QUESTION 1

1. Information that can be found on the Internet at no cost includes

I and IV only
II and III only
I, II and III only
I, II, III and IV

3 points
QUESTION 2
1. Margin trading will magnify losses on a percentage basis.

True

False

3 points
QUESTION 3
1. Justin just made a margin purchase of 100 shares of DEF Corp. for $22.50 per share. The
initial margin is 70%. The maintenance margin is 30%. How low can the price of each share
of DEF be before Justin will have to add equity to his account?
$9.64
$5.25
$6.75
$4.73

3 points
QUESTION 4
1. Jessica purchased 200 shares of stock at $38 using her 70% margin account. Her
maintenance margin is 40%. Jessica has no other securities in her account. At what price
will she receive a margin call?
$11.40
$7.60
$26.60
$19.00

3 points
QUESTION 5
1. Chemical Week and the Oil and Gas Journal are considered to be general business
periodicals.

True
 False

3 points
QUESTION 6
1. Which one of the following web sites should you utilize to review the financial information
in a company's 10-K report?
freeedgar.com
valueline.com
wsj.com
finance.yahoo.com

3 points
QUESTION 7
1. An act explicitly defining and prohibiting insider trading was passed in
1934.
1975.
1988.
2002.

3 points
QUESTION 8
1. The Consumer Financial Protection Agency was established by
The Securities Acts Amendments of 1975.
The Dodd-Frank Act of 2010.
Investment Company Act of 1940.
The Sarbanes-Oxley Act of 2002.

3 points
QUESTION 9
1. American investors can participate in international stock markets by
purchasing shares in a mutual fund that invests in foreign companies.
purchasing shares of a U.S. based company such as Coca Cola or McDonald's with
extensive international operations.
purchasing ADSs (American Depositary shares).
All of these.

3 points
QUESTION 10
1. The effects of fluctuating foreign exchange rates may
I and II only
I and III only
III and IV only
I, II, III and IV