Question 1

Regulation FD requires that brokerage firms disclose material information such as earnings forecasts with all clients simultaneously.

Accepted Answer

A) True 
 B)False

Question 2

You can utilize the Internet to develop financial plans and goals, analyze and select individual investments and organize your portfolio.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

The Internet provides
I.educational sites for financial investing.
II.the ability to trade securities on-line.
III.current information on stocks and bonds.
IV.analysts reports on individual stocks.

Accepted Answer

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

Question 5

McDonald's stock is now selling for $92 per share.Kim wants to buy 100 shares but only if she can do so at $90 or less.She should place a(n)

Accepted Answer

A) stop order. 
B) market order. 
C) limit order. 
D) odd-lot order. 
A) stop order. 
B) market order. 
C) limit order. 
D) odd-lot order.

Question 6

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 7

Over-the-counter market activity is reflected in the

Accepted Answer

A) Standard & Poor's composite index. 
B) NASDAQ index. 
C) AMEX composite index. 
D) financials index. 
A) Standard & Poor's composite index. 
B) NASDAQ index. 
C) AMEX composite index. 
D) financials index.

Question 8

Information that can be found on the Internet at no cost includes
I.P/E ratios.
II.recent news about a company.
III.financial statements.
IV.future earnings and stock prices.

Accepted Answer

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

Question 9

Which one of the following statements is correct about a good-'til-cancelled order?

Accepted Answer

A) The order generally expires after six weeks. 
B) The order will automatically renew unless cancelled by the customer. 
C) The order helps customers obtain a specific price without watching the market continuously. 
D) The order will be cancelled at the end of the trading day if not executed. 
A) The order generally expires after six weeks. 
B) The order will automatically renew unless cancelled by the customer. 
C) The order helps customers obtain a specific price without watching the market continuously. 
D) The order will be cancelled at the end of the trading day if not executed.

Question 10

The published analysis and recommendations of an individual brokerage firm is called a

Accepted Answer

A) prospectus. 
B) comparative data source. 
C) back-office research report. 
D) broker's subscription report. 
A) prospectus. 
B) comparative data source. 
C) back-office research report. 
D) broker's subscription report.

Question 11

An index measures the current value of a group of stocks in relation to a base value established previously.

Accepted Answer

A) True 
 B)False

Question 12

The current price of XUM stock is $35.Jason places a limit order for 100 shares at $30, GTC.The price fall so $30.05 and the rises over the course of a month to $42.

Accepted Answer

A) Jason has a gain of $1,200. 
B) Jason has a gain of $1,195. 
C) Jason does not own the stock, but will if his trade can ever be executed at $30.00 or better. 
D) Jason has a loss of $1,195. 
A) Jason has a gain of $1,200. 
B) Jason has a gain of $1,195. 
C) Jason does not own the stock, but will if his trade can ever be executed at $30.00 or better. 
D) Jason has a loss of $1,195.

Question 13

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 14

EAFE stands for

Accepted Answer

A) Europe, Asia, Far East. 
B) Europe, Australia, Far East. 
C) England, America, Far East. 
D) England, America, France, European Community. 
A) Europe, Asia, Far East. 
B) Europe, Australia, Far East. 
C) England, America, Far East. 
D) England, America, France, European Community.

Question 15

Which one of the following statements about back-office research reports is FALSE?

Accepted Answer

A) They frequently include buy or sell recommendations. 
B) They include analyses of current and future prospects for the securities markets. 
C) They look at specific companies as well as industries. 
D) They are only available to high-profile clients who maintain large accounts with the brokerage firm. 
A) They frequently include buy or sell recommendations. 
B) They include analyses of current and future prospects for the securities markets. 
C) They look at specific companies as well as industries. 
D) They are only available to high-profile clients who maintain large accounts with the brokerage firm.

Question 16

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 17

Which of the following are advantages of investment clubs?
I.Small investors can pool their money to build a portfolio.
II.Members can share research responsibilities.
III.Individual members may have different goals and tolerance levels for risk.
IV.Investment clubs typically buy stocks for the long term rather than short term profits.

Accepted Answer

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

Question 18

Which of the following indexes would best reflect the performance of a large, diversified portfolio with equal amounts of money invested in each company.

Accepted Answer

A) the S&P 500 Index 
B) the Russell 3000 
C) the NASDAQ 100 
D) the Value Line Composite Index 
A) the S&P 500 Index 
B) the Russell 3000 
C) the NASDAQ 100 
D) the Value Line Composite Index

Question 19

It is generally a good idea to use limit orders when trading after hours.

Accepted Answer

A) True 
 B)False

Question 20

Which one of the following is NOT published by the U.S.Government?

Accepted Answer

A) Federal Reserve Bulletin 
B) Survey of Current Business 
C) Kiplinger Washington Letter 
D) Economic Report of the President 
A) Federal Reserve Bulletin 
B) Survey of Current Business 
C) Kiplinger Washington Letter 
D) Economic Report of the President

Regulation FD requires that brokerage firms disclose material information such as earnings forecasts with all clients simultaneously.

You can utilize the Internet to develop financial plans and goals, analyze and select individual investments and organize your portfolio.

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

The Internet provides I.educational sites for financial investing. II.the ability to trade securities on-line. III.current information on stocks and bonds. IV.analysts reports on individual stocks.

McDonald's stock is now selling for $92 per share.Kim wants to buy 100 shares but only if she can do so at $90 or less.She should place a(n)

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.

Over-the-counter market activity is reflected in the

Information that can be found on the Internet at no cost includes I.P/E ratios. II.recent news about a company. III.financial statements. IV.future earnings and stock prices.

Which one of the following statements is correct about a good-'til-cancelled order?

The published analysis and recommendations of an individual brokerage firm is called a

An index measures the current value of a group of stocks in relation to a base value established previously.

The current price of XUM stock is $35.Jason places a limit order for 100 shares at $30, GTC.The price fall so $30.05 and the rises over the course of a month to $42.

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

EAFE stands for

Which one of the following statements about back-office research reports is FALSE?

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

Which of the following indexes would best reflect the performance of a large, diversified portfolio with equal amounts of money invested in each company.

It is generally a good idea to use limit orders when trading after hours.

Which one of the following is NOT published by the U.S.Government?

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

Regulation FD requires that brokerage firms disclose material information such as earnings forecasts with all clients simultaneously.

You can utilize the Internet to develop financial plans and goals, analyze and select individual investments and organize your portfolio.

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

The Internet provides I.educational sites for financial investing. II.the ability to trade securities on-line. III.current information on stocks and bonds. IV.analysts reports on individual stocks.

McDonald's stock is now selling for $92 per share.Kim wants to buy 100 shares but only if she can do so at $90 or less.She should place a(n)

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.

Over-the-counter market activity is reflected in the

Information that can be found on the Internet at no cost includes I.P/E ratios. II.recent news about a company. III.financial statements. IV.future earnings and stock prices.

Which one of the following statements is correct about a good-'til-cancelled order?

The published analysis and recommendations of an individual brokerage firm is called a

An index measures the current value of a group of stocks in relation to a base value established previously.

The current price of XUM stock is $35.Jason places a limit order for 100 shares at $30, GTC.The price fall so $30.05 and the rises over the course of a month to $42.

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

EAFE stands for

Which one of the following statements about back-office research reports is FALSE?

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

Which of the following indexes would best reflect the performance of a large, diversified portfolio with equal amounts of money invested in each company.

It is generally a good idea to use limit orders when trading after hours.

Which one of the following is NOT published by the U.S.Government?

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