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Stocks Beginner: Buying and Selling Stock

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1.
A customer who wants nothing more than execution of trades from his or her broker will want a _______ broker.
Choose wisely. There is only one correct answer.
Deep-discount. The deep-discount broker limits his or her services to execution of trades.
2.
If you want to buy or sell stock shares only with money you deposit into your brokerage account, you will need a _______ account.
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Cash. This type of account is used simply for buying and selling and does not involve borrowing.
3.
It is possible to buy stock shares without going through a broker.
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True. If you buy shares directly from the company or through a dividend reinvestment plan, you will not need a broker.
4.
With a _______ account, you may borrow from your broker to buy securities.
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Margin. Margin accounts let you borrow funds from your broker.
5.
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.