Question 1

Do you believe you have enough knowledge to invest in the stock market? Why or why not?

Accepted Answer

These chapters are fairly comprehensive

Question 2

The income statement for a company is like a budget in that it shows how much money the company would like to have made in a given accounting period.

Accepted Answer

A) True 
 B)False

Question 3

A market order is normally executed much more quickly than a limit order.

Accepted Answer

A) True 
 B)False

Question 4

A company's earnings are $3 per share, its dividend is $2 per share, and its stock price is $30 per share. Its PE ratio is

Accepted Answer

A)  15. 
B)  10. 
C)  1.5. 
D)  33. 
A)  15. 
B)  10. 
C)  1.5. 
D)  33.

Question 5

What is the highest price paid for a share of Acarz stock in the last 52 weeks?

Accepted Answer

A)  $8.22 
B)  $11.14 
C)  $12.00 
D)  $10.00 
A)  $8.22 
B)  $11.14 
C)  $12.00 
D)  $10.00

Question 6

A ________ is an order for a brokerage firm to sell a stock when the price falls to a specified level.

Accepted Answer

A)  stop order 
B)  buy stop order 
C)  sell stop order 
D)  go order 
A)  stop order 
B)  buy stop order 
C)  sell stop order 
D)  go order

Question 7

T is the ________ for American Telephone and Telegraph Company (AT&T Inc.).

Accepted Answer

The answer of T is the ________ for American Telephone...

Question 8

You can currently borrow up to 75% of stock transactions under today's margin rules.

Accepted Answer

A) True 
 B)False

Question 9

Floor traders on the NYSE are willing to trade stocks for others and earn a commission for doing so.

Accepted Answer

A) True 
 B)False

Question 10

The demand for which of the following will decrease the most with a weak economy?

Accepted Answer

A)  Cereal 
B)  Bread 
C)  Boats 
D)  Paper towels 
A)  Cereal 
B)  Bread 
C)  Boats 
D)  Paper towels

Question 11

Use the following two columns of items to answer the matching questions below:
-on margin
A)purchasing stock with funds borrowed from a brokerage firm
B)an order to buy or sell at the prevailing market price
C)an order to sell a stock when the price falls to a specified level
D)a brokerage firm that provides advice plus transaction services
E)a brokerage firm that executes transactions without giving advice

Accepted Answer

The answer of Use the following two columns of items...

Question 12

People who execute stock trades for others at the NYSE are called

Accepted Answer

A)  day traders. 
B)  floor traders. 
C)  stock traders. 
D)  commission traders. 
A)  day traders. 
B)  floor traders. 
C)  stock traders. 
D)  commission traders.

Question 13

If you had 100 shares of Acarz, how much would you expect to receive in dividends annually?

Accepted Answer

A)  $100 
B)  $10 
C)  $1,114 
D)  $1,000 
A)  $100 
B)  $10 
C)  $1,114 
D)  $1,000

Question 14

A ________ executes trades to fulfill orders placed by other investors.

Accepted Answer

A)  day trader 
B)  stock trader 
C)  floor trader 
D)  specialist 
A)  day trader 
B)  stock trader 
C)  floor trader 
D)  specialist

Question 15

From an investing standpoint, stage in life has a lot to do with willingness to bear the risk of various investments. Generally, as an investor moves from wealth accumulation years to wealth preservation years, their portfolio should rotate from a higher risk ________ to a more moderate risk ________ to a lower risk ________.

Accepted Answer

A)  fixed income fund; bank CD; blue chip stock portfolio 
B)  equity portfolio; balanced portfolio; conservative portfolio 
C)  commodities portfolio; equity portfolio; mostly equity plus some debt portfolio 
D)  None of the above are satisfactory. 
A)  fixed income fund; bank CD; blue chip stock portfolio 
B)  equity portfolio; balanced portfolio; conservative portfolio 
C)  commodities portfolio; equity portfolio; mostly equity plus some debt portfolio 
D)  None of the above are satisfactory.

Question 16

Use the following two columns of items to answer the matching questions below:
-balance sheet
A)includes financial statements, a letter summarizing the recent performance, and other company information
B)measure of inflation that represents consumer products
C)statement of a firm's assets, liabilities, and net worth
D)measures a firm's revenues, expenses, and earnings for a specific time

Accepted Answer

The answer of Use the following two columns of items...

Question 17

Stocks would be most favorably affected by

Accepted Answer

A)  a decline in interest rates and a decline in inflation. 
B)  an increase in interest rates and a decline in inflation. 
C)  a decline in interest rates and an increase in inflation. 
D)  an increase in interest rates and an increase in inflation. 
A)  a decline in interest rates and a decline in inflation. 
B)  an increase in interest rates and a decline in inflation. 
C)  a decline in interest rates and an increase in inflation. 
D)  an increase in interest rates and an increase in inflation.

Question 18

All of the following are true about a "stop sell" limit order, except

Accepted Answer

A)  your stock will be sold at the exact price indicated on the stop sell order. 
B)  your stock will be sold at the first available trade once the stop sell limit price is reached. 
C)  stop sell orders are a good way to reduce downside risk of a stock. 
D)  a stop sell limit order can be issued for the trading day or as a good until canceled order. 
A)  your stock will be sold at the exact price indicated on the stop sell order. 
B)  your stock will be sold at the first available trade once the stop sell limit price is reached. 
C)  stop sell orders are a good way to reduce downside risk of a stock. 
D)  a stop sell limit order can be issued for the trading day or as a good until canceled order.

Question 19

How much cash would you need to purchase 500 shares of stock at $21 per share plus brokerage commissions of $125, if you purchase on margin and the margin requirement is 50%?

Accepted Answer

A)  $10,625 
B)  $5,375 
C)  $10,500 
D)  $5,250 
A)  $10,625 
B)  $5,375 
C)  $10,500 
D)  $5,250

Question 20

Which of the following stocks performed the best today relative to its closing price on the previous day?

Accepted Answer

A)  Acarz 
B)  Bixto 
C)  Drizel 
D)  Mavit 
A)  Acarz 
B)  Bixto 
C)  Drizel 
D)  Mavit

Do you believe you have enough knowledge to invest in the stock market? Why or why not?

The income statement for a company is like a budget in that it shows how much money the company would like to have made in a given accounting period.

A market order is normally executed much more quickly than a limit order.

A company's earnings are $3 per share, its dividend is $2 per share, and its stock price is $30 per share. Its PE ratio is

What is the highest price paid for a share of Acarz stock in the last 52 weeks?

A ________ is an order for a brokerage firm to sell a stock when the price falls to a specified level.

T is the ________ for American Telephone and Telegraph Company (AT&T Inc.).

You can currently borrow up to 75% of stock transactions under today's margin rules.

Floor traders on the NYSE are willing to trade stocks for others and earn a commission for doing so.

The demand for which of the following will decrease the most with a weak economy?

People who execute stock trades for others at the NYSE are called

If you had 100 shares of Acarz, how much would you expect to receive in dividends annually?

A ________ executes trades to fulfill orders placed by other investors.

Stocks would be most favorably affected by

All of the following are true about a "stop sell" limit order, except

How much cash would you need to purchase 500 shares of stock at $21 per share plus brokerage commissions of $125, if you purchase on margin and the margin requirement is 50%?

Which of the following stocks performed the best today relative to its closing price on the previous day?

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters

Exam 15: Investing in Stocks

Do you believe you have enough knowledge to invest in the stock market? Why or why not?

The income statement for a company is like a budget in that it shows how much money the company would like to have made in a given accounting period.

A market order is normally executed much more quickly than a limit order.

A company's earnings are $3 per share, its dividend is $2 per share, and its stock price is $30 per share. Its PE ratio is

What is the highest price paid for a share of Acarz stock in the last 52 weeks?

A ________ is an order for a brokerage firm to sell a stock when the price falls to a specified level.

T is the ________ for American Telephone and Telegraph Company (AT&T Inc.).

You can currently borrow up to 75% of stock transactions under today's margin rules.

Floor traders on the NYSE are willing to trade stocks for others and earn a commission for doing so.

The demand for which of the following will decrease the most with a weak economy?

People who execute stock trades for others at the NYSE are called

If you had 100 shares of Acarz, how much would you expect to receive in dividends annually?

A ________ executes trades to fulfill orders placed by other investors.

Stocks would be most favorably affected by

All of the following are true about a "stop sell" limit order, except

How much cash would you need to purchase 500 shares of stock at $21 per share plus brokerage commissions of $125, if you purchase on margin and the margin requirement is 50%?

Which of the following stocks performed the best today relative to its closing price on the previous day?

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters