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 Which of the following is NOT true of a stock exchange? A) It can execute stock trades via brokers on a trading floor. B) It can sell stocks issued directly from corporations. C) It can link buyers and sellers of stock directly. D) It can focus on trading stock of particular types of companies. […]
QUESTION Gloria likes to be able to vote on major issues that are being considered by companies she invests in. What type of securities should Gloria buy? A) secured bonds B) preferred stock C) callable bonds D) common stock E) convertible bonds ANSWER Answer: D Explanation: D) With common stock, stockholders are able to […]
QUESTION Which of the following companies would NOT be traded on the NASDAQ? A) Dell B) Apple C) Volkswagen D) Google E) Microsoft ANSWER Answer: C Explanation: C) The NASDAQ exchange lists about 2,250 companies with an emphasis on high-tech firms. Volkswagen is a German auto manufacturer.
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. […]
