Podcast
Questions and Answers
Most brokers charge higher commissions for online trades than for telephone transactions.
Most brokers charge higher commissions for online trades than for telephone transactions.
False (B)
Online trading has greatly lowered the cost of buying and selling stock and has greatly increased the speed of transactions.
Online trading has greatly lowered the cost of buying and selling stock and has greatly increased the speed of transactions.
True (A)
For most stocks, charts and tables of historical prices are only available through subscription services.
For most stocks, charts and tables of historical prices are only available through subscription services.
False (B)
You can utilize the internet to develop financial plans and goals, analyze and select individual investments and organize your portfolio.
You can utilize the internet to develop financial plans and goals, analyze and select individual investments and organize your portfolio.
An investor who mistakenly buys the wrong stock because the symbols are similar has 24 hours to undo the trade.
An investor who mistakenly buys the wrong stock because the symbols are similar has 24 hours to undo the trade.
The tools and calculators available on the FINRA website are useful, but quite expensive to use.
The tools and calculators available on the FINRA website are useful, but quite expensive to use.
The cost of using industry-sponsored websites such as FINRA usually exceeds the benefits for small investors.
The cost of using industry-sponsored websites such as FINRA usually exceeds the benefits for small investors.
What are some of the tools available to investors on the internet? (Name at least 4.)
What are some of the tools available to investors on the internet? (Name at least 4.)
Analytical information would include information such as estimates of growth in sales and future earnings.
Analytical information would include information such as estimates of growth in sales and future earnings.
Reviewing industry and company information may provide guidance on the future outlook of a particular firm.
Reviewing industry and company information may provide guidance on the future outlook of a particular firm.
A listing of a firm's major product lines and projections of future sales would both be considered descriptive information.
A listing of a firm's major product lines and projections of future sales would both be considered descriptive information.
Descriptive information might include the company's lines of business, a list of major competitors, and recent changes in management.
Descriptive information might include the company's lines of business, a list of major competitors, and recent changes in management.
Current price information on shares of a company's stock is often accompanied by statistics on the recent price behaviour of that stock.
Current price information on shares of a company's stock is often accompanied by statistics on the recent price behaviour of that stock.
Investors who are aware of current economic, political, and market events tend to make better investment decisions.
Investors who are aware of current economic, political, and market events tend to make better investment decisions.
Often, on short-term trades of less than one year, you'll pay taxes on profits at the higher ordinary income tax rates, not the lower capital gains rate.
Often, on short-term trades of less than one year, you'll pay taxes on profits at the higher ordinary income tax rates, not the lower capital gains rate.
Investors can usually find the financial statements of a firm on the firm's website.
Investors can usually find the financial statements of a firm on the firm's website.
A "pump and dump" scheme involves buying shares of stock, hyping that stock via the internet and then quickly selling the shares at a profit.
A "pump and dump" scheme involves buying shares of stock, hyping that stock via the internet and then quickly selling the shares at a profit.
An index measures the current value of a group of stocks in relation to a base value established previously.
An index measures the current value of a group of stocks in relation to a base value established previously.
All the Standard & Poor's indexes are based on the total market values of the companies rather than on the price of a single share.
All the Standard & Poor's indexes are based on the total market values of the companies rather than on the price of a single share.
The Dow Jones Corporate Bond Index and the Dow Jones Industrial Average are both price-weighted averages whose divisors are adjusted periodically to maintain continuity.
The Dow Jones Corporate Bond Index and the Dow Jones Industrial Average are both price-weighted averages whose divisors are adjusted periodically to maintain continuity.
Standard & Poor's and Mergent both publish extensive data on bonds.
Standard & Poor's and Mergent both publish extensive data on bonds.
In addition to the Dow Jones Industrial Average, the Standard & Poor's 500 and NASDAQ indexes are widely quoted measures of market performance.
In addition to the Dow Jones Industrial Average, the Standard & Poor's 500 and NASDAQ indexes are widely quoted measures of market performance.
The Value Line Index is a value-weighted index based on a small sample of the 1700 stocks covered by the Value Line investment reports.
The Value Line Index is a value-weighted index based on a small sample of the 1700 stocks covered by the Value Line investment reports.
The Dow-Jones Corporate Bond Index is entirely based on industrial firms....
The Dow-Jones Corporate Bond Index is entirely based on industrial firms....
An internet tool that selects stocks to meet specific criteria such as dividend payout or price-earnings ratio is known as a(n)
An internet tool that selects stocks to meet specific criteria such as dividend payout or price-earnings ratio is known as a(n)
Which of the following actions are possible on the internet?
Which of the following actions are possible on the internet?
Individuals can now use the internet to buy and sell
Individuals can now use the internet to buy and sell
Information that can be found on the internet at no cost includes
Information that can be found on the internet at no cost includes
Which of the following can be considered a pitfall for investors new to on-line trading?
Which of the following can be considered a pitfall for investors new to on-line trading?
Charting is the technique of
Charting is the technique of
Which of the following types of information is NOT available from printed publications?
Which of the following types of information is NOT available from printed publications?
Which of the following is a general rather than a financial newspaper?
Which of the following is a general rather than a financial newspaper?
Which of the following is published by the Canadian Government?
Which of the following is published by the Canadian Government?
The FD in Regulation FD refers to
The FD in Regulation FD refers to
Which of the following websites facilitates the review of financial information in a Canadian company's financial reports?
Which of the following websites facilitates the review of financial information in a Canadian company's financial reports?
Which of the following is usually available on a company's website?
Which of the following is usually available on a company's website?
The published analysis and recommendations of an individual brokerage firm is called a
The published analysis and recommendations of an individual brokerage firm is called a
Assume you wanted to find the most current price for Home Depot's stock. Your most likely source would be
Assume you wanted to find the most current price for Home Depot's stock. Your most likely source would be
Recommendations of "strong buy, buy, hold, reduce, sell" are most likely to be found in
Recommendations of "strong buy, buy, hold, reduce, sell" are most likely to be found in
Subscription letters are
Subscription letters are
Which of the following sites is especially valuable for information concerning mutual funds?
Which of the following sites is especially valuable for information concerning mutual funds?
Supersites that accumulate tremendous amounts of investing information that typically includes price history, investment screening tools and other personal finance features are known as
Supersites that accumulate tremendous amounts of investing information that typically includes price history, investment screening tools and other personal finance features are known as
Which of the following services provides bond ratings?
Which of the following services provides bond ratings?
Flashcards
Online Trading
Online Trading
Buying and selling stocks, bonds, and other securities through the internet.
Commission
Commission
A fee charged by a broker for executing a trade.
Online Screener
Online Screener
An internet tool that filters out investments based on specific criteria.
Financial Portal
Financial Portal
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Analytical Information
Analytical Information
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Descriptive Information
Descriptive Information
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Index
Index
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Charting
Charting
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Subscription Service
Subscription Service
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Financial Newspaper
Financial Newspaper
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Regulation FD
Regulation FD
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Financial statement
Financial statement
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Website
Website
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Pump and dump
Pump and dump
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Brokerage Report
Brokerage Report
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Online Tools
Online Tools
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Capital Gain
Capital Gain
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Ordinary Income
Ordinary Income
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Index
Index
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Company Website
Company Website
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Price-Weighted Average
Price-Weighted Average
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Value-Weighted Average
Value-Weighted Average
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Market Capitalization
Market Capitalization
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Dividend
Dividend
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Dow Jones Industrial Average (DJIA)
Dow Jones Industrial Average (DJIA)
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Standard & Poor's 500 (S&P 500)
Standard & Poor's 500 (S&P 500)
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NASDAQ Composite
NASDAQ Composite
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Value Line Investment Survey
Value Line Investment Survey
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Financial News Sites
Financial News Sites
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Comparative Data Sources
Comparative Data Sources
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Supersites
Supersites
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Bond Rating
Bond Rating
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Standard & Poor's (S&P)
Standard & Poor's (S&P)
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Moody's Corporation
Moody's Corporation
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Canadian Economic Observer
Canadian Economic Observer
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Digital Investment Tools
Digital Investment Tools
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Industry and Company Information
Industry and Company Information
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Current Price Information
Current Price Information
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Price-Weighted Average Index
Price-Weighted Average Index
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Value-Weighted Average Index
Value-Weighted Average Index
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Study Notes
Online Investing Tools and Resources
- Online trading platforms have significantly reduced transaction costs and increased the speed of stock buying and selling
- Internet enables investors to develop financial plans, analyze investments, and manage portfolios
- Online tools such as stock screeners help select stocks based on criteria like dividend yield or price-to-earnings ratio
- Access to financial statements, historical data, and news for publicly traded companies is accessible online.
Online Investing Pitfalls
- Online investors may trade too frequently, which can negatively impact their returns
- Investors can still make errors in online trading if stock symbols are similar, requiring careful verification
Investing Information Sources
- Reliable online sources like FINRA websites offer tools and calculators beneficial for investors, though their cost-effectiveness needs consideration by small investors
- Online financial portals like Yahoo! Finance offer comprehensive investment tools and data for free
- Websites like Morningstar are useful for mutual fund information
- Subscription services provide in-depth reports on financial instruments, specific companies, and market trends
General Investing Information Sources
- Financial news sources (online and print) provide up-to-date information on economic and market events, beneficial for informed investment decisions
- Company websites contain useful financial data, including annual reports and recent news, helping investors assess a company's outlook
- "Pump and dump" schemes involve misleading information and quick stock sales to generate profit, a potential pitfall
Analyzing Investment Performance
- Charts and historical price data are important tools for stock analysis, available widely on the internet
- Analyzing current economic, political, and market conditions aid sound investment decisions
- In short-term trades (under a year), profits are typically taxed as ordinary income, not at the lower capital gains rates
- Comparing multiple sources for financial data and information benefits investors
Investment Data
- Indices measure stock groups' current value relative to a previous base value.
- Some prominent indexes like the Dow Jones Industrial Average, Standard & Poor's 500, and NASDAQ indexes are widely tracked metrics for market performance.
- Standard & Poor's and Mergent offer substantial bond information.
Financial Disclosure Regulations
- Regulation FD mandates fair disclosure of information to all investors.
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Description
Test your knowledge on online investing tools and resources, including various trading platforms and financial analysis methods. Learn about the potential pitfalls of online investing and discover reliable information sources. This quiz will help you navigate the complex world of online finance effectively.
