A market order is transacted at the:

best price when the order is entered.

The federal government regulates securities markets through the

Securities and Exchange Commission.

Which of the following is a characteristic of organized securities exchanges?

Trading in securities is carried out in a physical location.

The most important investment prerequisites are:

adequate insurance and liquidity.

A trade in securities exchange:

brings the buyer and seller together.

Which of the following is a characteristic of a stop-loss order?

Order to sell if market price drops below a specified price

Which of the following is true of bonds?

Bonds are liabilities of the issuer.

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Chapter 11 Investment Planning

23 termsStudBud Administration159 plays

Intro to investing

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Questions 23

Answers

1
A market order is transacted at the:
limit price.
best price when the order is entered.
lowest price of the day.
price quoted by the broker
2
Megan invested in one bond worth $1,000. 10% semiannual interest. How much is her first payment
$50
$500
$100
$90
3
type of brokers likely to involve an investor trading electronically from a personal computer?
A futures broker
A bank broker
A full service broker
An online broker
4
A bear market condition is associated with
increased tax rate.
declining securities prices.
investor optimism.
economic recovery.
5
The Securities Investor Protection Corporation (SIPC) provides protection to the investor from:
brokerage firm failure.
declining security prices.
low or missing dividend payments.
using margin requirements.
6
The federal government regulates securities markets through the
National Association of Securities Dealers.
Department of Commerce.
Securities and Exchange Commission.
Federal Reserve System.
7
Discount brokers will:
watch portfolios.
provide finance
give advice.
execute orders.
8
When you buy 300 shares of a company, you have purchased:
a round lot.
a combined lot.
an odd lot.
an even lot.
9
Stockbrokers are also known as:
commission sellers.
account executives.
market makers.
broker-dealers.
10
The new securities sold in primary markets are handled by a(n)
credit bureau
dealer
investment banker
security exchange council
11
Which of the following is a characteristic of organized securities exchanges?
Pink sheets are commonly used in these markets.
Trading in securities is carried out in a physical location.
Municipal bonds are primarily traded in organized exchanges
The NASDAQ is an example of an organized exchange.
12
You have been offered an opportunity to buy shares of a diversified collection of securities.
common stocks.
real estate.
mutual funds.
bonds.
13
The most important investment prerequisites are:
an investment plan and professional advice.
adequate insurance and liquidity.
adequate income and savings.
adequate income and insurance.
14
A bull market is characterized by:
governmental stimulus.
economic slowdown.
falling stock prices.
investor optimism.
15
Instructing your broker to buy or sell a stock at a particular price is a:
margin order.
market order.
limit order.
regular order.
16
What is an order to sell a stock when the market price drops to or below a specified level?
A market order
A fill or kill order
A limit order
A stop loss order
17
What is the interest for 5 bonds of face value of $1,000 that paid 5% annual interest rate.
$250
$50
$100
$175
18
_____ is a short-term investment activity.
Speculating in common stock
Investing in common stock
Buying bonds
Buying life insurance
19
A trade in securities exchange:
is executed by the Securities Exchange Commission
brings the buyer and seller together.
is executed by the dealer.
is arranged by an investment banker.
20
Which of the following is true of a securities exchange?
The stocks are traded over-the-counter.
Buyer and the seller execute their trade through the dealer.
The exchange acts as a broker.
The exchange acts as a market maker.
21
_____ are senior, unsecured, unsubordinated debt securities issued by an underwriting bank.
Corporate Bonds
Mutual funds
Collateral debt obligations
Exchange traded notes
22
Which of the following is a characteristic of a stop-loss order?
Stock is purchased at the current market price
Order to sell if market price drops below a specified price
Securities are always bought on margin
Buy orders are filled at the lowest available price
23
Which of the following is true of bonds?
Income from bonds varies every year.
Bonds are liabilities of the issuer.
Individuals investing in bonds receive dividends.
Bonds cannot be purchased or sold prior to maturity.

Chapter 11 Investment Planning Flashcards | StudBud