Stocks Beginner: Buying and Selling Stock

Test your knowledge

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Keep studying!

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A margin account allows you to borrow funds from your broker.

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True

False

True. Borrowing funds, or buying on margin, is possible only through a margin account.

An order that is effective until you decide to terminate it is called a limit order.

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True

False

False. This type of order is called a good til canceled order.

With a _______ account, you may borrow from your broker to buy securities.

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Cash

Margin

Brokerage

All of the above

Margin. Margin accounts let you borrow funds from your broker.

Which type of broker provides investment research and assistance with making investment decisions?

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Full-service

Deep-discount

Discount

All of the above

Full-service. In return for higher commissions, the broker offers investment advice and research.

To buy or sell publicly traded stock, you usually must use a broker.

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True

False

True. A broker executes trades for you.

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