Question 1

You sell short 100 shares of Loser Co.at a market price of $45 per share.Your maximum possible loss is

Accepted Answer

A)  $4,500.
B)  unlimited.
C)  zero.
D)  $9,000.

Question 2

Block transactions are transactions for more than _______ shares, and they account for about _____ percent of all trading on the NYSE.

Accepted Answer

A)  1,000; 5
B)  500; 10
C)  100,000; 50
D)  10,000; 30

Question 3

Which of the following orders instructs the broker to sell at or below a specified price?

Accepted Answer

A)  Limit-sell order
B)  Stop-loss
C)  Limit-buy order
D)  Stop-buy order

Question 4

Specialists on stock exchanges perform which of the following functions?

Accepted Answer

A)  Act as dealers in their own accounts
B)  Analyze the securities in which they specialize
C)  Provide liquidity to the market
D)  Act as dealers in their own accounts and analyze the securities in which they specialize
E)  Act as dealers in their own accounts and provide liquidity to the market

Question 5

You want to purchase IBM stock at $80 from your broker using as little of your own money as possible.If initial margin is 50% and you have $2,000 to invest, how many shares can you buy?

Accepted Answer

A)  100 shares
B)  200 shares
C)  50 shares
D)  500 shares

Exam 3: How Securities Are Traded

Specialists on stock exchanges perform which of the following functions?

Correct Answer
verified

Which of the following orders instructs the broker to sell at or below a specified price?

Correct Answer
verified

You want to purchase IBM stock at $80 from your broker using as little of your own money as possible.If initial margin is 50% and you have $2,000 to invest, how many shares can you buy?

Correct Answer
verified

Block transactions are transactions for more than ___ shares, and they account for about _ percent of all trading on the NYSE.

Correct Answer
verified

You sell short 100 shares of Loser Co.at a market price of $45 per share.Your maximum possible loss is

Correct Answer
verified

Exam 3: How Securities Are Traded

Specialists on stock exchanges perform which of the following functions?

Correct AnswerverifiedShow Answer

Which of the following orders instructs the broker to sell at or below a specified price?

Correct AnswerverifiedShow Answer

You want to purchase IBM stock at $80 from your broker using as little of your own money as possible.If initial margin is 50% and you have $2,000 to invest, how many shares can you buy?

Correct AnswerverifiedShow Answer

Block transactions are transactions for more than _______ shares, and they account for about _____ percent of all trading on the NYSE.

Correct AnswerverifiedShow Answer

You sell short 100 shares of Loser Co.at a market price of $45 per share.Your maximum possible loss is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Block transactions are transactions for more than ___ shares, and they account for about _ percent of all trading on the NYSE.

Correct Answer
verified

Correct Answer
verified