Test your basic knowledge |

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. 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






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






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






4. Bid- price dealer is willing to pay - ask- price dealer will sell at






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






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






7. Buying a stock at a price you set






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






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






10. New York Stock Exchange






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






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






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






14. Buying a stock at a price you set






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






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






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






18. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.






19. 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






20. Amount that you invest in securities






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






22. A market characterized by rising prices for securities






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






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






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






26. 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)






27. 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)






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






29. Securities initially offered only to existing owners






30. Equity financing for nonpublic companies






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






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. Financing for new - often high-risk ventures






34. When issuer sells the entire issue to the underwriters






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






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






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






38. An increase in price or value of a stock






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






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






41. Price/earnings






42. New York Stock Exchange






43. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






45. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system






46. When issuer sells the entire issue to the underwriters






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






48. An increase in price or value of a stock






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






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