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.
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.
3.
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.
4.
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.
5.
A margin account allows you to borrow funds from your broker.
Choose wisely. There is only one correct answer.
True. Borrowing funds, or buying on margin, is possible only through a margin account.