1. Describe the difference between the primary market and the secondary market. If you were purchasing a newly-issued share of stock in technology startup company, in which market would this occur? Next, if you were buying a share of previously-issued stock in General Motors, indicate the market in which this would occur.
2. Summarize the role of the NYSE and the NASDAQ stock exchange in facilitating the investment process.
3. Describe the role of the stockbroker in facilitating investment transactions. If you were to start an investment program today, indicate if you would utilize the services of this type of individual, or of you would conduct your own investing online and provide your rationale.
4. Assume that you are interested in purchasing a share of stock. Describe the difference between a market order and a limit order and indicate when each would be appropriate.
5. Assume that you are interested in selling a share of stock. Describe the difference between a market order and a stop-loss order and indicate when each would be appropriate.
6. Describe the purpose of an "Annual Report," the type of investment(s) that it would relate to, and indicate how you could utilize it to manage your investments.
7. Select one of the stock indexes addressed in this module (e.g. Dow Jones Industrial Average, S & P 500, NASDAQ Composite), describe its purpose, and indicate how you could utilize it to manage your investments.

Answer rating: 100% (QA)

The primary market and the secondary market are two different stages in the life cycle of securities The primary market is where newly issued securities such as stocks or bonds are sold for the first ... View the full answer