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1.
Through ________, you can buy stock shares without a broker.
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.
2.
A customer who wants nothing more than execution of trades from his or her broker will want a _______ broker.
Deep-discount. The deep-discount broker limits his or her services to execution of trades.
3.
If you want to buy or sell stock shares only with money you deposit into your brokerage account, you will need a _______ account.
Cash. This type of account is used simply for buying and selling and does not involve borrowing.
4.
By placing a _______ order on a stock, you can minimize the effects of a drop in stock price.
Stop-loss. A stop-loss order instructs your broker to sell a stock if it falls below a certain price.
5.
An order that is effective until you decide to terminate it is called a limit order.
False. This type of order is called a good til canceled order.