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1.
A customer who wants nothing more than execution of trades from his or her broker will want a _______ broker.
Choose wisely. There is only one correct answer.
Deep-discount. The deep-discount broker limits his or her services to execution of trades.
2.
Common stock is less predictable than preferred stock.
Choose wisely. There is only one correct answer.
True. Since preferred stock pays a fixed premium, it is more predictable than common stock.
3.
Common stock and preferred stock both convey the same kind of equity rights.
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False. Owners of preferred stock have prior claim to the companys assets over owners of common stock.
4.
Corporate stock represents _______.
Choose wisely. There is only one correct answer.
Net assets. Stock represents a share of ownership in a companys assets.
5.
The best way to make a lot of money quickly is to buy and sell blue chip stocks.
Choose wisely. There is only one correct answer.
False. Blue chip stocks have low volatility, so any growth in value is likely to be slow.