Question 1. Question :

Which one of the following indexes reflects the percentage change in share prices relative to a base of 100?

Value Line composite

S & P 500

DJIA

AMEX composite

Points Received: 1 of 1

Comments:

Question 2. Question :

Many brokerage firms require that disputes between individual investors and brokers be settled through litigation.

True

False

Points Received: 1 of 1

Comments:

Question 3. Question :

Current price information on shares of a company's stock is often accompanied by statistics on the recent price behavior of that stock.

True

False

Points Received: 1 of 1

Comments:

Question 4. Question :

Which one of the following is considered a general rather than a financial newspaper?

Barron's

New York Times

The Wall Street Journal

Investors' Business Daily

Points Received: 1 of 1

Comments:

Question 5. Question :

A stop-loss order converts to a market order when the order is activated.

True

False

Points Received: 1 of 1

Comments:

Question 6. Question :

Stockbrokers are to execute client orders at the best possible price.

True

False

Points Received: 1 of 1

Comments:

Question 7. Question :

When placing an order online, an individual investor should always double check the ticker symbol prior to submitting the order.

True

False

Points Received: 1 of 1

Comments:

Question 8. Question :

A brokerage firm which provides analyst reports, investment advice and information as well as online brokerage services is called a(n)

premium discount broker.

full-service broker.

basic discount broker.

electronic broker.

Points Received: 1 of 1

Comments:

Question 9. Question :

It is generally a good idea to use limit orders when purchasing IPOs online.

True

False

Points Received: 1 of 1

Comments:

Question 10. Question :

A limit order is an order to buy or sell at the limit price or less.

True

False

Points Received: 1 of 1

Comments:

Question 11. Question :

An index measures the current value of a group of stocks in relation to a base value established previously.

True

False

Points Received: 1 of 1

Comments:

Question 12. Question :

The documents signed when a customer opens a brokerage account

serve as an informal relationship between the customer and the stockbroker.

limit the customer to dealing only through that brokerage firm.

may be signed by a minor child provided that the money being invested belongs to the child.

establish a legal relationship between the customer and the brokerage firm.

Points Received: 1 of 1

Comments:

Question 13. Question :

Which one of the following statements is true concerning bonds?

A bond yield represents only the interest earned on a bond.

Bond yield data is more useful to an investor when compared over time.

IN A bond's yield remains constant even when a bond is sold prior to maturity.

Bonds with similar characteristics generally have widely disparate bond yields.

Points Received: 0 of 1

Comments:

Question 14. Question :

The Standard & Poor's indexes are all based on market values which consider the number of shares outstanding.

True

False

Points Received: 1 of 1

Comments:

Question 15. Question :

Reviewing industry and company information will help provide guidance on the future outlook of a particular firm.

True

False

Points Received: 1 of 1

Comments:

Question 16. Question :

The Dow Jones Industrial Average (DJIA) consists of 30 stocks whose price behavior

typically has little correlation with the rest of the stock market.

broadly reflects the overall price behavior of the stock market.

reflects the changes in value of manufacturing stocks only.

leads the movements in the general economy by one to two weeks.

Points Received: 1 of 1

Comments:

Question 17. Question :

Which one of the following is NOT published by the US Government?

Federal Reserve Bulletin

Survey of Current Business

Kiplinger Washington Letter

Economic Report of the President

Points Received: 1 of 1

Comments:

Question 18. Question :

Stock market averages and indexes are commonly used to measure the

specific behavior of companies.

general behavior of stock prices.

specific behavior of alternative investments.

specific behavior of the economy.

Points Received: 1 of 1

Comments:

Question 19. Question :

An individual can sort stocks by dividend rates, growth rates, and price/earnings ratios using screening tools on the Internet.

True

False

Points Received: 1 of 1

Comments:

Question 20. Question :

Averages and indexes differ from one another in that an index

is the arithmetic average price behavior of a group of stocks at a given point in time.

measures the current price behavior of a group of stocks in relation to a base value set at an earlier point in time.

is of value in-and-of itself, whereas an average must be compared to a historical figure to have any meaning.

always moves up before a corresponding average moves up, and always moves down before a corresponding average moves down.

Points Received: 1 of 1

Comments:

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