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






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






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






5. American Stock Exchange






6. 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






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






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






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






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






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






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






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






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






15. Securities initially offered only to existing owners






16. Also known as secondary and follow-on offering






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






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






19. A market characterized by falling prices for securities






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






21. 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






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






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






24. Financing for new - often high-risk ventures






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






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






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






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






29. 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






30. Equity financing for nonpublic companies






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






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






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






34. Amount that you invest in securities






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






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






37. A market characterized by rising prices for securities






38. Buying a stock at a price you set






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






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






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






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






43. 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.






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






45. When issuer sells the entire issue to the underwriters






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






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






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






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






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