Question 1

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 2

Which of the following statements concerning day traders are correct?
I. Day traders generally do not hold securities over night.
II. Day trading is a relatively low risk approach to investing.
III. Some day traders sell stocks short.
IV. Day trading was declared illegal by the Market Stabilization Act of 2002.

Accepted Answer

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

Question 3

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?

Accepted Answer

A)  The order was never executed. 
B)  The order was executed at $21.01 per share. 
C)  The order was executed at $22.49. 
D)  The order was executed at $19.94. 
A)  The order was never executed. 
B)  The order was executed at $21.01 per share. 
C)  The order was executed at $22.49. 
D)  The order was executed at $19.94.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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?

Accepted Answer

A)  Angela's stock was sold for $28 a share. 
B)  Angela's stock was sold for $24 a share. 
C)  Angela's stock was sold at a price between $19 and $24 a share. 
D)  Angela still owns her 100 shares of stock. 
A)  Angela's stock was sold for $28 a share. 
B)  Angela's stock was sold for $24 a share. 
C)  Angela's stock was sold at a price between $19 and $24 a share. 
D)  Angela still owns her 100 shares of stock.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

An odd-lot trade involves a trade

Accepted Answer

A)  of only 100 shares. 
B)  that is generally priced at a discount to the market price. 
C)  of 100,000 shares or more. 
D)  consisting of any number of shares that is not a multiple of 100. 
A)  of only 100 shares. 
B)  that is generally priced at a discount to the market price. 
C)  of 100,000 shares or more. 
D)  consisting of any number of shares that is not a multiple of 100.

Question 8

Investors can usually find the financial statements of a firm on the firm's website.

Accepted Answer

A) True 
 B)False

Question 9

An order to sell 300 shares of ABC stock at the best available price is called a

Accepted Answer

A)  limit order. 
B)  market order. 
C)  stop loss order. 
D)  fill-or-kill order. 
A)  limit order. 
B)  market order. 
C)  stop loss order. 
D)  fill-or-kill order.

Question 10

When is it appropriate to use limit orders?

Accepted Answer

It is especially appropriate to use limi

Question 11

Holding securities in street name

Accepted Answer

A)  makes the trading of securities easier and more efficient for individual investors. 
B)  allows the brokerage firm to sell securities without the customers approval. 
C)  enables the brokerage firm to collect the stock dividends as compensation for their services. 
D)  means that the brokerage firm actually owns the securities. 
A)  makes the trading of securities easier and more efficient for individual investors. 
B)  allows the brokerage firm to sell securities without the customers approval. 
C)  enables the brokerage firm to collect the stock dividends as compensation for their services. 
D)  means that the brokerage firm actually owns the securities.

Question 12

The tools and calculators available on the FINRA website are useful, but quite expensive to use.

Accepted Answer

A) True 
 B)False

Question 13

Stock market averages and indexes are commonly used to measure the

Accepted Answer

A)  specific behavior of companies. 
B)  general behavior of stock prices. 
C)  specific behavior of alternative investments. 
D)  specific behavior of the economy. 
A)  specific behavior of companies. 
B)  general behavior of stock prices. 
C)  specific behavior of alternative investments. 
D)  specific behavior of the economy.

Question 14

Brokerage firms are not allowed to make specific buy or sell recommendations to their clients.

Accepted Answer

A) True 
 B)False

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

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

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

An odd-lot trade involves a trade

Investors can usually find the financial statements of a firm on the firm's website.

An order to sell 300 shares of ABC stock at the best available price is called a

When is it appropriate to use limit orders?

Holding securities in street name

The tools and calculators available on the FINRA website are useful, but quite expensive to use.

Stock market averages and indexes are commonly used to measure the

Brokerage firms are not allowed to make specific buy or sell recommendations to their clients.

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

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

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

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

An odd-lot trade involves a trade

Investors can usually find the financial statements of a firm on the firm's website.

An order to sell 300 shares of ABC stock at the best available price is called a

When is it appropriate to use limit orders?

Holding securities in street name

The tools and calculators available on the FINRA website are useful, but quite expensive to use.

Stock market averages and indexes are commonly used to measure the

Brokerage firms are not allowed to make specific buy or sell recommendations to their clients.

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