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






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






3. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






4. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities






5. A market characterized by falling prices for securities






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






7. A person who buys or sells stocks for another in exchange for a commission






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






9. 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






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






11. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape






12. 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






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






14. Buying a stock at a price you set






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






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






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






18. 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






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






20. Also known as secondary and follow-on offering






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






22. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






24. A stock selling for less that $1/share; usually high risk






25. 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






26. Mutual fund in which shares are sold without a commission or sales charge






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






28. A person who buys or sells stocks for another in exchange for a commission






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






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






31. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example






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






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






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






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






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






37. American Stock Exchange






38. Securities initially offered only to existing owners






39. A market characterized by rising prices for securities






40. Price/earnings






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






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






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






44. An increase in price or value of a stock






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






46. When issuer sells the entire issue to the underwriters






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






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






49. A stock selling for less that $1/share; usually high risk






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