Unit 16: Placing a Trade
A customer enters the following order: Sell 1,000 shares of XYZ at 23. Which of the following executions would the customer accept?
23.50
A buy stop order @ 39 could fill at which of the following prices?
38 39 40 41
If your client, Marvin Blackwell, places a sell stop order at 38 when ABC is trading at 40, at which of the following prices could the order be filled?
38 39 40 41
Your customer, Ellesha, places a sell stop at 50 on DEZ stock while it is trading at $53 per share. After the order is elected, Ellesha may sell her shares at which of the following prices?
$48 $49 $50 $51
Who must reconfirm a good-til-canceled order for it to stay in force more than six months?
The customer who placed the order
Which of the following would be required for a good-til-canceled order to remain in force for more than six months?
The customer would need to reconfirm the order
Your customer places an order to buy 500 shares of Narcissus, Inc., (the ticker is NCS) at $50 per share fill-or-kill (FOK). When the order is entered, there are 450 shares available at $50 per share. What happens to the order?
The order will be canceled and nothing is done.
An investor has her registered representative enter a sell stop limit order at 50. Following the order entry, trades occur at 52, 50, 49, 51, and 53. The investor would receive
51
Caleb McCann got a tip from his brother Nate on XYZ stock two months ago Caleb hasn't previously been investing in the stock market but has been watching this stock since he got the tip from his brother. Caleb is now very bullish on XYZ and wants to place a trade. Which of the following would you recommend?
Buy XYZ to open a long position
Caleb McCann got a tip from his brother Nate on XYZ stock two months ago. Caleb hasn't previously been investing in the stock market but has been watching this stock since he got the tip from his brother. Caleb is now very bullish on XYZ and wants to place a trade. Which of the following would you recommend?
Buy XYZ to open a long position
Narcissus, Inc., a social media company, has shares selling at $52. Your customer likes the company but thinks it is currently a bit too high and would like to buy the stock if the price declines to $50 per share. Which of the following orders meets this customer's request?
Buy limit @ 50
Which of the following best describes how a market order to buy would fill if placed when the market price of the stock was at 40?
The next available price
Which of the following best describes how a market order to sell would fill if placed when the price of the stock is a 40?
The next available price
Which of the following best describes how a sell stop at 39 order would be filled?
The next available price after the market price falls to 39.
Which of the following best describes how a buy stop @ 39 would fill?
The next available price after the market price rises to 39
Which of the following best describes how a buy stop at 39 would fill?
The next available price after the market price rises to 39
John Christensen places a buy limit order at 42 when the market price of the stock is at 45. Which of the following best describes how the order would fill?
The order can only be filled at a price of 42 or lower
John Bourne places a buy limit order at 42 when the market price of the stock is at 45. Which of the following best describes how the order would fill?
The order can only be filled at a price of 42 or lower.
A GTC order is left unexecuted at the end of the trading day on the last business day of April. Which of the following is true?
The order will be automatically canceled.
Your customer is quite nervous about the stock market but expresses his belief that equities are still the place to save for retirement over the long term. He places a trade for 500 shares of an equity index fund. Overall your customer is likely
a bull.
Narcissus, Inc., a social media company, has shares selling at $50. Your customer is bearish. He would like to sell the stock short, but not until it retreats at least 10% from its current price. In order to catch the drop he could
enter a sell short at stop 45.
An order that when triggered becomes a market order is called a
stop order.
A bearish sentiment means that a person believes
the security will decline in value.
How long can a good 'til canceled order remain in force without being reconfirmed by the customer?
6 months
How long can a good-til-canceled order remain in force without being reconfirmed by the customer?
6 months
Your client, Mary Quinn, wants to place an order to sell a stock in her portfolio when the current price is 45, but she is only willing to sell if she can sell for at least 47. Which order should she place?
A sell limit order
Your client, Quinn, wants to place an order to sell a stock in her portfolio when the current price is 45, but she is only willing to sell if she can sell for at least 47. Which order should she place?
A sell limit order
A customer enters the following order: Sell 1,000 shares of XYZ at 23. Which of the following executions would the customer accept?
A) 22.90 B) 23.50 C) 22.50 D) 21.25
A client entering a sell limit order at 43 would accept which of these trades?
A) 42.50 B) 42.90 C) 44 D) 42
Which of the following orders need not be immediately filled in their entirety?
Immediate or cancel (IOC) | Buy stop limit
A market order to buy must be executed when and at what available price?
Immediately, at the lowest
Your client Alice Tate with no other positions in her margin account is bearish on ABC stock. Which of the following transactions would you recommend?
Sell ABC to open
Your client, Alice Tate, with no other positions in her margin account, is bearish on ABC stock. Which of the following transactions would you recommend?
Sell ABC to open
Your client Mrs. Bourne has owned has owned QRS for a few years but has now turned bearish on QRS. Which transaction would you recommend?
Sell QRS to close
The market for Dizzy Rides Inc., is at $52 per share. Your customer would like to sell his shares for $55, and believes the stock will climb to that level in the next two to three weeks. What order should he place?
Sell limit 55 GTC
