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Test your basic knowledge |
Stock Market Basics
Start Test
Study First
Subjects
:
industries
,
business-skills
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. American Stock Exchange
stop-limit order
AMEX
general cash offer
dutch auction underwriting
2. A market characterized by falling prices for securities
Bear market
unseasoned equity offering
Bond
P / E
3. 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
limit v. stop orders
Common stock
third market v. fourth market
electronic communications networks (ECNs)
4. A computerized data system to provide brokers with price quotations for securities traded over the counter
No-load
venture capital VC
NASDAQ
third market v. fourth market
5. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
dealer v. broker
best efforts underwriting
Dow Jones idustrial average
Fund manager
6. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
Potential loss
OTC [Over-the-counter]
Bond
Discount broker
7. Difference between closing price of previous day and current day
Stock split
OTC [Over-the-counter]
Net change
Preferred Stock
8. A stock selling for less that $1/share; usually high risk
dealer v. broker
Portfolio
IPO [Initial Public Offering]
Penny stock
9. 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
best efforts underwriting
seasoned equity offering (SEO)
NYSE Hybrid Market
Dividend
10. 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
Mutual fund
best efforts underwriting
stop-sell v. stop-buy
OTC [Over-the-counter]
11. A person who buys or sells stocks for another in exchange for a commission
venture capital VC
NASDAQ
Potential loss
Stock broker
12. Amount that you invest in securities
prospectus
stop-limit order
Potential loss
rights offer
13. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
three ways of the secondary market
rights offer
prospectus
Bear market
14. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
dealer v. broker
IPO [Initial Public Offering]
Blue chip stock
third market v. fourth market
15. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
Securities
Ticker
best efforts underwriting
NYSE minimum requirements
16. The most basic form of ownership - including voting rights on major issues - in a company
Bond
Bear market
Limit order
Common stock
17. Bid- price dealer is willing to pay - ask- price dealer will sell at
unseasoned equity offering
stop-sell v. stop-buy
bid v. ask
general cash offer
18. Also known as uniform price auction b/c all successful bidders pay the same price
Bull market
dutch auction underwriting
Mutual fund
venture capital VC
19. Bid- price dealer is willing to pay - ask- price dealer will sell at
Blue chip stock
bid v. ask
Stock
No-load
20. Also known as uniform price auction b/c all successful bidders pay the same price
Limit order
Bull market
NYSE
dutch auction underwriting
21. Equity financing for nonpublic companies
private equity
unseasoned equity offering
Blue chip stock
red herring
22. A person who buys or sells stocks for another in exchange for a commission
Common stock
Stock broker
IPO [Initial Public Offering]
Ticker
23. A computerized data system to provide brokers with price quotations for securities traded over the counter
NASDAQ
Securities
three ways of the secondary market
unseasoned equity offering
24. Difference between closing price of previous day and current day
Potential loss
Net change
seasoned equity offering (SEO)
Penny stock
25. Once the stock price reaches the preset stop price the order is converted ito a limit order
stop-limit order
venture capital VC
NASDAQ
Mutual fund
26. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
No-load
Blue chip stock
OTC [Over-the-counter]
Bond
27. A market characterized by rising prices for securities
Bull market
private equity
Appreciation
No-load
28. Securities or SEO offered to the public on a first-come first serve basis
firm commitment underwriting
Discount broker
rights offer
general cash offer
29. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
Fund manager
Ticker
red herring
Dividend
30. Securities initially offered only to existing owners
Stock split
rights offer
private equity
Potential loss
31. Financing for new - often high-risk ventures
NYSE Hybrid Market
venture capital VC
Bear market
seasoned equity offering (SEO)
32. An order to a broker to sell or buy stocks or commodities at the prevailing market price
Penny stock
Common stock
Market order
dealer v. broker
33. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
third market v. fourth market
Dow Jones idustrial average
NYSE v. NASDAQ
Mutual fund
34. Underwriter doesn't guarantee any particular amount of money to the issuer
bid v. ask
over-the counter market
P / E
best efforts underwriting
35. Mutual fund in which shares are sold without a commission or sales charge
Discount broker
No-load
Common stock
third market v. fourth market
36. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order
Dow Jones idustrial average
dutch auction underwriting
limit v. stop orders
Dividend
37. A corporation's first offer to sell stock to the public
IPO [Initial Public Offering]
prospectus
dealer v. broker
over-the counter market
38. A market characterized by rising prices for securities
Bear market
third market v. fourth market
Bull market
Stop order
39. The market in which securities that are not listed on exchanges are traded
Preferred Stock
OTC [Over-the-counter]
seasoned equity offering (SEO)
three ways of the secondary market
40. A market characterized by falling prices for securities
Portfolio
bid v. ask
seasoned equity offering (SEO)
Bear market
41. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
over-the counter market
Ticker
stop-sell v. stop-buy
syndicate
42. The most basic form of ownership - including voting rights on major issues - in a company
Bull market
Discount broker
Common stock
syndicate
43. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
No-load
best efforts underwriting
Potential loss
Fund manager
44. 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)
Dow Jones idustrial average
third market v. fourth market
stop-sell v. stop-buy
Stock split
45. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level
Stop order
dealer v. broker
dealer v. broker
Stock split
46. A list of the financial assets held by an individual or a bank or other financial institution
NYSE
Portfolio
Appreciation
prospectus
47. Price/earnings
IPO [Initial Public Offering]
P / E
electronic communications networks (ECNs)
syndicate
48. When issuer sells the entire issue to the underwriters
limit v. stop orders
three ways of the secondary market
Stock split
firm commitment underwriting
49. That part of the earnings of a corporation that is distributed to its shareholders
Dividend
Dow Jones idustrial average
firm commitment underwriting
Ticker
50. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
NYSE Hybrid Market
No-load
electronic communications networks (ECNs)
dealer v. broker