If this investing101 chapter was part of an Assignment, get all these questions right to get credit! How can you classify your stock purchases to record gains and losses? O Hold to maturity O Trading securities O Available for sale O All of the above How does the S&P 500 Index serve as a common stock market benchmark? It averages the prices of 500 companies for a view of the overall stock market direction It considers all the stocks to gauge stock market performance It focuses on small publicly traded companies to benchmark the stock market's situation It combines the top U.S. and international stocks to deliver an overall performance rating How is the term Beta used to evaluate a stock? It measures the change in stock price compared to yesterday's closing price It is a test to see if a stock will sell in the stock market it indicates the total shares outstanding multiplied by the current stock price It measures the volatility of a stock relative to an index How should you plan your investment strategy? O Decide you want to make money O Create a specific target or goal for all investment activities How should you plan your investment strategy? O Decide you want to make money O Create a specific target or goal for all investment activities O Plan to become wealthy Make decisions as it suits you What are reasons why a person may buy securities? O Appreciation O Income O Significant control over company operations O All of the above What is the main risk of short selling as compared to buying on margin? You may end up with very high losses O You may receive a margin call O You may have to come up with money if share prices increase O The bank holding your mortgage may not agree What does it mean to buy on margin? You purchase securities using some of your own money and collateral from stocks already owned You buy the stocks completely through a loan You use the profits from one stock to buy another You pay with a credit card What is a limit order? O An order to buy/sell immediately at market prices An order to buy or sell when the market price reaches a specified You use the profits from one stock to buy another You pay with a credit card What is a limit order? O An order to buy/sell immediately at market prices An order to buy or sell when the market price reaches a specified O An order to buy or sell at no more or no less than a specified amount that has been set An order that is only good for a certain amount of time What makes up a trading or ticker symbol? O One to five letters OTwo numbers O A combination of letters and numbers O A combination of letters, numbers, and symbols When preparing to make stock trades, what is the best advice? Dive in and hope for the best Stay positive and focused and keep gathering solid knowledge Pick the stocks with the coolest stock symbols O Wait until the economy rebounds We have received your answers, click "Submit" below to get your score