3.

True or False - a Ticker Symbol is always an abbreviation of a company's name

TRUE

FALSE

How many stocks are in the Dow Jones Industrial Average?

10

30

100

500

If you own a stock on the Ex-Div date, but sell it before the dividend is paid, do you get the dividend?

Yes

No

The Dividend Yield is.

The amount of dividends paid out per year

The amount of dividends in each dividend payment

The amount of dividends per year, divided by the stock price

The amount of dividends in each payment, divided by the stock price

A "Market Order" is

An order sent to the market

An order sent to execute at whatever price is current

An order set to execute if the price falls to a certain level

An order set to execute if the price rises above a certain level

If you set a "Limit Buy" order at $50, your order will execute

If the price rises above $50

If the price falls below $50

Immediately, if the current price is above $50

Both B and C

If you set a "Stop Sell" price at $30, your order will execute

If the price rises above $30

If the price falls below $30

Immediately, if the current price is below $30

Both B and C

A limit order is most likely to be used by

Someone trying to protect against loss

Someone trading mutual funds

A "Buy and Hold" investor

Someone trying to maximize gains

A "Stop" order is most likely to be used by

Someone trying to protect against loss

Someone trading mutual funds

A "Buy and Hold" investor

Someone trying to maximize gains

The current market price is $50. I set a "Trailing Stop Sell" order at $5. The next week, the stock's price increased to $75, before crashing down to $30. What price did my order execute?

$45

$50

$70

It did not execute in these conditions

A "GTD" order is most likely used by

A day trader

A trader protecting against long-term loss

A trader expecting a major announcement soon

All of the above

A Day Trader utilizing limit orders would be most likely using.

GTC

GTD

Trailing Stop

None of the above

Market orders use which order term?

Good Till Day

Good Till Cancelled

Good Till Date

All of the above

A "GTC" order usually expires after

A trading day

1 month

3 months

Never

Buying "On Margin" involves

Borrowing money

Buying "Over The Counter"

Short Selling

Limit Stop orders

With a $1000 deposit and 50% margin, how much stock can you buy?

$500

$1,000

$1,500

$2,000

Let's say you have a 50% margin trading account, and you use all of your buying power to buy a stock. This stock's price falls by 50%. How much money did you lose?

25%

50%

75%

100%

Instead of the scenario above, the stock's price instead increased by 50%. How much did you gain on your initial investment?

25%

50%

75%

100%

"Short Selling" involves

Borrowing stocks and selling them

Selling stocks you own to buy back later

Borrowing cash to buy stocks

None of the above

If you are "shorting", how do you close your position?

Buying

Selling

Covering

Trailing

You have a 50% margin account, and short-sell one share of a stock currently trading at $100. What is your maximum profit?

$50

$100

$200

Unlimited

You have a 50% margin account, and short-sell one share of a stock currently trading at $100. What is your maximum loss?

$50

$100

$200

Unlimited

You have a 50% margin account, and buy one share of a stock currently trading at $100. What is your maximum profit?

$50

$100

$200

Unlimited

You have a 50% margin account, and buy one share of a stock currently trading at $100. What is your maximum loss?

$50

$100

$200

Unlimited

You buy one share of stock at $100, and a second share at $150, and a third share at $200. You then sell the stock for $150, the current market price. Under FIFO, what was your realized gain?

$50

$0

-$50

You buy one share of stock at $100, and a second share at $150, and a third share at $200. You then sell the stock for $150, the current market price. Under FIFO, what was your unrealized gain?

$50

$0

-$50

You buy one share of stock at $100, and a second share at $150, and a third share at $200. You then sell the stock for $150, the current market price. Under LIFO, what was your unrealized gain?

$50

$0

-$50

You buy one share of stock at $100, and a second share at $150, and a third share at $200. You then sell the stock for $150, the current market price. Under LIFO, what was your realized gain?

$50

$0

-$50

You buy one share of stock at $100, and a second share at $150, and a third share at $200. You then sell the stock for $150, the current market price. Under Average Cost Basis, what was your unrealized gain?

$50

$0

-$50

You buy one share of stock at $100, and a second share at $150, and a third share at $200. You then sell the stock for $150, the current market price. Under Average Cost Basis, what was your realized gain?

$50

$0

-$50