Question 1

Averages and indexes differ from one another in that an index

Accepted Answer

A)  is the arithmetic average price behavior of a group of stocks at a given point in time. 
B)  measures the current price behavior of a group of stocks in relation to a base value set at an earlier point in time. 
C)  is of value in-and-of itself, whereas an average must be compared to a historical figure to have any meaning. 
D)  always moves up before a corresponding average moves up, and always moves down before a corresponding average moves down. 
A)  is the arithmetic average price behavior of a group of stocks at a given point in time. 
B)  measures the current price behavior of a group of stocks in relation to a base value set at an earlier point in time. 
C)  is of value in-and-of itself, whereas an average must be compared to a historical figure to have any meaning. 
D)  always moves up before a corresponding average moves up, and always moves down before a corresponding average moves down.

Question 2

Chemical Week and the Oil and Gas Journal are considered to be general business periodicals.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is published yearly by publicly-held corporations and provided free to their stockholders and other investors?

Accepted Answer

A)  brokerage reports 
B)  annual reports 
C)  back-office reports 
D)  red herrings 
A)  brokerage reports 
B)  annual reports 
C)  back-office reports 
D)  red herrings

Question 4

Which one of the following web sites should you utilize to review the financial information in a company's 10-K report?

Accepted Answer

A)  freeedgar.com 
B)  valueline.com 
C)  wsj.com 
D)  finance.yahoo.com 
A)  freeedgar.com 
B)  valueline.com 
C)  wsj.com 
D)  finance.yahoo.com

Question 5

Recent studies suggest that, on average, investments clubs

Accepted Answer

A)  outperform broad market indexes by several percentage points. 
B)  underperform broad market indexes by a several percentage points. 
C)  earn average rates of return. 
D)  no data is available on investment club performance. 
A)  outperform broad market indexes by several percentage points. 
B)  underperform broad market indexes by a several percentage points. 
C)  earn average rates of return. 
D)  no data is available on investment club performance.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Which one of the following statements about limit orders is correct?

Accepted Answer

A)  The execution of the trade will occur prior to the close of trading on the day the trade is placed. 
B)  The execution will occur at the regular open on the day following the day the trade is placed. 
C)  The trade may be executed only at the limit price or better at any time prior to expiration or cancellation of the order. 
D)  The trade will be executed at the market price at the end of the third business day, if not executed previously at the limit price. 
A)  The execution of the trade will occur prior to the close of trading on the day the trade is placed. 
B)  The execution will occur at the regular open on the day following the day the trade is placed. 
C)  The trade may be executed only at the limit price or better at any time prior to expiration or cancellation of the order. 
D)  The trade will be executed at the market price at the end of the third business day, if not executed previously at the limit price.

Question 8

Trading stocks is much faster and less complicated if an individual investor has possession of the actual stock certificates.

Accepted Answer

A) True 
 B)False

Question 9

Current price information is found in which of the following?
I.Dow Theory Letters
II.CNN Headline News
III.CNBC TV website
IV.Hulbert Financial Digest

Accepted Answer

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

Question 10

Analytical information would include such information as estimates of growth in sales and future earnings.

Accepted Answer

A) True 
 B)False

Question 11

Stock market averages reflect the arithmetic average price behavior of a group of stocks

Accepted Answer

A)  at a given point in time. 
B)  relative to a base value set at an earlier point in time. 
C)  relative to other indexes. 
D)  relative to a base price of 100. 
A)  at a given point in time. 
B)  relative to a base value set at an earlier point in time. 
C)  relative to other indexes. 
D)  relative to a base price of 100.

Question 12

On March 15, Marcos placed a good-'til-canceled order to buy 200 shares of ABC at $10 a share.ABC sold between $10.50 and $11.00 on that day.Over the following two months the stock price continued to rise and Marcos forgot about the order.After the markets closed on June 6, some bad news concerning ABC was released.The stock opened on June 7 at a price of $8.00 a share.Which one of the following statements is correct concerning Marcos' order?

Accepted Answer

A)  The order was cancelled on May 15 because it had not been executed within the allowable two-month time period. 
B)  The order was executed on March 15 at $10.50 a share since that was the best available price of the day. 
C)  The order was executed on June 7 at a price of $10.00 a share. 
D)  The order was executed on June 7 at a price of $8.00 a share. 
A)  The order was cancelled on May 15 because it had not been executed within the allowable two-month time period. 
B)  The order was executed on March 15 at $10.50 a share since that was the best available price of the day. 
C)  The order was executed on June 7 at a price of $10.00 a share. 
D)  The order was executed on June 7 at a price of $8.00 a share.

Question 13

Traders who hold stocks for less than a full day can reduce the tax burden on their profits.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following are characteristics of a wrap account?
I.a flat amount of commission per transaction
II.an increased probability of account churning
III.a money manager
IV.detailed performance reports

Accepted Answer

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

Question 15

EAFE stands for

Accepted Answer

A)  Europe, Asia, Far East. 
B)  Europe, Australia, Far East. 
C)  England, America, Far East. 
D)  England, America, France, European Community. 
A)  Europe, Asia, Far East. 
B)  Europe, Australia, Far East. 
C)  England, America, Far East. 
D)  England, America, France, European Community.

Question 16

Which one of the following statements is true concerning bonds?

Accepted Answer

A)  A bond yield represents only the interest earned on a bond. 
B)  Bond yield data is more useful to an investor when compared over time. 
C)  A bond's yield remains constant even when a bond is sold prior to maturity. 
D)  Bonds with similar characteristics generally have widely disparate bond yields. 
A)  A bond yield represents only the interest earned on a bond. 
B)  Bond yield data is more useful to an investor when compared over time. 
C)  A bond's yield remains constant even when a bond is sold prior to maturity. 
D)  Bonds with similar characteristics generally have widely disparate bond yields.

Question 17

Most brokerage firms will invest surplus cash, dividends and interest received, proceeds from the sale of stock and the like in

Accepted Answer

A)  additional securities of the same type. 
B)  certificates of deposit. 
C)  a non-interest bearing account. 
D)  a money market mutual fund. 
A)  additional securities of the same type. 
B)  certificates of deposit. 
C)  a non-interest bearing account. 
D)  a money market mutual fund.

Question 18

America Online, Yahoo! Finance and the Motley Fool are all classified as

Accepted Answer

A)  subscription services. 
B)  comparative data sources. 
C)  financial portals. 
D)  institutional news sites. 
A)  subscription services. 
B)  comparative data sources. 
C)  financial portals. 
D)  institutional news sites.

Question 19

Which one of the following statements is correct about a good-'til-cancelled order?

Accepted Answer

A)  The order generally expires after six weeks. 
B)  The order will automatically renew unless cancelled by the customer. 
C)  The order helps customers obtain a specific price without watching the market continuously. 
D)  The order will be cancelled at the end of the trading day if not executed. 
A)  The order generally expires after six weeks. 
B)  The order will automatically renew unless cancelled by the customer. 
C)  The order helps customers obtain a specific price without watching the market continuously. 
D)  The order will be cancelled at the end of the trading day if not executed.

Question 20

What does it mean to say a bond has a yield to maturity of 6%?

Accepted Answer

A bond yield is the annual rate of retur

Averages and indexes differ from one another in that an index

Chemical Week and the Oil and Gas Journal are considered to be general business periodicals.

Which of the following is published yearly by publicly-held corporations and provided free to their stockholders and other investors?

Which one of the following web sites should you utilize to review the financial information in a company's 10-K report?

Recent studies suggest that, on average, investments clubs

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

Which one of the following statements about limit orders is correct?

Trading stocks is much faster and less complicated if an individual investor has possession of the actual stock certificates.

Current price information is found in which of the following? I.Dow Theory Letters II.CNN Headline News III.CNBC TV website IV.Hulbert Financial Digest

Analytical information would include such information as estimates of growth in sales and future earnings.

Stock market averages reflect the arithmetic average price behavior of a group of stocks

Traders who hold stocks for less than a full day can reduce the tax burden on their profits.

Which of the following are characteristics of a wrap account? I.a flat amount of commission per transaction II.an increased probability of account churning III.a money manager IV.detailed performance reports

EAFE stands for

Which one of the following statements is true concerning bonds?

Most brokerage firms will invest surplus cash, dividends and interest received, proceeds from the sale of stock and the like in

America Online, Yahoo! Finance and the Motley Fool are all classified as

Which one of the following statements is correct about a good-'til-cancelled order?

What does it mean to say a bond has a yield to maturity of 6%?

The Investment Environment

Securities Markets and Transactions

Return and Risk

Modern Portfolio Concepts

Common Stocks

Analyzing Common Stocks

Stock Valuation

Market Efficiency, Behavioral Finance, and Technical Analysis

Fixed-Income Securities

Bond Valuation

Mutual Funds: Professionally Managed Portfolios

Managing Your Own Portfolios

Options: Puts and Calls

Commodities and Financial Futures

Filters

Exam 3: Investment Information and Securities Transactions

Averages and indexes differ from one another in that an index

Chemical Week and the Oil and Gas Journal are considered to be general business periodicals.

Which of the following is published yearly by publicly-held corporations and provided free to their stockholders and other investors?

Which one of the following web sites should you utilize to review the financial information in a company's 10-K report?

Recent studies suggest that, on average, investments clubs

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

Which one of the following statements about limit orders is correct?

Trading stocks is much faster and less complicated if an individual investor has possession of the actual stock certificates.

Current price information is found in which of the following? I.Dow Theory Letters II.CNN Headline News III.CNBC TV website IV.Hulbert Financial Digest

Analytical information would include such information as estimates of growth in sales and future earnings.

Stock market averages reflect the arithmetic average price behavior of a group of stocks

Traders who hold stocks for less than a full day can reduce the tax burden on their profits.

Which of the following are characteristics of a wrap account? I.a flat amount of commission per transaction II.an increased probability of account churning III.a money manager IV.detailed performance reports

EAFE stands for

Which one of the following statements is true concerning bonds?

Most brokerage firms will invest surplus cash, dividends and interest received, proceeds from the sale of stock and the like in

America Online, Yahoo! Finance and the Motley Fool are all classified as

Which one of the following statements is correct about a good-'til-cancelled order?

What does it mean to say a bond has a yield to maturity of 6%?

The Investment Environment

Securities Markets and Transactions

Return and Risk

Modern Portfolio Concepts

Common Stocks

Analyzing Common Stocks

Stock Valuation

Market Efficiency, Behavioral Finance, and Technical Analysis

Fixed-Income Securities

Bond Valuation

Mutual Funds: Professionally Managed Portfolios

Managing Your Own Portfolios

Options: Puts and Calls

Commodities and Financial Futures

Filters