Which of the following types of securities orders is designed to be executed in the shortest period of time?

a. a limit order

b. a stop order

c. a day order

d. a market order

The dollar amount of the recent cash dividend of a stock investment divided by its current market price is its

a. total rate of return.

b. capital gain.

c. profitability.

d. dividend yield.

______ ______ is what a buyer is willing to pay a willing seller for a share of stock.

a. Par value

b. Market yield

c. Dividend price

d. Market price

The index that measures the prices of stocks on the OTC market is the

a. over-the-counter stock index.

b. NASDAQ Composite Index.

c. Wilshire 5000 Index.

d. S&P 500 Index.

The most widely reported index of common stock prices is the

a. New York Stock Exchange Composite Index.

b. Standard & Poor's 500 Index.

c. Dow Jones Industrial Average.

d. American Stock Exchange Market Value Composite.

When you sell stocks you have borrowed from your stockbroker in the hope that when you buy stocks to replace those borrowed that the price will be lower than the original sale you are said to be

a. selling short.

b. buying short.

c. selling long.

d. buying long.

_____ is a measure of an investment's volatility compared with a broad market index for similar investments.

a. Alpha

b. Beta

c. Variance

d. Standard deviation

When a firm earns a profit but chooses not to pay all of the profit out in the form of dividends, the funds not paid out are referred to as

a. retained dividends.

b. phantom profits.

c. retained earnings.

d. managerial earnings.

The most basic form of ownership of a corporation is

a. preferred stock.

b. common stock.

c. bonds.

d. start-up capital.

If you base your predictions about the likely future success of a stock on the value of the company, the quality of its management, and its expected future earnings, you are using the

a. random-walk approach.

b. technical approach.

c. fundamental approach.

d. street-wise approach.