QUESTION After 36 years with the same engineering firm, Leonard retired last month. After making sure his investments grew to a substantial nest egg, now he needs to shift strategies so his savings provide living expenses. What type of fund should Leonard shift his retirement money into? A) money market B) balanced C) index D) […]
QUESTION Alison has just opened an account with ClickVest, an online discount broker. What is ClickVest best suited to provide Alison? A) optimized returns on discretionary orders B) customized tax planning advice C) low fees on three-day limit orders D) fast execution of market orders E) reduced commission fees on common stock ANSWER Answer: […]
QUESTION Which type of mutual fund reflects more than financial considerations in its portfolio of investments? A) balanced B) socially responsible C) global D) index E) growth ANSWER Answer: B Explanation: B) Socially responsible funds invest in companies that meet certain standards, such as ethical behavior and environmental protection. Like all mutual funds, it […]
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 […]
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 […]
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 […]
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 […]
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 […]
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, […]
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 […]
