Stocks Beginner: Buying and Selling Stock

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
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.
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.
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.
4.
Which type of broker provides investment research and assistance with making investment decisions?
Choose wisely. There is only one correct answer.
Full-service. In return for higher commissions, the broker offers investment advice and research.
5.
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.