A trader wants to purchase Microsoft stock at $30.00 and no more. Microsoft's current price is $30.05. Which order is most appropriate for this trader?
Which of the following best describes the stock trading environment in the United States?
| | The NYSE dominates stock trading. Nasdaq is a distant second. No other major competitors exist. |
| | The NYSE and Nasdaq dominate trading and have very little competition. |
| | Alternative trading systems dominate leaving little role for the traditional exchanges like the NYSE or Nasdaq. |
| | The NYSE and Nasdaq are leaders, but they face heavy competition from alternative trading systems and exchanges. |
Which of the following represents an advantage of an ETF versus an open-end mutual fund?
| | ETFs often require a high initial investment, while mutual funds often require a low initial investment. |
| | ETFs can invest in stocks all over the world. Mutual funds are restricted to investing in U.S. stocks only. |
| | When trading an ETF, you know the price of the trade almost immediately. Mutual funds trade at prices determined at the end of the trading day. |
| | ETFs can track an index like the S&P 500. Mutual funds cannot track indexes as they must be actively managed. |
