Question 1

Which one of the following market tools is used to limit downside risk in the price of a stock?

Accepted Answer

A) Stop order 
B) Market order 
C) Limit order 
D) Deferred sales order 
A) Stop order 
B) Market order 
C) Limit order 
D) Deferred sales order

Question 2

You purchased 100 shares of KLM at $40 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

Accepted Answer

A) $12. 
B) $20. 
C) $29. 
D) $32. 
A) $12. 
B) $20. 
C) $29. 
D) $32.

Question 3

There is no specific disadvantage in dealing odd lots.

Accepted Answer

A) True 
 B)False

Question 4

The over-the-counter market (OTC)refers to exchanges in foreign countries.

Accepted Answer

A) True 
 B)False

Question 5

Yahoo! Finance is

Accepted Answer

A) a television station dedicated to financial news reporting. 
B) the student edition of the Wall Street Journal. 
C) a feature on the PBS program,The Nightly News. 
D) an Internet site that provides financial information. 
A) a television station dedicated to financial news reporting. 
B) the student edition of the Wall Street Journal. 
C) a feature on the PBS program,The Nightly News. 
D) an Internet site that provides financial information.

Question 6

The NYSE is an example of an organized exchange.

Accepted Answer

A) True 
 B)False

Question 7

On electronic exchanges trades are generally conducted without specialists.

Accepted Answer

A) True 
 B)False

Question 8

Value Line and Moody's are investment advisory services.

Accepted Answer

A) True 
 B)False

Question 9

If you want to bet against upward movement in the stock market you probably want to take a short position.

Accepted Answer

A) True 
 B)False

Question 10

A full-service stockbroker is best distinguished from a discount broker on which of the following characteristics?
I.commissions
II.research
III.range of investment products offered
IV.quality of order execution

Accepted Answer

A) I only 
B) I,II 
C) I,II,III 
D) I,II,III,IV. 
A) I only 
B) I,II 
C) I,II,III 
D) I,II,III,IV.

Question 11

A margin account allows you to borrow funds through your broker.

Accepted Answer

A) True 
 B)False

Question 12

A long position is described as one

Accepted Answer

A) where you buy,and then own securities. 
B) where you have accumulated considerable investment gains. 
C) where you have held the same securities for many years. 
D) where you borrowed money to buy the securities. 
A) where you buy,and then own securities. 
B) where you have accumulated considerable investment gains. 
C) where you have held the same securities for many years. 
D) where you borrowed money to buy the securities.

Question 13

A purchase order for less than 100 shares of stock is called

Accepted Answer

A) an odd lot. 
B) an even lot. 
C) a split order. 
D) a broken lot. 
A) an odd lot. 
B) an even lot. 
C) a split order. 
D) a broken lot.

Question 14

The Securities Exchange Act of 1934 created the document called a 10-K report.

Accepted Answer

A) True 
 B)False

Question 15

Although discount brokers offer lower commissions,your account is not insured by SIPC.

Accepted Answer

A) True 
 B)False

Question 16

Which item below is not true of the New York Stock Exchange?

Accepted Answer

A) It has been moving trades onto an electronic communications network. 
B) It uses a "hybrid" systems that combines hand to hand trades with an electronic network. 
C) It is one part of an organization that manages several exchanges. 
D) It has eliminated the use of specialists. 
A) It has been moving trades onto an electronic communications network. 
B) It uses a "hybrid" systems that combines hand to hand trades with an electronic network. 
C) It is one part of an organization that manages several exchanges. 
D) It has eliminated the use of specialists.

Question 17

With a margin account,you can expect

Accepted Answer

A) to pay interest on a broker's loan. 
B) to leverage the amount you invest. 
C) to magnify your gains or losses. 
D) all of the above 
A) to pay interest on a broker's loan. 
B) to leverage the amount you invest. 
C) to magnify your gains or losses. 
D) all of the above

Question 18

You take a long position in a stock when you

Accepted Answer

A) buy the stock. 
B) sell the stock. 
C) margin the stock. 
D) lend the stock. 
A) buy the stock. 
B) sell the stock. 
C) margin the stock. 
D) lend the stock.

Question 19

John bought 100 shares of ABC stock at $60 a share with a 50% initial margin requirement.If the maintenance margin requirement is 30%,John will get a margin call when the stock's price falls to $30 a share.

Accepted Answer

A) True 
 B)False

Question 20

Investments with long maturities would not include

Accepted Answer

A) common stocks. 
B) preferred stocks. 
C) corporate bonds. 
D) put and call options. 
A) common stocks. 
B) preferred stocks. 
C) corporate bonds. 
D) put and call options.

Which one of the following market tools is used to limit downside risk in the price of a stock?

You purchased 100 shares of KLM at $40 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

There is no specific disadvantage in dealing odd lots.

The over-the-counter market (OTC)refers to exchanges in foreign countries.

Yahoo! Finance is

The NYSE is an example of an organized exchange.

On electronic exchanges trades are generally conducted without specialists.

Value Line and Moody's are investment advisory services.

If you want to bet against upward movement in the stock market you probably want to take a short position.

A full-service stockbroker is best distinguished from a discount broker on which of the following characteristics? I.commissions II.research III.range of investment products offered IV.quality of order execution

A margin account allows you to borrow funds through your broker.

A long position is described as one

A purchase order for less than 100 shares of stock is called

The Securities Exchange Act of 1934 created the document called a 10-K report.

Although discount brokers offer lower commissions,your account is not insured by SIPC.

Which item below is not true of the New York Stock Exchange?

With a margin account,you can expect

You take a long position in a stock when you

John bought 100 shares of ABC stock at $60 a share with a 50% initial margin requirement.If the maintenance margin requirement is 30%,John will get a margin call when the stock's price falls to $30 a share.

Investments with long maturities would not include

Financial Planning: Why Its Important to You

The Time Value of Money: All Dollars Are Not Created Equal

Financial Statement and Budgets: Where Are You Now and Where Are You Going

Taxes: the Governments Share of Your Rewards

Liquidity Management: Managing Current Assets and Current Liabilities

Short-Term Credit Management: Consumer Credit

Consumer Durables: the Personal Auto

Housing: the Cost of Shelter

Investment Basics: Understanding Risk and Return

Stocks and Bonds: Your Most Common Investments

Mutual Fundsother Pooling Arrangements: Simplifying, Maybe Improving Investment Performance

Property and Liability Insurance: Protecting Your Lifestyle Assets

Health Care and Disability Insurance: Protecting Your Earning Capacity

Life Insurance and Estate Planning: Protecting Your Dependents

Retirement Planning: Planning for Your Long-Term Needs

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

Which one of the following market tools is used to limit downside risk in the price of a stock?

You purchased 100 shares of KLM at $40 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

There is no specific disadvantage in dealing odd lots.

The over-the-counter market (OTC)refers to exchanges in foreign countries.

Yahoo! Finance is

The NYSE is an example of an organized exchange.

On electronic exchanges trades are generally conducted without specialists.

Value Line and Moody's are investment advisory services.

If you want to bet against upward movement in the stock market you probably want to take a short position.

A full-service stockbroker is best distinguished from a discount broker on which of the following characteristics? I.commissions II.research III.range of investment products offered IV.quality of order execution

A margin account allows you to borrow funds through your broker.

A long position is described as one

A purchase order for less than 100 shares of stock is called

The Securities Exchange Act of 1934 created the document called a 10-K report.

Although discount brokers offer lower commissions,your account is not insured by SIPC.

Which item below is not true of the New York Stock Exchange?

With a margin account,you can expect

You take a long position in a stock when you

John bought 100 shares of ABC stock at $60 a share with a 50% initial margin requirement.If the maintenance margin requirement is 30%,John will get a margin call when the stock's price falls to $30 a share.

Investments with long maturities would not include

Financial Planning: Why Its Important to You

The Time Value of Money: All Dollars Are Not Created Equal

Financial Statement and Budgets: Where Are You Now and Where Are You Going

Taxes: the Governments Share of Your Rewards

Liquidity Management: Managing Current Assets and Current Liabilities

Short-Term Credit Management: Consumer Credit

Consumer Durables: the Personal Auto

Housing: the Cost of Shelter

Investment Basics: Understanding Risk and Return

Stocks and Bonds: Your Most Common Investments

Mutual Fundsother Pooling Arrangements: Simplifying, Maybe Improving Investment Performance

Property and Liability Insurance: Protecting Your Lifestyle Assets

Health Care and Disability Insurance: Protecting Your Earning Capacity

Life Insurance and Estate Planning: Protecting Your Dependents

Retirement Planning: Planning for Your Long-Term Needs

Filters