5.04-5.05 FP1

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

• efficient

• influential

• successful

• volatile

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

• by avoiding investment scams

• by encouraging product purchasing

• by discouraging product purchases

• by promoting well-performing funds

At a stock exchange, specialists have responsibility for:

• keeping a stock's price as low as possible.

• keeping a stock's price as high as possible.

• all of the trades made on a particular stock.

• all of the trades made for institutional stock investors.

Which is a company-specific influence on a stock price?

• change in supply or demand

• change in management

• government action

• investor activity

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

• Analysts recommend that investors sell stock holdings of the company.

• Individual investors purchase shares of stock from the company.

• The company introduces a new business model.

• The company introduces a new product.

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

• expectations

• information

• performance

• recommendations

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

• limit

• market

• stop

• trade

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

• by increasing supply or demand

• by filtering out poor investments

• by bringing together a balanced portfolio

• by making investment information available to the public

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

• day order

• all or none

• fill or kill order

• good 'til canceled

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

• The ask price and buy price are usually equal.

• The ask price is usually higher than the buy price.

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

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