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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. 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






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






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






4. Equity financing for nonpublic companies






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






6. New York Stock Exchange






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






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






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






11. A market characterized by rising prices for securities






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






13. An increase in price or value of a stock






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






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






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






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






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






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






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






21. Securities initially offered only to existing owners






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






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






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






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






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






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






28. New York Stock Exchange






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






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






31. Amount that you invest in securities






32. 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






33. An increase in price or value of a stock






34. Also known as secondary and follow-on offering






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






36. Securities initially offered only to existing owners






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






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






39. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






42. Price/earnings






43. 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






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






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






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






47. Price/earnings






48. Buying a stock at a price you set






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






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






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