Which of the following indexes is the broadest measure of the market?

A. Value Line Index

B. New York Stock Exchange Composite Index

C. Wilshire Index

D. Standard and Poor's Composite Index

Answer: C. Wilshire Index

Which index is the narrowest measure of the market?

A. Wilshire Index

B. Value Line Index

C. NYSE Composite Index

D. Dow Jones Industrial Average

Answer: D. Dow Jones Industrial Average

Based on the information presented for both days, a technical analyst would conclude that the market:

A. is in a consolidation phase

B. breadth indicates a strong bullish trend

C. breadth indicates a strong bearish trend

D. is peaking and will soon enter a downturn

Answer: C. breadth indicates a strong bearish trend

The largest component of the Standard and Poor's 500 Average is the:

A. utilities

B. technology

C. consumer staples

D. industrials

Answer: B. Technology

A customer viewing virtual trading floor information on the NYSE Website notices that he can see most, but not all, of the stocks included in the Dow Jones Industrial Average, trading on the floor. The customer asks his registered representative why this is the case. The customer should be told that:

A. Of the 30 stocks included in a Dow Jones Industrial Average, a handful do not trade on the NYSE

B. The NYSE only includes the most actively traded Dow Jones Industrial Average stocks in the display

C. These are the companies that have not paid the NYSE to be included in the display

D. The companies that are not displayed have just announced significant news and trading has been halted in those issues until the news is disseminated

Answer: A. Of the 30 stocks included in a Dow Jones Industrial Average, a handful do not trade on the NYSE

Which of the following economic events would have a positive long term impact on common stock prices?

I Falling interest rates

II Falling capital gains tax rates

III Rising employment rates

IV Rising inflation rates

Answer: I, II, III