Exam 3: Participating in the Market

The NYSE sets margin requirements.

All of the S&P measures are indexes in that they are linked to a base value.

Companies having the greatest impact on the computation of the Dow Jones Averages and the Standard and Poor's Indexes have the ____________ and the _____________,respectively.

The Dow Jones Industrial average is a value weighted index.

The index which gives equal weight to every company included and is therefore not dominated by any single company is the

________________ represents 75 percent of the total value of firms listed on the NYSE,while ____________________ includes 1700 individual firms.

Margin percentages are set by the Board of Governors of the Federal Reserve System.

Using the excerpt from Table 3-1,assume a single person has a taxable income of $40,000 Excerpt for Table 3-5

A __________ order sets the price at which an investor is willing to buy or sell and assures the investor that he/she will pay no more or receive no less than the agreed upon price.

You buy 100 shares of stock at $50 per share on margin of 40 percent.If the price of the stock declines to $35,what is your percentage loss?

A type of index that weighs each company by its total market value as a percentage of the total market value for all firms is:

The S&P Indexes are often used by professionals because they are weighted by total market value of the companies in the index.

The margin requirement on stock is currently 30 percent.

The Value Line Average reflects changes in stock prices rather than value of shares outstanding.

The following are all value-weighted indexes,except:

The Value Line Average contains stocks from several exchanges or markets.

You can write-off up to $5,000 in investment losses in any one year.

Commissions charged by stock brokers tend to vary among different classes of brokers.

Tax rates that apply to income within a given tax bracket are referred to as marginal tax rates.

The amount of taxes paid divided by taxable income is called