Stocks Beginner: Buying and Selling Stock

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1.
To buy or sell publicly traded stock, you usually must use a broker.
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True. A broker executes trades for you.
2.
A customer who wants nothing more than execution of trades from his or her broker will want a _______ broker.
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Deep-discount. The deep-discount broker limits his or her services to execution of trades.
3.
An order that is effective until you decide to terminate it is called a limit order.
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False. This type of order is called a good til canceled order.
4.
A margin account allows you to borrow funds from your broker.
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True. Borrowing funds, or buying on margin, is possible only through a margin account.
5.
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.