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 Which term does NOT belong in this list? A) NYSE B) AMEX C) ECNs D) OTC market E) the Dow ANSWER Answer: E Explanation: E) The NYSE (New York Stock Exchange), AMEX (American Stock Exchange), electronic communications networks (ECNs), and over-the-counter (OTC) market are all secondary markets for securities. The Dow Jones Industrial […]
QUESTION Hassan is a strong advocate of self-empowerment and efficiency. When buying and selling securities, he wants to avoid the “middleman” and conduct transactions himself. Where can he do this? A) New York Stock Exchange B) electronic communications networks C) over-the-counter market D) NASDAQ E) American Stock Exchange ANSWER Answer: B Explanation: B) Electronic […]
QUESTION Chad believes that the stock for the Marvelous Marble Company is underpriced. He expects that children are going to love playing with marbles soon and decides to buy a large amount of Marvelous stock. What helped Chad determine that the stock is underpriced? A) The stock’s book value is close to the market value. […]
QUESTION For years, the images of brokers shouting and scrambling on the floor of the New York Stock Exchange have offered an exciting perspective on the intensity of trading stocks under volatile conditions. Which of the following threatens to end the practice of floor trading on the NYSE? A) expansion of the over-the-counter market B) […]
QUESTION Terrence lives in a state that has suffered years of economic decline. He wants to support the state’s effort to rebuild by purchasing a variety of municipal bonds for his portfolio. He also wants diversity in bond payout options. What type of bond does NOT fit Terrence’s investment strategy? A) convertible bonds B) callable […]
QUESTION Dewayne has learned about a new security being issued and is considering investing in it. Before making a decision, he is reviewing a document from his broker that describes the security. What is Dewayne reviewing? A) stock certificate B) Treasury bill C) certificate of deposit D) prospectus E) bond coupon ANSWER Answer: D […]
