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.
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Limit. A limit order limits the price at which your broker will buy or sell a stock.
2.
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.
3.
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.
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.
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.