Exam 3: Investment Information and Securities Transactions

Three years ago, Emily bought 200 shares of HQ at $27.00 per share. HQ shares have risen to $57.50 per share. If the stock continues to rise, she wants to hold it, but she fears that the price could fall quickly and she will lose most of her profit. Which of the following decisions would be best?

Excessively trading a customers account to increase a stockbrokers commission income is

A report describing the transactions in an account, listing the dividend and interest payments received, and detailing the current holdings is called a

Which of the following practices is NOT recommended for on-line traders?

Why are market averages and indexes useful to investors?

EAFE stands for

On-line trading has greatly lowered the cost of buying and selling stock as well as greatly increasing the speed of transactions.

Commission structures vary with the type of security being traded, the type of broker involved and the size of the order.

At 10:45 a.m., Ashley placed a stop-loss order to sell 200 shares of Alpha stock at $43 a share. At 2:15 p.m., the price of Alpha fell to $42.90 and then rose to $43.40 a share by the end of the trading day. Ashley order was executed that day. Ashley would have received a price

A limit order is an order to sell at the limit price or less.

Shares of stock owned by an individual but held in a brokerage firm's name for ease of trading are said to be held in street name.

The current price of HAR stock is $75. Jason places a limit order for 100 shares at $65, GTC. The price falls to $65.10 and then rises over the course of a month to $84.

Which of these market indexes follows the largest number of companies?