1.Acme Company just had a very successful IPO. Initial shares sold at a price far above their realistic value. The "buzz" on the streets is that this is a very promising stock. Demand for the stock is high and rising. Is the price of Acme Company's stock likely to rise or fall? Explain your prediction.

2.The stock market is experiencing a bear market. Trading volume has been high for weeks. Even the most stable stocks are feeling the effects. Bellwether Company's stock price was relatively stable for decades, but it has declined recently. Is the price of Bellwether Company's stock likely to rise or fall? Explain your prediction.

3.Consumers are caught up in a craze over a new product put out by Caliente Company. People are snapping up Caliente Company's stock even though it is overvalued. Last month, sales of Caliente's stock peaked, and now investors are starting to sell off their stocks. Is the price of Caliente Company's stock likely to rise or fall? Explain your prediction.

4.Dividend Company is a large company that has been profitable and growing for a long time. In the most recent shareholders' report, the company announced that its profits grew again in the last quarter. Shareholders also received an increase in their dividends last quarter. Is the price of Dividend Company's stock likely to rise or fall? Explain your prediction.

5.Edge Company is a small company that has had a volatile stock price for the past year, with an overall downward trend, but the Fed just announced that the discount rate is going down, as well. Is the price of Edge Company's stock likely to rise or fall? Explain your prediction.

6.If you were to start playing the stock market, would you use a full-service broker or a discount broker? Explain your decision.