Question 1

Merrill Lynch, Edward Jones and Morgan Stanley Smith Barney are all full service brokers.

Accepted Answer

A) True 
 B)False

Question 2

In addition to your own investment, you borrowed money from your broker to purchase shares of a stock. Your broker called to tell you that the price of your stock has fallen and you now need to contribute more of your own money to keep the account at the minimum level. This is termed a(n) ________.

Accepted Answer

A)  account validation 
B)  margin call 
C)  minimum validation 
D)  stop-loss order 
E)  none of the above 
A)  account validation 
B)  margin call 
C)  minimum validation 
D)  stop-loss order 
E)  none of the above

Question 3

You have just purchased shares of stock from a stockbroker. These shares were previously traded on the NYSE. This trade took place in the ________.

Accepted Answer

A)  primary market 
B)  secondary market 
C)  tertiary market 
D)  quaternary market 
E)  none of the above 
A)  primary market 
B)  secondary market 
C)  tertiary market 
D)  quaternary market 
E)  none of the above

Question 4

You just concluded a stock purchase transaction via a computer hookup rather than in an organized exchange. This trade took place in the ________.

Accepted Answer

A)  over-the-counter market 
B)  NYSE 
C)  AMEX 
D)  primary market 
E)  none of the above 
A)  over-the-counter market 
B)  NYSE 
C)  AMEX 
D)  primary market 
E)  none of the above

Question 5

Churning occurs when a broker engages in excessive trading in a client's security account to generate more commissions for the broker.

Accepted Answer

A) True 
 B)False

Question 6

Amy and Bob have decided to borrow a portion of the purchase price of stocks from their broker. They will then have a ________ account.

Accepted Answer

A)  cash 
B)  round lot 
C)  margin 
D)  debtor 
E)  combination 
A)  cash 
B)  round lot 
C)  margin 
D)  debtor 
E)  combination

Question 7

Seasoned new issues are stock offerings by companies that already have common stock traded in the marketplace.

Accepted Answer

A) True 
 B)False

Question 8

Brokerage firm reports

Accepted Answer

A)  are provided by all discount brokers. 
B)  provide access to research reports prepared by the firm's securities analysts. 
C)  analyze individual companies but not the direction of the economy as a whole. 
D)  are only valuable if you buy the recommended stocks. 
E)  all of the above 
A)  are provided by all discount brokers. 
B)  provide access to research reports prepared by the firm's securities analysts. 
C)  analyze individual companies but not the direction of the economy as a whole. 
D)  are only valuable if you buy the recommended stocks. 
E)  all of the above

Question 9

Stock can only be purchased in round lots.

Accepted Answer

A) True 
 B)False

Question 10

You and your spouse have decided to incorporate bonds into your newly-formed retirement portfolio. You will most likely purchase them ________.

Accepted Answer

A)  directly from a bond dealer 
B)  with your broker acting as intermediary 
C)  directly from the issuing institution 
D)  with an underwriter acting as intermediary 
A)  directly from a bond dealer 
B)  with your broker acting as intermediary 
C)  directly from the issuing institution 
D)  with an underwriter acting as intermediary

Merrill Lynch, Edward Jones and Morgan Stanley Smith Barney are all full service brokers.

In addition to your own investment, you borrowed money from your broker to purchase shares of a stock. Your broker called to tell you that the price of your stock has fallen and you now need to contribute more of your own money to keep the account at the minimum level. This is termed a(n) ________.

You have just purchased shares of stock from a stockbroker. These shares were previously traded on the NYSE. This trade took place in the ________.

You just concluded a stock purchase transaction via a computer hookup rather than in an organized exchange. This trade took place in the ________.

Churning occurs when a broker engages in excessive trading in a client's security account to generate more commissions for the broker.

Amy and Bob have decided to borrow a portion of the purchase price of stocks from their broker. They will then have a ________ account.

Seasoned new issues are stock offerings by companies that already have common stock traded in the marketplace.

Brokerage firm reports

Stock can only be purchased in round lots.

You and your spouse have decided to incorporate bonds into your newly-formed retirement portfolio. You will most likely purchase them ________.

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

Merrill Lynch, Edward Jones and Morgan Stanley Smith Barney are all full service brokers.

In addition to your own investment, you borrowed money from your broker to purchase shares of a stock. Your broker called to tell you that the price of your stock has fallen and you now need to contribute more of your own money to keep the account at the minimum level. This is termed a(n) ________.

You have just purchased shares of stock from a stockbroker. These shares were previously traded on the NYSE. This trade took place in the ________.

You just concluded a stock purchase transaction via a computer hookup rather than in an organized exchange. This trade took place in the ________.

Churning occurs when a broker engages in excessive trading in a client's security account to generate more commissions for the broker.

Amy and Bob have decided to borrow a portion of the purchase price of stocks from their broker. They will then have a ________ account.

Seasoned new issues are stock offerings by companies that already have common stock traded in the marketplace.

Brokerage firm reports

Stock can only be purchased in round lots.

You and your spouse have decided to incorporate bonds into your newly-formed retirement portfolio. You will most likely purchase them ________.

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