SIE Module 8 Test Bank

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1. Which one of the following statements is correct regarding bid and ask prices?

2. Which one of the following investments would most likely have the largest bid-ask spread?

3. Which one of the following statements is correct regarding types of securities orders?

4. Which one of the following type of securities orders would be executed regardless of the price of the security?

5. Which of the following statements is correct regarding types of stock market orders?

6. Which of the following statements is correct regarding types of stock market orders?

7. WasserCo Industries stock is trading at $50 per share. Sally would like to sell her 1,000 shares of the stock immediately at market price if the share price drops to $45 per share. Which one of the following orders would be most appropriate for Sally to place to satisfy her goals?

8. Joey wants to sell his 100 shares of URC Company stock if the price rises to $60 or higher. Currently, the stock is trading for $50 per share. Which one of the following orders would be most appropriate for Joey to place?

9. A client instructed her registered representative to purchase 1,000 shares of Smithco common stock at market price at whatever time the representative deems appropriate. Three weeks later, the registered representative executed a purchase order for 1,000 shares at the market price. Would this trade be considered a discretionary trade?

10. An investment adviser that wants to exercise discretionary authority over a client’s account must receive written approval from the client within how many business days after the first trade based on oral authority?