Investing in Stocks Answers

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Broker P charges a commission of $8.50 for every ten shares of stock, and Broker Q charges a fee of $65.00 for every thousand dollars bought or sold. If stock in Ergar Appliances costs $18.75 per share and you buy 500 shares, which broker is the better deal, and by how much?

A
Broker Q will charge $375.35 less than Broker P.
B
Broker Q will charge $160.22 less than Broker P.
C
Broker P will charge $184.38 less than Broker Q.
D
Broker P will charge $425.00 less than Broker Q.
4

What is the SEC?

A
The largest stock exchange in North America
B
The margin of profit you gain from stock
C
The government agency which oversees the trading of stock
D
The total worth of your stock portfolio
10

What is a commission, as it relates to the stock market?

A
The act of making stock available to buy
B
A request to buy a specific kind of stock
C
Profit made from selling stock
D
A fee paid to a broker for making a trade

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