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






2. When issuer sells the entire issue to the underwriters






3. 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






4. 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)






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






6. 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






7. 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






8. Buying a stock at a price you set






9. New York Stock Exchange






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






11. 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






12. Equity financing for nonpublic companies






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






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






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






16. Financing for new - often high-risk ventures






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






18. Equity financing for nonpublic companies






19. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval






20. Difference between closing price of previous day and current day






21. An increase in price or value of a stock






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






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






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






25. Amount that you invest in securities






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






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






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






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






30. A market characterized by falling prices for securities






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






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






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






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






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






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






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






38. American Stock Exchange






39. American Stock Exchange






40. An increase in price or value of a stock






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






42. Difference between closing price of previous day and current day






43. Price/earnings






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






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






46. When issuer sells the entire issue to the underwriters






47. A market characterized by rising prices for securities






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






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






50. 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.