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-Brokerage firms are not allowed to make specific buy or sell recommendations to

ID: 2810894 • Letter: #

Question

-Brokerage firms are not allowed to make specific buy or sell recommendations to their clients.


true or false

-Analytical information presents factual data on past performance while descriptive information presents current estimates of future projections.


true or false

-It is generally a good idea to use limit orders when purchasing IPOs online.


true or false

-Small investors normally have a negotiated commission schedule while large investors benefit from a fixed-commission schedule.

True or false

A margin account:

A.

can be opened by any investor who wants to purchase securities by charging them to his/her credit card.

B.

allows an investor to borrow one hundred percent of the cost of the securities purchased.

C.

allows an investor to borrow a portion of the purchase price at a reasonable rate of interest.

D.

is permitted only in wrap accounts.

A.

can be opened by any investor who wants to purchase securities by charging them to his/her credit card.

B.

allows an investor to borrow one hundred percent of the cost of the securities purchased.

C.

allows an investor to borrow a portion of the purchase price at a reasonable rate of interest.

D.

is permitted only in wrap accounts.

Explanation / Answer

Answer 1 :- False

Answer 2 :- False

Answer 3 :- True

Answer 4 :- True

Answer 5 :- (c)