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Sammy want to buy 10 shares of Apple stock if the price dips below $150 a share. Which of the following would be his best

  1. Sammy want to buy 10 shares of Apple stock if the price dips below $150 a share.

    Which of the following would be his best choice of order type?

    A.

    Market order

    B.

    Limit order

    C.

    Stop order

    D.

    Trailing stop $ order

    E.

    Trailing stop % order

  2. If you chart the stock price history of Walmart, and make a trading decision based on the patterns you see in the chart, which method are you using?

    A.

    The top-down approach

    B.

    Fundamental analysis

    C.

    Technical analysis

    D.

    Behavioral analysis

  3. Limit orders cause a market order to be executed once the price desired has been reached.

    True

    False

  4. If the Dow Jones Index is up 2.5% then all your stocks that are on the NYSE will be guaranteed to be up at least 2.5%.

    True

    False

  5. Which ratio tells us how much investors are willing to pay for one dollar of earnings?

    A.

    Sharpe ratio

    B.

    P/E ratio

    C.

    Short Float

    D.

    ROA

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