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With which order type would you receive the current stock price when you buy or sell a stock? A. Market order B. Stop order C.

  1. With which order type would you receive the current stock price when you buy or sell a stock?

    A.

    Market order

    B.

    Stop order

    C.

    Limit order

    D.

    Trailing Stop order

  2. Suppose SammyBearKat wants to buy 10 shares of AMD stock which is selling at $110.23 a share, however he thinks that the price will drop in the near term so he wants to buy it only if it goes down to $100.00 a share. What type of order should he use?

    A.

    Stop order

    B.

    Limit order

    C.

    Market order

    D.

    Short the stock

  3. If an investor analyzes which companies had the strongest sales in the last quarter, the investor is employing which type of stock picking method?

    A.

    Top down approach

    B.

    Fundamental analysis

    C.

    Technical anlaysis

    D.

    Behavioral analysis

  4. Suppose that you hear that Nike is going to release a controversial ad campaign. You think this will hurt Nike sales and you decide to short the stock. Which of the following is true about market efficiency?

    A.

    If markets are efficient, this information will already be priced in and you can make a profit from it.

    B.

    If markets are inefficient, this information will already be priced in and you can make a profit from it.

    C.

    If markets are efficient, this information will not be priced in and you can make a profit from it.

    D.

    If markets are efficient, this information will already be priced in and you cannot make a profit from it.

  5. What do we call the investors that work for mutual funds, hedge funds, and commercial banks?

    A.

    Fat cats

    B.

    Behaviorists

    C.

    Technical traders

    D.

    Institutional Investors

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