Stocks Beginner: Buying and Selling Stock

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1.
By placing a _______ order on a stock, you can minimize the effects of a drop in stock price.
Choose wisely. There is only one correct answer.
Stop-loss. A stop-loss order instructs your broker to sell a stock if it falls below a certain price.
2.
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.
3.
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.
4.
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.
5.
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.