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






2. When issuer sells the entire issue to the underwriters






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






4. Buying a stock at a price you set






5. Financing for new - often high-risk ventures






6. A market characterized by falling prices for securities






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






8. Amount that you invest in securities






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






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






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






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






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






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






15. Securities initially offered only to existing owners






16. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order






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






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






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






20. Price/earnings






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






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






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






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






25. Price/earnings






26. New York Stock Exchange






27. American Stock Exchange






28. Buying a stock at a price you set






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






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






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






32. Buys & sells for clients at a reduced commission. They offer little or no investment advice.






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






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






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






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






37. Equity financing for nonpublic companies






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






39. Also known as secondary and follow-on offering






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






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






42. Also known as secondary and follow-on offering






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






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






45. A market characterized by rising prices for securities






46. 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






47. New York Stock Exchange






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






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






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