Question 1

An order to buy or sell a security that lets the broker decide when to execute the transaction and at what price is called a ____________ order.

Accepted Answer

A)   market
B)   limit
C)   stop
D)   round
E)   discretionaryF) C) and E)
G) A) and D)

Question 2

Which one of the following is not a true statement?

Accepted Answer

A)   The over-the-counter market is a network of dealers who buy and sell the securities of corporations that are not listed on a securities exchange.
B)   Account executives in the OTC market specialize or make a market in the securities of one or more specific firms.
C)   Most OTC trading is conducted in person in the account executive's office.
D)   Since 1971,account executives' operating in the OTC market have used an electronic quotation system called NASDAQ.
E)   NASDAQ is regulated by the National Association of Securities Dealers.F) C) and D)
G) A) and C)

Question 3

If the board of directors approves a two for one stock split,an investor who owns 200 shares before the split owns ____________ shares after the split.

Accepted Answer

A)   75
B)   200
C)   225
D)   400
E)   450F) C) and D)
G) None of the above

Question 4

What is the primary difference between common stock and preferred stock?

Accepted Answer

The most important priority that an inve...

Question 5

A long-term technique used by investors who purchase an equal dollar amount of the same stock at equal intervals in time is called a

Accepted Answer

A)   dollar cost averaging.
B)   dividend reinvestment plan.
C)   buy and hold technique.
D)   regulated transaction.
E)   secured transaction.F) B) and D)
G) B) and C)

Question 6

The minimum commission charged by most brokerage firms for buying or selling stock is between $50 and $75.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is not true?

Accepted Answer

A)   When buying stock on margin,an investor borrows part of the money necessary to buy a particular stock.
B)   Usually,the brokerage firm lends the money or arranges for the loan in a margin transaction.
C)   Investors buy on margin because doing so offers them the potential for greater profits.
D)   The margin requirement is set by the exchanges.
E)   The current margin requirement is identical for all exchanges.F) C) and D)
G) B) and D)

Question 8

The Cumulative feature of a preferred stock is that a corporation may exchange,at its option,for a specified amount of money.

Accepted Answer

A) True 
 B)False

Question 9

Ammar purchased 100 shares of Northern Bank at $55 dollars a share in January of 2004.The shares subsequently split two-for-one on December 31,2004 after paying an annual dividend of $1.00 per share.If Ammar sells all of his shares on the first trading day in January 2005 for $30 each,what has been his return on investment?

Accepted Answer

A)   Zero
B)   9.1%
C)   10.0%
D)   10.9%
E)   15%F) None of the above
G) A) and B)

Question 10

Dividends remain with the stock until

Accepted Answer

A)   five days after the date of record.
B)   two business days after the date of record.
C)   five days before the date of record.
D)   two business days before the date of record.
E)   five days before the actual payment date.F) None of the above
G) C) and D)

Question 11

Devin Scott is looking for an investment that will provide a predictable source of income.With this goal in mind,which of the following industry groups would normally be classified as an industry to invest in for income?

Accepted Answer

A)   public utilities
B)   electronics
C)   automobile manufacturing
D)   steel manufacturing
E)   paper manufacturingF) A) and B)
G) A) and D)

Exam 11: Investing Basics and Evaluating Bonds

An order to buy or sell a security that lets the broker decide when to execute the transaction and at what price is called a ____________ order.

Correct Answer
verified

Which one of the following is not a true statement?

Correct Answer
verified

Devin Scott is looking for an investment that will provide a predictable source of income.With this goal in mind,which of the following industry groups would normally be classified as an industry to invest in for income?

Correct Answer
verified

A long-term technique used by investors who purchase an equal dollar amount of the same stock at equal intervals in time is called a

Correct Answer
verified

Which of the following statements is not true?

Correct Answer
verified

If the board of directors approves a two for one stock split,an investor who owns 200 shares before the split owns ____________ shares after the split.

Correct Answer
verified

Dividends remain with the stock until

Correct Answer
verified

The Cumulative feature of a preferred stock is that a corporation may exchange,at its option,for a specified amount of money.

Correct Answer
verified

What is the primary difference between common stock and preferred stock?

Correct Answer
verified
The most important priority that an inve...
View Answer

The minimum commission charged by most brokerage firms for buying or selling stock is between $50 and $75.

Correct Answer
verified

Correct Answer
verified

Exam 11: Investing Basics and Evaluating Bonds

An order to buy or sell a security that lets the broker decide when to execute the transaction and at what price is called a ____________ order.

Correct AnswerverifiedShow Answer

Which one of the following is not a true statement?

Correct AnswerverifiedShow Answer

Devin Scott is looking for an investment that will provide a predictable source of income.With this goal in mind,which of the following industry groups would normally be classified as an industry to invest in for income?

Correct AnswerverifiedShow Answer

A long-term technique used by investors who purchase an equal dollar amount of the same stock at equal intervals in time is called a

Correct AnswerverifiedShow Answer

Which of the following statements is not true?

Correct AnswerverifiedShow Answer

If the board of directors approves a two for one stock split,an investor who owns 200 shares before the split owns ____________ shares after the split.

Correct AnswerverifiedShow Answer

Dividends remain with the stock until

Correct AnswerverifiedShow Answer

The Cumulative feature of a preferred stock is that a corporation may exchange,at its option,for a specified amount of money.

Correct AnswerverifiedShow Answer

What is the primary difference between common stock and preferred stock?

Correct AnswerverifiedThe most important priority that an inve...View AnswerShow Answer

The minimum commission charged by most brokerage firms for buying or selling stock is between $50 and $75.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The most important priority that an inve...
View Answer

Correct Answer
verified

Correct Answer
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