Question 1

What are some of the tools available to investors on the internet (name at least 4)?

Accepted Answer

Price histories, charts, scree

Question 2

Excessively trading a customers account to increase a stockbrokers commission income is

Accepted Answer

A) an acceptable method of timing the market to increase rates of return. 
B) called churning which is an illegal practice. 
C) probably unethical but yet is acceptable by the securities industry. 
D) permitted provided that the customer does not object. 
A) an acceptable method of timing the market to increase rates of return. 
B) called churning which is an illegal practice. 
C) probably unethical but yet is acceptable by the securities industry. 
D) permitted provided that the customer does not object.

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

Market orders are usually executed

Accepted Answer

A) only after all limit orders have been executed. 
B) at the average price during the previous trading session. 
C) at the closing price for the day's trading. 
D) before the price can change significantly if the order is placed while the markets are in session. 
A) only after all limit orders have been executed. 
B) at the average price during the previous trading session. 
C) at the closing price for the day's trading. 
D) before the price can change significantly if the order is placed while the markets are in session.

Question 5

Investors who are aware of current economic, political, and market events tend to make better investment decisions.

Accepted Answer

A) True 
 B)False

Question 6

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 7

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 8

Assume that the S&P 500 composite stock index closes at 2,000.This means that

Accepted Answer

A) the average stock in the index is selling for $20.00. 
B) an investor would have to pay $2,000 to purchase one share of each of the stocks represented in the index. 
C) The average value of a company reflected in the Index has doubled from when the Index was at 1000. 
D) the share prices of the stocks in the index have risen 20 times since the 1941-1943 base period. 
A) the average stock in the index is selling for $20.00. 
B) an investor would have to pay $2,000 to purchase one share of each of the stocks represented in the index. 
C) The average value of a company reflected in the Index has doubled from when the Index was at 1000. 
D) the share prices of the stocks in the index have risen 20 times since the 1941-1943 base period.

Question 9

When placing an order on-line, an individual investor should always double check the ticker symbol prior to submitting the order.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The Securities Investors Protection Corporation protects investors from brokers who offer incompetent advice.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Which of the following is required by the Investment Advisers Act to disclose their background and any conflicts of interest?

Accepted Answer

A) professional investment advisers 
B) accountants and lawyers 
C) stockbrokers 
D) all of the above 
A) professional investment advisers 
B) accountants and lawyers 
C) stockbrokers 
D) all of the above

Question 15

A listing of a firm's major product lines and projections of future sales would both be considered descriptive information.

Accepted Answer

A) True 
 B)False

Question 16

Dividends earned on securities held in street name by the brokerage are not reported to the Internal Revenue Service.

Accepted Answer

A) True 
 B)False

Question 17

Regulation FD requires simultaneous disclosure of critical information simultaneously to investment professionals and the general public with the exception of

Accepted Answer

A) brokerage firms. 
B) hedge funds. 
C) securities rating service such as Moody's Investor Services and Standard & Poor's. 
D) mutual fund managers. 
A) brokerage firms. 
B) hedge funds. 
C) securities rating service such as Moody's Investor Services and Standard & Poor's. 
D) mutual fund managers.

Question 18

Individuals can use the Internet to
I.analyze individual securities.
II.search for stocks that meet specific investment criteria.
III.organize their financial information.
IV.track the performance of their portfolio.

Accepted Answer

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

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

The Value Line Index is a value weighted index based on a small sample of the 1700 stocks covered by the Value Line investment reports.

Accepted Answer

A) True 
 B)False

What are some of the tools available to investors on the internet (name at least 4)?

Excessively trading a customers account to increase a stockbrokers commission income is

Market orders are usually executed

Investors who are aware of current economic, political, and market events tend to make better investment decisions.

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

Assume that the S&P 500 composite stock index closes at 2,000.This means that

When placing an order on-line, an individual investor should always double check the ticker symbol prior to submitting the order.

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

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

The Securities Investors Protection Corporation protects investors from brokers who offer incompetent advice.

Which of the following is required by the Investment Advisers Act to disclose their background and any conflicts of interest?

A listing of a firm's major product lines and projections of future sales would both be considered descriptive information.

Dividends earned on securities held in street name by the brokerage are not reported to the Internal Revenue Service.

Regulation FD requires simultaneous disclosure of critical information simultaneously to investment professionals and the general public with the exception of

Individuals can use the Internet to I.analyze individual securities. II.search for stocks that meet specific investment criteria. III.organize their financial information. IV.track the performance of their portfolio.

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

The Value Line Index is a value weighted index based on a small sample of the 1700 stocks covered by the Value Line investment reports.

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

What are some of the tools available to investors on the internet (name at least 4)?

Excessively trading a customers account to increase a stockbrokers commission income is

Market orders are usually executed

Investors who are aware of current economic, political, and market events tend to make better investment decisions.

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

Assume that the S&P 500 composite stock index closes at 2,000.This means that

When placing an order on-line, an individual investor should always double check the ticker symbol prior to submitting the order.

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

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

The Securities Investors Protection Corporation protects investors from brokers who offer incompetent advice.

Which of the following is required by the Investment Advisers Act to disclose their background and any conflicts of interest?

A listing of a firm's major product lines and projections of future sales would both be considered descriptive information.

Dividends earned on securities held in street name by the brokerage are not reported to the Internal Revenue Service.

Regulation FD requires simultaneous disclosure of critical information simultaneously to investment professionals and the general public with the exception of

Individuals can use the Internet to I.analyze individual securities. II.search for stocks that meet specific investment criteria. III.organize their financial information. IV.track the performance of their portfolio.

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

The Value Line Index is a value weighted index based on a small sample of the 1700 stocks covered by the Value Line investment reports.

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