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Stocks Beginner: Introduction to Stocks

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1.
Jim just bought 200 shares of Microsoft. He is now part owner of ______.
Choose wisely. There is only one correct answer.
All of the above. These are all examples of the companys assets. Stock ownership conveys equity in a companys assets.
2.
A customer who wants nothing more than execution of trades from his or her broker will want a _______ broker.
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Deep-discount. The deep-discount broker limits his or her services to execution of trades.
3.
Volatile stocks always show a better return than the rest of the market.
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False. While volatile stocks show greater price fluctuations than the rest of the market, those fluctuations can be up or down.
4.
Which type of broker provides investment research and assistance with making investment decisions?
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Full-service. In return for higher commissions, the broker offers investment advice and research.
5.
Common stock is less predictable than preferred stock.
Choose wisely. There is only one correct answer.
True. Since preferred stock pays a fixed premium, it is more predictable than common stock.