The documents signed when a customer opens a brokerage
account
serve as an informal relationship between the
customer and the stockbroker.
limit the customer to dealing only through
that brokerage firm.
may be signed by a minor child provided that
the money being invested belongs to the child.
establish a legal relationship between the
customer and the brokerage firm.
Points Received: 1 of 1
Comments:
Question 2. Question
:
Which one of the following is considered a financial rather
than a general newspaper?
The New York Times
USA Today
The Wall Street Journal
The Washingtom Post
Points Received: 1 of 1
Comments:
Question 3. Question
:
Most brokerage firms will invest surplus cash, dividends and
interest received, proceeds from the sale of stock and the like in
additional securities of the same type.
certificates of deposit.
a non-interest bearing account.
a money market mutual fund.
Points Received: 1 of 1
Comments:
Question 4. Question
:
Assume that the S&P 500 composite stock index is 995.50.
This means that
the average stock in the index is selling for
$99.55.
an investor would have to pay $995.50 to
purchase one share of each of the stocks represented in the index.
the market values of the stocks in the index
increased by a factor of 99.55 since the 1941-1943 base period.
the share prices of the stocks in the index
have risen 995.50 times since 1941.
Points Received: 0 of 1
Comments:
Question 5. Question
:
Mike bought 200 shares of EG stock two years ago at $16 per
share. The stock has traded in a range of $21 to $44 a share over the past
year. EG is now selling for $43.60 a share. EG announces its earnings today and
Mike feels the stock could go to $60 on good news or fall to $30 on bad. To
protect his profits, the most appropriate order for him to place is
market order to sell immediately.
a limit sell order at $60.00.
a stop loss order at $42.
a stop-limit order to sell at $45.
Points Received: 1 of 1
Comments:
Question 6. Question
:
Earnings on securities held in street name by the brokerage
are not reported to the Internal Revenue Service.
True
False
Points Received: 0 of 1
Comments:
Question 7. Question
:
The published analysis and recommendations of an individual
brokerage firm is called a
prospectus.
comparative data source.
back-office research report.
broker’s subscription report.
Points Received: 1 of 1
Comments:
Question 8. Question
:
Commission structures vary with the type of security being
traded, the type of broker involved and the size of the order.
True
False
Points Received: 1 of 1
Comments:
Question 9. Question
:
An individual can sort stocks by dividend rates, growth
rates, and price/earnings ratios using screening tools on the Internet.
True
False
Points Received: 1 of 1
Comments:
Question 10. Question
:
Trading stocks is much faster and less complicated if an
individual investor has possession of the actual stock certificates.
True
False
Points Received: 1 of 1
Comments:
Question 11. Question
:
Which one of the following statements about limit orders is ?
The execution of the trade will occur prior to
the close of trading on the day the trade is placed.
The execution will occur at the regular open
on the day following the day the trade is placed.
The trade may be executed only at the limit
price or better at any time prior to expiration or cancellation of the order.
The trade will be executed at the market price
at the end of the third business day, if not executed previously at the limit
price.
Points Received: 1 of 1
Comments:
Question 12. Question
:
Which of the following statements about the Dow Jones
Industrial Average are ?
I and III only
II and IV only
I, III and IV only
I, II, III and IV
Points Received: 0 of 1
Comments:
Question 13. Question
:
Over-the-counter market activity is reflected in the
Standard & Poor’s composite index.
Nasdaq index.
AMEX composite index.
financials index.
Points Received: 1 of 1
Comments:
Question 14. Question
:
Traders who hold stocks for less than a full day can reduce
the tax burden on their profits.
True
False
Points Received: 1 of 1
Comments:
Question 15. Question
:
Individuals can use the Internet to
I and IV only
II and III only
I, III and IV only
I, II, III and IV
Points Received: 1 of 1
Comments:
Question 16. Question
:
Which of the following designations does not have formal
education and testing requirements.
Chartered Financial Analyst
Certified Financial Planner
Registered Investment Adviser
Certified Public Accountant
Points Received: 1 of 1
Comments:
Question 17. Question
:
Which one of the following is the LEAST important when
selecting a stockbroker?
knowing the stockbroker personally
selecting a stockbroker who best understands
your investment goals
considering the services offered and the
related costs
getting referrals from personal acquaintances
with similar investment objectives
Points Received: 1 of 1
Comments:
Question 18. Question
:
An individual investor who wishes to borrow money to buy
stocks must open a
signature account.
margin account.
joint account.
custodial account.
Points Received: 1 of 1
Comments:
Question 19. Question
:
Investors are protected from market losses by the SIPC
insurance offered by some full-service brokers.
True
False
Points Received: 0 of 1
Comments:
Question 20. Question
:
The Internet provides
II and III only
III and IV only
I, II and III only
I, II, III and IV
Points Received: 1 of 1
Comments:
Question 21. Question
:
Which one of the following is a measure of the performance
of small companies?
Russell 2000
Russell 1000
Russell 3000
Value Line 1700
Points Received: 1 of 1
Comments:
Question 22. Question
:
A “pump and dump” scheme involves buying shares of
stock, hyping that stock via the Internet and then quickly selling the shares
at a profit.
True
False
Points Received: 1 of 1
Comments:
Question 23. Question
:
Many brokerage firms require that disputes between
individual investors and brokers be settled through arbitration.
True
False
Points Received: 1 of 1
Comments:
Question 24. Question
:
The Dow Jones Industrial Average (DJIA) consists of 30
stocks whose price behavior
typically has little correlation with the rest
of the stock market.
broadly reflects the overall price behavior of
the stock market.
reflects the changes in value of manufacturing
stocks only.
leads the movements in the general economy by
one to two weeks.
Points Received: 1 of 1
Comments:
Question 25. Question
:
Which of the following sites is especially valuable for
information concerning international investments?
http://yahoo.finance.com
www.adr.com
www.moody’s.com
www.bondsonline.com
Points Received: 1 of 1
Comments:
Question 26. Question
:
A stop-loss order is activated once the stock reaches the
specified price.
True
False
Points Received: 1 of 1
Comments:
Question 27. Question
:
Which one of the following web sites should you utilize to
review the financial information in a company’s 10-K report?
freeedgar.com
valueline.com
wsj.com
finance.yahoo.com
Points Received: 1 of 1
Comments:
Question 28. Question
:
It is generally a good idea to use limit orders when
purchasing IPOs on-line.
True
False
Points Received: 1 of 1
Comments:
Question 29. Question
:
Investment advisors are legally responsible for losses
incurred by their clients.
True
False
Points Received: 1 of 1
Comments:
Question 30. Question
:
McDonald’s stock is now selling for $57 per share. Kim wants
to buy 100 shares but only if she can do so at $55 or less. She should place
a(n)
stop order.
market order.
limit order.
odd-lot order.
Points Received: 0 of 1
Comments:
* Times are displayed
in (GMT-10:00) Hawaii The documents signed when a customer opens a brokerage
account serve as an informal relationship between the
customer and the stockbroker. limit the customer to dealing only through
that brokerage firm. may be signed by a minor child provided that
the money being invested belongs to the child. establish a legal relationship between the
customer and the brokerage firm. Points Received: 1 of 1 Comments: Question 2. Question
: Which one of the following is considered a financial rather
than a general newspaper? The New York Times USA Today The Wall Street Journal The Washingtom Post Points Received: 1 of 1 Comments: Question 3. Question
: Most brokerage firms will invest surplus cash, dividends and
interest received, proceeds from the sale of stock and the like in additional securities of the same type. certificates of deposit. a non-interest bearing account. a money market mutual fund. Points Received: 1 of 1 Comments: Question 4. Question
: Assume that the S&P 500 composite stock index is 995.50.
This means that the average stock in the index is selling for
$99.55. an investor would have to pay $995.50 to
purchase one share of each of the stocks represented in the index. the market values of the stocks in the index
increased by a factor of 99.55 since the 1941-1943 base period. the share prices of the stocks in the index
have risen 995.50 times since 1941. Points Received: 0 of 1 Comments: Question 5. Question
: Mike bought 200 shares of EG stock two years ago at $16 per
share. The stock has traded in a range of $21 to $44 a share over the past
year. EG is now selling for $43.60 a share. EG announces its earnings today and
Mike feels the stock could go to $60 on good news or fall to $30 on bad. To
protect his profits, the most appropriate order for him to place is market order to sell immediately. a limit sell order at $60.00. a stop loss order at $42. a stop-limit order to sell at $45. Points Received: 1 of 1 Comments: Question 6. Question
: Earnings on securities held in street name by the brokerage
are not reported to the Internal Revenue Service. True
False Points Received: 0 of 1 Comments: Question 7. Question
: The published analysis and recommendations of an individual
brokerage firm is called a prospectus. comparative data source. back-office research report. broker’s subscription report. Points Received: 1 of 1 Comments: Question 8. Question
: Commission structures vary with the type of security being
traded, the type of broker involved and the size of the order. True
False Points Received: 1 of 1 Comments: Question 9. Question
: An individual can sort stocks by dividend rates, growth
rates, and price/earnings ratios using screening tools on the Internet. True
False Points Received: 1 of 1 Comments: Question 10. Question
: Trading stocks is much faster and less complicated if an
individual investor has possession of the actual stock certificates. True
False Points Received: 1 of 1 Comments: Question 11. Question
: Which one of the following statements about limit orders is ? The execution of the trade will occur prior to
the close of trading on the day the trade is placed. The execution will occur at the regular open
on the day following the day the trade is placed. The trade may be executed only at the limit
price or better at any time prior to expiration or cancellation of the order. The trade will be executed at the market price
at the end of the third business day, if not executed previously at the limit
price. Points Received: 1 of 1 Comments: Question 12. Question
: Which of the following statements about the Dow Jones
Industrial Average are ? I and III only II and IV only I, III and IV only I, II, III and IV Points Received: 0 of 1 Comments: Question 13. Question
: Over-the-counter market activity is reflected in the Standard & Poor’s composite index. Nasdaq index. AMEX composite index. financials index. Points Received: 1 of 1 Comments: Question 14. Question
: Traders who hold stocks for less than a full day can reduce
the tax burden on their profits. True
False Points Received: 1 of 1 Comments: Question 15. Question
: Individuals can use the Internet to I and IV only II and III only I, III and IV only I, II, III and IV Points Received: 1 of 1 Comments: Question 16. Question
: Which of the following designations does not have formal
education and testing requirements. Chartered Financial Analyst Certified Financial Planner Registered Investment Adviser Certified Public Accountant Points Received: 1 of 1 Comments: Question 17. Question
: Which one of the following is the LEAST important when
selecting a stockbroker? knowing the stockbroker personally selecting a stockbroker who best understands
your investment goals considering the services offered and the
related costs getting referrals from personal acquaintances
with similar investment objectives Points Received: 1 of 1 Comments: Question 18. Question
: An individual investor who wishes to borrow money to buy
stocks must open a signature account. margin account. joint account. custodial account. Points Received: 1 of 1 Comments: Question 19. Question
: Investors are protected from market losses by the SIPC
insurance offered by some full-service brokers. True
False Points Received: 0 of 1 Comments: Question 20. Question
: The Internet provides II and III only III and IV only I, II and III only I, II, III and IV Points Received: 1 of 1 Comments: Question 21. Question
: Which one of the following is a measure of the performance
of small companies? Russell 2000 Russell 1000 Russell 3000 Value Line 1700 Points Received: 1 of 1 Comments: Question 22. Question
: A “pump and dump” scheme involves buying shares of
stock, hyping that stock via the Internet and then quickly selling the shares
at a profit. True
False Points Received: 1 of 1 Comments: Question 23. Question
: Many brokerage firms require that disputes between
individual investors and brokers be settled through arbitration. True
False Points Received: 1 of 1 Comments: Question 24. Question
: The Dow Jones Industrial Average (DJIA) consists of 30
stocks whose price behavior typically has little correlation with the rest
of the stock market. broadly reflects the overall price behavior of
the stock market. reflects the changes in value of manufacturing
stocks only. leads the movements in the general economy by
one to two weeks. Points Received: 1 of 1 Comments: Question 25. Question
: Which of the following sites is especially valuable for
information concerning international investments? http://yahoo.finance.com www.adr.com www.moody’s.com www.bondsonline.com Points Received: 1 of 1 Comments: Question 26. Question
: A stop-loss order is activated once the stock reaches the
specified price. True
False Points Received: 1 of 1 Comments: Question 27. Question
: Which one of the following web sites should you utilize to
review the financial information in a company’s 10-K report? freeedgar.com valueline.com wsj.com finance.yahoo.com Points Received: 1 of 1 Comments: Question 28. Question
: It is generally a good idea to use limit orders when
purchasing IPOs on-line. True
False Points Received: 1 of 1 Comments: Question 29. Question
: Investment advisors are legally responsible for losses
incurred by their clients. True
False Points Received: 1 of 1 Comments: Question 30. Question
: McDonald’s stock is now selling for $57 per share. Kim wants
to buy 100 shares but only if she can do so at $55 or less. She should place
a(n) stop order. market order. limit order. odd-lot order. Points Received: 0 of 1 Comments: * Times are displayed
in (GMT-10:00) Hawaii
