QUESTION On September 16, Marya places a limit order to buy 3,000 shares of Dairy Deelite Inc. stock with a threshold price of $9.00. Which of the following describes the trade made by her broker? A) 3,000 shares of Dairy Deelite were sold at $9.45 on September 16. B) 3,000 shares of Dairy Deelite were […]
Date: September 3rd, 2020
QUESTION Jorge placed a limit order to sell 2,000 shares of RokStar stock with a threshold price of $18.50. At what price does his broker execute the order? A) $18.25 B) $18.40 C) $18.49 D) $18.50 E) $18.60 ANSWER Answer: E Explanation: E) In a limit order for a sale, the broker is directed […]
Date: September 3rd, 2020
QUESTION Which of the following is NOT a factor to consider when researching potential brokers to help trade securities in a portfolio? A) the fees for executing a trade B) the portfolio performance guarantee C) the minimum account balance requirements D) the speed at which trades are executed E) the available research data and tools […]
Date: September 3rd, 2020
QUESTION Where will you find information on the stock prices of major Japanese-based technology companies? A) Wilshire 5000 Index B) Standard & Poor’s 500 C) Nikkei 225 D) NASDAQ Composite Index E) FTSE 100 ANSWER Answer: C Explanation: C) Stock market indicators are indexes of stock market prices of groups of stocks that are […]
Date: September 3rd, 2020
QUESTION Which of the following trades will be executed in the shortest time after the order is placed? A) a discretionary order to buy 1,000 shares of Sunny Fun Cruise Lines. B) a limit order to sell 100 shares of Sunny Fun Cruise Lines above $8.50 C) a market order to buy 300 shares of […]
Date: September 3rd, 2020
QUESTION Which of the following guides a broker’s decision on executing a limit order for a stock? A) par value B) dividends C) book value D) market value E) interest rate ANSWER Answer: D Explanation: D) Limit orders direct a broker to buy or sell a security when the market price, or market value, […]
Date: September 3rd, 2020
QUESTION Why do investors believe that the S&P 500 offers a more accurate index of stock prices than the Dow? A) It lists more companies. B) It is a composite of U.S. and foreign stocks. C) It changes the stocks listed to represent economic trends. D) It lists stocks of all other U.S. stock market […]
Date: September 3rd, 2020
QUESTION Which industry sector is NOT represented in the Standard & Poor’s 500 index? A) financial B) industrial C) leisure and entertainment D) public utility E) transportation ANSWER Answer: C Explanation: C) The S&P 500 index tracks 400 industrial, 40 financial, 40 public utility, and 20 transportation stocks.
Date: September 3rd, 2020
QUESTION Sayed inherited a large sum of money and wants to spread his investment risk. He wants to focus on healthcare companies because it’s a high growth industry. He also prefers to have management fees deducted from his account rather than pay commissions on every purchase. What does Sayed invest in? A) an income load […]
Date: September 3rd, 2020
QUESTION What type of securities make up a hybrid mutual fund? A) common stock and preferred stock B) secured bonds and debenture bonds C) stocks and bonds D) alternative energy company and utility stocks E) convertible bonds ANSWER Answer: C Explanation: C) Hybrid funds include both stocks and bonds to help balance risk.
Date: September 3rd, 2020
