Use the key terms from to complete the following sentence:

A(n) ___________ is a request to buy or sell stock at a set price.

Answer the question to help you recall what you have read. If you cannot answer a question, read the related section again.

What is the NCUA? What does it do?

Answer the question to help you recall what you have read. If you cannot answer a question, read the related section again.

What is an IPO? What is its purpose?

Before buying stock in a company, investors should learn about the company, its history, and its outlook for the future. Work with a classmate to research a company that interests you.

Do research to learn all you can about the company. Look for information in magazine and newspaper articles and on the Internet. If possible, get a copy of the company’s annual report. Keep a record of the source information for all the articles you read, whether in print or online.

You plan to buy 35 shares of stock for $\$22.18$ per share. If you use a full-service broker, you must pay a 2 percent commission on the purchase price. You must also pay $\$10.00$ for an odd-lot sale and $\$15.00$ because this is a small purchase. What is the total amount you must pay? If you use a discount broker, you will pay a fee of $\$34.95$ for this odd lot purchase. You have already paid $\$100.00$ for an investing newsletter to help you decide which stock to buy. Which broker would you use and why?

Investors who sell stocks and bonds (except for retirement investment accounts) will need to fill out tax Form 1040. They will also need to complete Schedule D to find the amount of capital gain or loss on sales. If you buy and sell stocks using a broker, the broker should supply the information needed to prepare Schedule D.

Write your name and Social Security number on the first line of the form. If you do not have a Social Security number or want to keep your number private, use 000-22-1111 as the number.