Finance And Accounting

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
Question: What is day trading?
A
Trading stocks during the market hours

B
Trading at least 1 stock per day

C
Buying stocks using borrowed money

D
Buying and selling securities on the same day

Note: Answer not sure
1. Report
Question: What does algorithmic trading look to profit from?
A
From misinformation in news reports

B
From company financial statements

C
From misinforming other traders

D
From mistakes made during the previous trading day by other day traders

Note: Answer not sure
1. Report
Question: What would an investor infer from a stock price which has steadily risen for three days?
A
That someone inside the company is giving false news reports

B
That insiders are selling all of their stock

C
That short sellers are covering their positions

D
That the stock will most likely continue in this direction

Note: Answer not sure
1. Report
Question: What is "spread"?
A
The difference in price between the bid and ask amounts

B
The difference between opening and closing prices

C
The difference between the price of the same security on two markets

D
The difference between strike price and current price

Note: Answer not sure
1. Report
Question: What would be the exit point for an arbitrage trader?
A
Within one year

B
Within one week

C
None; transactions are done simultaneously both for entry and exit

D
Some time during the day when the other side of the transaction can be completed

Note: Answer not sure
1. Report
Question: Why do arbitrage opportunities seldom exist?
A
Because the SEC looks for them and fixes them before traders can profit

B
Because the profits are so small they are not worthwhile

C
Because the law of one price — supply and demand will close the gap quickly

D
Because they are illegal

Note: Answer not sure
1. Report
Question: What is short selling?
A
Selling less shares than you own

B
Selling a security before owning it, with the intent of later purchasing it at a lower price

C
Selling a stock for less than it is trading for

D
Creating a limit order for a lower price than the current market price

Note: Answer not sure
1. Report

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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?

Question: What is day trading?

Question: What does algorithmic trading look to profit from?

Question: What would an investor infer from a stock price which has steadily risen for three days?

Question: What is "spread"?

Question: What would be the exit point for an arbitrage trader?

Question: Why do arbitrage opportunities seldom exist?

Question: What is short selling?