Stock Trading, Finance And Accounting

Question: What happens to a stop loss order when the trigger price is reached?
A
The order converts to a market order to sell.

B
The seller is notified to log into their account to execute the order.

C
The stock is purchased.

D
An options contract is sold for the security at the trigger price.

Note: Answer not sure
1. Report
Question: What is the purpose of a stop loss order?
A
To set a purchase price on a stock

B
To write an option contract at the trigger price

C
To sell a stock at the purchase price before losing money

D
To protect profits already made on a stock investment

Note: Answer not sure
1. Report
Question: What form of analysis would a "Value Investor" utilize to identify stock opportunities?
A
Fundamental Analysis

B
Technical Analysis

C
Capital Asset Pricing Model

D
All of these

Note: Answer not sure
1. Report
Question: When is the straddle trading strategy appropriate?
A
When the price may move by a small amount

B
When an investor believes there will be a large decrease in stock prices

C
When an investor believes there will be a large increase in stock prices

D
When an investor believes there will be a large stock price movement, but does not know in which direction

Note: Answer not sure
1. Report
Question: Which of the following would be a good example of risk mitigation?
A
Purchasing only small cap stocks

B
Purchasing stocks in three industries

C
Purchasing stocks all in one industry

D
Purchasing only blue chip stocks

Note: Answer not sure
1. Report
Question: What would a company at the peak of the business cycle consider doing?
A
Selling off the division

B
Reworking the product or offering an additional product, as the current product is likely to start declining

C
Spending on marketing to increase sales

D
Hiring additional staff

Note: Answer not sure
1. Report
Question: What is a "speculative stock"?
A
A stock which has a proven track record for slow growth

B
A stock which is high risk and has the potential for large returns or large losses

C
A stock with a guaranteed return

D
A stock which trades on the NASD

Note: Answer not sure
1. Report
Question: What is meant by "day trading"?
A
Trading during market hours

B
Trading stocks on foreign markets

C
Purchasing stocks and selling them on the same day

D
Holding stocks for a short period of time, not more than a week

Note: Answer not sure
1. Report
Question: What is the duration of a market cycle?
A
One year

B
Depends on the product, market, economic situation, and cannot be stated

C
Limited to 10 years at the most

D
Typically two years

Note: Answer not sure
1. Report
Question: What is meant by using the straddle stock trading strategy?
A
Selling a call option and purchasing a put option

B
Purchasing two call options at different prices

C
Owning both call and put stock options at the same stock price

D
Purchasing two put options at different prices

Note: Answer not sure
1. Report

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Question: What happens to a stop loss order when the trigger price is reached?

Question: What is the purpose of a stop loss order?

Question: What form of analysis would a "Value Investor" utilize to identify stock opportunities?

Question: When is the straddle trading strategy appropriate?

Question: Which of the following would be a good example of risk mitigation?

Question: What would a company at the peak of the business cycle consider doing?

Question: What is a "speculative stock"?

Question: What is meant by "day trading"?

Question: What is the duration of a market cycle?

Question: What is meant by using the straddle stock trading strategy?