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. 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.






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






3. When issuer sells the entire issue to the underwriters






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






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






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






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






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






9. Amount that you invest in securities






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






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






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






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






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






15. An increase in price or value of a stock






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






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






18. A market characterized by falling prices for securities






19. A market characterized by rising prices for securities






20. Financing for new - often high-risk ventures






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






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






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






24. 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






25. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






26. 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






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






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






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






31. American Stock Exchange






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






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






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






35. Price/earnings






36. 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)






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






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






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






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






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






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






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






44. An increase in price or value of a stock






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






46. Price/earnings






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






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






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






50. 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)