A Trading Rule Which Signals Purchase of a Stock If

question 9

Multiple Choice

A trading rule which signals purchase of a stock if it rises X percent and sale of a stock if it falls X percent is known as a

• A) Breakout.
• B) Short sale.
• C) Sieve.
• D) Filter.
• E) Relative strength.

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Definitions:

Federal Reserve Board

The governing body of the Federal Reserve System, responsible for overseeing the U.S. central banking system.

Government Securities

Financial instruments issued by a government to raise funds from the public, including bonds and treasury bills, with a promise to pay back with interest.

Securities

Assets that denote a share in the equity of a corporation available on the public market (stock), a lending agreement with a government or corporate body (bond), or ownership claims evidenced by an option.

New York Federal Reserve Bank

One of the 12 regional Reserve Banks in the Federal Reserve System, playing a key role in monetary policy, financial supervision, and the payment system.