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. Difference between closing price of previous day and current day






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






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






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






6. Securities initially offered only to existing owners






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






8. An increase in price or value of a stock






9. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






13. Equity financing for nonpublic companies






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






15. Amount that you invest in securities






16. 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






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






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






19. New York Stock Exchange






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






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






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






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






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






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






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






27. 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






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






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






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






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






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






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






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






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






36. Financing for new - often high-risk ventures






37. A market characterized by rising prices for securities






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






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






40. 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






41. Price/earnings






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






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






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






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






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






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






48. Equity financing for nonpublic companies






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






50. Buying a stock at a price you set