Question 1

An increased demand for stock ________ the price.

Accepted Answer

A) has no effect on 
B) increases 
C) decreases 
D) stabilizes 
A) has no effect on 
B) increases 
C) decreases 
D) stabilizes

Question 2

Fees charged by brokerage firms

Accepted Answer

A) are set by the NYSE. 
B) are set by the Federal Reserve. 
C) are set by the National Association of Securities Dealers. 
D) vary according to the services offered. 
A) are set by the NYSE. 
B) are set by the Federal Reserve. 
C) are set by the National Association of Securities Dealers. 
D) vary according to the services offered.

Question 3

A company's annual report usually includes all of the following but

Accepted Answer

A) an auditor's report. 
B) testimonials from employees. 
C) a letter from the CEO. 
D) management discussion and analysis. 
A) an auditor's report. 
B) testimonials from employees. 
C) a letter from the CEO. 
D) management discussion and analysis.

Question 4

Which of the following is not a reason some investors never purchase stock?

Accepted Answer

A) They are afraid of the risk. 
B) They lack the knowledge. 
C) They like safe investments such as CDs. 
D) They don't want to make better returns. 
A) They are afraid of the risk. 
B) They lack the knowledge. 
C) They like safe investments such as CDs. 
D) They don't want to make better returns.

Question 5

A measure of inflation that represents prices of various products,such as groceries,household products,housing,and gasoline is the ________ index.

Accepted Answer

A) consumer price 
B) cost of living 
C) inflationary 
D) household 
A) consumer price 
B) cost of living 
C) inflationary 
D) household

Question 6

Floor traders on the NYSE are willing to trade stocks for others and earn a commission for doing so.

Accepted Answer

A) True 
 B)False

Question 7

What is the highest price paid for a share of Coca Cola stock in the last 52 weeks?

Accepted Answer

A) $40.90 
B) $45.26 
C) $40.31 
D) $1.12 
A) $40.90 
B) $45.26 
C) $40.31 
D) $1.12

Question 8

What was the closing price per share for BlackHills on the day before the trading shown on this listing?

Accepted Answer

A) $29.19 
B) $35.25 
C) $34.61 
D) $35.89 
A) $29.19 
B) $35.25 
C) $34.61 
D) $35.89

Question 9

An odd lot is the purchase of less than 100 shares of stock.

Accepted Answer

A) True 
 B)False

Question 10

The income statement for a company is like a budget in that it shows how much money the company would like to have made in a given accounting period.

Accepted Answer

A) True 
 B)False

Question 11

All of the following are odd lots except

Accepted Answer

A) 99 shares. 
B) 189 shares. 
C) 200 shares. 
D) 970 shares. 
A) 99 shares. 
B) 189 shares. 
C) 200 shares. 
D) 970 shares.

Question 12

A company's earnings are $3 per share,its dividend is $2 per share,and its stock price is $30 per share.Its PE ratio is

Accepted Answer

A) 15. 
B) 10. 
C) 1)5. 
D) 33. 
A) 15. 
B) 10. 
C) 1)5. 
D) 33.

Question 13

A ________ order is an order to execute a transaction to buy or sell a stock at its prevailing price.

Accepted Answer

A) limit 
B) stock 
C) market 
D) written 
A) limit 
B) stock 
C) market 
D) written

Question 14

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

Accepted Answer

A) 40 
B) 50 
C) 60 
D) 75 
A) 40 
B) 50 
C) 60 
D) 75

Question 15

Is investing on margin what the average investor should do?

Accepted Answer

Investing on margin is highly

Question 16

A brokerage firm that executes your transactions without offering investment advice is a(n)________.

Accepted Answer

discount b

Question 17

People with seats on the NYSE who execute stock trades for others are called

Accepted Answer

A) day traders. 
B) floor traders. 
C) stock traders. 
D) commission traders. 
A) day traders. 
B) floor traders. 
C) stock traders. 
D) commission traders.

Question 18

Do you believe you have enough knowledge to invest in the stock market? Why or why not?

Accepted Answer

These chapters are fairly comprehensive

Question 19

If you want recommendations you can

Accepted Answer

A) trade with an online broker. 
B) open an account at a full-service brokerage firm. 
C) visit the SEC Web site. 
D) contact a discount broker. 
A) trade with an online broker. 
B) open an account at a full-service brokerage firm. 
C) visit the SEC Web site. 
D) contact a discount broker.

Question 20

A market order is normally executed much more quickly than a limit order.

Accepted Answer

A) True 
 B)False

Exam 15: Investing in Stocks

An increased demand for stock ________ the price.

Fees charged by brokerage firms

A company's annual report usually includes all of the following but

Which of the following is not a reason some investors never purchase stock?

A measure of inflation that represents prices of various products,such as groceries,household products,housing,and gasoline is the ________ index.

Floor traders on the NYSE are willing to trade stocks for others and earn a commission for doing so.

What is the highest price paid for a share of Coca Cola stock in the last 52 weeks?

What was the closing price per share for BlackHills on the day before the trading shown on this listing?

An odd lot is the purchase of less than 100 shares of stock.

The income statement for a company is like a budget in that it shows how much money the company would like to have made in a given accounting period.

All of the following are odd lots except

A company's earnings are $3 per share,its dividend is $2 per share,and its stock price is $30 per share.Its PE ratio is

A ________ order is an order to execute a transaction to buy or sell a stock at its prevailing price.

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

Is investing on margin what the average investor should do?

A brokerage firm that executes your transactions without offering investment advice is a(n)________.

People with seats on the NYSE who execute stock trades for others are called

Do you believe you have enough knowledge to invest in the stock market? Why or why not?

If you want recommendations you can

A market order is normally executed much more quickly than a limit order.

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

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