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






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






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






4. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






5. A market characterized by rising prices for securities






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






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






8. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more






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






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






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






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






13. Equity financing for nonpublic companies






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






15. New York Stock Exchange






16. Financing for new - often high-risk ventures






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






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






19. Amount that you invest in securities






20. Equity financing for nonpublic companies






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






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






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






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






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






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






27. 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






28. 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






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






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






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






32. 1. at least 2200 shareholders and average monthly trading volume for the most recent six months must be at least 100000 shares 2. at least 1.1 million stocks shares in public hands 3. must be at $100 million in market value ($60 million for IPOS) 4.






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






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






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






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






37. Also known as secondary and follow-on offering






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






39. A market characterized by falling prices for securities






40. Another name for IPO - b/c shares are not available to the public before the IPO






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






42. When issuer sells the entire issue to the underwriters






43. American Stock Exchange






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






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






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






47. 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)






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






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






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