Day Trading, Finance And Accounting

Question: What requirements do brokerages have for day traders?
A
No requirements are there.

B
Minimum deposits must be at least $1,000.

C
They must come into the office and sign an agreement.

D
Brokerages must ask traders if they understand the risky style of trading and that there is a possibility of losing their investment capital.

Note: Answer not sure
1. Report
Question: Why is arbitrage trading a day trading method only?
A
Because the transactions on both markets are made simultaneously

B
Because it is required by law that all arbitrage transactions be cleared out daily

C
Because it is too risky for the average investor

D
Because it mitigates the tax implications

Note: Answer not sure
1. Report
Question: Which of the following provides some form of ongoing return on investment?
A
Investing in companies with drastic price range history

B
Investing in companies with a solid history of consistent dividends

C
Investing in new companies

D
Short selling only

Note: Answer not sure
1. Report
Question: What would a range trader who sees a breakout most likely do?
A
Nothing, wait and see what else happens.

B
Tell their friends to buy the stock.

C
Call the company to find out what is happening.

D
Purchase or sell the stock depending on the direction as the price is likely to continue in the same direction for some time.

Note: Answer not sure
1. Report
Question: What is meant by "range trading"?
A
Trading in stocks of appliance manufacturers

B
Trading in stocks based on news releases

C
Trading in stocks based on the analysis of company financials

D
Buying and selling stocks based on the history of trading within a certain price range

Note: Answer not sure
1. Report
Question: By doing which of the following would a day trader be leveraging capital?
A
Buying 100 shares of a hot new company

B
Buying stock options

C
Short selling stock

D
Passing on a transaction

Note: Answer not sure
1. Report
Question: What is the best way to reduce variable expenses?
A
Working at the library using their computers

B
Working with a brokerage which charges low commissions from frequent traders

C
Refusing to pay commissions

D
Refusing to pay the margin requirements

Note: Answer not sure
1. Report
Question: What would a trader do if they calculated a price based on fundamental analysis which was higher than the current market price?
A
Purchase the stock as it will potentially normalize back to the calculated price.

B
Nothing; they would wait and see what happens.

C
Tell their friends to short sell the stock.

D
Call the company and ask why.

Note: Answer not sure
1. Report
Question: What is the requirement on short sellers regarding locates?
A
Locates must be in place before a short sale can be made.

B
Locates must be made if requested by the broker.

C
Locates are not required.

D
Locates must be wealthy individuals.

Note: Answer not sure
1. Report
Question: Which of the following is a positive attribute often associated with short sellers?
A
They have lower commission rates.

B
They tend to do extensive dilligent research on securities due to the substantially risky nature of the trades.

C
Their errors create opportunities for others.

D
Their actions often indicate market direction.

Note: Answer not sure
1. Report

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Question: What requirements do brokerages have for day traders?

Question: Why is arbitrage trading a day trading method only?

Question: Which of the following provides some form of ongoing return on investment?

Question: What would a range trader who sees a breakout most likely do?

Question: What is meant by "range trading"?

Question: By doing which of the following would a day trader be leveraging capital?

Question: What is the best way to reduce variable expenses?

Question: What would a trader do if they calculated a price based on fundamental analysis which was higher than the current market price?

Question: What is the requirement on short sellers regarding locates?

Question: Which of the following is a positive attribute often associated with short sellers?