Question 1

When economic conditions are weak, the aggregate demand for products and services

Accepted Answer

A)  declines. 
B)  increases. 
C)  remains the same. 
D)  may either decline or increase. 
A)  declines. 
B)  increases. 
C)  remains the same. 
D)  may either decline or increase.

Question 2

A ________ is an order for a brokerage firm to buy a stock when the price rises 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 3

Assets and liabilities on the balance sheet are classified as

Accepted Answer

A)  personal and business. 
B)  short-term and long-term. 
C)  fundamental and discretionary. 
D)  secure and insecure. 
A)  personal and business. 
B)  short-term and long-term. 
C)  fundamental and discretionary. 
D)  secure and insecure.

Question 4

The daily stock quotations found in financial newspapers will tell you the closing price per share of stock for the previous day's trading, the range of prices the stock traded at the previous day, and a range of trading prices for the last year.

Accepted Answer

A) True 
 B)False

Question 5

Approximately how much did Bixto Company earn per share of common stock during the last year?

Accepted Answer

A)  $1.00 
B)  $15.00 
C)  $.44 
D)  $7.22 
A)  $1.00 
B)  $15.00 
C)  $.44 
D)  $7.22

Question 6

Some investors use ________ as a simple measure of the firm's risk.

Accepted Answer

A)  a stock's dividend yield 
B)  a stock's trading volume 
C)  a stock's price range 
D)  a stock's closing price 
A)  a stock's dividend yield 
B)  a stock's trading volume 
C)  a stock's price range 
D)  a stock's closing price

Question 7

If a firm performs strongly over a period of time the impact on its stock price is

Accepted Answer

A)  positive. 
B)  inversely related. 
C)  uncertain. 
D)  unrelated. 
A)  positive. 
B)  inversely related. 
C)  uncertain. 
D)  unrelated.

Question 8

Use the following two columns of items to answer the matching questions below:
-NASDAQ
A)the oldest and most popular organized stock exchange
B)a computerized network for buying and selling stocks

Accepted Answer

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

Question 9

If you want recommendations you can

Accepted Answer

A)  trade with an online broker. 
B)  open an account at a full-service brokerage firm. 
C)  visit the SEC Web site. 
D)  contact a discount broker. 
A)  trade with an online broker. 
B)  open an account at a full-service brokerage firm. 
C)  visit the SEC Web site. 
D)  contact a discount broker.

Question 10

When you buy a stock on margin, your gain is magnified if the stock goes up in value.

Accepted Answer

A) True 
 B)False

Question 11

Computer systems that match up purchases and sales of stocks even at night when the other exchanges are closed are

Accepted Answer

A)  the NASDAQ. 
B)  the over-the-counter (OT
C)  markets. 
C)  electronic communication networks. 
D)  the regional stock exchanges. 
A)  the NASDAQ. 
B)  the over-the-counter (OT
C)  markets. 
C)  electronic communication networks. 
D)  the regional stock exchanges.

Question 12

A ________ trader helps create a market in one or more stocks by taking an opposite position to the orders placed by clients.

Accepted Answer

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

Question 13

A round lot of stock is any multiple of ________ shares.

Accepted Answer

A)  10 
B)  100 
C)  $100 worth of 
D)  $1,000 worth of 
A)  10 
B)  100 
C)  $100 worth of 
D)  $1,000 worth of

Question 14

You bought IBM stock at $70 per share. It is now $120 a share. You think it could go higher but you are nervous that it could go down and you would lose your gains. To protect your gains but still give yourself the chance to make future profits you could place a

Accepted Answer

A)  market order. 
B)  sell stop order at $100 a share. 
C)  buy stop order at $100 a share. 
D)  sell stop order at $150 a share. 
A)  market order. 
B)  sell stop order at $100 a share. 
C)  buy stop order at $100 a share. 
D)  sell stop order at $150 a share.

Question 15

In getting recommendations from brokers and analysts, you need to be careful that frequent suggestions to buy or sell are not being made in order to generate revenues for these traders.

Accepted Answer

A) True 
 B)False

Question 16

If you are a day trader you would probably utilize a(n)

Accepted Answer

A)  discount brokerage firm. 
B)  full-service brokerage firm. 
C)  online brokerage service. 
D)  commercial bank trust department. 
A)  discount brokerage firm. 
B)  full-service brokerage firm. 
C)  online brokerage service. 
D)  commercial bank trust department.

Question 17

The Stimulus Act of 2009, which provided funds to try to stimulate the economy during the financial crisis, is an example of the government's use of ________ to affect economic growth.

Accepted Answer

The answer of The Stimulus Act of 2009, which provided...

Question 18

There is no inter-relationship between economics in the U.S. and other large countries around the globe.

Accepted Answer

A) True 
 B)False

Question 19

Fees charged by brokerage firms

Accepted Answer

A)  are set by the NYSE. 
B)  are set by the Federal Reserve. 
C)  are set by the National Association of Securities Dealers. 
D)  vary according to the services offered. 
A)  are set by the NYSE. 
B)  are set by the Federal Reserve. 
C)  are set by the National Association of Securities Dealers. 
D)  vary according to the services offered.

Question 20

A margin call is a request from a brokerage firm for the investor to increase the cash in the account in order to bring the margin back up to the minimum level.

Accepted Answer

A) True 
 B)False

Exam 15: Investing in Stocks

When economic conditions are weak, the aggregate demand for products and services

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

Assets and liabilities on the balance sheet are classified as

The daily stock quotations found in financial newspapers will tell you the closing price per share of stock for the previous day's trading, the range of prices the stock traded at the previous day, and a range of trading prices for the last year.

Approximately how much did Bixto Company earn per share of common stock during the last year?

Some investors use ________ as a simple measure of the firm's risk.

If a firm performs strongly over a period of time the impact on its stock price is

Use the following two columns of items to answer the matching questions below: -NASDAQ A)the oldest and most popular organized stock exchange B)a computerized network for buying and selling stocks

If you want recommendations you can

When you buy a stock on margin, your gain is magnified if the stock goes up in value.

Computer systems that match up purchases and sales of stocks even at night when the other exchanges are closed are

A ________ trader helps create a market in one or more stocks by taking an opposite position to the orders placed by clients.

A round lot of stock is any multiple of ________ shares.

You bought IBM stock at $70 per share. It is now $120 a share. You think it could go higher but you are nervous that it could go down and you would lose your gains. To protect your gains but still give yourself the chance to make future profits you could place a

In getting recommendations from brokers and analysts, you need to be careful that frequent suggestions to buy or sell are not being made in order to generate revenues for these traders.

If you are a day trader you would probably utilize a(n)

The Stimulus Act of 2009, which provided funds to try to stimulate the economy during the financial crisis, is an example of the government's use of ________ to affect economic growth.

There is no inter-relationship between economics in the U.S. and other large countries around the globe.

Fees charged by brokerage firms

A margin call is a request from a brokerage firm for the investor to increase the cash in the account in order to bring the margin back up to the minimum level.

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

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