Exam 3: Investment Information and Securities Transactions

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?

Traders who hold stocks for less than a full day can reduce the tax burden on their profits.

Most brokers charge higher commissions for on-line trades than for telephone transactions.

An investor who mistakenly buys the wrong stock because the symbols are similar has 24 hours to undo the trade.

The Dow Jones Industrial Average (DJIA)is based on the prices of

Subscription letters are

Which one of the following can be considered a pitfall for investors new to on-line trading?

When deciding between a discount or full service brokerage, the investor should consider

Many brokerage firms require that disputes between individual investors and brokers be settled through arbitration.

Reviewing industry and company information may provide guidance on the future outlook of a particular firm.

A person can become a Certified Financial Planner merely by filling out an application and paying an annual fee.

For most stocks, charts and tables of historical prices are only available through subscription services.

All the Standard & Poor's indexes are based on the total market values of the companies rather than on the price of a single share.

On-line trading has greatly lowered the cost of buying and selling stock as well as greatly increasing the speed of transactions.