Stocks Beginner: Buying and Selling Stock

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1.
A _______ broker helps customers make decisions on investments.
Choose wisely. There is only one correct answer.
Full-service. The full-service broker includes investment assistance in his or her range of services.
2.
If you want to buy or sell stock shares only with money you deposit into your brokerage account, you will need a _______ account.
Choose wisely. There is only one correct answer.
Cash. This type of account is used simply for buying and selling and does not involve borrowing.
3.
An order that is effective until you decide to terminate it is called a limit order.
Choose wisely. There is only one correct answer.
False. This type of order is called a good til canceled order.
4.
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.
5.
To buy or sell publicly traded stock, you usually must use a broker.
Choose wisely. There is only one correct answer.
True. A broker executes trades for you.