Best describes the stock trading environment

Assignment Help Financial Management

Reference no: EM132071970

1. A trader wants to purchase Microsoft stock at $30.00 and no more. Microsoft's current price is $30.05. Which order is most appropriate for this trader?

Limit order

Stop-limit order

Market order

Stop order

2. Which of the following best describes the stock trading environment in the United States?

The NYSE dominates stock trading. Nasdaq is a distant second. No other major competitors exist.

The NYSE and Nasdaq dominate trading and have very little competition.

Alternative trading systems dominate leaving little role for the traditional exchanges like the NYSE or Nasdaq.

The NYSE and Nasdaq are leaders, but they face heavy competition from alternative trading systems and exchanges.

3. Which of the following represents an advantage of an ETF versus an open-end mutual fund?

ETFs often require a high initial investment, while mutual funds often require a low initial investment.

ETFs can invest in stocks all over the world. Mutual funds are restricted to investing in U.S. stocks only.

When trading an ETF, you know the price of the trade almost immediately. Mutual funds trade at prices determined at the end of the trading day.

ETFs can track an index like the S&P 500. Mutual funds cannot track indexes as they must be actively managed.

Reference no: EM132071970

Questions Cloud

Compute the internal rate of return for project : Compute the internal rate of return for a project that costs $50,000 and has a positive cash flow of $43,800 in the first year

Evaluate the quality improvement program : Based on what you have learned to this point in the course, evaluate the quality improvement program as it pertains to pressure ulcers at Lakeview.

Calculate project-specific cost of capital for firms : “It is argued that the capital asset pricing model can be used to calculate a project-specific cost of capital for firms.”

Organizations-organizational environment and culture : Discuss the types of organizations, Organizational Environment and Culture, with relevant examples.

Best describes the stock trading environment : Which of the following best describes the stock trading environment in the United States?

Have you identified a mentor : How do you go about building a strong Networking system with other professionals who can coach you and prepare you for a possible promotion?

Discuss types of abuse that are most often seen in this age : Child abuse and maltreatment is not limited to a particular age and can occur in the infant, toddler, preschool, and school-age years.

Explain the function of layer of the internet model : Specify the operating systems and application software required for data communication between the clients and servers for each department. Justify your answer.

Venture capitalist-backed firms are less likely to encounter : “Venture capitalist-backed (VC-backed) firms are less likely to encounter agency problems and financial difficulties than non-VC-backed firms”

User Account

All Pages