Stocks Beginner: Buying and Selling Stock

Test your knowledge

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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.

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.

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.

A _______ broker helps customers make decisions on investments.

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Discount

Deep-discount

Full-service

Full-service. The full-service broker includes investment assistance in his or her range of services.

It is possible to buy stock shares without going through a broker.

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True

False

True. If you buy shares directly from the company or through a dividend reinvestment plan, you will not need a broker.

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