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Ethan Wants to Purchase Some Stock for the First Time

Question 105

Multiple Choice

Ethan wants to purchase some stock for the first time.Which of the following is correct?


A) His account executive should be encouraged to churn Ethan's account to maximize his return.
B) He should use an online broker to get specific advice about purchasing stock.
C) His purchase price will exactly equal the number of shares he purchases times the price per share and is known in advance.
D) If he uses a market order, he can lock in the price at which he wants to buy the stock.
E) His commission should be lower at an online broker than at a full-service broker.

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