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. Financing for new - often high-risk ventures






2. Financing for new - often high-risk ventures






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






4. 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.






5. Securities initially offered only to existing owners






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






7. 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.






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






9. Equity financing for nonpublic companies






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






11. New York Stock Exchange






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






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






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






16. Price/earnings






17. Also known as secondary and follow-on offering






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






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






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






21. 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






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






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






24. Price/earnings






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






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






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






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






30. 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






31. Amount that you invest in securities






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






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






34. 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






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






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






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






38. Amount that you invest in securities






39. 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






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






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






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






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






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






45. 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






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






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






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






49. Also known as secondary and follow-on offering






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