Question 1

For most stocks, charts and tables of historical prices are only available through subscription services.

Accepted Answer

Charts and tables of historical stock prices are widely available for free through financial news websites, stock market apps, and the websites of stock exchanges.

Question 2

Chemical Week and the Oil and Gas Journal are considered to be general business periodicals.

Accepted Answer

Chemical Week and the Oil and Gas Journal are specialized trade publications focused on the chemical and oil and gas industries, respectively, rather than general business periodicals.

Question 3

Analytical information would include such information as estimates of growth in sales and future earnings.

Accepted Answer

Analytical information is defined as information that provides insight and understanding of a specific situation or problem. It includes estimates, forecasts and projections based on data and analysis, which can help make informed decisions. Therefore, estimates of growth in sales and future earnings would be considered analytical information.

Question 4

A listing of a firm's major product lines and projections of future sales would both be considered descriptive information.

Accepted Answer

The answer of A listing of a firm's major product...

Question 5

Reviewing industry and company information may provide guidance on the future outlook of a particular firm.

Accepted Answer

Reviewing industry and company information can help identify trends and potential upcoming challenges, allowing for a more informed prediction of a firm's future performance.

Question 6

An investor who mistakenly buys the wrong stock because the symbols are similar has 24 hours to undo the trade.

Accepted Answer

There is no universal rule requiring brokerages to allow investors to undo trades made in error, and the timeframe for doing so can vary by brokerage and situation. Some brokerages may offer the option to undo a trade made in error, but this is not guaranteed and will likely depend on the specific circumstances of the trade. It is important for investors to carefully review their trades before confirming them to avoid costly mistakes.

Question 7

Current price information on shares of a company's stock is often accompanied by statistics on the recent price behavior of that stock.

Accepted Answer

This is true, as stock market investors often use price behavior statistics to gauge the potential future movement of the stock price. Examples of such statistics may include the stock's 52-week high and low prices, its price-to-earnings ratio, and its moving average over a certain time period.

Question 8

Which one of the following can be considered a pitfall for investors new to on-line trading?

Accepted Answer

On-line investors often have easy access to trading and may be lured into making more frequent trades than they would with a traditional broker. This can lead to higher transaction costs and potentially detrimental investment decisions.

Question 9

Descriptive information might include the company's lines of business, a list of major competitors, and recent changes in management.

Accepted Answer

Descriptive information often includes details about the company's operations, competition, and management.

Question 10

Information that can be found on the Internet at no cost includes
I.P/E ratios.
II.recent news about a company.
III.financial statements.
IV.future earnings and stock prices.

Accepted Answer

I, II, and III (P/E ratios, recent news about a company, and financial statements) can typically be found on the Internet at no cost through financial news websites, stock market analysis platforms, and companies' official websites. Future earnings and stock prices, however, are predictions and cannot be accurately found for free as they involve speculative information.

Question 11

What are some of the tools available to investors on the internet (name at least 4)?

Accepted Answer

The answer of What are some of the tools available...

Question 12

You can utilize the Internet to develop financial plans and goals, analyze and select individual investments and organize your portfolio.

Accepted Answer

With the help of various online resources, such as financial planning tools, investment analysis websites and portfolio management software, individuals can use the Internet to develop, implement and manage their financial plans and investments.

Question 13

Investing online is usually less expensive than traditional methods.

Accepted Answer

Investing online often involves lower fees and commissions compared to traditional brokerage services, as there are fewer middlemen and overhead costs involved.

Question 14

Individuals can use the Internet to
I.analyze individual securities.
II.search for stocks that meet specific investment criteria.
III.organize their financial information.
IV.track the performance of their portfolio.

Accepted Answer

The Internet provides tools and resources for analyzing securities, searching for stocks, organizing financial information, and tracking portfolio performance.

Question 15

Investors who are aware of current economic, political, and market events tend to make better investment decisions.

Accepted Answer

Keeping a close eye on economic, political, and market events can help investors to make informed decisions that consider potential risks and opportunities. This can lead to better investment outcomes compared to those who do not stay informed.

Question 16

The Internet provides
I.educational sites for financial investing.
II.the ability to trade securities on-line.
III.current information on stocks and bonds.
IV.analysts reports on individual stocks.

Accepted Answer

The statement lists all four options, meaning all of them are provided by the Internet.

Question 17

The tools and calculators available on the FINRA website are useful, but quite expensive to use.

Accepted Answer

The tools and calculators available on the FINRA website are free to use.

Question 18

On-line trading has greatly lowered the cost of buying and selling stock as well as greatly increasing the speed of transactions.

Accepted Answer

On-line trading has eliminated the need for physical brokers and the associated fees, making buying and selling stock more affordable. Additionally, online trading platforms allow for faster and more efficient transactions compared to traditional methods.

Question 19

Most brokers charge higher commissions for on-line trades than for telephone transactions.

Accepted Answer

Most brokers charge lower commissions for on-line trades compared to telephone transactions due to the reduced costs associated with electronic transactions compared to traditional phone orders.

Question 20

Individuals can now use the Internet to buy and sell
I.stocks.
II.bonds.
III.mutual funds.
IV.stock options.

Accepted Answer

Individuals can now use the Internet to buy and sell all of the given options - stocks, bonds, mutual funds, and stock options. Therefore, the correct choice is D - I, II, III and IV.

Quiz 3: Investment Information and Securities Transactions