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Question;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?;;;www.moody';;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?;;;;;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


Paper#45859 | Written in 18-Jul-2015

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