Exam 9: Financial Markets and Instruments: Learning the Investment Environment

With an initial margin requirement of 50%,if you have $10,000 in cash you can buy $20,000 of securities.

The Sarbanes Oxley act tightened rules governing financial disclosures.

A discount broker provides the same services as a full-service broker,including research.

Which alternative is an example of an intangible asset?

The amount of funds needed to buy 100 shares of a stock at $80 a share with a margin account and an initial margin requirement of 50% is

A broker's margin account means the broker shares in your trading gains and losses.

A short position reflects the expectation of price increases.

Which of these investments is most likely to have the highest expected total return?

Selling short means selling a stock you own before its price reaches your expected target.

If you tell your broker to buy securities at the best possible price,you have placed a

Binding arbitration is a method of handling disputes between investors and stockbrokers.

Which item below is not true of the Securities and Exchange Commission?

Money magazine is dedicated exclusively to investing.

A brokerage account that lets you borrow is known as a

"Blue sky" laws refer to

Wall Street Week is a weekly publication of the editors of The Wall Street Journal.

Which item below is not true of the Securities and Exchange Commission?

A long position reflects the expectation of price increases.

A disadvantage to reading the financial pages of local newspapers is the attention they give to local companies.

You purchased 100 shares of KLM at $60 a share by depositing the minimum amount of margin.If the initial margin requirement was 50% and the maintenance margin requirement is 30%,you will get a margin call if KLM's price falls to