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1.
Which type of broker provides investment research and assistance with making investment decisions?
Full-service. In return for higher commissions, the broker offers investment advice and research.
2.
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.
3.
It is possible to buy stock shares without going through a broker.
True. If you buy shares directly from the company or through a dividend reinvestment plan, you will not need a broker.
4.
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.
5.
A margin account allows you to borrow funds from your broker.
True. Borrowing funds, or buying on margin, is possible only through a margin account.