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Test your basic knowledge |
Stock Market Basics
Start Test
Study First
Subjects
:
industries
,
business-skills
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. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
Stock broker
Fund manager
unseasoned equity offering
OTC [Over-the-counter]
2. Equity financing for nonpublic companies
IPO [Initial Public Offering]
venture capital VC
private equity
Limit order
3. A preliminary prospectus among investor to generate interest in the stock offering
dutch auction underwriting
Stock
limit v. stop orders
red herring
4. Underwriter doesn't guarantee any particular amount of money to the issuer
Mutual fund
Dow Jones idustrial average
best efforts underwriting
general cash offer
5. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system
rights offer
NASDAQ
Discount broker
NYSE v. NASDAQ
6. Once the stock price reaches the preset stop price the order is converted ito a limit order
stop-limit order
syndicate
NASDAQ
over-the counter market
7. When issuer sells the entire issue to the underwriters
Penny stock
third market v. fourth market
firm commitment underwriting
Bear market
8. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
over-the counter market
red herring
dutch auction underwriting
dealer v. broker
9. A group of underwriters formed to share the risk and to help sell an issue
Market order
Stock split
syndicate
Fund manager
10. An order to a broker to sell or buy stocks or commodities at the prevailing market price
general cash offer
Market order
stop-sell v. stop-buy
Stock broker
11. 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
Preferred Stock
Ticker
Stop order
stop-sell v. stop-buy
12. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
Stock
NYSE minimum requirements
Stop order
bid v. ask
13. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
Fund manager
Portfolio
seasoned equity offering (SEO)
Dividend
14. Also known as secondary and follow-on offering
seasoned equity offering (SEO)
Fund manager
dealer v. broker
No-load
15. Securities or SEO offered to the public on a first-come first serve basis
OTC [Over-the-counter]
best efforts underwriting
Limit order
general cash offer
16. Price/earnings
NYSE Hybrid Market
third market v. fourth market
seasoned equity offering (SEO)
P / E
17. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
Potential loss
Discount broker
dutch auction underwriting
Mutual fund
18. Underwriter doesn't guarantee any particular amount of money to the issuer
best efforts underwriting
over-the counter market
limit v. stop orders
bid v. ask
19. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
seasoned equity offering (SEO)
Limit order
Preferred Stock
Potential loss
20. 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)
AMEX
Stock split
third market v. fourth market
NYSE minimum requirements
21. A person who buys or sells stocks for another in exchange for a commission
Stock broker
Penny stock
Market order
NYSE v. NASDAQ
22. Mutual fund in which shares are sold without a commission or sales charge
P / E
No-load
dealer v. broker
Securities
23. American Stock Exchange
Stock broker
dutch auction underwriting
AMEX
Penny stock
24. New York Stock Exchange
NYSE
syndicate
stop-sell v. stop-buy
Stock broker
25. The market in which securities that are not listed on exchanges are traded
Portfolio
bid v. ask
Stock
OTC [Over-the-counter]
26. A list of the financial assets held by an individual or a bank or other financial institution
Common stock
Net change
Appreciation
Portfolio
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
OTC [Over-the-counter]
venture capital VC
Blue chip stock
NYSE Hybrid Market
28. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
Securities
rights offer
three ways of the secondary market
Blue chip stock
29. A market characterized by rising prices for securities
Stock split
NYSE
Bull market
AMEX
30. A measure of stock market prices based on thirty leading companies of the new york stock exchange and nasdaq
Dow Jones idustrial average
stop-sell v. stop-buy
prospectus
firm commitment underwriting
31. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
three ways of the secondary market
electronic communications networks (ECNs)
Penny stock
Stock split
32. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
Stop order
dealer v. broker
NYSE Hybrid Market
seasoned equity offering (SEO)
33. Difference between closing price of previous day and current day
prospectus
Dow Jones idustrial average
Net change
Discount broker
34. That part of the earnings of a corporation that is distributed to its shareholders
Bull market
over-the counter market
stop-limit order
Dividend
35. Amount that you invest in securities
Appreciation
Bull market
NYSE v. NASDAQ
Potential loss
36. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
Preferred Stock
Stock
Common stock
NYSE
37. Financing for new - often high-risk ventures
syndicate
venture capital VC
dutch auction underwriting
bid v. ask
38. Mutual fund in which shares are sold without a commission or sales charge
over-the counter market
electronic communications networks (ECNs)
unseasoned equity offering
No-load
39. A stock selling for less that $1/share; usually high risk
OTC [Over-the-counter]
AMEX
Penny stock
best efforts underwriting
40. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
Blue chip stock
Stop order
OTC [Over-the-counter]
three ways of the secondary market
41. Securities initially offered only to existing owners
dealer v. broker
Portfolio
Penny stock
rights offer
42. 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)
NASDAQ
Dividend
Blue chip stock
Stock split
43. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
Discount broker
Ticker
prospectus
private equity
44. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
Bear market
Discount broker
Dividend
Blue chip stock
45. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval
Market order
Stop order
prospectus
general cash offer
46. A stock selling for less that $1/share; usually high risk
Penny stock
dealer v. broker
stop-sell v. stop-buy
Potential loss
47. 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
Penny stock
Bull market
third market v. fourth market
NYSE
48. Once the stock price reaches the preset stop price the order is converted ito a limit order
Net change
IPO [Initial Public Offering]
stop-limit order
Appreciation
49. A computerized data system to provide brokers with price quotations for securities traded over the counter
Mutual fund
Common stock
NYSE
NASDAQ
50. The market in which securities that are not listed on exchanges are traded
AMEX
Net change
OTC [Over-the-counter]
unseasoned equity offering