FP Unit 5 5.04/05 Test

At a stock exchange, specialists have responsibility for:

• keepint a stock's price as low as possible

• keeping a stocks price as high as possible

• all of the trades made on a particular stock

• all of the trades made for institutional stock investors

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

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

• shop

• trade

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

• change in supply or demand

• change in management

• government action

• Investor activity

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

• by increasing supply or demand

• by filtering out poor investments

• by bringing together a balanced protfolio

• by makinginvestment information available to the public

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

• efficient

• influential

• successful

• volatile

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

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 till cancelled

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

• by avoiding investment scams

• by encouraging product purchases

• by discouragingproduct purchases

• by promoting well performing funds

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

• expectations

• information

• performance

• recommendations