Stocks Beginner: Buying and Selling Stock

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1.
If you place a _______ order, your broker will buy or sell stock at a specific price.
Choose wisely. There is only one correct answer.
Limit. A limit order limits the price at which your broker will buy or sell a stock.
2.
It is possible to buy stock shares without going through a broker.
Choose wisely. There is only one correct answer.
True. If you buy shares directly from the company or through a dividend reinvestment plan, you will not need a broker.
3.
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.
4.
If you want to buy or sell stock shares only with money you deposit into your brokerage account, you will need a _______ account.
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Cash. This type of account is used simply for buying and selling and does not involve borrowing.
5.
By placing a _______ order on a stock, you can minimize the effects of a drop in stock price.
Choose wisely. There is only one correct answer.
Stop-loss. A stop-loss order instructs your broker to sell a stock if it falls below a certain price.