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






2. Also known as secondary and follow-on offering






3. Price/earnings






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






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






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






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






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






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






10. A market characterized by falling prices for securities






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






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






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






14. American Stock Exchange






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






16. New York Stock Exchange






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






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






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






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






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






22. When issuer sells the entire issue to the underwriters






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






24. Equity financing for nonpublic companies






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






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






27. Also known as secondary and follow-on offering






28. 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






29. Buying a stock at a price you set






30. A market characterized by rising prices for securities






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






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






33. American Stock Exchange






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






35. Securities initially offered only to existing owners






36. Equity financing for nonpublic companies






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






38. An increase in price or value of a stock






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






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






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






42. Securities initially offered only to existing owners






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






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






45. 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.






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






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






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






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






50. A market characterized by rising prices for securities