Exam 15: Investing in Stocks

Use the following two columns of items to answer the matching questions below: -income statement 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

Which of the following is the most risky?

The two parts of a company's balance sheet: (1) assets and (2) liabilities and shareholder's equity, must be equal or in balance.

A stop order is a special form of limit order; it is an order to execute a transaction when the stock price reaches a specified level.

An increased demand for stock ________ the price.

Use the following two columns of items to answer the matching questions below: -annual report 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

Economic growth, as measured by increases in the gross domestic product (GDP) signals the start of a bull market where stock prices are guaranteed to rise.

The ________ is the most common measure of inflation.

Where or how can you obtain a corporate annual report and additional investment analysis?

The valuation of stocks based on an examination of revenues or earnings is called

The stock exchange with the most stringent listing requirements is the

The NYSE MKT LLC (formerly called the American Stock Exchange) is the largest of the physical stock exchanges.

A discount brokerage firm executes transactions and provides investment advice at a price less than that of full-service brokers.

Fiscal policy, the means by which the U.S. government imposes taxes on individuals and corporations and spends its money, has an impact on spending and thus an impact on the stock of some companies.

If you don't need advice or other services offered, you are better off using a discount broker or Internet broker rather than a full-service broker.

Generally, stocks perform better when interest rates are

Limit orders can only be placed for a short period of time, usually a week or less.

A ________ order is an order to execute a transaction to buy or sell a stock only if the price is within the range specified.

The Federal Reserve currently limits the margin rate, the amount that can be borrowed from the brokerage firm to

Stocks are usually bought or sold in round lots, which are multiples of $100.