Exam 3: Investment Information and Securities Transactions

On October 12, Kevin placed a day order to purchase 100 shares of ABC stock at $21 a share.During the day, the stock sold at prices ranging from $21.01 to $22.49.Over the following month the stock sold in a range of $21.60 to $23.05.On December 2, the market declined radically and the price of ABC stock dropped to $19.94.Which one of the following statements is correct concerning Allen's order?

Angela placed a stop-limit order to sell 100 shares of RST stock at $28 when the market price of RST was $31.Shortly after Angela placed her order, trading on RST was halted due to a pending news announcement.When trading re-opens RST is priced at $24 a share.Within minutes the price of RST began to drop further until it reached $19 a share.Which one of the following statements is correct concerning Angela's stop-limit order to sell?

Which one of the following is considered a financial rather than a general newspaper?

Which of the following sites is especially valuable for information concerning international investments?

In which of the following cases might an investor receive help from The Securities Investor Protection Corporation?

Stock market averages and indexes are commonly used to measure the

Which of the following are advantages of investment clubs? I.Small investors can pool their money to build a portfolio. II.Members can share research responsibilities. III.Individual members may have different goals and tolerance levels for risk. IV.Investment clubs typically buy stocks for the long term rather than short term profits.

Small investors normally have a negotiated commission schedule while large investors benefit from a fixed-commission schedule.

A "pump and dump" scheme involves buying shares of stock, hyping that stock via the Internet and then quickly selling the shares at a profit.

An individual investor who wishes to borrow money to buy stocks must open a

The published analysis and recommendations of an individual brokerage firm is called a

Which one of the following statements about back-office research reports is FALSE?

Which one of the following statements about stockbrokers is correct?

An index measures the current value of a group of stocks in relation to a base value established previously.

Heather places an order to buy 525 shares of stock.This is an order for

Which is the correct order of events when an individual buys a stock through a brokerage firm? I.The order is transmitted to the main office of the brokerage firm. II.The customer places the order with their local stockbroker. III.The confirmation of the order is sent to the broker placing the order. IV.The order is sent to the floor of the exchange.

Reviewing industry and company information may provide guidance on the future outlook of a particular firm.

Investment advisors are legally responsible for losses incurred by their clients.

Current price information on shares of a company's stock is often accompanied by statistics on the recent price behavior of that stock.

Which of the following indexes would best reflect the performance of a large, diversified portfolio with equal amounts of money invested in each company.