Course 1 – Beginner Foundation Exam

There is just one stock exchange where stocks can be bought and sold anywhere in the world.

Today, most stock market trades are executed electronically, and even the stocks themselves are almost always held in electronic form, not as physical certificates.

A market maker is:

The equity value of a company is described as being:

Only licensed investment professionals can buy and sell stocks.

A stock sale occurs when:

Each share of a company’s stock is considered to be a piece of ownership in that company.

You must be 18 years or older to open your own online brokerage account.

For a Pattern Day-Trading Account, online brokerages require a minimum fund

If Stock A has a bid x ask of $1.20 x $1.22, what type of buy order will guarantee execution?

Limit orders guarantee execution but not price.

If Stock A is currently trading at $1.09, and you place a Stop-on-Quote sell order at $1.00, what will happen when Stock A prints a trade at $1.00?

Trailing stop orders must be monitored and adjusted frequently to ensure best execution.

Which of the following is NOT something you should consider when choosing an online broker?

Which trading strategy relies on technical analysis the least?

A trader who buys Stock A and sells it four days later after catching a 20% gap up is implementing what trading strategy?

Scalping is a form of Day-Trading.

Which trading rule is NOT part of our Top 10 Trading Rules?

Which trading rule is NOT part of our Top 10 Trading Rules?

A good time to add to an existing position is when the price dips below your initial purchase price. You can pick up cheaper shares if this happens and lower your average price.

Volume spikes are key when confirming a breakout.

If you are implementing a Swing Trading strategy, it’s ok to use a quoting software with delayed quotes.

Entering a new position during lunchtime is a common mistake made by traders.

It’s good to trade as often as possible to practice placing different order types and getting comfortable with buying and selling stock.

Long-term investing and long-term swing trading are the only two trading strategies that should always know the earnings release schedule of the stocks they hold positions in.

If you are up 15%-20% on a position and volume is increasing, you should hold your entire position and look for a continuation move higher.

The market capitalization of a company is calculated by multiplying the total number of shares outstanding by:

Which of the following is NOT a common mistake made by traders?

You can greatly minimize your risk with an OTC or Pinksheet stock trading at $0.75 a share by setting a trailing stop loss.

If you only plan on holding a stock for one or two days, it’s not necessary to know when the company reports earnings.