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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. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system
Ticker
third market v. fourth market
general cash offer
NYSE v. NASDAQ
2. A computerized data system to provide brokers with price quotations for securities traded over the counter
P / E
NASDAQ
Stock split
prospectus
3. The most basic form of ownership - including voting rights on major issues - in a company
Bond
Common stock
Bond
Market order
4. A person who buys or sells stocks for another in exchange for a commission
Bear market
seasoned equity offering (SEO)
Stock broker
Dow Jones idustrial average
5. American Stock Exchange
AMEX
general cash offer
Stock broker
NYSE v. NASDAQ
6. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
Potential loss
private equity
Net change
Ticker
7. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
Blue chip stock
seasoned equity offering (SEO)
Dow Jones idustrial average
Securities
8. An order to a broker to sell or buy stocks or commodities at the prevailing market price
Market order
P / E
OTC [Over-the-counter]
third market v. fourth market
9. A market characterized by rising prices for securities
Preferred Stock
Bull market
AMEX
Stock
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
NYSE
Portfolio
NASDAQ
NYSE Hybrid Market
11. An increase in price or value of a stock
NYSE minimum requirements
Preferred Stock
Appreciation
Discount broker
12. Also known as uniform price auction b/c all successful bidders pay the same price
prospectus
dutch auction underwriting
No-load
bid v. ask
13. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
Bond
Potential loss
third market v. fourth market
Securities
14. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
general cash offer
P / E
over-the counter market
Bear market
15. That part of the earnings of a corporation that is distributed to its shareholders
Market order
NASDAQ
NASDAQ
Dividend
16. 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)
over-the counter market
stop-limit order
Stock split
Blue chip stock
17. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
Common stock
Preferred Stock
OTC [Over-the-counter]
NYSE Hybrid Market
18. Price/earnings
P / E
best efforts underwriting
firm commitment underwriting
Securities
19. Securities or SEO offered to the public on a first-come first serve basis
general cash offer
seasoned equity offering (SEO)
best efforts underwriting
Blue chip stock
20. Also known as secondary and follow-on offering
seasoned equity offering (SEO)
NYSE Hybrid Market
bid v. ask
Bear market
21. Bid- price dealer is willing to pay - ask- price dealer will sell at
Stop order
Portfolio
bid v. ask
stop-limit order
22. 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
third market v. fourth market
NASDAQ
syndicate
firm commitment underwriting
23. 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
syndicate
OTC [Over-the-counter]
private equity
24. Financing for new - often high-risk ventures
NASDAQ
venture capital VC
Bear market
NYSE minimum requirements
25. Securities or SEO offered to the public on a first-come first serve basis
private equity
general cash offer
unseasoned equity offering
Bull market
26. That part of the earnings of a corporation that is distributed to its shareholders
NASDAQ
bid v. ask
Dividend
Fund manager
27. Underwriter doesn't guarantee any particular amount of money to the issuer
best efforts underwriting
Discount broker
Preferred Stock
No-load
28. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
best efforts underwriting
Preferred Stock
Bond
Portfolio
29. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
Stock
private equity
P / E
NYSE v. NASDAQ
30. Buying a stock at a price you set
best efforts underwriting
Limit order
Discount broker
red herring
31. Financing for new - often high-risk ventures
venture capital VC
prospectus
NYSE
three ways of the secondary market
32. When issuer sells the entire issue to the underwriters
firm commitment underwriting
Fund manager
Net change
NASDAQ
33. 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 order
third market v. fourth market
Net change
bid v. ask
34. 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
red herring
P / E
Bear market
35. Bid- price dealer is willing to pay - ask- price dealer will sell at
Dividend
bid v. ask
Stop order
Limit order
36. A market characterized by falling prices for securities
Discount broker
Bear market
Dividend
dealer v. broker
37. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
prospectus
best efforts underwriting
Stock
NYSE v. NASDAQ
38. New York Stock Exchange
NYSE
NYSE v. NASDAQ
stop-limit order
private equity
39. A corporation's first offer to sell stock to the public
AMEX
red herring
IPO [Initial Public Offering]
electronic communications networks (ECNs)
40. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
Fund manager
general cash offer
Bear market
Dow Jones idustrial average
41. A list of the financial assets held by an individual or a bank or other financial institution
prospectus
Stock
Portfolio
three ways of the secondary market
42. The market in which securities that are not listed on exchanges are traded
over-the counter market
OTC [Over-the-counter]
Discount broker
Potential loss
43. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order
electronic communications networks (ECNs)
Bull market
limit v. stop orders
stop-sell v. stop-buy
44. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
venture capital VC
red herring
dealer v. broker
rights offer
45. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval
IPO [Initial Public Offering]
Net change
Stock split
prospectus
46. The market in which securities that are not listed on exchanges are traded
OTC [Over-the-counter]
electronic communications networks (ECNs)
NYSE v. NASDAQ
over-the counter market
47. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
over-the counter market
general cash offer
seasoned equity offering (SEO)
Net change
48. A group of underwriters formed to share the risk and to help sell an issue
Stock split
syndicate
dealer v. broker
dutch auction underwriting
49. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
rights offer
Fund manager
Dow Jones idustrial average
Blue chip stock
50. Mutual fund in which shares are sold without a commission or sales charge
Portfolio
unseasoned equity offering
No-load
Bull market