Exam 3: Investment Information and Securities Transactions

In addition to the Dow Jones Industrial Average, the Standard & Poors 500 and NASDAQ indexes are widely quoted measures of market performance.

Which of the following is usually available on a companies website?

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

An odd-lot trade involves a trade

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

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

When an investor places a ________ order, he agrees to buy or sell at the best available price when the trade is executed.

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

Which one of the following statements is correct?

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

Ryan bought a stock three years ago for $6 a share.Today, June 22, the stock is selling for $72 a share.Ryan is afraid that the price will fall and does not want to lose his profits so he places a stop-loss order to sell at $70.The stock sells between $71 and $75 throughout the remainder of the day on June 22.On the morning of June 23, the stock opens at $9 a share based on rumors of a possible bankruptcy due to inappropriate accounting procedures.Which one of the following statements is true concerning this situation?

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.

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

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

Many day traders are also margin traders.

Which of the following statements concerning market, stop loss and limit orders are correct? I.Market orders guarantee both a price and an execution. II.Market orders guarantee an execution but not a price. III.Limit orders guarantee a price but not an execution. IV.Stop-loss orders may never be executed.

Which of the following practices is not recommended for on-line traders?

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.

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

Which one of the following statements is true concerning bonds?