SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order
seasoned equity offering (SEO)
limit v. stop orders
NYSE minimum requirements
Appreciation
2. The market in which securities that are not listed on exchanges are traded
Common stock
OTC [Over-the-counter]
Securities
best efforts underwriting
3. A stock selling for less that $1/share; usually high risk
third market v. fourth market
Penny stock
Potential loss
NASDAQ
4. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
Preferred Stock
three ways of the secondary market
stop-sell v. stop-buy
NYSE Hybrid Market
5. A market characterized by rising prices for securities
third market v. fourth market
bid v. ask
Bull market
Potential loss
6. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level
Preferred Stock
bid v. ask
Stop order
Common stock
7. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval
Dow Jones idustrial average
prospectus
Ticker
third market v. fourth market
8. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
third market v. fourth market
stop-sell v. stop-buy
IPO [Initial Public Offering]
Blue chip stock
9. The market in which securities that are not listed on exchanges are traded
syndicate
AMEX
Penny stock
OTC [Over-the-counter]
10. Mutual fund in which shares are sold without a commission or sales charge
stop-sell v. stop-buy
Portfolio
No-load
bid v. ask
11. Also known as uniform price auction b/c all successful bidders pay the same price
Limit order
dutch auction underwriting
Dow Jones idustrial average
syndicate
12. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
Stop order
NYSE
Stock split
Mutual fund
13. Equity financing for nonpublic companies
private equity
Market order
OTC [Over-the-counter]
best efforts underwriting
14. A preliminary prospectus among investor to generate interest in the stock offering
dutch auction underwriting
red herring
Mutual fund
venture capital VC
15. New York Stock Exchange
NYSE
AMEX
Mutual fund
third market v. fourth market
16. Financing for new - often high-risk ventures
OTC [Over-the-counter]
Penny stock
venture capital VC
P / E
17. A corporation's first offer to sell stock to the public
Potential loss
IPO [Initial Public Offering]
Discount broker
NYSE
18. Once the stock price reaches the preset stop price the order is converted ito a limit order
private equity
stop-limit order
third market v. fourth market
Dow Jones idustrial average
19. Amount that you invest in securities
dutch auction underwriting
seasoned equity offering (SEO)
Potential loss
general cash offer
20. Equity financing for nonpublic companies
private equity
venture capital VC
Appreciation
Stock broker
21. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
bid v. ask
Discount broker
Mutual fund
Blue chip stock
22. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
Net change
Bull market
firm commitment underwriting
Stock
23. Also known as uniform price auction b/c all successful bidders pay the same price
NASDAQ
Discount broker
dutch auction underwriting
Ticker
24. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
general cash offer
Potential loss
Preferred Stock
stop-limit order
25. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
Bond
syndicate
Potential loss
seasoned equity offering (SEO)
26. A group of underwriters formed to share the risk and to help sell an issue
Net change
syndicate
seasoned equity offering (SEO)
Dividend
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
Bond
NYSE Hybrid Market
Penny stock
Ticker
28. 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
seasoned equity offering (SEO)
third market v. fourth market
rights offer
OTC [Over-the-counter]
29. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
AMEX
seasoned equity offering (SEO)
Discount broker
P / E
30. Underwriter doesn't guarantee any particular amount of money to the issuer
Portfolio
Discount broker
best efforts underwriting
Stock broker
31. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
stop-limit order
Fund manager
syndicate
over-the counter market
32. 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.
Stock
private equity
NYSE minimum requirements
Securities
33. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
Preferred Stock
Stock broker
three ways of the secondary market
Securities
34. A list of the financial assets held by an individual or a bank or other financial institution
over-the counter market
Portfolio
stop-sell v. stop-buy
No-load
35. A corporation's first offer to sell stock to the public
IPO [Initial Public Offering]
Securities
Stop order
No-load
36. A stock selling for less that $1/share; usually high risk
Appreciation
Penny stock
NYSE
Limit order
37. Also known as secondary and follow-on offering
Blue chip stock
seasoned equity offering (SEO)
Preferred Stock
prospectus
38. Once the stock price reaches the preset stop price the order is converted ito a limit order
Bear market
Penny stock
Stock broker
stop-limit order
39. A market characterized by falling prices for securities
best efforts underwriting
Bear market
IPO [Initial Public Offering]
Market order
40. Another name for IPO - b/c shares are not available to the public before the IPO
unseasoned equity offering
IPO [Initial Public Offering]
Dividend
P / E
41. A list of the financial assets held by an individual or a bank or other financial institution
Stop order
prospectus
OTC [Over-the-counter]
Portfolio
42. When issuer sells the entire issue to the underwriters
Ticker
rights offer
firm commitment underwriting
three ways of the secondary market
43. American Stock Exchange
Dividend
electronic communications networks (ECNs)
AMEX
Discount broker
44. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system
NYSE v. NASDAQ
NYSE
Preferred Stock
venture capital VC
45. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
Discount broker
best efforts underwriting
Stock
Blue chip stock
46. A measure of stock market prices based on thirty leading companies of the new york stock exchange and nasdaq
Dow Jones idustrial average
bid v. ask
Fund manager
Common stock
47. 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)
third market v. fourth market
IPO [Initial Public Offering]
Stock split
over-the counter market
48. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
NYSE Hybrid Market
Stop order
Securities
private equity
49. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
over-the counter market
AMEX
Stock split
electronic communications networks (ECNs)
50. That part of the earnings of a corporation that is distributed to its shareholders
syndicate
Dividend
Discount broker
bid v. ask