Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
If you place a _______ order, your broker will buy or sell stock at a specific price.
Choose wisely. There is only one correct answer.
Limit. A limit order limits the price at which your broker will buy or sell a stock.
2.
An order that is effective until you decide to terminate it is called a limit order.
Choose wisely. There is only one correct answer.
False. This type of order is called a good til canceled order.
3.
Through ________, you can buy stock shares without a broker.
Choose wisely. There is only one correct answer.
Dividend reinvestment plans. If you already own stock in a company, your reinvested dividends can buy more shares directly. Not all companies offer these plans, however.
4.
If you want to buy or sell stock shares only with money you deposit into your brokerage account, you will need a _______ account.
Choose wisely. There is only one correct answer.
Cash. This type of account is used simply for buying and selling and does not involve borrowing.
5.
A _______ broker helps customers make decisions on investments.
Choose wisely. There is only one correct answer.
Full-service. The full-service broker includes investment assistance in his or her range of services.