Question 1

A GTC order remains effective until filled or cancelled.

Accepted Answer

A) True 
 B)False

Question 2

You specify that your trade is to be made only at a certain price or better. You are placing a(n) ________.

Accepted Answer

A)  stop order 
B)  limit order 
C)  market order 
D)  open order 
E)  closed order 
A)  stop order 
B)  limit order 
C)  market order 
D)  open order 
E)  closed order

Question 3

It is a good idea for every investor to read the Wall Street Journal.

Accepted Answer

A) True 
 B)False

Question 4

The Securities Act of 1934 created the SEC to enforce trading laws.

Accepted Answer

A) True 
 B)False

Question 5

Compare and contrast organized exchanges and OTC markets. List the nine major U.S. stock exchanges in the secondary market.

Accepted Answer

An organized exchange occupies a physica

Question 6

Gracie Johnson saw the securities announcement for New York Bagel Enterprises that provided the details of the offering and a listing of the underwriting syndicate. She saw the

Accepted Answer

A)  tombstone advertisement. 
B)  prospectus. 
C)  initial post. 
D)  exchange advertisement. 
E)  underwriter's issue. 
A)  tombstone advertisement. 
B)  prospectus. 
C)  initial post. 
D)  exchange advertisement. 
E)  underwriter's issue.

Question 7

Reggie believed that the price of his stock was going to drop in the near future his strategy was to short sell that stock to make a profit.

Accepted Answer

A) True 
 B)False

Question 8

You believe that the stock of MoabBikes will soon fall from its current price of $25 per share. You short 1,000 shares with your broker who has a 50% margin requirement. The price falls to $15 per share, but not before it pays a $5 dividend per share. Your commissions and other charges totaled $50. What was your total profit?

Accepted Answer

A)  $5 
B)  $2,450 
C)  $2,500 
D)  $4,950 
E)  $9,950 
A)  $5 
B)  $2,450 
C)  $2,500 
D)  $4,950 
E)  $9,950

Question 9

The Value Line Investment Survey is useful to investors because it

Accepted Answer

A)  follows approximately 1,700 companies. 
B)  provides a one-page summary of each firm's outlook. 
C)  gives weekly evaluations of the economy. 
D)  All of the above 
E)  A and B only 
A)  follows approximately 1,700 companies. 
B)  provides a one-page summary of each firm's outlook. 
C)  gives weekly evaluations of the economy. 
D)  All of the above 
E)  A and B only

Question 10

The difference between an organized exchange and an over-the-counter market is that the transactions that occur on an organized exchange ________ and the over-the-counter transactions ________.

Accepted Answer

A)  are initial offerings; are seasoned issues 
B)  are seasoned issues; are initial offerings 
C)  take place in a physical building; are conducted over the phone or via a computer 
D)  are conducted over the phone or via a computer; take place in a physical building 
E)  are initial offerings; are conducted over the phone 
A)  are initial offerings; are seasoned issues 
B)  are seasoned issues; are initial offerings 
C)  take place in a physical building; are conducted over the phone or via a computer 
D)  are conducted over the phone or via a computer; take place in a physical building 
E)  are initial offerings; are conducted over the phone

Question 11

A limit order specifies a securities trade is to be made only at a certain price or better.

Accepted Answer

A) True 
 B)False

Question 12

When an individual investor sells their shares on the OTC, the price at which they are willing to sell is called the bid price.

Accepted Answer

A) True 
 B)False

Question 13

You want to buy stock in a dynamic electronics firm. You place an order that cannot be completely filled the first day, so you ask for a(n) ________.

Accepted Answer

A)  second chance 
B)  market order 
C)  open order 
D)  day order 
E)  extended order 
A)  second chance 
B)  market order 
C)  open order 
D)  day order 
E)  extended order

Question 14

A ________ is an order to buy or sell a set number of securities immediately at the best price available.

Accepted Answer

A)  day order 
B)  market order 
C)  limit order 
D)  prompt order 
E)  none of the above 
A)  day order 
B)  market order 
C)  limit order 
D)  prompt order 
E)  none of the above

Question 15

For most typical married couples, joint tenancy with the right of survivorship is not an appropriate form of account ownership.

Accepted Answer

A) True 
 B)False

Question 16

ABC Corporation is selling additional shares of common stock. Although ABC Corporation has already sold shares of stock in the public equity markets, these are new shares of stock, and have never been sold or traded previously. This is called a(n) ________.

Accepted Answer

A)  initial public offering 
B)  seasoned new issue 
C)  secondary issue 
D)  blue chip issue 
E)  none of the above 
A)  initial public offering 
B)  seasoned new issue 
C)  secondary issue 
D)  blue chip issue 
E)  none of the above

Question 17

All of the following are true about the American Stock Exchange except

Accepted Answer

A)  it is the second most important of the organized exchanges 
B)  it is one of the secondary markets 
C)  its trading volume is a small fraction of that of the NYSE 
D)  its dollar volume is larger than all the regional exchanges 
E)  it ranks as number two in terms of the number of companies it lists 
A)  it is the second most important of the organized exchanges 
B)  it is one of the secondary markets 
C)  its trading volume is a small fraction of that of the NYSE 
D)  its dollar volume is larger than all the regional exchanges 
E)  it ranks as number two in terms of the number of companies it lists

Question 18

An investor should always consider the source when receiving stock tips from other people.

Accepted Answer

A) True 
 B)False

Question 19

IBM is considering hiring an investment banker who will purchase and subsequently resell an issue of stock for them. This service is called ________.

Accepted Answer

A)  stock brokerage 
B)  full-service brokerage 
C)  underwriting 
D)  churning 
E)  none of the above 
A)  stock brokerage 
B)  full-service brokerage 
C)  underwriting 
D)  churning 
E)  none of the above

Question 20

A day trader typically sits at a computer and looks for stocks that are moving up or down in value.

Accepted Answer

A) True 
 B)False

A GTC order remains effective until filled or cancelled.

You specify that your trade is to be made only at a certain price or better. You are placing a(n) ________.

It is a good idea for every investor to read the Wall Street Journal.

The Securities Act of 1934 created the SEC to enforce trading laws.

Compare and contrast organized exchanges and OTC markets. List the nine major U.S. stock exchanges in the secondary market.

Gracie Johnson saw the securities announcement for New York Bagel Enterprises that provided the details of the offering and a listing of the underwriting syndicate. She saw the

Reggie believed that the price of his stock was going to drop in the near future his strategy was to short sell that stock to make a profit.

The Value Line Investment Survey is useful to investors because it

The difference between an organized exchange and an over-the-counter market is that the transactions that occur on an organized exchange and the over-the-counter transactions .

A limit order specifies a securities trade is to be made only at a certain price or better.

When an individual investor sells their shares on the OTC, the price at which they are willing to sell is called the bid price.

You want to buy stock in a dynamic electronics firm. You place an order that cannot be completely filled the first day, so you ask for a(n) ________.

A ________ is an order to buy or sell a set number of securities immediately at the best price available.

For most typical married couples, joint tenancy with the right of survivorship is not an appropriate form of account ownership.

ABC Corporation is selling additional shares of common stock. Although ABC Corporation has already sold shares of stock in the public equity markets, these are new shares of stock, and have never been sold or traded previously. This is called a(n) ________.

All of the following are true about the American Stock Exchange except

An investor should always consider the source when receiving stock tips from other people.

IBM is considering hiring an investment banker who will purchase and subsequently resell an issue of stock for them. This service is called ________.

A day trader typically sits at a computer and looks for stocks that are moving up or down in value.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters

Exam 12: Securities Markets

A GTC order remains effective until filled or cancelled.

You specify that your trade is to be made only at a certain price or better. You are placing a(n) ________.

It is a good idea for every investor to read the Wall Street Journal.

The Securities Act of 1934 created the SEC to enforce trading laws.

Compare and contrast organized exchanges and OTC markets. List the nine major U.S. stock exchanges in the secondary market.

Gracie Johnson saw the securities announcement for New York Bagel Enterprises that provided the details of the offering and a listing of the underwriting syndicate. She saw the

Reggie believed that the price of his stock was going to drop in the near future his strategy was to short sell that stock to make a profit.

The Value Line Investment Survey is useful to investors because it

The difference between an organized exchange and an over-the-counter market is that the transactions that occur on an organized exchange ________ and the over-the-counter transactions ________.

A limit order specifies a securities trade is to be made only at a certain price or better.

When an individual investor sells their shares on the OTC, the price at which they are willing to sell is called the bid price.

You want to buy stock in a dynamic electronics firm. You place an order that cannot be completely filled the first day, so you ask for a(n) ________.

A ________ is an order to buy or sell a set number of securities immediately at the best price available.

For most typical married couples, joint tenancy with the right of survivorship is not an appropriate form of account ownership.

ABC Corporation is selling additional shares of common stock. Although ABC Corporation has already sold shares of stock in the public equity markets, these are new shares of stock, and have never been sold or traded previously. This is called a(n) ________.

All of the following are true about the American Stock Exchange except

An investor should always consider the source when receiving stock tips from other people.

IBM is considering hiring an investment banker who will purchase and subsequently resell an issue of stock for them. This service is called ________.

A day trader typically sits at a computer and looks for stocks that are moving up or down in value.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters

The difference between an organized exchange and an over-the-counter market is that the transactions that occur on an organized exchange and the over-the-counter transactions .