6. Assume you want to purchase AOL-Time Warner for $22 a share but it is currently trading at

$24 a share. What type of order would you use in this case?

A. Market order B Limit-buy order C Limit-sell order D Stop-loss order

7. If you buy a stock, what type of order can you use to limit your losses if the stock begins to

fall?

A. Limit-buy order B Limit-sell order C Stop-loss order D Stop-buy order

8. If you short sell 100 shares of Intel stock when it goes from $85 to $110, how much did you

make or lose?

A. +$250 B -$3,000 C +$2,500 D -$2,500

9. If you buy 300 shares of stock that is priced at $40 a share on 75% margin, how much of your

own money did you put up.

A. $9,000 B. $3,000 C. $6,000 d. $2,250

10. If the market prices of each of the 30 stocks in the Dow Jones Industrial Average (DJIA) all

change by the same percentage amount during a given day, which stock will have the greatest

impact on the DJIA?

A. The stock trading at the highest dollar price per share.

B. The stock having the greatest amount of debt in its capital structure.

C. The stock having the greatest amount of equity in its capital structure.

D. The stock having the lowest volatility.

E. None of the above.