Question 1

Assume you wanted to find yesterday's closing stock price for the XYZ Corporation. You would be most likely to find this information in

Accepted Answer

A)  Kiplinger's Personal Finance Magazine. 
B)  The Investor's Resource Manual. 
C)  The Granville Market Letter. 
D)  The Wall Street Journal. 
A)  Kiplinger's Personal Finance Magazine. 
B)  The Investor's Resource Manual. 
C)  The Granville Market Letter. 
D)  The Wall Street Journal.

Question 2

Assume that the S&P 500 composite stock index closes at 1300. This means that

Accepted Answer

A)  the average stock in the index is selling for $130.00. 
B)  an investor would have to pay $1,300 to purchase one share of each of the stocks represented in the index. 
C)  The average value of a company reflected in the Index is up 30% from when the Index was at 1000. 
D)  the share prices of the stocks in the index have risen 13 times since the 1941-1943 base period. 
A)  the average stock in the index is selling for $130.00. 
B)  an investor would have to pay $1,300 to purchase one share of each of the stocks represented in the index. 
C)  The average value of a company reflected in the Index is up 30% from when the Index was at 1000. 
D)  the share prices of the stocks in the index have risen 13 times since the 1941-1943 base period.

Question 3

Which of the following is a general rather a financial newspaper?

Accepted Answer

A)  The New York Times 
B)  Investor's Business Daily 
C)  The Wall Street Journal 
D)  Barron's 
A)  The New York Times 
B)  Investor's Business Daily 
C)  The Wall Street Journal 
D)  Barron's

Question 4

Standard & Poor's and Mergent both publish extensive data on bonds.

Accepted Answer

A) True 
 B)False

Question 5

The Dow Jones Industrial Average (DJIA) is based on the prices of

Accepted Answer

A)  30 stocks. 
B)  100 stocks. 
C)  500 stocks. 
D)  200 stocks. 
A)  30 stocks. 
B)  100 stocks. 
C)  500 stocks. 
D)  200 stocks.

Question 6

Investment clubs are legal partnerships.

Accepted Answer

A) True 
 B)False

Question 7

Stop orders are used only when selling a stock.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Subscription letters are

Accepted Answer

A)  sometimes geared to specific industries and companies. 
B)  available free on the Internet. 
C)  published on an annual basis. 
D)  descriptive in nature but do not offer investment advice. 
A)  sometimes geared to specific industries and companies. 
B)  available free on the Internet. 
C)  published on an annual basis. 
D)  descriptive in nature but do not offer investment advice.

Question 10

A brokerage firm which provides analyst reports, investment advice and information as well as online brokerage services is called a(n)

Accepted Answer

A)  premium discount broker. 
B)  full-service broker. 
C)  basic discount broker. 
D)  electronic broker. 
A)  premium discount broker. 
B)  full-service broker. 
C)  basic discount broker. 
D)  electronic broker.

Question 11

Commission structures vary with the type of security being traded, the type of broker involved and the size of the order.

Accepted Answer

A) True 
 B)False

Question 12

Why are market averages and indexes useful to investors?

Accepted Answer

By comparing the values of various avera

Question 13

The basic function of stockbrokers is to execute client orders at the best possible price.

Accepted Answer

A) True 
 B)False

Question 14

Chartered Financial Analysts and Certified Financial Planners must pass a rigorous series of exams, as well as meet educational and experience requirements.

Accepted Answer

A) True 
 B)False

Question 15

At 10:45 a.m., Ashley placed a stop-loss order to sell 200 shares of Alpha stock at $43 a share. At 2:15 p.m., the price of Alpha fell to $42.90 and then rose to $43.40 a share by the end of the trading day. Ashley order was executed that day. Ashley would have received a price

Accepted Answer

A)  of $42.90 a share for her stock since her order was already recorded in the specialist's book. 
B)  of $43.40 a share for her stock since that was the closing price on the day of execution. 
C)  between $42.90 and $43.40 a share depending upon when her trade executed. 
D)  equal to the average prices paid by the specialist during that trading day. 
A)  of $42.90 a share for her stock since her order was already recorded in the specialist's book. 
B)  of $43.40 a share for her stock since that was the closing price on the day of execution. 
C)  between $42.90 and $43.40 a share depending upon when her trade executed. 
D)  equal to the average prices paid by the specialist during that trading day.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

The value of a Standard & Poor's Index is computed by

Accepted Answer

A)  dividing the sum of the closing share prices by an adjusted divisor. 
B)  dividing the sum of the closing share prices by a divisor and then multiplying the quotient by 100. 
C)  dividing the sum of the current market value of all the stocks in the index by a divisor adjusted for changes in the companies composing the Index. 
D)  dividing the sum of the current market value of all the stocks in the index by 1 million. 
A)  dividing the sum of the closing share prices by an adjusted divisor. 
B)  dividing the sum of the closing share prices by a divisor and then multiplying the quotient by 100. 
C)  dividing the sum of the current market value of all the stocks in the index by a divisor adjusted for changes in the companies composing the Index. 
D)  dividing the sum of the current market value of all the stocks in the index by 1 million.

Question 18

Which one of the following is the LEAST important when selecting a stockbroker?

Accepted Answer

A)  knowing the stockbroker personally 
B)  selecting a stockbroker who best understands your investment goals 
C)  considering the services offered and the related costs 
D)  getting referrals from personal acquaintances with similar investment objectives 
A)  knowing the stockbroker personally 
B)  selecting a stockbroker who best understands your investment goals 
C)  considering the services offered and the related costs 
D)  getting referrals from personal acquaintances with similar investment objectives

Question 19

The Dow Jones Industrial Average and the Standard & Poor's Industrial Index have a number of similarities and differences. Discuss at least two major similarities and major differences between these two market indicators.

Accepted Answer

Similarity: Both the DJIA and the S&P In

Question 20

Which of the following statements about the Dow Jones Industrial Average are correct?
I. Higher-priced stocks tend to affect the average more than lower-priced stocks.
II. A one-point change in the DJIA correlates to a $1 change in average share value.
III. Changes in the DJIA are made to reflect company mergers and acquisitions.
IV. The DJIA divisor was determined when the average was created and remains constant.

Accepted Answer

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

Assume you wanted to find yesterday's closing stock price for the XYZ Corporation. You would be most likely to find this information in

Assume that the S&P 500 composite stock index closes at 1300. This means that

Which of the following is a general rather a financial newspaper?

Standard & Poor's and Mergent both publish extensive data on bonds.

The Dow Jones Industrial Average (DJIA) is based on the prices of

Investment clubs are legal partnerships.

Stop orders are used only when selling a stock.

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

Subscription letters are

A brokerage firm which provides analyst reports, investment advice and information as well as online brokerage services is called a(n)

Commission structures vary with the type of security being traded, the type of broker involved and the size of the order.

Why are market averages and indexes useful to investors?

The basic function of stockbrokers is to execute client orders at the best possible price.

Chartered Financial Analysts and Certified Financial Planners must pass a rigorous series of exams, as well as meet educational and experience requirements.

At 10:45 a.m., Ashley placed a stop-loss order to sell 200 shares of Alpha stock at $43 a share. At 2:15 p.m., the price of Alpha fell to $42.90 and then rose to $43.40 a share by the end of the trading day. Ashley order was executed that day. Ashley would have received a price

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

The value of a Standard & Poor's Index is computed by

Which one of the following is the LEAST important when selecting a stockbroker?

The Dow Jones Industrial Average and the Standard & Poor's Industrial Index have a number of similarities and differences. Discuss at least two major similarities and major differences between these two market indicators.

The Investment Environment

Securities Markets and Transactions

Return and Risk

Modern Portfolio Concepts

Common Stocks

Analyzing Common Stocks

Stock Valuation

Market Efficiency and Behavioral Finance

Fixed-Income Securities

Bond Valuation

Mutual Funds and Exchange-Traded Funds

Managing Your Own Portfolio

Options: Puts and Calls

Futures Markets and Securities

Filters

Exam 3: Investment Information and Securities Transactions

Assume you wanted to find yesterday's closing stock price for the XYZ Corporation. You would be most likely to find this information in

Assume that the S&P 500 composite stock index closes at 1300. This means that

Which of the following is a general rather a financial newspaper?

Standard & Poor's and Mergent both publish extensive data on bonds.

The Dow Jones Industrial Average (DJIA) is based on the prices of

Investment clubs are legal partnerships.

Stop orders are used only when selling a stock.

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

Subscription letters are

A brokerage firm which provides analyst reports, investment advice and information as well as online brokerage services is called a(n)

Commission structures vary with the type of security being traded, the type of broker involved and the size of the order.

Why are market averages and indexes useful to investors?

The basic function of stockbrokers is to execute client orders at the best possible price.

Chartered Financial Analysts and Certified Financial Planners must pass a rigorous series of exams, as well as meet educational and experience requirements.

At 10:45 a.m., Ashley placed a stop-loss order to sell 200 shares of Alpha stock at $43 a share. At 2:15 p.m., the price of Alpha fell to $42.90 and then rose to $43.40 a share by the end of the trading day. Ashley order was executed that day. Ashley would have received a price

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

The value of a Standard & Poor's Index is computed by

Which one of the following is the LEAST important when selecting a stockbroker?

The Dow Jones Industrial Average and the Standard & Poor's Industrial Index have a number of similarities and differences. Discuss at least two major similarities and major differences between these two market indicators.

The Investment Environment

Securities Markets and Transactions

Return and Risk

Modern Portfolio Concepts

Common Stocks

Analyzing Common Stocks

Stock Valuation

Market Efficiency and Behavioral Finance

Fixed-Income Securities

Bond Valuation

Mutual Funds and Exchange-Traded Funds

Managing Your Own Portfolio

Options: Puts and Calls

Futures Markets and Securities

Filters