Question 1

Unless the investor has requested another arrangement, cash from dividends and the sale of stock is normally

Accepted Answer

A) deposited in a Money Market Account offered by the brokerage. 
B) automatically reinvested in more stock. 
C) direct deposited to the investor's bank account. 
D) held in escrow by the brokerage until it is be reinvested. 
A) deposited in a Money Market Account offered by the brokerage. 
B) automatically reinvested in more stock. 
C) direct deposited to the investor's bank account. 
D) held in escrow by the brokerage until it is be reinvested.

Question 2

Most day traders avoid holding stocks overnight because they fear large price changes while the markets are closed.

Accepted Answer

A) True 
 B)False

Question 3

When is it appropriate to use limit orders?

Accepted Answer

It is especially appropriate to use limi

Question 4

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 5

Three years ago, Emily bought 200 shares of HQ at $27.00 per share.HQ shares have risen to $57.50 per share.If the stock continues to rise, she wants to hold it, but she fears that the price could fall quickly and she will lose most of her profit.Which of the following decisions would be best?

Accepted Answer

A) Place a limit order to sell at $60.00. 
B) Place a stop-limit order at $55.00. 
C) Place a stop-loss order at $27.00. 
D) Place a stop-loss order at $55.00. 
A) Place a limit order to sell at $60.00. 
B) Place a stop-limit order at $55.00. 
C) Place a stop-loss order at $27.00. 
D) Place a stop-loss order at $55.00.

Question 6

Charting is the technique of

Accepted Answer

A) plotting the performance of a security over time. 
B) sorting through databases of securities to select one based on certain parameters. 
C) monitoring a stock based on the underlying economic conditions. 
D) determining the amount of money that must be saved based on a given financial goal. 
A) plotting the performance of a security over time. 
B) sorting through databases of securities to select one based on certain parameters. 
C) monitoring a stock based on the underlying economic conditions. 
D) determining the amount of money that must be saved based on a given financial goal.

Question 7

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 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

Stocks held in street name can be quickly sold online or by telephone.

Accepted Answer

A) True 
 B)False

Question 10

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 11

MSN Money, 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 12

Ryan places a good-'til-canceled limit order to sell 300 shares of KM at $18 a share.When his order reaches the trading floor, KM is trading at $18.20.Which of the following statements is true concerning Roy's order?

Accepted Answer

A) The trade will not be executed and will be immediately cancelled. 
B) The specialist will record the order in the order book and execute the trade as soon as the price hits $18.00. 
C) The brokerage firm will sell the 300 shares at $18.20 and keep the additional $0.20 as a commission. 
D) The order will be executed at $18.20 with the proceeds credited to Roy's account. 
A) The trade will not be executed and will be immediately cancelled. 
B) The specialist will record the order in the order book and execute the trade as soon as the price hits $18.00. 
C) The brokerage firm will sell the 300 shares at $18.20 and keep the additional $0.20 as a commission. 
D) The order will be executed at $18.20 with the proceeds credited to Roy's account.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Investing online is usually less expensive than traditional methods.

Accepted Answer

A) True 
 B)False

Question 15

Shares of stock owned by an individual but held in a brokerage firm's name for ease of trading are said to be held in street name.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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 18

Which one of the following services provides bond ratings?

Accepted Answer

A) Standard & Poor's 
B) Yahoo Finance 
C) Value Line 
D) Bureau of the Public Debt Online 
A) Standard & Poor's 
B) Yahoo Finance 
C) Value Line 
D) Bureau of the Public Debt Online

Question 19

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 20

A report describing the transactions in an account, listing the dividend and interest payments received, and detailing the current holdings is called a

Accepted Answer

A) prospectus. 
B) red herring. 
C) statement. 
D) street certificate. 
A) prospectus. 
B) red herring. 
C) statement. 
D) street certificate.

Unless the investor has requested another arrangement, cash from dividends and the sale of stock is normally

Most day traders avoid holding stocks overnight because they fear large price changes while the markets are closed.

When is it appropriate to use limit orders?

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

Three years ago, Emily bought 200 shares of HQ at $27.00 per share.HQ shares have risen to $57.50 per share.If the stock continues to rise, she wants to hold it, but she fears that the price could fall quickly and she will lose most of her profit.Which of the following decisions would be best?

Charting is the technique of

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

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

Stocks held in street name can be quickly sold online or by telephone.

Stock market averages and indexes are commonly used to measure the

MSN Money, Yahoo! Finance, and the Motley Fool are all classified as

Ryan places a good-'til-canceled limit order to sell 300 shares of KM at $18 a share.When his order reaches the trading floor, KM is trading at $18.20.Which of the following statements is true concerning Roy's order?

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

Investing online is usually less expensive than traditional methods.

Shares of stock owned by an individual but held in a brokerage firm's name for ease of trading are said to be held in street name.

Holding securities in street name

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

Which one of the following services provides bond ratings?

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

A report describing the transactions in an account, listing the dividend and interest payments received, and detailing the current holdings is called a

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

Unless the investor has requested another arrangement, cash from dividends and the sale of stock is normally

Most day traders avoid holding stocks overnight because they fear large price changes while the markets are closed.

When is it appropriate to use limit orders?

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

Three years ago, Emily bought 200 shares of HQ at $27.00 per share.HQ shares have risen to $57.50 per share.If the stock continues to rise, she wants to hold it, but she fears that the price could fall quickly and she will lose most of her profit.Which of the following decisions would be best?

Charting is the technique of

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

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

Stocks held in street name can be quickly sold online or by telephone.

Stock market averages and indexes are commonly used to measure the

MSN Money, Yahoo! Finance, and the Motley Fool are all classified as

Ryan places a good-'til-canceled limit order to sell 300 shares of KM at $18 a share.When his order reaches the trading floor, KM is trading at $18.20.Which of the following statements is true concerning Roy's order?

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

Investing online is usually less expensive than traditional methods.

Shares of stock owned by an individual but held in a brokerage firm's name for ease of trading are said to be held in street name.

Holding securities in street name

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

Which one of the following services provides bond ratings?

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

A report describing the transactions in an account, listing the dividend and interest payments received, and detailing the current holdings is called a

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