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Stock Market Basics

Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Buys & sells for clients at a reduced commission. They offer little or no investment advice.






2. An increase in price or value of a stock






3. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money






4. Also known as uniform price auction b/c all successful bidders pay the same price






5. A preliminary prospectus among investor to generate interest in the stock offering






6. Order to sell shares if the stock price falls to a specified stop price above the current stock price; also called stop-loss b/c it is usually intended to limit losses on a long position






7. A group of underwriters formed to share the risk and to help sell an issue






8. The most basic form of ownership - including voting rights on major issues - in a company






9. A division of shares of a company into a larger number of shares. (A 2 for 1 allows a shareholder to double the number of shares but worth one half of their previous value - like trading a $10 for 2 $5's)






10. For efficient trading - not used in 1. less liquid stocks 2. during the opening and close of trading sessions 3. during times of market duress






11. Amount that you invest in securities






12. An increase in price or value of a stock






13. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more






14. Trading that occurs off the exchange on which the security is listed and fourth market is the direct trading of exchange-listed securities maong investors






15. When issuer sells the entire issue to the underwriters






16. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level






17. That part of the earnings of a corporation that is distributed to its shareholders






18. A division of shares of a company into a larger number of shares. (A 2 for 1 allows a shareholder to double the number of shares but worth one half of their previous value - like trading a $10 for 2 $5's)






19. Also known as uniform price auction b/c all successful bidders pay the same price






20. A measure of stock market prices based on thirty leading companies of the new york stock exchange and nasdaq






21. A computerized data system to provide brokers with price quotations for securities traded over the counter






22. A corporation's first offer to sell stock to the public






23. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights






24. Once the stock price reaches the preset stop price the order is converted ito a limit order






25. Financing for new - often high-risk ventures






26. Securities or SEO offered to the public on a first-come first serve basis






27. Financing for new - often high-risk ventures






28. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;






29. Difference between closing price of previous day and current day






30. Also known as secondary and follow-on offering






31. Price/earnings






32. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)






33. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded






34. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more






35. An order to a broker to sell or buy stocks or commodities at the prevailing market price






36. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets






37. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval






38. Price/earnings






39. The market in which securities that are not listed on exchanges are traded






40. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level






41. Trading that occurs off the exchange on which the security is listed and fourth market is the direct trading of exchange-listed securities maong investors






42. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






43. A list of the financial assets held by an individual or a bank or other financial institution






44. American Stock Exchange






45. A computerized data system to provide brokers with price quotations for securities traded over the counter






46. A market characterized by rising prices for securities






47. Another name for IPO - b/c shares are not available to the public before the IPO






48. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;






49. Underwriter doesn't guarantee any particular amount of money to the issuer






50. That part of the earnings of a corporation that is distributed to its shareholders






Can you answer 50 questions in 15 minutes?



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