Question 1

Some investors use ________ as a simple measure of the firm's risk.

Accepted Answer

A)  a stock's dividend yield 
B)  a stock's trading volume 
C)  a stock's price range 
D)  a stock's closing price 
A)  a stock's dividend yield 
B)  a stock's trading volume 
C)  a stock's price range 
D)  a stock's closing price

Question 2

Fundamental analysis is based on all of the following except

Accepted Answer

A)  the firm's revenue. 
B)  the firm's earnings. 
C)  the firm's stock price over the last year. 
D)  the firm's sensitivity to economic conditions. 
A)  the firm's revenue. 
B)  the firm's earnings. 
C)  the firm's stock price over the last year. 
D)  the firm's sensitivity to economic conditions.

Question 3

Which of the following actions of the U.S.government could not be considered part of fiscal policy?

Accepted Answer

A)  Federal Reserve actions to adjust interest rates 
B)  Raising the capital gains tax rate 
C)  Construction of a new dam 
D)  Providing job training for the unemployed 
A)  Federal Reserve actions to adjust interest rates 
B)  Raising the capital gains tax rate 
C)  Construction of a new dam 
D)  Providing job training for the unemployed

Question 4

Which of the following stocks performed the best today relative to its closing price on the previous day?

Accepted Answer

A)  Acarz 
B)  Bixto 
C)  Drizel 
D)  Mavit 
A)  Acarz 
B)  Bixto 
C)  Drizel 
D)  Mavit

Question 5

Interest rates can affect economic growth and therefore have a direct impact on stock prices.

Accepted Answer

A) True 
 B)False

Question 6

Some traders,called specialists,help to make a market in stocks by taking the same position as those who want to buy or sell the stock.

Accepted Answer

A) True 
 B)False

Question 7

Use the following two columns of items to answer the matching questions below:
-discount brokerage firm

Accepted Answer

A) a brokerage firm that provides advice plus transaction services 
B) a brokerage firm that executes transactions without giving advice 
C) purchasing stock with funds borrowed from a brokerage firm 
D) an order to buy or sell at the prevailing market price 
E) an order to sell stock when the price falls to a specified level 
A) a brokerage firm that provides advice plus transaction services 
B) a brokerage firm that executes transactions without giving advice 
C) purchasing stock with funds borrowed from a brokerage firm 
D) an order to buy or sell at the prevailing market price 
E) an order to sell stock when the price falls to a specified level

Question 8

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 9

When economic conditions are weak,the aggregate demand for products and services

Accepted Answer

A)  declines. 
B)  increases. 
C)  remains the same. 
D)  may either decline or increase. 
A)  declines. 
B)  increases. 
C)  remains the same. 
D)  may either decline or increase.

Question 10

Stocks are usually bought or sold in round lots,which are multiples of $100.

Accepted Answer

A) True 
 B)False

Question 11

The Stimulus Act of 2009,which provided funds to try to stimulate the economy during the financial crisis,is an example of the government's use of ________ to affect economic growth.

Accepted Answer

The answer of The Stimulus Act of 2009,which provided funds...

Question 12

A stop order is a special form of limit order; it is an order to execute a transaction when the stock price reaches a specified level.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Companies A and B are both in the same industry and generally compete against each other in the marketplace.Stock A has a P/E ratio of 15 while Stock B's P/E is 21.Which of the following is not true about the relative positioning of Stock A and Stock B?

Accepted Answer

A)  Stock B has lower perceived risk. 
B)  Investor's are willing to pay a higher price for shares in Company B. 
C)  Company A business performance is probably not as strong as Company B performance. 
D)  All of the statements are correct. 
A)  Stock B has lower perceived risk. 
B)  Investor's are willing to pay a higher price for shares in Company B. 
C)  Company A business performance is probably not as strong as Company B performance. 
D)  All of the statements are correct.

Question 15

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

Accepted Answer

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

Question 16

The yield represents which of the following?

Accepted Answer

A)  Earnings per share 
B)  Dividend payment 
C)  Annual return from dividends 
D)  Market price 
A)  Earnings per share 
B)  Dividend payment 
C)  Annual return from dividends 
D)  Market price

Question 17

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.

Accepted Answer

A) True 
 B)False

Question 18

Stocks would be most favorably affected by

Accepted Answer

A)  a decline in interest rates and a decline in inflation. 
B)  an increase in interest rates and a decline in inflation. 
C)  a decline in interest rates and an increase in inflation. 
D)  an increase in interest rates and an increase in inflation. 
A)  a decline in interest rates and a decline in inflation. 
B)  an increase in interest rates and a decline in inflation. 
C)  a decline in interest rates and an increase in inflation. 
D)  an increase in interest rates and an increase in inflation.

Question 19

The two parts of a company's balance sheet: (1)assets and (2)liabilities and shareholder's equity,must be equal or in balance.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

discount b

Exam 15: Investing in Stocks

Some investors use ________ as a simple measure of the firm's risk.

Fundamental analysis is based on all of the following except

Which of the following actions of the U.S.government could not be considered part of fiscal policy?

Which of the following stocks performed the best today relative to its closing price on the previous day?

Interest rates can affect economic growth and therefore have a direct impact on stock prices.

Some traders,called specialists,help to make a market in stocks by taking the same position as those who want to buy or sell the stock.

Use the following two columns of items to answer the matching questions below: -discount brokerage firm

If you want recommendations you can

When economic conditions are weak,the aggregate demand for products and services

Stocks are usually bought or sold in round lots,which are multiples of $100.

The Stimulus Act of 2009,which provided funds to try to stimulate the economy during the financial crisis,is an example of the government's use of ________ to affect economic growth.

A stop order is a special form of limit order; it is an order to execute a transaction when the stock price reaches a specified level.

All of the following are odd lots except

Companies A and B are both in the same industry and generally compete against each other in the marketplace.Stock A has a P/E ratio of 15 while Stock B's P/E is 21.Which of the following is not true about the relative positioning of Stock A and Stock B?

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

The yield represents which of the following?

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.

Stocks would be most favorably affected by

The two parts of a company's balance sheet: (1)assets and (2)liabilities and shareholder's equity,must be equal or in balance.

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

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

Filters