Test your knowledge

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1.
With a _______ account, you may borrow from your broker to buy securities.
Choose wisely. There is only one correct answer.
Margin. Margin accounts let you borrow funds from your broker.
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.
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.
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.
5.
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.