Stocks Beginner: Buying and Selling Stock

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1.
A customer who wants nothing more than execution of trades from his or her broker will want a _______ broker.
Choose wisely. There is only one correct answer.
Deep-discount. The deep-discount broker limits his or her services to execution of trades.
2.
With a _______ account, you may borrow from your broker to buy securities.
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Margin. Margin accounts let you borrow funds from your broker.
3.
It is possible to buy stock shares without going through a broker.
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True. If you buy shares directly from the company or through a dividend reinvestment plan, you will not need a broker.
4.
By placing a _______ order on a stock, you can minimize the effects of a drop in stock price.
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Stop-loss. A stop-loss order instructs your broker to sell a stock if it falls below a certain price.
5.
Which type of broker provides investment research and assistance with making investment decisions?
Choose wisely. There is only one correct answer.
Full-service. In return for higher commissions, the broker offers investment advice and research.