Stocks Beginner: Buying and Selling Stock

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1.
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.
2.
Through ________, you can buy stock shares without a broker.
Choose wisely. There is only one correct answer.
Dividend reinvestment plans. If you already own stock in a company, your reinvested dividends can buy more shares directly. Not all companies offer these plans, however.
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.
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.