FP Unit 5 5.04/05 Test

Front

At a stock exchange, specialists have responsibility for:

Back

all of the trades made on a particular stock

Front

What is the difference between a stock’s ask price and buy price?

Back

The ask price is the sell price, while the buy price is the bid price.

Front

Maggie wants to buy stock in PepsiCo but only when the price drops to a certain amount. What kind of order will she place?

Back

limit

Front

Which is a company-specific influence on a stock price? Options: change in supply or demand, change in management, government action, Investor activity

Back

change in management

Front

How can the general state of the economy affect a stock's price?

Back

by increasing supply or demand

Front

Stocks whose prices rise higher, or fall lower, than the market as a whole are referred to as:

Back

volatile

Front

Which is the most likely result of institutional investors buying a number of shares of a company's stock?

Back

Individual investors purchase shares of stock from the company

Front

What type of order restriction lets a broker know the order will expire at the end of the trading day?

Back

day order

Front

How does a bull market affect a stock's price?

Back

by encouraging product purchases

Front

When people invest in stocks, what primarily drives their actions?

Back

expectations