialists on stock exchanges perform which of the following functions?

You sell short 100 shares of Loser Co.at a market price of $45 per share.Your maximum possible loss is

You want to purchase IBM stock at $80 from your broker using as little of your own money as possible.If initial margin is 50% and you have $2,000 to invest, how many shares can you buy?

The Investment Environment

Financial Markets, Asset Classes and Financial Instruments

Mutual Funds and Other Investment Companies

Risk, Return, and the Historical Record

Capital Allocation to Risky Assets

Optimal Risky Portfolios

Index Models

The Capital Asset Pricing Model

Arbitrage Pricing Theory and Multifactor Models of Risk and Return

The Efficient Market Hypothesis

Behavioural Finance and Technical Analysis

Empirical Evidence on Security Returns

Bond Prices and Yields

The Term Structure of Interest Rates

Managing Bond Portfolios

Macroeconomic and Industry Analysis

Equity Valuation Models

Financial Statement Analysis

Options Markets: Introduction

Option Valuation

Futures Markets

Futures, Swaps, and Risk Management

Portfolio Performance Evaluation

International Diversification

Hedge Funds

The Theory of Active Portfolio Management

Investment Policy and the Framework of the Cfa Institute

Filters

Exam 3: How Securities Are Traded

Which of the following orders instructs the broker to sell at or below a specified price?

Block transactions are transactions for more than _______ shares, and they account for about _____ percent of all trading on the NYSE.

Specialists on stock exchanges perform which of the following functions?

You sell short 100 shares of Loser Co.at a market price of $45 per share.Your maximum possible loss is

You want to purchase IBM stock at $80 from your broker using as little of your own money as possible.If initial margin is 50% and you have $2,000 to invest, how many shares can you buy?

The Investment Environment

Financial Markets, Asset Classes and Financial Instruments

Mutual Funds and Other Investment Companies

Risk, Return, and the Historical Record

Capital Allocation to Risky Assets

Optimal Risky Portfolios

Index Models

The Capital Asset Pricing Model

Arbitrage Pricing Theory and Multifactor Models of Risk and Return

The Efficient Market Hypothesis

Behavioural Finance and Technical Analysis

Empirical Evidence on Security Returns

Bond Prices and Yields

The Term Structure of Interest Rates

Managing Bond Portfolios

Macroeconomic and Industry Analysis

Equity Valuation Models

Financial Statement Analysis

Options Markets: Introduction

Option Valuation

Futures Markets

Futures, Swaps, and Risk Management

Portfolio Performance Evaluation

International Diversification

Hedge Funds

The Theory of Active Portfolio Management

Investment Policy and the Framework of the Cfa Institute

Filters

Block transactions are transactions for more than ___ shares, and they account for about _ percent of all trading on the NYSE.