Question 1

A(n) ________ account represents the money or investments you have at a brokerage firm.

Accepted Answer

A)  discretionary 
B)  brokerage 
C)  stock purchasing 
D)  indemnity 
A)  discretionary 
B)  brokerage 
C)  stock purchasing 
D)  indemnity

Question 2

Which organization would handle frequently traded OTC stock, bonds, and foreign stock?

Accepted Answer

The over the counter market handles freq

Question 3

An over-the-counter market has a physical location where trading occurs.

Accepted Answer

A) True 
 B)False

Question 4

A(n) ________ account represents the money over which you give a broker power to trade for you.

Accepted Answer

A)  discretionary 
B)  discount 
C)  stock purchasing 
D)  securities 
E)  indemnity 
A)  discretionary 
B)  discount 
C)  stock purchasing 
D)  securities 
E)  indemnity

Question 5

What type of broker can protect your investments from systematic risk?

Accepted Answer

A)  Online broker 
B)  Discount broker 
C)  Full service broker 
D)  None of the above. 
A)  Online broker 
B)  Discount broker 
C)  Full service broker 
D)  None of the above.

Question 6

You have just recently started your investment activities for retirement. You were happy to learn from your broker that your investor's account balance would be insured for up to $500,000 through the ________ in the event their brokerage firm goes bankrupt.

Accepted Answer

A)  FDIC 
B)  FSLIC 
C)  NCUA 
D)  SIPC 
E)  FTC 
A)  FDIC 
B)  FSLIC 
C)  NCUA 
D)  SIPC 
E)  FTC

Question 7

Although some bonds are traded on the NYSE, most of the buying and selling of bonds doesn't occur on organized exchanges.

Accepted Answer

A) True 
 B)False

Question 8

IBM went to a(n) ________ who served as a(n) ________ to sell an IPO in the primary markets.

Accepted Answer

A)  underwriter; investment broker 
B)  underwriter; investment banker 
C)  investment broker; underwriter 
D)  investment banker; underwriter 
E)  investment banker; underachiever 
A)  underwriter; investment broker 
B)  underwriter; investment banker 
C)  investment broker; underwriter 
D)  investment banker; underwriter 
E)  investment banker; underachiever

Question 9

There are several sources of information available to help you make intelligent choices about buying and selling stock? If you choose a corporation's annual report to base your decisions on, what should you look for?

Accepted Answer

Remember that an annual report is writte

Question 10

Any company can have its securities listed on the NYSE.

Accepted Answer

A) True 
 B)False

Question 11

All of the following are ordering alternatives that specify the timeframe within which you want your order filled except

Accepted Answer

A)  GTC order 
B)  fill-or-kill order 
C)  open order 
D)  limit order 
A)  GTC order 
B)  fill-or-kill order 
C)  open order 
D)  limit order

Question 12

Differentiate between primary and secondary security markets.

Accepted Answer

A primary market is one in which newly i

Question 13

Most of the bonds that are bought and sold are not transacted on the organized exchanges. They are bought and sold through bond dealers who do not sell many ________ bonds but do trade many ________ bonds in the secondary market.

Accepted Answer

A)  corporate; government 
B)  government; corporate 
C)  high par value; corporate 
D)  government; low par value 
E)  corporate; firm-specific bonds 
A)  corporate; government 
B)  government; corporate 
C)  high par value; corporate 
D)  government; low par value 
E)  corporate; firm-specific bonds

Question 14

Sally is attempting to purchase 88 shares of Google's stock. Sally is purchasing a(n) ________ lot of stocks.

Accepted Answer

A)  square 
B)  round 
C)  odd 
D)  margin 
E)  cannot determine from the information provided 
A)  square 
B)  round 
C)  odd 
D)  margin 
E)  cannot determine from the information provided

Question 15

Firms raise outside financial capital through the sale of stocks in the secondary markets.

Accepted Answer

A) True 
 B)False

Question 16

A(n) ________ is a legal document that describes a securities issue and is made available to potential investors.

Accepted Answer

A)  disclosure statement 
B)  offering contract 
C)  prospectus 
D)  tombstone 
E)  none of the above 
A)  disclosure statement 
B)  offering contract 
C)  prospectus 
D)  tombstone 
E)  none of the above

Question 17

Jordan has a few thousand dollars to invest. He wants to find newly issued stock of a fast‑growing new company. He will contact an underwriter and attempt to purchase the shares in the ________ market.

Accepted Answer

A)  secondary market 
B)  New York Stock Exchange 
C)  primary market 
D)  NASDAQ 
E)  commodity market 
A)  secondary market 
B)  New York Stock Exchange 
C)  primary market 
D)  NASDAQ 
E)  commodity market

Question 18

Barbara Ann ordered 50 shares of stock, which is called a(n) ________ lot on the NYSE.

Accepted Answer

A)  discretionary 
B)  square 
C)  odd 
D)  round 
E)  even 
A)  discretionary 
B)  square 
C)  odd 
D)  round 
E)  even

Question 19

If you're going to make informed investment decisions, you have to seek investment information, read it, and interpret it.

Accepted Answer

A) True 
 B)False

Question 20

The share price is always less with a round lot than with an odd lot purchase.

Accepted Answer

A) True 
 B)False

A(n) ________ account represents the money or investments you have at a brokerage firm.

Which organization would handle frequently traded OTC stock, bonds, and foreign stock?

An over-the-counter market has a physical location where trading occurs.

A(n) ________ account represents the money over which you give a broker power to trade for you.

What type of broker can protect your investments from systematic risk?

You have just recently started your investment activities for retirement. You were happy to learn from your broker that your investor's account balance would be insured for up to $500,000 through the ________ in the event their brokerage firm goes bankrupt.

Although some bonds are traded on the NYSE, most of the buying and selling of bonds doesn't occur on organized exchanges.

IBM went to a(n) who served as a(n) to sell an IPO in the primary markets.

There are several sources of information available to help you make intelligent choices about buying and selling stock? If you choose a corporation's annual report to base your decisions on, what should you look for?

Any company can have its securities listed on the NYSE.

All of the following are ordering alternatives that specify the timeframe within which you want your order filled except

Differentiate between primary and secondary security markets.

Most of the bonds that are bought and sold are not transacted on the organized exchanges. They are bought and sold through bond dealers who do not sell many bonds but do trade many bonds in the secondary market.

Sally is attempting to purchase 88 shares of Google's stock. Sally is purchasing a(n) ________ lot of stocks.

Firms raise outside financial capital through the sale of stocks in the secondary markets.

A(n) ________ is a legal document that describes a securities issue and is made available to potential investors.

Jordan has a few thousand dollars to invest. He wants to find newly issued stock of a fast‑growing new company. He will contact an underwriter and attempt to purchase the shares in the ________ market.

Barbara Ann ordered 50 shares of stock, which is called a(n) ________ lot on the NYSE.

If you're going to make informed investment decisions, you have to seek investment information, read it, and interpret it.

The share price is always less with a round lot than with an odd lot purchase.

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(n) ________ account represents the money or investments you have at a brokerage firm.

Which organization would handle frequently traded OTC stock, bonds, and foreign stock?

An over-the-counter market has a physical location where trading occurs.

A(n) ________ account represents the money over which you give a broker power to trade for you.

What type of broker can protect your investments from systematic risk?

You have just recently started your investment activities for retirement. You were happy to learn from your broker that your investor's account balance would be insured for up to $500,000 through the ________ in the event their brokerage firm goes bankrupt.

Although some bonds are traded on the NYSE, most of the buying and selling of bonds doesn't occur on organized exchanges.

IBM went to a(n) ________ who served as a(n) ________ to sell an IPO in the primary markets.

There are several sources of information available to help you make intelligent choices about buying and selling stock? If you choose a corporation's annual report to base your decisions on, what should you look for?

Any company can have its securities listed on the NYSE.

All of the following are ordering alternatives that specify the timeframe within which you want your order filled except

Differentiate between primary and secondary security markets.

Most of the bonds that are bought and sold are not transacted on the organized exchanges. They are bought and sold through bond dealers who do not sell many ________ bonds but do trade many ________ bonds in the secondary market.

Sally is attempting to purchase 88 shares of Google's stock. Sally is purchasing a(n) ________ lot of stocks.

Firms raise outside financial capital through the sale of stocks in the secondary markets.

A(n) ________ is a legal document that describes a securities issue and is made available to potential investors.

Jordan has a few thousand dollars to invest. He wants to find newly issued stock of a fast‑growing new company. He will contact an underwriter and attempt to purchase the shares in the ________ market.

Barbara Ann ordered 50 shares of stock, which is called a(n) ________ lot on the NYSE.

If you're going to make informed investment decisions, you have to seek investment information, read it, and interpret it.

The share price is always less with a round lot than with an odd lot purchase.

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

IBM went to a(n) who served as a(n) to sell an IPO in the primary markets.

Most of the bonds that are bought and sold are not transacted on the organized exchanges. They are bought and sold through bond dealers who do not sell many bonds but do trade many bonds in the secondary market.