Exam 11: Personal Investing - Investing in Stocks

Compare and contrast the research and preparation needed to invest in mutual funds versus stocks.

When using a sell stop order to sell 100 shares of ABCO at $30,it could happen that you only get $2500 for the transaction.

Which technique for valuing stocks is used in technical analysis?

If you need to be sure you will sell your shares of a certain stock if the price drops below a certain threshold,which type of order should you place?

Market makers are required to help make markets more liquid by taking the same position as those who want to buy or sell the stock.

What additional risk is involved when buying stock on margin?

You want to purchase 100 shares of CIB for a maximum price of $3000 and it is currently trading at $33.Which order should you place?

If stock markets are inefficient,

Which two financial statements are used to assess profitability?

The NYSE Euronext is the largest stock exchange in the world.

The dividend discount model method is used to value a stock based on a firm's ________ and is ________ at an appropriate rate of interest.

If the stock market is efficient,then fundamental analysis will be a good way to determine when stocks are well priced.

If you wish to evaluate the financial leverage of a firm,you could look at the

For most firms,having slightly more short-term assets versus short-term liabilities would be considered a reasonable current ratio.

To evaluate the liquidity of a firm,you should look at the

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.

Which are the main Canadian stock exchanges?

P/E ratios are commonly published information and tend to remain constant over time.

Which of the following factors would contribute to an increase in stock prices?

One of the key ways to apply fundamental analysis is by