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Stock Market Basics

Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities






2. 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






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






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






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






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






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






8. An increase in price or value of a stock






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






10. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






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






15. Securities initially offered only to existing owners






16. New York Stock Exchange






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






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






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






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






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






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






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






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






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






26. Buying a stock at a price you set






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






28. 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






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






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






31. When issuer sells the entire issue to the underwriters






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






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






34. Amount that you invest in securities






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






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






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






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






39. Also known as secondary and follow-on offering






40. Equity financing for nonpublic companies






41. Securities initially offered only to existing owners






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






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






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






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






46. American Stock Exchange






47. Financing for new - often high-risk ventures






48. 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






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






50. New York Stock Exchange







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