Question 1

The _________ price is the price at which a dealer is willing to sell a security.

Accepted Answer

A)  bid 
B)  ask 
C)  clearing 
D)  settlement 
A)  bid 
B)  ask 
C)  clearing 
D)  settlement

Question 2

Consider the following limit order book of a specialist.The last trade in the stock occurred at a price of $40.If a market buy order for 100 shares comes in,at what price will it be filled?

Accepted Answer

A)  $39.75 
B)  $40.25 
C)  $40.375 
D)  $40.25 or less 
A)  $39.75 
B)  $40.25 
C)  $40.375 
D)  $40.25 or less

Question 3

The commission structure on a stock purchase is $20 plus $0.02 per share.If you purchase 4 round lots of a stock selling for $56,what is your commission?

Accepted Answer

A)  $20 
B)  $22 
C)  $26 
D)  $28 
A)  $20 
B)  $22 
C)  $26 
D)  $28

Question 4

A level _____ subscriber to the NASDAQ system may enter bid and ask prices.

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4 
A)  1 
B)  2 
C)  3 
D)  4

Question 5

The commission structure on a stock purchase is $50 plus $0.03 per share.If you purchase 600 shares of a stock selling for $65,what is your commission?

Accepted Answer

A)  $35 
B)  $45 
C)  $53 
D)  $68 
A)  $35 
B)  $45 
C)  $53 
D)  $68

Question 6

A ______ drop in the Dow Jones Industrial Average would stop trading for the day.

Accepted Answer

A)  10% 
B)  20% 
C)  30% 
D)  40% 
A)  10% 
B)  20% 
C)  30% 
D)  40%

Question 7

If an investor places a _________ order the stock will be sold if its price falls to the stipulated level.If an investor places a __________ order the stock will be bought if its price rises above the stipulated level.

Accepted Answer

A)  stop-buy; stop-loss 
B)  market; limit 
C)  stop-loss; stop-buy 
D)  limit; market 
A)  stop-buy; stop-loss 
B)  market; limit 
C)  stop-loss; stop-buy 
D)  limit; market

Question 8

Initial public offerings (IPOs)are usually ___________ relative to the levels at which their prices stabilize after they begin trading in the secondary market.

Accepted Answer

A)  over priced 
B)  correctly priced 
C)  under priced 
D)  mispriced but without any particular bias 
A)  over priced 
B)  correctly priced 
C)  under priced 
D)  mispriced but without any particular bias

Question 9

You short-sell 200 shares of Rock Creek Fly Fishing Co.,now selling for $50 per share.If you wish to limit your loss to $2,500,you should place a stop-buy order at ____.

Accepted Answer

A)  $37.50 
B)  $62.50 
C)  $56.25 
D)  $59.75 
A)  $37.50 
B)  $62.50 
C)  $56.25 
D)  $59.75

Question 10

The process of polling potential investors regarding their interest in a forthcoming initial public offering (IPO)is called ________.

Accepted Answer

A)  interest building 
B)  book building 
C)  market analysis 
D)  customer identification 
A)  interest building 
B)  book building 
C)  market analysis 
D)  customer identification

The _________ price is the price at which a dealer is willing to sell a security.

Consider the following limit order book of a specialist.The last trade in the stock occurred at a price of $40.If a market buy order for 100 shares comes in,at what price will it be filled?

The commission structure on a stock purchase is $20 plus $0.02 per share.If you purchase 4 round lots of a stock selling for $56,what is your commission?

A level _____ subscriber to the NASDAQ system may enter bid and ask prices.

The commission structure on a stock purchase is $50 plus $0.03 per share.If you purchase 600 shares of a stock selling for $65,what is your commission?

A ______ drop in the Dow Jones Industrial Average would stop trading for the day.

If an investor places a _ order the stock will be sold if its price falls to the stipulated level.If an investor places a __ order the stock will be bought if its price rises above the stipulated level.

Initial public offerings (IPOs)are usually ___________ relative to the levels at which their prices stabilize after they begin trading in the secondary market.

You short-sell 200 shares of Rock Creek Fly Fishing Co.,now selling for $50 per share.If you wish to limit your loss to $2,500,you should place a stop-buy order at ____.

The process of polling potential investors regarding their interest in a forthcoming initial public offering (IPO)is called ________.

Investments: Background and Issues

Asset Classes and Financial Instruments

Mutual Funds and Other Investment Companies

Risk and Return: Past and Prologue

Efficient Diversification

Capital Asset Pricing and Arbitrage Pricing Theory

The Efficient Market Hypothesis

Behavioral Finance and Technical Analysis

Bond Prices and Yields

Managing Bond Portfolios

Macroeconomic and Industry Analysis

Equity Valuation

Financial Statement Analysis

Options Markets

Option Valuation

Futures Markets and Risk Management

Portfolio Performance Evaluation

Globalization and International Investing

Hedge Funds

Taxes,inflation,and Investment Strategy

Investors and the Investment Process

Filters

Exam 3: Securities Markets

The _________ price is the price at which a dealer is willing to sell a security.

Consider the following limit order book of a specialist.The last trade in the stock occurred at a price of $40.If a market buy order for 100 shares comes in,at what price will it be filled?

The commission structure on a stock purchase is $20 plus $0.02 per share.If you purchase 4 round lots of a stock selling for $56,what is your commission?

A level _____ subscriber to the NASDAQ system may enter bid and ask prices.

The commission structure on a stock purchase is $50 plus $0.03 per share.If you purchase 600 shares of a stock selling for $65,what is your commission?

A ______ drop in the Dow Jones Industrial Average would stop trading for the day.

If an investor places a _________ order the stock will be sold if its price falls to the stipulated level.If an investor places a __________ order the stock will be bought if its price rises above the stipulated level.

Initial public offerings (IPOs)are usually ___________ relative to the levels at which their prices stabilize after they begin trading in the secondary market.

You short-sell 200 shares of Rock Creek Fly Fishing Co.,now selling for $50 per share.If you wish to limit your loss to $2,500,you should place a stop-buy order at ____.

The process of polling potential investors regarding their interest in a forthcoming initial public offering (IPO)is called ________.

Investments: Background and Issues

Asset Classes and Financial Instruments

Mutual Funds and Other Investment Companies

Risk and Return: Past and Prologue

Efficient Diversification

Capital Asset Pricing and Arbitrage Pricing Theory

The Efficient Market Hypothesis

Behavioral Finance and Technical Analysis

Bond Prices and Yields

Managing Bond Portfolios

Macroeconomic and Industry Analysis

Equity Valuation

Financial Statement Analysis

Options Markets

Option Valuation

Futures Markets and Risk Management

Portfolio Performance Evaluation

Globalization and International Investing

Hedge Funds

Taxes,inflation,and Investment Strategy

Investors and the Investment Process

Filters

If an investor places a _ order the stock will be sold if its price falls to the stipulated level.If an investor places a __ order the stock will be bought if its price rises above the stipulated level.